Common use of Security Deposit Clause in Contracts

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit has deposited with Landlord the sum, if any, stated Security Deposit in Item 9 the amount set forth above for the performance of the Basic Lease Provisions, each and every covenant and agreement to be held performed by Landlord as security for the full and faithful performance of all of Tenant’s obligations Tenant under this Lease (the “Security Deposit”)Lease. Landlord shall have the right, but not be required to keep this Security Deposit separate from its general fundsthe obligation, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event in whole or in part as payment of Default and 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 rights and remedies resulting from an Event 's right to possession of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share the Property for non-payment of Operating Expenses rent or any other amount due to Landlord pursuant to this Lease, reason shall not be diminished or altered in any respect due to affected by the fact that Landlord holds security. Tenant's liability is holding not limited to the amount of the Security Deposit. If any portion 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 applied on account of maintenance, repairs or replacements necessitated by Landlord as permitted by this Sectiontenant, said notice shall include the estimated or actual cost of the same, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall within five (5) days after written demand by at once pay to Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amountin full. If Tenant fully performs its obligations under Upon termination of this Lease, full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the Property in accordance with Paragraph 15), the Security Deposit or any portion thereof remaining unapplied shall be returned to Tenant (orin accordance with applicable law. In the event of a sale, at Landlord’s optionlease, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration or other transfer of the TermBuilding, provided that Tenant agrees that Landlord may retain the transfer or assign said Security Deposit to the extent and until such time as Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord assumes all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Landlord's obligations hereunder, Tenant agrees that Tenant to look to such grantee, lessee or assignee solely for the return of said Security Deposit. The provisions hereof shall have no claim against Landlord for Landlord’s retaining such apply to each and every sale, lease or other transfer of the Building. The Security Deposit to shall not be deemed or construed as advance payment of rent for any month of the extent provided in this Sectionlease term.

Security Deposit. Concurrently with Tenant’s delivery A deposit (the "SECURITY DEPOSIT") in the form of cash or an unconditional, irrevocable $1,000,000.00 letter of credit issued by a national bank reasonably acceptable to LANDLORD, and in the form of EXHIBIT E attached hereto and incorporated herein by reference, shall be paid by TENANT within five (5) business days after execution of this Lease, Tenant Lease and shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord the holder of the first mortgage on the Building (the "SD HOLDER") without liability for interest and as security for the full performance by TENANT of TENANT's covenants and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general fundsLease, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, it being expressly understood that the Security Deposit shall not be understood considered an advance payment of rent or a measure of LANDLORD's damages in case of default by TENANT. The SD Holder shall provide TENANT with acknowledgement of the receipt thereof and agreed shall from time to be time, at TENANT's request, provide TENANT with information with respect to the status thereof. Notwithstanding the deposit of the Security Deposit with the SD Holder, LANDLORD shall retain all obligations with respect thereto set forth herein. In the event that cash is, at any time, held as the Security Deposit hereunder, the holder thereof shall hold such cash as trustee in a segregated account for the property for the benefit of Landlord upon Landlord’s receipt thereof, the TENANT subject only to the terms and may be utilized by Landlord in its sole and absolute discretion towards the payment provisions of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon the occurrence of any Event of Default under this Lease by Tenant (as defined in Section 14.1)TENANT, Landlord LANDLORD may, in its sole from time to time, without prejudice to any other remedy and absolute discretion, retainwithout prior notice, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any such portion of the Security Deposit as is applied necessary to make good any arrearages of any installment of Basic Annual Rent, additional rents, or other amounts or charges payable by Landlord TENANT hereunder, or any other damage, injury, expense, or liability caused to LANDLORD by such breach or default. For draws by LANDLORD for damage, injury, expense or liability other than failure by TENANT to pay Basic Annual Rent or additional rents, LANDLORD will not draw an amount in excess of $100,000.00 without five (5) business days notice to TENANT specifying the amount of the intended draw. At any time LANDLORD is holding cash as permitted the Security Deposit hereunder, TENANT shall have the right, in accordance with the terms hereof, to replace such cash with a letter of credit and upon such replacement, LANDLORD shall return the cash held to TENANT. If LANDLORD shall transfer its interest in the property, LANDLORD shall assign the Security Deposit to the transferee. At the end of every Lease Year, TENANT shall have the right to reduce the amount of cash by $100,000.00 or replace the letter of credit comprising the Security Deposit with a letter of credit in an amount reduced by $100,000.00, provided in either instance, at no time during the previous Lease Year has there been a Tenant Event of Default under this SectionLease. Following any application of the Security Deposit, Tenant if the Security Deposit is in the form of a letter of credit TENANT shall have issued to LANDLORD on demand a replacement letter of credit in the full amount of the letter of credit prior to LANDLORD's draw. Failure by TENANT to replace the letter of credit (i) in the full amount within ten (10) days of receipt by TENANT of notice of LANDLORD's draw or (ii) no later than five (5) days after written demand by Landlord deposit cash with Landlord prior to the stated expiration date, shall, in either instance, be an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations Event of Default under this Lease, and in the case the event described in (ii) occurs, shall permit LANDLORD to draw the entire amount of the letter of credit. Any balance of the Security Deposit remaining at the end of the term shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) TENANT within thirty (30) days after TENANT's compliance with each and every provision of Article 19 hereof. In the expiration event TENANT exercises its option to acquire all or part of the Termtenth floor, provided that Tenant agrees that Landlord may retain TENANT shall increase the Security Deposit by $1,000,000.00 (subject to reduction as set forth in Section 32.1) at the extent time of exercise of the option, and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such thereafter the annual reduction of the total Security Deposit shall continue to the extent provided in this Sectionbe $100,000.00.

Security Deposit. Concurrently Contemporaneously with Tenant’s delivery the execution of this Lease, Tenant shall deposit with pay to Landlord the sumSecurity Deposit, if any, stated in Item 9 of the Basic Lease Provisions, to which shall be held by Landlord as security for the full and faithful to secure Tenant’s performance of all of Tenant’s its obligations under this Lease Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (the “Security Deposit”as defined herein). Landlord shall not be required may, from time to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any time following an Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retainwithout prejudice to any other remedy, use all or apply the whole or any a part of the Security Deposit to pay perform any sum which obligation Tenant is obligated fails to pay under this Lease, sums that Landlord may expend or be required to expend by reason perform hereunder. Following any such application of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written pay to Landlord on demand by Landlord deposit cash with Landlord the amount so applied in an amount sufficient order to restore the Security Deposit to its original amount. If Provided that Tenant fully performs has performed all of its obligations under this Leasehereunder, the Security Deposit shall be returned to Tenant (orLandlord shall, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) 60 days after the expiration of the TermTerm and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, provided that return to Tenant agrees that the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax xxxx 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 transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the extent transferee and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant Landlord thereafter shall have no claim against further liability for the return of the Security Deposit. The rights and obligations of Landlord for Landlord’s retaining such Security Deposit and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the extent provided in this SectionSecurity Deposit.

Security Deposit. Concurrently Lessee has deposited with TenantLessor, and Lessor hereby acknowledges receipt of, Twenty One Thousand Two Hundred Seventv-Two and 76/100 Dollars ($21,272.76) (the "Security Deposit") which shall be held by Lessor, without accrual of interest, as security for the faithful performance by Lxxxxx of all of the terms of this Lease and not as an advance rent deposit or a measure of Lessor’s delivery damages in the case of Lxxxxx’s default. Such Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Lxxxxx without the express prior written consent of Lessor. If Lessee shall fail to perform any of the terms of this Lease, Tenant shall deposit with Landlord the sumthen Lessor, if any, stated in Item 9 of the Basic Lease Provisions, at its option and without prejudice to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest any other remedy which Lessor may have on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt account thereof, may appropriate and may be utilized by Landlord in its sole and absolute discretion towards the payment of apply all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit toward the payment of any Rent or additional sum due hereunder or to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer sustained by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount Lessor due to Landlord pursuant to this Lease, such breach on the part of Lessee; and Lessee shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written forthwith upon demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its the original amountsum deposited. If Tenant fully performs its obligations under Any funds paid by Lessee to Lessor as part of the Security Deposit or as a deposit or advance pursuant to the terms of this Lease, or any exhibit, addendum or modification hereto, may be commingled with other funds of Lessor and need not be placed in trust, deposited in escrow or otherwise held in a segregated account. Should Lessee comply with all of the terms hereof and promptly pay all of the rentals and all other sums payable by Lessee to Lessor as they become due, the Security Deposit shall be returned in full to Tenant (orLessee within 30 days after the end of the Term. In the event of a bankruptcy or other creditor/debtor proceeding against Lxxxxx, at Landlord’s option, the Security Deposit shall be deemed to be first applied to the last assignee payment of TenantRent and other charges due Lessor for all periods prior to the filing of such proceedings. Lessor may deliver the Security Deposit and any other deposit made hereunder by Lxxxxx to the purchaser of Lessor’s interest in this Lease) within thirty (30) days after the expiration all or any part of the Term, Project and thereupon Lessor shall be discharged from any further liability with respect to such deposit; provided that Tenant agrees that Landlord may retain the Security Deposit such successor has assumed all of Lessor’s responsibilities and duties hereunder in writing; and this provision shall also apply to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.any subsequent transferee of Lessor

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this LeaseLease including, but not limited to, sums that Landlord may reasonably expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) business days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined (which determination shall not be unreasonably withheld, conditioned or delayed) and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section. Provided that no Event of Default has theretofore occurred under any provision of this Lease, Tenant shall have the right to have the Security Deposit reduced to the amount of One Hundred Twenty-Three Thousand One Hundred Eight Dollars ($123,108.00) by sending written request thereof to Landlord, which request shall be accompanied by Tenant’s audited Statements demonstrating two (2) immediately prior consecutive years of positive net income for Tenant. Following such written request to Landlord, Tenant shall be credited in the amount of the difference between the amount of the Security Deposit stated in Item 9 of the Basic Lease Provisions and the reduced amount of Security Deposit set forth above, against Basic Rent and Operating Expenses next coming due under this Lease.

Security Deposit. Concurrently with Tenant’s delivery Tenant shall pay to Landlord, upon the execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated Security Deposit set forth in Item 9 of the Basic Lease Provisions, to be held by Landlord Article 1.13 above as security for the full and faithful performance by Tenant of all of Tenant’s its obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and which amount shall be returned to Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply after the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease, provided that Tenant shall have fully performed all of its obligations contained in this Lease. In no event shall The Security Deposit, at the election of Landlord, may be retained by Landlord as and for its full damages or may be obligated to apply applied in reduction of any loss and/or damage sustained by Landlord by reason of the Security Deposit upon an Event occurrence of Default and Landlord’s rights and remedies resulting from an Event any breach, nonperformance or default by Tenant under this Lease without the waiver of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due right or remedy available to Landlord pursuant to at law, in equity or under the terms of this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall shall, within five (5five(5) days after written demand by Landlord notice from Landlord, deposit cash with Landlord immediately available funds in an amount sufficient to restore the Security Deposit to its original amount, and Tenant's failure to do so shall be a breach of this Lease. If Tenant fully performs its acknowledges and agrees that in the event Tenant shall file a voluntary petition pursuant to the Bankruptcy Code, or if an involuntary petition is filed against Tenant pursuant to the Bankruptcy Code, then Landlord may apply the Security Deposit towards those obligations under of Tenant to Landlord which accrued prior to the filing of such petition. Tenant acknowledges further that the Security Deposit may be commingled with Landlord's other funds and that Landlord shall be entitled to retain any interest earnings on the Security Deposit. In the event of termination of Landlord's Interest in this Lease, the Security Deposit Landlord shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain transfer the Security Deposit to Landlord's successor in interest, and Landlord shall be released from liability by Tenant for the extent and until return of such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord deposit or for Landlord’s retaining such an accounting of the Security Deposit to the extent provided in this SectionDeposit.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit hereby deposits with Landlord the sumsum of $9,955.00 (hereinafter referred to as “Collateral”), if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the prompt, full and faithful performance by Tenant of each and every provision of this Lease and of all obligations of Tenant’s obligations under this Lease (Tenant hereunder. No interest shall be paid to Tenant on the “Security Deposit”). Collateral, and Landlord shall not be required have the right to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on commingle the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Collateral with Landlord’s receipt thereof, and may be utilized by Landlord in other funds. If Tenant fails to perform any of its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)obligations hereunder, Landlord maymay use, in its sole and absolute discretion, retain, use apply or apply retain the whole or any part of the Security Deposit to pay Collateral for the payment of (a) any rent or other sums of money which Tenant may not have paid when due, (b) any sum expended by Landlord on Tenant’s behalf in accordance with the provisions of this Lease, and/or (c) any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of Tenant’s default, including, without limitation, any damage or deficiency in or from the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration reletting of the Premises pursuant to Section 15.3 as provided in Paragraph 21. The use, application or retention of the Collateral, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease upon expiration or earlier termination of this Lease. In no event shall by law (it being intended that Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not first be diminished or altered in required to proceed against the Collateral) and shall not operate as a limitation on any respect due recovery to the fact that which Landlord is holding the Security Depositmay otherwise be entitled. If any portion of the Security Deposit Collateral is used, applied or retained by Landlord as permitted by this Sectionfor the purposes set forth above, Tenant shall Txxxxx agrees, within five (5) ten days after the written demand therefor is made by Landlord Landlord, to deposit cash with the Landlord in an amount sufficient to restore the Security Deposit Collateral to its original amount. If Tenant shall fully performs its obligations under and faithfully comply with all of the provisions of this Lease, the Security Deposit Collateral, or any balance thereof, shall be returned to Tenant (orwithout interest after the expiration of the Term or upon any later date after which Txxxxx has vacated the Premises. In the absence of evidence satisfactory to Landlord of any permitted assignment of the right to receive the Collateral, at Landlord’s optionor of the remaining balance thereof, Landlord may return the same to the last assignee original Tenant, regardless of one or more assignments of Tenant’s interest in this Lease) within thirty (30) days after Lease or the expiration Collateral. In such event, upon the return of the TermCollateral, provided or the remaining balance thereof to the original Tenant, Landlord shall be completely relieved of liability under this Paragraph 24 or otherwise with respect to the Collateral. Tenant acknowledges that Tenant Lxxxxxxx has the right to transfer or mortgage its interest in the Land and the Building and in this Lease and Txxxxx agrees that in the event of any such transfer or mortgage, Landlord may retain shall have the Security Deposit right to transfer or assign the Collateral to the extent and until transferee or mortgagee. Upon written acknowledgement of transferee’s or mortgagee’s receipt of such time as Collateral, Landlord shall thereby be released by Tenant from all amounts due from Tenant in accordance with this Lease have been determined and paid in full liability or obligation for the return of such Collateral and Tenant agrees that shall look solely to such transferee or mortgagee for the return of the Collateral. The Collateral shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant shall have no claim against Landlord for without the prior written consent of Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit has deposited or concurrently herewith is depositing with Landlord the sum, if any, stated sum set forth in Item 9 Article 1.F. of the Basic Lease Provisions, to be held by Landlord Provisions as security for the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant breaches any provision of this Lease, including but not limited to the payment of rent, Landlord may use all or any part of this security deposit for the payment of any rent or any other sums in default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s obligations 's default. If any portion of said deposit is so used or applied, Tenant shall, within five (5) days after written demand therefor, deposit funds with Landlord in a form acceptable under this Lease (Section 3(b) above and in an amount sufficient to restore the “Security Deposit”)security deposit to its full amount. Tenant agrees that Landlord shall not be required to keep this Security Deposit the security deposit in trust, segregate it or keep it separate from its Landlord's general funds, but Landlord may commingle the security deposit with its general funds and Tenant shall not be entitled to interest on such deposit. At the Security Deposit. Subject to expiration of the last sentence of this SectionTerm, and provided there exists no default by Tenant hereunder, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole security deposit or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to Tenant (or, at Landlord’s 's option, to Tenant's "Transferee", as such term is defined in Article 15 below), provided that subsequent to the last assignee expiration of Tenant’s interest in this Lease, Landlord may retain from said security deposit (i) an amount reasonably estimated by Landlord to cover potential Direct Cost reconciliation payments due with respect to the calendar year in which this Lease terminates or expires (such amount so retained shall not, in any event, exceed ten percent (10%) of estimated Direct Cost payments due from Tenant for such calendar year through the date of expiration or earlier termination of this Lease and any amounts so retained and not applied to such reconciliation shall be returned to Tenant within thirty (30) days after the expiration Landlord's delivery of the TermStatement 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 that to Tenant agrees under this Lease, to remove cabling and other items required to be removed by Tenant under Section 29(b) below and to repair any damage caused by such removal (in which case any excess amount so retained by Landlord shall be returned to Tenant within thirty (30) days after such removal and repair), and (iii) any and all amounts permitted by law or this Article 4. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code and all other provisions of law, now or hereafter in effect, which provide that Landlord may retain claim from a security deposit only those sums reasonably necessary to remedy defaults in the Security Deposit payment of rent, to repair damage caused by Tenant or to clean the extent Premises, it being agreed that Landlord may, in addition, claim those sums specified in this Article 4 above, and until such time as all amounts due from Tenant in accordance with of Landlord's damages under this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against California law including, but not limited to, any damages accruing upon termination of this Lease under Section 1951.2 of the California Civil Code and/or those sums reasonably necessary to compensate Landlord for Landlord’s retaining such Security Deposit to any other loss or damage, foreseeable or unforeseeable, caused by the extent provided in this Sectionacts or omissions of Tenant or any officer, employee, agent, contractor or invitee of Tenant.

Security Deposit. Concurrently with Tenant’s delivery Tenant will provide Landlord a security deposit through a local bank guarantee, letter of credit or cash deposit, equivalent to the amount of thirty thousand three hundred and fifteen dollars (US$ 30,544.13), an amount equivalent to one (1) month's rent at the moment of execution of this LeaseLease Agreement. After the Cold Shell Building is Substantially Completed, or, in the event the Improvements CMA is executed between the Tenant and Landlord, after the Cold Shell Building Improvements are Substantially Completed, Tenant shall deposit with will provide Landlord the sumsecurity deposit mentioned above in cash if such security deposit was provided to Landlord through a local bank guarantee at the execution of this Lease Agreement. Such security deposit shall serve as security for this Lease Agreement, if any, stated in Item 9 of the Basic Lease Provisions, to and such amount shall be held retained by Landlord as a security deposit for the full and faithful performance of all of Tenant’s obligations under purposes described in this Lease Agreement (the “Security "Deposit”"). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security The Deposit shall be understood and agreed serve as a guarantee to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards cover the payment of outstanding services, repairs and any other obligation derived from this Agreement and contractually or legally owed by Tenant, to the Landlord's satisfaction. The Landlord shall have the right, but not the obligation, to use the Deposit to settle due outstanding rent payments. Tenant authorizes Landlord to use the Deposit to cover the expenses of obtaining construction permits for additional construction works requested by Tenant, provided such permits are not included in either the Rent or the Service or Condominium Fee. If all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay were used by the Landlord for any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of aforementioned items, the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall have an obligation to reinstate the used amount within five (5) calendar days after written demand following notice of its use by Landlord deposit cash with Landlord the Landlord, unless such use is made upon termination of the lease, in an amount sufficient to restore which case the Security Deposit to its original amount. If Tenant fully performs its obligations under this Leaseremnant, the Security Deposit if any, shall be returned to Tenant (or, at Landlord’s option, by the Landlord to the last assignee of Tenant’s interest Tenant in this Lease) within the thirty (30) calendar days after following the expiration date on which this Agreement is terminated, provided Tenant presented evidence satisfactory to the Landlord, that all utilities bills corresponding to the Tenant are fully paid. The Deposit shall not bear any interest for the benefit of the TermTenant. The security deposit shall be properly deposited in Landlords bank account in order to have this Lease Agreement effective. Upon termination of the Lease, provided that Tenant agrees that Landlord may retain will withhold from the Security Deposit any unpaid obligations of Tenant to Landlord under the Lease Agreement, including utilities, and refund to Tenant the balance of the Security Deposit within sixty (60) days, subject to the extent conditions provided above. Section Three: Tenant's Rights and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.Obligations

Security Deposit. Concurrently with Tenant’s delivery Upon execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 amount of the Basic Lease ProvisionsSecurity Deposit specified on [Page One], of this Lease. The Security Deposit will be returned to be held by Landlord as security for Tenant without interest upon the full and faithful performance expiration of the Term of the Lease, provided that Xxxxxx has paid all of Tenant’s obligations amounts due under this Lease (and has otherwise performed all obligations hereunder. In the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and event that Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence defaults under any provision of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon after the expiration of any Event of Default by Tenant (as defined in Section 14.1)applicable cure period, Landlord maymay apply all, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend amounts owed by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this LeaseTenant. In no the event shall Landlord be obligated elects to apply the Security Deposit as provided for above, Tenant shall promptly restore such Security Deposit to the original amount. Landlord may, at its discretion, commingle such funds with its other funds, Upon any sale or other conveyance of the Building, Landlord may transfer the Security Deposit (or any amount of the Security Deposit remaining) to a successor/owner, and Xxxxxx agrees to look solely at the successor/owner for repayment of the same. Notwithstanding anything to the contrary in the paragraph above, in lieu of a cash Security Deposit, Tenant may deliver the Security Deposit in the form of an unconditional, clean, irrevocable standby letter of credit, in a form acceptable to Landlord, and issued by a bank reasonably acceptable to Landlord (the “Letter of Credit”) as security, provided the Letter of Credit shall be delivered to Landlord with executed copies of this Lease. The Letter of Credit shall (i) be unconditional, irrevocable, transferable, payable to Tenant upon presentment of original to the issuer in person or by courier, in partial or full draws, and (ii) contain an Event “evergreen” provision which provides that it is automatically renewed on an annual basis (subject to the permitted date of Default termination set forth below) unless the issuer delivers thirty (30) days’ prior written notice of cancellation to Landlord and Tenant. Without limiting any of Landlord’s rights or remedies hereunder, if the bank issuing the Letter of Credit provides Landlord with a cancellation notice, Landlord may immediately draw upon all or any part of the Letter of Credit and remedies resulting from Tenant shall provide Landlord with an Event additional irrevocable stand-by letter of Defaultcredit as provided below. Any and all fees or costs charged by the issuer in connection with the Letter of Credit shall be paid by Xxxxxx. The irrevocable stand-by Letter of Credit shall remain effective through the date that is sixty (60) days following the expiration date this Lease. If Tenant defaults with respect to any provision of this Lease beyond applicable notice and cure periods, including without limitationbut not limited to the provisions relating to the payment of Rent, Landlord may draw upon all or any part of Tenant’s failure to pay Basic Rent, Tenant’s Share Letter of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security DepositCredit. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used, applied, or retained, Tenant shall will within five ten (510) days after written demand from Landlord, provide to Landlord an additional irrevocable, stand-by Landlord deposit cash with Landlord letter of credit, which shall be in form and substance satisfactory to Landlord, issued by a bank reasonably acceptable to Landlord, in an amount sufficient to restore the Security Deposit to its original amountrequired amount pursuant to this Section 8. If Tenant fully performs its obligations under this Lease, Tenant’s failure to replenish the Security Deposit shall be returned constitute a failure to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent pay Additional Rent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining ten (10) days from the date of notice to cure such Security Deposit to the extent provided in this Sectiondefault.

Security Deposit. Concurrently with Tenant’s delivery Tenant shall pay Landlord the sum of $10,350.67 (hereinafter referred to as "Security Deposit") as evidence of good faith on the part of Tenant in the fulfillment of the terms of this Lease, Tenant which shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by the Landlord as security for during the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”)Term. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Under no circumstances will Tenant shall not be entitled to any interest on the Security Deposit. Subject The Security Deposit may be used by Landlord, at its discretion, to apply to any amount owing to Landlord hereunder, or to pay the expenses of repairing any damage to the last sentence Premises, except natural wear and tear occurring from normal use of the Premises, which exists on the day Tenant vacates the Premises but this Sectionright shall not be construed to limit Landlord's right to recover additional sums from Tenant for damages to the Premises. In addition to any other rights available to Landlord hereunder, the Security Deposit shall be understood and agreed forfeited in the event Tenant fails to continually occupy the Premises as Tenant for the full original Term, or if this Lease should for any reason whatsoever be terminated prior to the normal expiration date of the original Term. If there are no payments to be made from the property of Landlord upon Landlord’s receipt thereofSecurity Deposit as set out in this Paragraph, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon or if there is any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part balance of the Security Deposit to pay any sum which Tenant is obligated to pay under this Leaseremaining after all payments have been made, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Leaseor such balance thereof remaining, the Security Deposit shall will be returned to Tenant (or, at Landlord’s option, refunded to the last assignee of Tenant’s interest in this Lease) Tenant within thirty (30) days after fulfillment by Tenant of all obligations hereunder. In no event shall Tenant be entitled to apply the expiration Security Deposit to any Rent payment due hereunder. In the event of an act of bankruptcy by or insolvency of Tenant, or the Termappointment of a receiver for Tenant or a general assignment for the benefit of Tenant's creditors, provided that Tenant agrees that Landlord may then the Security Deposit shall be deemed immediately and automatically assigned to, and shall be considered to property of Landlord. The right to retain the Security Deposit shall be in addition and not alternative to the extent and until such time as all amounts due from Tenant in accordance with Landlord's other remedies under this Lease have been determined or as may be provided by law and paid in full and Tenant agrees that Tenant shall have no claim against not be affected by summary proceedings or other proceedings to recover possession of the Premises. Upon sale or conveyance of the Building, Landlord for Landlord’s retaining such may transfer or assign the Security Deposit to any new owner of the extent provided in this SectionPremises, and upon such transfer all liability of Landlord for the Security Deposit shall terminate, Landlord shall be entitled to coomingle the Security Deposit with its other funds.

Security Deposit. Concurrently Tenant has, contemporaneously with Tenant’s delivery the execution ---------------- of this Lease, Tenant shall deposit deposited with Landlord the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to $7,800.00 (Seven Thousand Eight Hundred Dollars) receipt of which is hereby acknowledged by Landlord. This sum shall be held by Landlord as security for the full and faithful performance of by Tenant on all of Tenant’s obligations under the terms, covenants and conditions of this Lease by Tenant to be kept and performed during the term hereof. If at any time during the term of this Lease any of the rent herein reserved shall be overdue and unpaid or any other sum payable by Tenant to Landlord here under shall be overdue and unpaid, the Landlord May, at its option (the “Security Deposit”). but Landlord shall not be required to), appropriate and apply any portion of said $7,800.00 to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of any such overdue rent or other sum. In the event of the failure of Tenant to keep and perform all expenses of the terms, covenants and conditions of this Lease to be kept and performed by Tenant, then at the option of Landlord, it may, after terminating this Lease, appropriate and apply said entire $7,800.00 (or so much thereof as may be necessary) to compensate Landlord for all loss or damage sustained or suffered by Landlord due to such breach on the part of Tenant. Should the entire $7,800.00 (or any portion thereof) be appropriated or applied by Landlord for which Tenant would be required the payment of overdue rent or other sums then due and payable to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant here under, then Tenant shall, upon written demand of Landlord, forthwith remit to Landlord a sufficient amount in cash to restore said security to the original sum of $7,800.00. Tenant's failure to do so within ten (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part 10) days after receipt of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination such demand shall constitute a breach of this Lease. In no event shall Landlord be obligated to apply Should Tenant comply with all of said terms, covenants and conditions and promptly pay all of the Security Deposit upon an Event of Default rental herein provided as it falls due, and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any all other amount due sums payable by Tenant to Landlord pursuant here under, then said falls due, and all other sums payable by Tenant to this LeaseLandlord here under, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit then said sum shall be returned in full to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration end of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with term of this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to or upon the extent provided in this Sectionearlier termination of the Lease under the provisions of Section 15 hereof.

Security Deposit. Concurrently with Tenant’s delivery 's execution of this Lease, Tenant shall will deposit with Landlord the sum, if any, stated Security Deposit designated in Item 9 of the Basic Lease Provisions, to Subparagraph 1(o). The Security Deposit will be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Term hereof. If Tenant fully and faithfully performs its obligations under this Lease (Lease, including, without limitation, surrendering the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on Premises upon the Security Deposit. Subject to the last sentence expiration or sooner termination of this SectionLease in compliance with Subparagraph 11(a) below, the Security Deposit shall or any balance thereof will be understood returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within thirty (30) days following the expiration of the Lease Term or as required under applicable law, provided that Landlord may retain the Security Deposit until such time as any outstanding rent or additional rent amount has been determined and agreed to be the property of Landlord upon Landlord’s receipt thereofpaid in full. The Security Deposit is not, and may not be utilized construed by Landlord in its sole and absolute discretion towards Tenant to constitute, rent for the last month or any portion thereof. If Tenant defaults with respect to any provisions of this Lease including, but not limited to, the provisions relating to the payment of all expenses by rent or additional rent, Landlord for which Tenant would may (but will not be required to reimburse Landlord under this Leaseto) use, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use apply or apply the whole retain all or any part of the Security Deposit to pay for the payment of any rent or any other sum in default, or for the payment of any other amount which Tenant is Landlord may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the Event of Default by Tenant Tenant's default or to compensate Landlord for any loss or damage that which Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit's default. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall agrees, within five ten (510) days after Landlord's written demand by Landlord therefor, to deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations amount and Tenant's failure to do so shall constitute a default under this Lease, the . Landlord is not required to keep Tenant's Security Deposit shall be returned separate from its general funds, and Tenant is not entitled to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest on such Security Deposit. Should Landlord sell its interest in this Lease) within thirty (30) days after the expiration of Premises during the Term, provided that Tenant agrees that Landlord may retain Term hereof and deposit with the purchaser thereof the then unappropriated Security Deposit funds, Landlord will be discharged from any further liability with respect to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionDeposit.

Security Deposit. Concurrently with At the time of Tenant’s execution and delivery of this Leasehereof, Tenant shall will deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as a security for the full and faithful performance of all of Tenant’s obligations under this Lease deposit (the “Security Deposit”) in the amount of One Hundred Twenty Thousand Dollars ($120,000.00) to be held by Landlord for the duration of the Lease as security for the full performance by Tenant of all of the obligations on the part of Tenant hereunder. The Security Deposit shall, at the option of Landlord, be in the form of an irrevocable demand letter of credit (the “Letter of Credit”), in form and substance reasonably acceptable to Landlord, issued by an FDIC-insured commercial banking institution having offices in Massachusetts and reasonably acceptable to Landlord. If the Security Deposit, or any portion thereof, is in the form of cash, Landlord shall not be required hold the same without liability for interest and without any obligation to keep this Security Deposit separate segregate such cash from its general Landlord’s other funds, and . Tenant shall not be entitled to mortgage, pledge, grant a security interest on in, or otherwise encumber the Security Deposit. Subject Landlord shall have the right from time to the last sentence of this Sectiontime, the Security Deposit shall be understood and agreed without prejudice to be the property of any other remedy Landlord upon Landlord’s receipt may have on account thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Leaseapply such Security Deposit, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit thereof, to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting damages arising from an Event any Default of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this SectionUpon such application, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to promptly restore the Security Deposit to its original amount. If Upon the full performance by Tenant fully performs of its obligations under this Leasehereunder, the Security Deposit Deposit, or such amount that shall be remaining after application of the same hereunder, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration or earlier termination of this Lease and surrender of possession of the Premises by Tenant to Landlord at such time. If the Security Deposit is in the form of a Letter of Credit, such Letter of Credit shall, throughout the Term, provided that be in full force and in compliance with the terms of this Lease. Tenant agrees that shall not mortgage, pledge, grant a security interest in, or otherwise encumber the Letter of Credit or the proceeds of the same. Landlord shall have the right from time to time, without prejudice to any other remedy Landlord may retain have on account thereof, to draw on the Letter of Credit and apply the proceeds, or any part thereof, to Landlord’s damages arising from any Default of Tenant (beyond applicable notice and cure periods) on the part of Tenant. Upon such application, Tenant shall promptly restore the Security Deposit to its original amount either by delivering cash or a new Letter of Credit complying with the extent provisions hereof to Landlord. In the event such Letter of Credit will expire by its terms prior to the end of the Term and until Tenant fails to provide a substitute Letter of Credit at least thirty (30) days prior to such time expiration, then Landlord may draw on the Letter of Credit and hold the proceeds. Any portion of the proceeds of the Letter of Credit not applied to cure a breach or default of Tenant hereunder shall be held by Landlord as all amounts due from a cash Security Deposit pursuant to the provision set forth above unless Landlord shall require a new Letter of Credit complying with the provisions hereof, in which event the unapplied cash proceeds shall be promptly returned to Tenant in accordance with for such purpose. Upon the full performance by Tenant of its obligations hereunder, the Letter of Credit (or the remaining proceeds thereof if previously drawn and not applied to cure a Default of Tenant hereunder), shall be surrendered to Tenant within thirty (30) days after the expiration or earlier termination of this Lease have been determined and paid in full and surrender of possession of the Premises by Tenant agrees that Tenant shall have no claim against to Landlord for Landlord’s retaining at such Security Deposit to the extent provided in this Sectiontime.

Security Deposit. Concurrently with Tenant’s delivery Upon the execution of this LeaseSublease, Tenant Subtenant shall deposit with Landlord Sublandlord $31,875, representing the sum, if any, stated in Item 9 Basic Rent for the first month of the Basic Lease ProvisionsTerm, to be held by Landlord and $131,586.39 (the "Security Deposit"), as security for the full and faithful performance and observance by Subtenant of all the terms, provisions, agreements, covenants and conditions of Tenant’s obligations under this Lease (the “Sublease. The Security Deposit”). Landlord Deposit shall not be required to keep this considered an advance payment of Basic Rent or Additional Charges, and the Security Deposit separate from its general funds, and Tenant shall not be considered a measure of Sublandlord's damages in case of the occurrence of any default under this Sublease. Subtenant shall not be entitled to receive any interest on the Security DepositDeposit and Sublandlord may commingle the same with other monies of Sublandlord. Subject In the event Subtenant defaults in respect to any of the last sentence terms, provisions, agreements, covenants and conditions of this SectionSublease including, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereofbut not limited to, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required Basic Rent or Additional Charges, and provided Subtenant fails to reimburse Landlord under this Leasecure such default after notice from Sublandlord, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord Sublandlord may, in its sole and absolute discretionat Sublandlord's option, retainfrom time to time, use without prejudice to any other remedy, use, apply or apply retain the whole or any part of the Security Deposit not theretofore applied to pay Basic Rent or Additional Charges to the extent necessary to make good any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend arrears of Basic Rent or be required to expend by reason of the Event of Default by Tenant Additional Charges or any loss damage, injury, expense or damage that Landlord may suffer liability caused by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Leasesuch default. In no event If Sublandlord shall Landlord be obligated to apply ever use the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure not theretofore applied to Basic Rent to pay Basic Rentthe sums described above, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to and if this LeaseSublease has not terminated, Subtenant shall not be diminished or altered in any respect due immediately deposit with Sublandlord additional monies equal to the fact that Landlord is holding the Security Depositamount so used within ten (10) days after request therefore. If any portion Subtenant shall fully and faithfully comply with all of the terms, provisions, agreements, covenants and conditions of this Sublease, then the Security Deposit is (or such amount as shall not have been applied by Landlord as permitted by this Section, Tenant shall within five (5Sublandlord) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) Subtenant within thirty (30) days after the termination or expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionSublease.

Security Deposit. Concurrently with Tenant’s delivery LESSEE shall pay to LESSOR a security deposit in the amount of $92,539.50 upon the execution of this Lease, Tenant which amount shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security by XXXXXX (and may be commingled with other fund of LESSOR) for XXXXXX's performance as herein provided and refunded to LESSEE with interest at the full and faithful performance prevailing money market rate at the end of all of Tenant’s obligations under this Lease (subject to LESSEE'S satisfactory compliance with the “Security Deposit”)conditions hereof. Landlord The security deposit shall not be required mortgaged, assigned, transferred or encumbered by XXXXXX without the written consent of LESSOR. In the event of any default or breach of this Lease by XXXXXX, LESSOR shall immediately apply the security deposit first to keep this Security Deposit separate from its general fundsany unamortized improvements completed for LESSEE's occupancy, then to offset any outstanding invoice or other payment due to LESSOR, with the balance applied to outstanding rent, and Tenant LESSEE shall not be entitled to interest on the Security Deposit. Subject forthwith upon demand restore said security to the last sentence original sum deposited. XXXXXX's failure to remit the full security deposit when due shall constitute a default of this SectionLease. Notwithstanding the foregoing, XXXXXX may request that LESSOR reimburse to LESSEE $46,269.75 of the Security Deposit security deposit if and when XXXXXX's net worth, calculated in accordance with generally accepted accounting principles, equals or exceeds $5,500,000. Any such request shall be understood accompanied by appropriate financial statements and agreed a certificate of XXXXXX's chief financial officer to be the property effect that XXXXXX's net worth has increased as aforesaid. In the event at the time of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord such request LESSEE is not in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord default under this Lease, including without limitation brokerage commissions and Tenant Improvement costsLESSOR shall release to LESSEE $46,269.75. Upon Following any Event release of Default monies as aforesaid, LESSEE shall submit to LESSOR quarterly financial statements on a continuing basis certified by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this LeaseXXXXXX's chief financial officer showing XXXXXX's net worth. In no the event LESSEE'S net worth at any time falls below $5,500,000, LESSEE shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting thereupon become obligated, without notice from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s optionLESSOR, to forthwith increase the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit security deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section$92,539.50.

Security Deposit. Concurrently with Tenant’s delivery 's execution of this Lease, Tenant shall deposit his deposited with Landlord the sumsum of Thirty-Five Thousand Two Hundred Thirty-Three and 50/100 Dollars ($35,233.50) as a security deposit. If Tenant defaults with respect to any provisions of this lease, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall including but not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject limited to the last sentence of this Section, the Security Deposit shall be understood and agreed provisions relating to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)rent or other charges, Landlord may, in its sole and absolute discretion, retainto the extent reasonably necessary to remedy Tenant's default, use or apply the whole all or any part of said deposit for the Security Deposit to pay payment of rent or other charges in default or the payment of any sum other payment of any other amount which Tenant is Landlord may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the Event of Default by Tenant Tenant's default or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit's default. If any portion of the Security Deposit said deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall shall, within five ten (510) days after written demand by Landlord therefor, deposit cash with Landlord in an amount sufficient to restore said deposit to the Security Deposit full amount hereinabove stated and shall pay to its original amountLandlord such other sums as shall be necessary to reimburse Landlord for any sums paid by Landlord. If Tenant fully performs its obligations under this Lease, the Security Deposit Said deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant term hereof less any amount deducted in accordance with this Lease have been determined paragraph, together with Landlord's written notice itemizing the amounts and paid purposes for such retention. In the event of termination of Landlord's interest in full and Tenant agrees that this Lease, Landlord shall transfer said deposit to Landlord's successor in interest. In addition to the cash security deposit provided above, Tenant shall have no claim against provide Landlord for Landlord’s retaining such Security Deposit a lease guarantee ("Lease Guarantee"), in the initial amount of Five Hundred Thousand and No/100 Dollars ($500,000.00). The Lease Guarantee shall be delivered to Landlord promptly after Lease execution. Upon the occurrence of any default by Tenant as defined in paragraph 24 of this Lease, Landlord shall be entitled to draw upon the Lease Guarantee to the extent provided necessary to cure such default. The Lease Guarantee shall be irrevocable, and shall be conditioned solely upon Landlord's certifying to the issuer thereof that a default exists under this Lease. Such Lease Guarantee shall provide for a schedule of reduction in this Section.the following amounts: 10/1/91-9/30/92 $425,000.00 10/1/92-9/30/93 $350,000.00 10/1/93-9/30/94 $275,000.00 10/1/94-9/30/95 $200,000.00 10/1/95-9/30/96 $125,000.00 10/1/96-9/30/97 $ 50,000.00

Security Deposit. Concurrently with Tenant’s delivery 's execution of this Lease, Tenant has deposited with Landlord the sum of Eighty Four Thousand Five Hundred and No/100 Dollars ($84,500.00) ("Cash Security "Deposit"). In addition, on or before January 4, 2002, Tenant shall deposit with Landlord a letter of credit substantially in the sum, if any, stated form attached hereto as Exhibit "C" ("Letter of Credit") in Item 9 an initial amount of Three Hundred Twenty Four Thousand Dollars ($324,000.00). The Cash Security Deposit and Letter of Credit are collectively referred to as the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be deemed a trustee of the Security Deposit, may use the Cash Security Deposit in business, and shall not be required to keep this segregate the Cash Security Deposit separate from its general funds, and accounts. Tenant shall not be entitled to interest on the Security Deposit. Subject If Tenant defaults with respect to any provisions of the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event but not limited to the provisions relating to payment of Default by Tenant (as defined in Section 14.1)Base Monthly Rent or other charges, Landlord may, in its sole and absolute discretion, retainto the extent reasonably necessary to remedy Tenant's default, use any or apply the whole or any part all of the Security Deposit (provided, however, Landlord shall use all of the Cash Deposit prior to pay drawing on all or any sum portion of the Letter of Credit) towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any other amount which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend actually and reasonably incurs by reason of Tenant's default hereunder including, but not limited to Tenant's failure to restore or clean the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord Premises following vacation thereof in connection accordance with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination terms of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Cash Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall shall, within five ten (510) days after written demand by Landlord from Landlord, deposit cash with Landlord in an amount sufficient to restore the Cash Security Deposit to its full original amount, and shall pay to Landlord such other sums as may be due pursuant to subsection (ii) of the immediately preceding sentence. If Tenant fully performs its obligations under this Lease, may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration Expiration Date and surrender of the TermPremises to Landlord, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant less any amount deducted in accordance with this Lease have been determined Section, together with Landlord's written notice itemizing the amounts and paid in full and Tenant agrees purposes for such deduction. Landlord shall be entitled to draw against the Letter of Credit at any time provided only that Landlord certifies to the issuer of the Letter of Credit that Tenant is in default under the Lease. Landlord shall have no claim only draw the amount necessary to cure the default unless such default is the third default that has occurred in any consecutive 18-month period during the Lease Term, in which case Landlord shall be permitted to draw the entire amount of the Letter of Credit and convert it to cash, subject to the provisions of this Lease regulating the handling of the Cash Security Deposit. Tenant shall keep the Letter of Credit in effect during the Lease Term as required herein. At least thirty (30) days prior to expiration of the Letter of Credit, the term thereof shall be renewed or extended for a period of at least one (1) year in the amount required by this Section 4. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall replenish the existing Letter of Credit or cause a new Letter of Credit to be issued such that the aggregate amount available to Landlord for Landlord’s retaining such at all times during the Lease Term is the amount of the Letter of Credit then required. Notwithstanding the foregoing, and provided Tenant is not then in default of the Lease (beyond any applicable notice and cure period) and the Cash Security Deposit is at its required amount, the amount of the Letter of Credit shall be reduced annually by $108,000.00, commencing on February 1, 2003, such reduction to continue annually until the extent provided in this SectionLetter of Credit is entirely eliminated.

Security Deposit. Concurrently with Tenant’s delivery If an amount is set forth in the Basic Lease Provisions as the Security Deposit, upon execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 acknowledges receipt of the Basic Lease Provisions, to be held by Landlord as security Tenant’s Security Deposit for the full and faithful performance by Tenant of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, covenants and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 terms of this Lease upon expiration or earlier termination of this Leaserequired to be performed by Xxxxxx. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Such Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of this Lease provided Xxxxxx has fully and faithfully carried out all of Tenant’s obligations hereunder, including the Termpayment of all amounts due to Landlord hereunder and the surrender of the Premises to Landlord in the condition required herein. However, provided that Tenant agrees that Landlord, at Xxxxxxxx’s option, may apply such sum on account of the payment of the last month’s Minimum Monthly Rental hereunder. Said sum may be commingled with other funds of Landlord may retain and shall not bear interest. Notwithstanding the above, if Xxxxxx becomes obligated to pay a Late Charge or upon the occurrence of any Event of Default described in paragraph 24 below, at Landlord’s option, the Security Deposit shall become immediately due and payable in full to Landlord, to be applied against any Late Charge, damages or losses suffered by Landlord as a result of Xxxxxx’s failure to timely pay Rental or an Event of Default. In the event of a sale of the Building subject to this Lease, Landlord shall transfer the Security Deposit to the extent purchaser to be held under the terms of this Lease, and until such time as Landlord shall thereupon be released from all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant liability for the return of the Security Deposit; Xxxxxx agrees that Tenant shall have no claim against to look solely to the new Landlord for Landlord’s retaining such the return of the Security Deposit to the extent provided in this SectionDeposit.

Security Deposit. Concurrently with Tenant’s delivery 's execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 sum of Two Thousand Seven hundred Thirty-Eight Dollars ($2,738.00) (hereinafter the Basic Lease Provisions, to "Security Deposit"). The Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term of this Lease. If Tenant defaults with respect to any provision of this Lease, including but not limited to the provisions relating to the payment of Monthly Base Rent, and any costs, expenses, and charges payable under the provisions of this Lease, Landlord may, but shall not be obligated to use, apply or retain all or a part of the Security Deposit for the payment of any amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of the Security Deposit is so used or applied, Tenant shall, within ten (10) days after written demand, deposit with Landlord an amount sufficient to restore the “Security Deposit”)Deposit to its original amount; and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this the Security Deposit separate from its Landlord's general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence If Tenant shall fully and faithfully perform every provision of this SectionLease to be performed by Tenant, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to Tenant (or, at Landlord’s 's option, to the last permitted assignee of Tenant’s 's interest in under this Lease) Lease within thirty (30) days after of the expiration of the Termterm of this Lease and after Tenant or Tenant's permitted assignee has vacated the Premises or within fifteen (15) days of receipt of Tenant's new mailing address, provided that Tenant agrees that whichever is later. In the event of termination of Landlord's interest in this Lease, Landlord may retain shall transfer the Security Deposit to the extent and until such time as all amounts due from Tenant Landlord's successor in accordance with this Lease have been determined and paid in full and interest whereupon Tenant agrees that Tenant shall have no claim against to release Landlord from liability for Landlord’s retaining such the return of the Security Deposit to the extent provided in this Sectionor any accounting therefore.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease ProvisionsProvisions (the “Security Deposit”), to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (Lease, to pay any rental sums, including without limitation such additional rent as may be owing under any provision hereof, and to maintain the “Premises as required by Sections 7.1 and 15.3 or any other provision of this Lease. Upon any breach of the foregoing obligations by Tenant, Landlord may apply all or part of the Security Deposit”)Deposit as full or partial compensation. If any portion of the Security Deposit is so applied, Tenant shall within 5 business days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses may Tenant utilize all or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations a payment toward any rental sum due under this Lease, . Any unapplied balance of the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this LeaseLease within 30 days following the termination of this Lease and Tenant’s vacation of the Premises. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or any similar or successor laws now or hereafter in effect, in connection with Landlord’s application of the Security Deposit to prospective rent that would have been payable by Tenant but for the early termination due to Tenant’s Default (as defined herein). In the event that no uncured Default by Tenant has occurred at any time during the Term hereof, and provided further that: (i) within thirty Tenant has not at any time been more than 5 days late more than once with respect to any payments of Basic Rent and Operating Expenses due under the Lease during the immediately preceding 12-month period, and (30ii) days after Tenant demonstrates by the delivery to Landlord of its certified financial statements that Tenant then maintains cash in the amount of at least Three Million Dollars ($3,000,000.00) and has a current ratio greater than 1:1, then upon the written request of Tenant, Landlord shall return to Tenant a portion of the Security Deposit, in the form of a credit against the Basic Rent and Operating Expenses next then coming due, in the amount of Twenty Six Thousand Dollars ($26,000.00) upon the expiration of the 18th month of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Upon Tenant’s delivery execution of this Lease, Tenant shall deposit with will deliver to Landlord an Irrevocable Letter of Credit (the sum, if any, stated “Letter of Credit”) in Item 9 the amount of the Basic Lease ProvisionsSecurity Deposit, in substantially the form attached hereto as Exhibit F and made a part hereof from a financial institution acceptable to Landlord. Tenant shall cause the Letter of Credit to be held by Landlord maintained in full force and effect throughout the Lease Term and during the sixty (60) day period after the later of (a) the expiration of the Lease Term or (b) the date that Tenant delivers possession of the Leased Premises to Landlord, as security for the full and faithful performance by Tenant of all of Tenant’s obligations under contained in this Lease. In the event that, during the Lease Term, Tenant fails to deliver to Landlord a renewal or replacement to the Letter of Credit by a date no later than forty-five (the “Security Deposit”). 45) days prior to its expiration date, Landlord shall not be required have the right to keep this Security Deposit separate from its general funds, demand and Tenant shall not be entitled receive payment in full under the letter of credit and to interest on hold the Security Deposit. Subject to the last sentence of this Section, cash proceeds as the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event In the event of a Default by Tenant (as defined in Section 14.1)Tenant, Landlord may, in its sole and absolute discretion, retain, use or may apply the whole all or any part of the Security Deposit to pay cure all or any part of such Default; provided, however, that any such application by Landlord shall not be or be deemed to be an election of remedies by Landlord or considered or deemed to be liquidated damages. Tenant agrees promptly, upon demand, to deposit such additional sum which Tenant is obligated to pay under this Lease, sums that with Landlord as may expend or be required to expend by reason maintain the full amount of the Event of Default Security Deposit. All sums held by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, Article 4 shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositwithout interest and may be commingled by Landlord. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within Within forty-five (545) days after written demand the end of the Lease Term, provided that there is then no uncured Default or any repairs required to be made by Tenant pursuant to Section 2.03 above or Section 7.03 below, Landlord deposit cash with Landlord in an amount sufficient to restore shall return the Security Deposit to its original amountTenant. If Tenant fully performs its obligations under this Lease, Landlord’s obligation to return the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration survive termination of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionLease.

Security Deposit. Concurrently with Tenant’s delivery Upon the execution of this Lease, Tenant shall deposit with Landlord a Letter of Credit as described in this Section (the sum“Letter of Credit”), if anyas security for the punctual performance of each and every obligation of Tenant under this Lease. In no event shall the Security Deposit be deemed to be a prepayment of Rent nor shall it be considered a measure of liquidated damages. The Letter of Credit shall be an irrevocable standby letter of credit, stated in Item 9 form and content and issued by a commercial bank satisfactory to Landlord in its reasonable discretion, which Letter of Credit shall provide that it may be drawn upon in Boston, Massachusetts or by facsimile (i) in part or in whole, upon the presentation of a sight draft accompanied by a certificate signed by a representative of Landlord, setting forth the amount due to Landlord by reason of the Basic Lease Provisionsoccurrence of an Event of Default by Tenant hereunder, or (ii) in whole, upon the presentation of a sight draft accompanied by a certificate signed by a representative of Landlord, stating that (a) such Letter of Credit will expire within thirty (30) days of such certificate, and (b) Tenant has not deposited a substitute Letter of Credit in the form, amount and issued by a bank as required by this Section. Landlord agrees that for purposes of this Section, First Republic Bank shall be an acceptable issuer of the Letter of Credit. Any payment drawn by Landlord under the Letter of Credit pursuant to clause (ii) of the preceding sentence shall be held by Landlord as a cash Security Deposit (“Cash Security”) pursuant to the provisions of this Article. Landlord may commingle any Cash Security with Landlord’s other funds, and no interest shall be due thereon. The Letter of Credit shall remain in full force and effect for a period of at least sixty (60) days beyond the expiration of the Term. Tenant shall deposit the original Letter of Credit with Landlord and shall keep the Letter of Credit in full force and in compliance with the provisions of this Lease throughout the Term. If required by the terms of any mortgage, pledge, security for agreement or other encumbrance granted on the full Unit or Landlord’s interest therein to secure financing provided to Landlord, Landlord may assign the Letter of Credit to the holder of such mortgage, pledge, security agreement or other encumbrance. Landlord may apply the Security Deposit towards any default by Tenant which continues beyond the expiration of the applicable notice and faithful performance of all of Tenant’s obligations under cure period provided therefor in this Lease (if any), and damages sustained by Landlord as a result thereof. In the “Security Deposit”). event that Landlord so draws upon and applies all or any portion of the proceeds of the Letter of Credit, or so applies all or any portion of the Cash Security, Tenant shall pay to Landlord, as Additional Rent, the amount so expended by Landlord (or shall deliver an amendment to the Letter of Credit increasing the amount of the Letter of Credit by the amount so drawn by Landlord) within five (5) Business Days of written notice given by Landlord so that at all times (subject to the 5-Business Day grace period herein referenced) Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on draw down upon the full aggregate amount of the Letter of Credit or hold the full Cash Security, or some combination thereof (in an amount not to exceed the amount of the Security DepositDeposit specified in Article 1 above, as such amount may be reduced in accordance with the provisions of the last two grammatical paragraphs of this Article 14). Subject Notwithstanding anything contained in this Lease to the last sentence contrary, any failure of Tenant to restore any amount drawn under the Letter of Credit or expended from the Cash Security within the time and manner specified in this Section shall immediately constitute an Event of Default hereunder (without the necessity of any additional notice or the passage of any additional time) and entitle Landlord to immediately draw down the Letter of Credit then in force or effect and Landlord shall retain such cash amounts as a Security Deposit pursuant to the provisions of this Section, the Security Deposit . Tenant shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards solely responsible for the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Leasecosts associated with obtaining, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant replacing (as defined in Section 14.1necessary), Landlord maytransferring, extending and maintaining the Letter of Credit in its sole and absolute discretion, retain, use or apply accordance with the whole terms of this Section. The application of all or any part of the Security Deposit to pay any sum which obligation or default of Tenant is obligated to pay under this Lease shall not deprive Landlord of any other rights or remedies Landlord may have, nor shall such application by Landlord constitute a waiver by Landlord. In addition, in the event of a termination based upon an Event of Default of Tenant under this Lease, sums that Landlord may expend or be required to expend by reason a rejection of the Event Lease pursuant to the provisions of Default by the Federal Bankruptcy Code, Landlord shall have the right to apply the Security Deposit (from time to time, if necessary) to cover up to the full amount of damages and other amounts due from Tenant to Landlord under the Lease. Any amounts so applied shall, at Landlord’s election, be applied first to any unpaid Rent and other charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code. Landlord shall assign the Security Deposit to any purchaser of the Unit, and thereafter Landlord shall have no further responsibility therefor. Upon request of Landlord or any loss or damage that Landlord may suffer by reason such purchaser of the Event of Default or costs incurred by Building, Tenant shall, at its expense, cooperate with Landlord in connection with obtaining an amendment to or replacement of any Letter of Credit which Landlord is then holding so that the repair amended or restoration new Letter of Credit reflects the name of the Premises pursuant to Section 15.3 new owner of this Lease upon the Unit. Within sixty (60) days after the expiration or earlier termination of this Lease. In no event the Term, Landlord shall Landlord be obligated to inspect the Premises, make such draw upon the Letter of Credit or apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses all or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Cash Security as may be required to cure any default by Tenant hereunder or to make payment on account of damages suffered by Landlord, and, if no default is then continuing, Landlord shall redeliver the original Letter of Credit (as may have previously been drawn on by Tenant) or pay the balance of the Cash Security, as the case may be, to Tenant. Notwithstanding the foregoing, provided that (1) this Lease is in full force and effect as of the last day of the third (3rd) Lease Year (the “Reduction Date”), (2) no Event of Default on the part of Tenant has occurred prior to the Reduction Date which is continuing as of the Reduction Date, (3) as of the Reduction Date Tenant has not assigned the Lease or effected a Transfer of an ownership interest (direct or indirect) in Tenant which effects a change in control of Tenant) other than (A) a Related Party Transfer, or (B) as approved by Landlord pursuant to the provisions of Article 12 hereof, and (4) as of the Reduction Date (x) if Tenant is then a publicly-traded company, Tenant has a market capitalization of not less than Five Hundred Million ($500,000,000.00) Dollars, or (y) if Tenant is not then a publicly-traded company, Tenant has an enterprise value of not less than Seven Hundred Fifty Million ($750,000,000.00) Dollars, Landlord agrees to accept a reduction in the amount of the Letter of Credit which it is then holding so as to cause the total Security Deposit is applied to be reduced as of the Reduction Date to an amount equal to Six Hundred Eighteen Thousand Three Hundred Thirty-Two ($618,332.00) Dollars. Any reduction in the Letter of Credit held by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit pursuant to its original amountthe immediately preceding paragraph shall be accomplished by Tenant providing Landlord with a substitute Letter of Credit in the reduced amount in exchange for the existing Letter of Credit which Landlord is then holding, or by an amendment to the existing Letter of Credit then held by Landlord, in form and substance reasonably acceptable to Landlord, which is accepted by Landlord in writing (which acceptance may be evidenced by e-mail). If Tenant fully performs its obligations under this Leasedoes not satisfy the requirements for a reduction in the amount of the Letter of Credit on the Reduction Date as specified above, the Security Deposit then Tenant shall be returned deemed to Tenant (or, at Landlord’s option, have irrevocably forfeited its right to any reduction in the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration amount of the Letter of Credit during the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery On or before the Execution Date of this Lease, Tenant shall deposit with Landlord the sumsum in cash set forth in Section 2.2 (the "Security Deposit"), if any, stated in Item 9 of the Basic Lease Provisions, to which sum shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants and conditions of this Lease (to be kept and performed by Tenant during the “Security Deposit”)Term. Landlord shall not be required to keep this Security Deposit maintain a separate from its general funds, and Tenant shall not be entitled to interest on account for the Security Deposit, but may intermingle it with other funds of Landlord. Subject Upon distribution of any portion of the Holdback Escrow Amount to any party in accordance with the last sentence terms of this Sectionthe Holdback Escrow Agreement, the Security Deposit shall be understood and agreed increase by [***] Dollars for every [***] Dollars ($[***]) of Holdback Escrow Amount so released. For illustration purposes only, if the full [***] Dollars ($[***]) of the Holdback Escrow Amount is disbursed in accordance with the Holdback Escrow Agreement, then the Security Deposit shall increase by [***] Dollars ($[***]). If Tenant defaults with respect to be the property any provision of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including then without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)notice to Tenant, Landlord may, in its sole and absolute discretion, retain, use or may (but shall not be required to) apply the whole all or any part of the Security Deposit to pay for the payment of any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses Rent or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered sum in any respect due to the fact that Landlord is holding the Security Depositdefault. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, then Tenant shall within five (5) days after written shall, upon demand by Landlord deposit cash with Landlord in an amount sufficient to therefor, restore the Security Deposit to its original amount. If Tenant shall fully performs its obligations under and faithfully perform every provision of this LeaseLease to be performed by it, then the unapplied portion of the Security Deposit shall be returned to Tenant (Tenant, or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest in this Lease) hereunder, within thirty sixty (3060) days after following the expiration of the Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby irrevocably waives and relinquishes any and all rights, provided benefits, or protections, if any, Tenant now has, or in the future may have under any provision of law which (i) establishes the time frame by which a landlord must refund a security deposit under a lease, or (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by a tenant, or to clean the subject premises. Tenant acknowledges and agrees that (A) any statutory time frames for the return of a security deposit are superseded by the express period identified in this Section 6.4, and (B) rather than be so limited, Landlord may retain claim from the Security Deposit to the extent (i) any and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided sums expressly identified in this Section.Section 6.4, and (ii) any additional

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord The parties herein acknowledge that Lessee was the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration tenant of the Premises pursuant to Section 15.3 a Standard Industrial Lease-Net dated January 6, 1995 (the "Former Lease") between Lessee and the Xxx X. Xxxxxx] 1989 Trust (the "Prior Landlord") dated February 8, 1989 which has been terminated and superseded by this Lease. Pursuant to the terms of the Former Lease, Lessee deposited with the Prior Landlord a security deposit, for which Lessee has received a cash payment in full satisfaction of the Prior Landlord's obligation with respect thereto. Prior Landlord has delivered to Lessor funds in the amount of $45,234 (the "Security Deposit") for the account and benefit of Lessee, which Lessor shall hold as security for Lessee's faithful performance of Lessee's obligations hereunder. If Lessee fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease upon after the expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to applicable cure period provided in this Lease, shall not be diminished Lessor may use, apply or altered in any respect due to the fact that Landlord is holding the Security Deposit. If retain all or any portion of the Security Deposit is applied for the payment of any rent or other charge in default or for the payment of any other sum to which Lessor may become obligated by Landlord as permitted by this Sectionreason of Lessee's default, Tenant or to compensate Lessor for any loss or damage which Lessor may suffer thereby. If Lessor so uses or applies all or any portion of the Security Deposit, Lessee shall within five ten (510) days after written demand by Landlord therefore and deposit cash with Landlord Lessor in an amount sufficient to restore the Security Deposit to the full amount hereinabove stated and Lessee's failure to do so shall be material breach of this Lease. Lessor shall not be required to keep the Security Deposit separate from its original amountgeneral accounts. If Tenant fully Lessee performs its all of Lessee's obligations under this Leasehereunder, the Security Deposit Deposit, or so much thereof as has not theretofore been applied by Lessor, shall be returned returned, without payment of interest or other increment for its use, to Tenant Lessee (or, at Landlord’s Lessor's option, to the last assignee assignee, if any, of Tenant’s Lessee's interest in this Leasehereunder) within thirty (30) days after at the expiration of the Termterm hereof, provided that Tenant agrees that Landlord may retain and after Lessee has vacated the Premises. No trust relationship is created herein between Lessor and Lessee with respect to the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionDeposit.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant Each Coop shall deposit with Landlord the sumUniversity upon execution hereof, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and Coop's faithful performance of the Coop's obligations hereunder, the dollar amount as provided in Addenda X-0, X-0, X, C and D, respectively as to each Coop. If a Coop fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Space Agreement, the University may use, apply or retain all or any portion of Tenant’s obligations under said deposit for the payment of any rent or other charge in default or for the payment of any other sum to which the University may become entitled by reason of that Coop's default, or to compensate the University for any loss or damage which the University may suffer thereby. If the University so uses or applies all or any portion of said deposit, that Coop shall within ten (10) days after written demand therefore, deposit cash with the University in an amount sufficient to restore said deposit to the full amount hereinabove stated, and that Coop's failure to do so shall be a material breach of this Lease (Space Agreement as to that Coop. If the “Security Deposit”)monthly rent increases during the Term of this Space Agreement, the Coops to whom such increase applies shall thereupon deposit with the University an additional security deposit so that the amount of security deposit held by the University shall at all times bear the same proportion to current rent as the original security deposit bears to the original monthly rent set. Landlord The University shall not be required to keep this Security Deposit said deposit separate from its general fundsaccounts. If each Coop performs all of its respective obligations hereunder, and Tenant shall said deposit, or so much thereof as has not be entitled to interest on theretofore been applied by the Security Deposit. Subject to the last sentence of this SectionUniversity, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereofreturned, and may be utilized by Landlord in its sole and absolute discretion towards the without payment of all expenses by Landlord interest or other increment for which Tenant would be required its use, to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant Coop (or, at Landlord’s the University's option, to the last assignee assignee, if any, of Tenant’s the Coop's interest in this Leasehereunder) within thirty (30) days after at the expiration of the TermTerm hereof, provided that Tenant agrees that Landlord may retain and after the Coop has vacated the Premises. No trust relationship is created herein between the University and the Coops with respect to said Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionDeposits.

Security Deposit. Concurrently with Tenant’s delivery the execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated amount specified in Item 9 of the Basic Lease ProvisionsInformation as the Security Deposit, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease if any (the “Security Deposit”), as security for the performance of Tenant’s obligations under this Lease. Landlord may (but shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, have no obligation to) use the Security Deposit shall be understood and agreed or any portion thereof to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized cure any breach or default by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon to fulfill any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay Tenant’s obligations under this Lease, sums that or to compensate Landlord may expend or be required to expend by reason for any damage Landlord incurs as a result of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, perform any of Tenant’s Share of Operating Expenses or any other amount due obligations hereunder. In such event Tenant shall pay to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written on demand by Landlord deposit cash with Landlord in an amount sufficient to restore replenish the Security Deposit to its original amount. If Subject in all cases to Landlord’s rights to apply the Security Deposit as provided in this Article 4, upon the expiration or termination of the Term, Landlord shall return to Tenant fully performs its the portion of the Security Deposit then held by Landlord minus (A) any amount applied by Landlord as provided above and not replenished by Tenant and (B) any amount to be applied by Landlord as provided below. Landlord may commingle the Security Deposit with Landlord’s general and other funds. Landlord shall not be required to pay interest on the Security Deposit to Tenant. Tenant hereby waives (i) California Civil Code Section 1950.7, as amended or recodified from time to time, and any and all other laws, rules and regulations, now or hereafter in force, applicable to security deposits in the commercial context (“Security Deposit Laws”), and (ii) any and all rights, duties and obligations under this Leaseeither party may now or, in the future, will have relating to or arising from the Security Deposit Laws. Notwithstanding anything to the contrary contained herein, the Security Deposit shall may be returned retained and applied by Landlord (a) to offset all Rent (as defined in Section 3.3) which is unpaid either before or after the termination of this Lease, and (b) against other damages suffered by Landlord before or after the termination of this Lease, whether foreseeable or unforeseeable, caused by the act or omission of Tenant (oror any officer, at Landlord’s optionemployee, to the last assignee agent or invitee of Tenant. TENANT HEREBY WAIVES THE PROVISIONS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AND ALL OTHER SECURITY DEPOSIT LAWS, 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 ACTS OR OMISSIONS OF TENANT OR ANY OFFICER, EMPLOYEE, AGENT, CONTRACTOR OR INVITEE OF TENANT. Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.Initials:

Security Deposit. Concurrently The Landlord acknowledges receipt on or before the Commencement Date of the amount set out in Item 6(a) of the Term Sheet (the "Security Deposit") to be held by the Landlord,without any liability whatsoever on the part of the Landlord for the payment of interest thereon, as a security deposit for the faithful performance by the Tenant of the terms, covenants and conditions of this Lease during the Term hereof and not to be applied on account of Rent except as otherwise provided in this Section 4.02. The Security Deposit will not be a limitation on the Landlord's damages or other rights and remedies available under this Lease or at law or equity, nor shall the Security Deposit be either a payment of liquidated damages or an advance payment of Rent. The Landlord shall have no fiduciary responsibilities or trust obligations whatsoever with Tenant’s delivery regard to the Security Deposit and shall not assume the duties of a trustee for the Security Deposit. The Security Deposit shall not be mortgaged, assigned or encumbered by the Tenant and the Landlord shall not be bound by any such mortgage, assignment or encumbrance. It is understood and agreed between the parties that any portion of the Security Deposit may, at the Landlord's option, be applied toward the payment of overdue or unpaid Rent and may also be applied as compensation to the Landlord for any loss or damage sustained with respect to the breach on the part of the Tenant of any terms, covenants and conditions of this Lease, Tenant shall deposit with Landlord provided in all cases, however, that the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall 's liability hereupder is not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject limited to the last sentence amount of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If during the Term any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso applied, then the Tenant shall within five (5) days after on written demand deliver to the Landlord a sufficient amount iflEash or by Landlord deposit cash with Landlord in an amount sufficient certified cheque to restore the Security Deposit to its the original amountsum deposited. If The Landlord shall refund to the Tenant fully performs its obligations under after the expiry date of this Lease, Lease any portion of the Security Deposit shall not used by the Landlord after application by the Landlord to any damage incurred by the Landlord by reason of the default of the Tenant under the terms of this Lease. It is further provided that the Landlord will be returned to Tenant (or, at Landlord’s option, discharged from all liability to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain with respect to the Security Deposit to the extent and until such time as all amounts due from Tenant that it is transferred to any purchaser of the Landlord's interest in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionLeased Premises.

Security Deposit. Concurrently with Tenant’s delivery of this LeaseLessee shall, Tenant shall deposit with Landlord Lessor the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord Security Deposit as security for the full and faithful payment and performance by Lessee of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the and not as a prepayment of Rent. The Security Deposit shall be returned to Tenant (or, at Landlord’s option, to deposited with Lessor simultaneously with the last assignee execution and delivery of Tenant’s interest in this Lease. For purposes of this Lease, the term “Security Deposit” shall mean and include all cash security deposited with Lessor pursuant to this Section. Any cash security held by Lessor pursuant to this section may be commingled with Lessor’s other funds. Lessor shall assign and deliver the Security Deposit to any transferee of the Building and thereafter Lessor shall have no further responsibility therefor. Upon the expiration (or earlier termination) of the Term of this Lease, Lessor shall inspect the Premises, make such deductions from the Security Deposit as may be required to cure any default by Lessee hereunder, and, if Lessee is not then in default hereunder, return the cash security then held by Lessor to Lessee within thirty (30) days after of such expiration or termination. If Lessee is in default at the time of such expiration or termination, the Lessor shall be entitled to retain so much of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit as Lessor reasonably estimates to be Lessee’s liability to Lessor under this Lease and shall pay the balance, if any, to Lessee within such 30-day period. In the event that Lessor applies all or any portion of the cash security, towards the cure of an Event of Default by Lessee hereunder or towards damages payable by Lessee to Lessor by reason of the occurrence of an Event of Default by Lessee hereunder, Lessee shall pay to Lessor, as Additional Rent, the amount so expended by Lessor within thirty (30) business days of notice given by Lessor so that at all times (subject to the extent thirty (30)-business day grace period herein referenced) Lessor shall be entitled to hold the full cash security required to be deposited with Lessor hereunder. Any failure of Lessee to deliver to Lessor the cash security as prescribed herein or any amounts expended from the cash security within the time and until manner specified in this Section shall constitute an Event of Default under the Lease and Lessor shall retain such time cash amounts (or the cash security, as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such appropriate) as a Security Deposit pursuant to the extent provided in provisions of this Section.

Security Deposit. Concurrently with Tenant’s delivery Notwithstanding any other provision of this LeaseLease Agreement, Tenant shall the Lessee may on any date secure the payment of Lease Payments by a deposit of (i) an amount of cash that, as required by the Trust Agreement, together with Landlord amounts on deposit in the sumLease Payment Fund and the Insurance and Condemnation Fund, is sufficient to pay all unpaid Lease Payments and Additional Rent, including the principal and interest components thereof, in accordance with the Lease Payment Schedule set forth in Exhibit A hereto or (ii) Defeasance Obligations, together with cash, if anyrequired, stated in Item 9 such amount as will, in the opinion of an independent certified public accountant pursuant to the terms of the Basic Trust Agreement, together with interest to accrue thereon but without reinvestment thereof and, if required, all or a portion of moneys or Defeasance Obligations then on deposit in the Lease ProvisionsPayment Fund and the Insurance and Condemnation Fund, be fully sufficient to pay all unpaid Lease Payments and Additional Rent on their respective Lease Payment Dates, as the Lessee shall instruct at the time of said deposit. In the event of a deposit pursuant to this Section and upon the defeasance of all the Certificates pursuant to Section 14.1 of the Trust Agreement, all obligations of the Lessee pursuant to this Lease Agreement (except those that survive termination of this Lease Agreement), and all security provided by this Lease Agreement for said obligations, shall cease and terminate, excepting only the obligations of the Lessee to make, or cause to be held made, Lease Payments and Additional Rent from the deposit made by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required Lessee pursuant to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, and title to the Security Deposit Leased Property shall vest in the Lessee on the date of said deposit automatically and without further action by the Lessee or the Lessor. Said deposit shall be understood and agreed deemed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards shall constitute a special fund for the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions Lease Payments and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined Additional Rent in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection accordance with the repair or restoration of the Premises pursuant to Section 15.3 provisions of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionAgreement.

Security Deposit. Concurrently Simultaneously with Tenant’s the execution and delivery of this Lease, Tenant shall deliver to Landlord a security deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the which Security Deposit shall be understood and agreed to be in the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant Security Deposit Amount (as defined in Section 14.1)1.2) and shall consist of cash. During the Term hereof, Landlord mayand any extensions thereof, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) for 60 days after the expiration of the Term, provided that or for so long thereafter as Tenant agrees that Landlord may retain is in possession of the Premises or has unsatisfied obligations hereunder to Landlord, the Security Deposit to shall be security for the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and timely performance of Tenant’s obligations under this Lease; which cash may be used and applied from time to time against outstanding obligations of Tenant agrees that hereunder without notice or demand, subject to applicable notice and cure periods. Tenant shall have no claim right to require Landlord to so apply the Security Deposit, nor shall Tenant be entitled to credit the same against Rent or other sums payable hereunder; no interest shall accrue thereon. No trust relationship is created herein between Landlord for and Tenant with respect to said Security Deposit. Tenant acknowledges that the Security Deposit is not an advance payment of any kind or a measure of Landlord’s retaining such damages in the event of Tenant’s default; Landlord shall not be obliged to keep the Security Deposit to as a separate fund or pay interest thereon but may commingle the extent provided Security Deposit with its own funds. Tenant hereby waives the provisions of any law which is inconsistent with this Section 17.15. The Security Deposit shall be reduced during the Lease Term commencing on the third anniversary of the month Tenant commences paying Rent in accordance with the provisions under Section 1.2 of this SectionLease.

Security Deposit. Concurrently with Tenant’s delivery Upon execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 sum of Four Thousand Two Hundred Fifteen and 90/100 Dollars ($4,215.90) (the Basic Lease Provisions, to “Security Deposit”). The Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s obligations under hereunder. If Tenant defaults with respect to any provision of this Lease (Lease, including but not limited to the “provisions relating to the payment of Rent, Landlord may, but shall not be required to, use, apply or retain all or any part of this Security Deposit”)Deposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of 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 the Security Deposit is so used or applied, Tenant shall, upon demand, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence If Tenant shall fully and faithfully perform all of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord obligations under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which if Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord not in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations default under this Lease, 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 in this Leaseinterests hereunder) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Term and after Landlord may retain the Security Deposit to the extent and until after such time as all amounts any amount due from Tenant in accordance with this Lease have Article 4 hereof has been determined and paid in full full. Tenant hereby waives the benefit of California Civil Code Section 1950.7 with regards to such Security Deposit, it being agreed and Tenant agrees understood that Tenant Landlord shall have no claim against Landlord for Landlord’s retaining such the right, upon an Event of Default, to apply the Security Deposit to satisfy the extent provided in this Sectionpayment of future rent obligations.

Security Deposit. Concurrently with Tenant’s delivery On the Date of this Lease, Tenant shall deliver to Landlord a security deposit with Landlord the sum, if any, stated ("Security Deposit") in Item 9 of the Basic Lease Provisionsan amount equal to One Million Dollars ($1,000,000), to be held in an interest bearing account requiring authorization by both Landlord and Tenant for withdrawal. On the Lease Commencement Date, the Security Deposit plus all interest earned thereon shall be released to Landlord, and Tenant shall deliver to Landlord an amount sufficient to increase the Security Deposit to an amount equal to the Equity Funded Amount as of such date; provided that Tenant shall receive a credit for any interest earned on the Security Deposit prior to the Lease Commencement Date. The Security Deposit shall be held by Landlord as security solely for the full payment of Base Rent and faithful performance Additional Rent by Tenant pursuant to this Lease. One-fifth of all the Security Deposit shall bear interest from the Lease Commencement Date at the rate of Tenant’s obligations under this 6.75% per annum, simple interest, paid by Landlord to Tenant in cash on an annual basis on each anniversary of the Lease Commencement Date; and the remainder of the Security Deposit shall not bear interest. If at any time during the Term any Base Rent shall be overdue, then Landlord may at its election (the “Security Deposit”). Landlord but shall not be required to keep this Security Deposit separate from its general funds, to) appropriate and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is to the payment of any such overdue Base Rent; provided, however, that Landlord shall use the non-interest bearing portion of the Security Deposit first, before appropriating any portion of the Security Deposit that shall bear interest pursuant hereto. Should the entire Security Deposit, or any portion thereof, be appropriated and applied by Landlord as permitted by this Sectionprovided herein, then Tenant shall within five (5) days immediately, after receipt of written demand by Landlord, pay to Landlord deposit a sufficient sum in cash with Landlord in an amount sufficient to restore the Security Deposit to its the original amountsum of the Security Deposit. If Tenant fully performs its obligations under this Lease, Landlord shall have no obligation to segregate the Security Deposit shall be returned to Tenant (orfrom other funds. In the event that the Equity Funded Amount is reduced for any reason, at Landlord’s option, to the last assignee including without limitation by reason of Tenant’s interest in this Lease) within thirty (30) days after the expiration a sale of any portion of the Term, provided that Tenant agrees that Landlord may retain Premises or the Security Deposit application of the proceeds of a condemnation award to reduce the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.Equity Funded Amount (it being

Security Deposit. Concurrently with Tenant’s delivery Upon Landlord's purchase of this Leasethe Property, Tenant shall deposit with Landlord the sumsum of $250,000 in cash and $400,000 in the form of an irrevocable Letter of Credit in form acceptable to Landlord and drawn on a financial institution acceptable to Landlord, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security and for a "Security Deposit" for the full and faithful performance by Tenant of all each and every term, provision, covenant and condition of Tenant’s obligations under this Lease (Lease. On the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general fundsfirst day of each month, and Tenant shall not be entitled to interest on will deposit an additional $9,500 of cash into the Security Deposit. Subject The amount of the Letter of Credit held by Landlord or Landlord's Mortgagee shall be reduced each six months by $1.00 for each $1.00 of any such additional cash deposits made during the preceding six months of the Term until the Letter of Credit is reduced to the last sentence zero. The Security Deposit in cash and Letter of this SectionCredit shall in no event exceed $1,150,000. The cash portion of such Security Deposit shall be maintained by or on behalf of Landlord and/or Landlord's Mortgagee in a separate interest-bearing account reasonably acceptable to Tenant, and shall not be commingled with Landlord's other accounts. The Letter of Credit portion of the Security Deposit shall be understood issued, at Landlord's request, either in the name of Landlord, or Landlord's Mortgagee and agreed shall be held by either Landlord or an escrow agent, in which case Tenant agrees it will execute any documentation necessary to be effectuate the property intent of Landlord upon Landlord’s receipt thereofthis Section 34. In the event that Tenant fails to pay any Base Rent or other amounts payable under this Lease within three days of the due date, or in the event Tenant defaults beyond the period allowed for cure in the Lease in respect to any of the other terms, provisions, covenants and may be utilized by Landlord in its sole and absolute discretion towards the payment conditions of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)Landlord may use, Landlord may, in its sole and absolute discretion, retain, use apply or apply retain the whole or any part of the Security Deposit to pay security so deposited for the payment of any such amounts or for any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of Tenant's default, including, but not limited to, any damages or deficiency may accrue before or after reentry by Landlord. Tenant shall be entitled to any interest on the Event Security Deposit, payable quarterly, if the Security Deposit is in cash. It is expressly understood and agreed that such deposit is not an advance rental deposit or a measure of Default Landlord's damages in case of Tenant's default. Upon application of any part of the deposit by Landlord as provided herein, Tenant or any loss or damage that shall pay to Landlord may suffer on demand the amount so applied in order to restore the security deposit to its original amount. Any application of the deposit by Landlord shall not be deemed to have cured Tenant's default by reason of which the Event application is made. Tenant hereby grants to Landlord a security interest in the Security Deposit to secure all of Default or costs incurred by Tenant's obligations to Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share any claims in favor of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered arising out of rejection of the Lease in any respect due to the fact bankruptcy. Tenant acknowledges that Landlord is holding the Security Deposit. If any portion of may assign the Security Deposit is applied by to Landlord's Mortgagee and consents to said assignment. In the event of a bona fide sale of the Building of which the Premises are a part, Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient have the right to restore transfer the Security Deposit to its original amountvendee for the benefit of Tenant, and thereafter Landlord shall be released of all liability for the return of such deposit and Tenant agrees to look to said vendee for the return of its security deposit. It is agreed that this provision shall apply to every transfer or assignment made of the security deposit to any new landlord. This Security Deposit shall not be assigned or encumbered by Tenant. It is expressly understood that the reentry of the Premises by Landlord for any default on the part of Tenant prior to the expiration of the term of this Lease shall not be deemed a termination of this Lease so as to entitle Tenant to recover the security deposit, and the security deposit shall be retained and remain in the possession of Landlord until the end of the term of this Lease, except as set forth below. Actions by Landlord against Tenant for breach of this Lease shall in no way be limited or restricted by the amount of this security deposit and resort to such deposit shall not waive any other rights or constitute an election of remedies which Landlord may have. If Tenant fully has fulfilled all of its obligations under the Lease through the Initial Term and renews the Lease for the First Renewal Term, the Security Deposit will be reduced to an amount equal to one monthly installment of the Base Rent and other charges then due under this Lease, and the remaining amounts in the Security Deposit (including accrued interest) will be returned to Tenant. If the Lease is not renewed for the First Renewal Term, the Security Deposit will be retained by Landlord and used to pay all costs of operating and maintaining the Premises, marketing the Premises for sale or lease, making repairs and improvements to the Premises, to prepare the Premises for sale or lease, and paying any other costs reasonably incurred in selling or reletting the Premises. Upon sale or lease of all or substantially all of the Premises, Landlord will pay to Tenant any portions of such Security Deposit which have not been used for such purposes. If Tenant performs all of its obligations under this LeaseLease through the First Renewal Term and any subsequent Renewal Terms, any amounts remaining in the Security Deposit shall (including accrued interest) will be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of this Lease following any adjustment of Operating Cost for the last year of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery of this Lease8.1. Prior to the Term Commencement Date, Tenant shall deposit with Landlord the sumsum set forth in Section 2.6 (the “Security Deposit”), if any, stated in Item 9 of the Basic Lease Provisions, to which sum shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term of this Lease. In addition, Tenant shall, within five (5) days after any upward adjustment in the “Security Deposit”). Landlord shall not be required Basic Annual Rent pursuant to keep this Security Deposit separate from its general fundsSection 6.2, deposit with Landlord, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed increased by, an amount equal to be the property increase in the monthly rental installment of Landlord upon Landlord’s receipt thereofthe Basic Annual Rent pursuant to Section 6.2. If Tenant defaults with respect to any provision of this Lease, and may be utilized by Landlord in its sole and absolute discretion towards including, but not limited to, any provision relating to the payment of all expenses by Rent, then Landlord for which Tenant would may (but shall not be required to reimburse Landlord under this Leaseto) use, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use apply or apply the whole retain all or any part of the Security Deposit to pay for the payment of any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositdefault. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, then Tenant shall shall, within five ten (510) days after written following demand by Landlord therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under , and Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general fund, and Tenant shall not be entitled to interest on the Security Deposit Deposit. The provisions of this Article 8 shall be returned to Tenant (or, at Landlord’s option, to survive the last assignee expiration or earlier termination of Tenant’s interest in this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, WHICH, AMONG OTHER THINGS, (a) within thirty ESTABLISH THE TIME FRAME BY WHICH LANDLORD MUST REFUND A SECURITY DEPOSIT UNDER A LEASE, AND/OR (30b) days after the expiration of the TermPROVIDE THAT LANDLORD MAY CLAIM FROM THE SECURITY DEPOSIT ONLY THOSE SUMS REASONABLY NECESSARY TO REMEDY DEFAULTS IN THE PAYMENT OF RENT, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionTO REPAIR DAMAGE CAUSED BY TENANT OR TO CLEAN THE PREMISES.

Security Deposit. Concurrently with Tenant’s delivery A security deposit of $ is due and payable upon execution of this Leaselease. Failure of Lessee to deliver said deposit at the aforesaid time will allow Lessor, Tenant at Lessor’s sole discretion, to cancel said lease upon notification of the same delivered to Lessee thereby rendering this lease agreement, null, void, and of no effect. Lessor shall refund said security deposit, less deductions for damages in excess of normal wear and tear and the Standard Deductions listed in paragraph 19 of this lease, within 30 days of Lessee’s vacating of the premises. Lessees shall be entitled to a full refund of this security deposit if they pay the amounts due under this Lease and if they return the Premises in the same condition as it was in when they received possession, except for ordinary wear and tear. Lessees acknowledge that no representations, written or verbal have been made by the Lessor or his Agent as to any repairs that will be made to the property prior to Lessees’ occupancy. Lessees further acknowledge that they have seen the Leased premises and accept it in its present condition. In order to avoid disagreements regarding the condition of the Premises, Lessees should prepare inventory checklists of the items furnished, the condition of these furnishings and the condition of the entire Premises. Lessees shall prepare these checklists immediately upon obtaining possession and immediately prior to returning possession of the Premises. Lessees shall furnish Lessor with Landlord the suma copy of such checklists within seven (7) days of taking possession. Lessor shall return Lessees’ security deposit, together with a statement itemizing deductions, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after of Lessees return of possession (including the expiration keys); and Lessor’s receipt of Lessees’ forwarding address and phone number. If the security deposit is insufficient to compensate Lessor for the damages, Lessor shall give written notice to Lessees of the Termnature and amount of the deficiency. Lessees shall pay the amount of the deficiency to Lessor within thirty (30) days of receipt of such notice. Should Lessor, provided that Tenant agrees that Landlord may retain upon inspection of the Security Deposit premises conducted pursuant to Paragraph J, subparagraph j, discover damages to the extent premises that exceed normal wear and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant tear, Lessor shall have no claim against Landlord for Landlord’s retaining the option to demand an additional security deposit from Lessee not to exceed the original security deposit amount. Said additional security deposit shall be deposited with Lessor not less than 15 days subsequent to Lessees receipt of notification of such Security Deposit to the extent provided in this Sectiondemand.

Security Deposit. Concurrently with Tenant’s delivery Upon the execution of this Lease, Tenant shall deposit with ---------------- pay to Landlord $[*] ("the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord Deposit") as security for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants, and conditions of this Lease (including, but not limited to, the “Security Deposit”payment of Rent). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the The Security Deposit shall be understood given in cash in the minimum amount of $[*]. In the event Tenant pays to Landlord the full amount of the Security Deposit in the form of cash, Tenant may elect to convert $[*] of the Security Deposit into the form of an unconditional, irrevocable letter of credit in the name of the Landlord and agreed payable upon presentation at a federally-insured national bank in the Commonwealth of Virginia, in such form and content as landlord shall reasonably require, or in such form as Landlord may approve, or in a combination of the foregoing. Upon Landlord's receipt of an approved letter of credit, Landlord shall refund to be Tenant the property full amount of the letter of credit up to a maximum amount of $[*] within thirty (30) days. Landlord may, but is not obligated to, without waiving or satisfying such Event of Default, or waiving or limiting any other rights or remedies of Landlord upon or limiting Tenant's liability to Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards apply all or any portion of the payment Deposit on account of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (hereunder, as defined in Section 14.1)well as on account of any expense incurred or paid, Landlord mayor damages suffered, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with such failure, and Tenant, within ten (10) days following receipt of written notice of demand, shall replenish the repair or restoration of amount necessary to restore the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Leasefull Deposit. In no event Landlord may commingle the Deposit with any other accounts that Landlord holds, and Landlord shall Landlord not be obligated to apply pay any interest accrued on the Security Deposit upon an Event to Tenant. In the event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses a sale or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion transfer of the Security Project (or Landlord's interest therein), Landlord shall have the right to transfer to such purchaser or other party the Deposit is applied by and Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit thereupon shall be returned to released by Tenant (orfrom all liability for the return thereof, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to look to the extent provided in this Sectionnew landlord solely for the return thereof.

Security Deposit. Concurrently with Tenant’s delivery Resident shall pay to Lessor upon execution of this LeaseContract the sum of $ , Tenant shall which Lessor may deposit or save with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, its other funds or deposits from other Residents and which Lessor is to be held by Landlord retain as security for the full and faithful performance by Resident of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general fundscovenants, conditions, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence agreements of this SectionContract. Lessor may, without further notice, apply the Security Deposit shall be understood and agreed security deposit on any charges or on damages for the Resident’s failure to be perform the property of Landlord upon Landlord’s receipt thereofsaid covenants, conditions, and may be utilized by Landlord agreements on this Contract, but in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord the Lessor be obligated to apply the Security Deposit upon an Event security deposit in such manner. The Lessor’s right to possession of Default and Landlord’s rights and remedies resulting from an Event the Premises for nonpayment of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses Rent or for any other amount due to Landlord pursuant to this Lease, reason shall not be diminished or altered in any respect due to event be affected by reason of the fact that Landlord is holding the Security DepositLessor holds this security deposit. The security deposit shall accrue no interest payable to Resident. If any portion the security deposit is not applied toward the payment of Rent, utilities, cleaning, damages, or court costs, including attorneys’ fees suffered by Lessor by reason of the Security Deposit is applied by Landlord as permitted by Resident’s breach of the covenants, conditions, and agreements of this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this LeaseContract, the Security Deposit security deposit, or portions thereof, if any due, shall be returned to Tenant (orResident pursuant to Wyoming statutes. In no event is the said security deposit to be returned until and unless the Resident has fully performed the obligations hereunder and has vacated the Premises, at Landlord’s option, and properly cleaned it and delivered the keys and possession to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after Lessor. If Resident vacates the Premises prior to the expiration of the Termthis Contract, Resident agrees to pay Lessor, in addition to all other charges and liabilities provided that Tenant agrees that Landlord may retain the Security Deposit herein, and in addition to and not in lieu of all rights and remedies of Lessor hereunder, liquidated damages equal to the extent and until such time as all greater of fifty percent (50%) or two (2) month’s rent of the remaining amounts due from Tenant in accordance with under Contract to cover the Lessor’s cost of advertising and re-renting the Premises and for the miscellaneous costs and inconveniences experienced by Lessor. Lessor and Resident agree that: (i) the amount of liquidated damages collectible under this Lease have been determined Contact constitutes a reasonable amount of actual damages incurred by Lessor allocated to administrative costs and paid in full expenses by reason of Resident’s default under this Contract; (ii) actual damages allocated to administrative costs and Tenant agrees that Tenant shall have no claim against Landlord for Landlordexpenses occasioned by Resident’s retaining default hereunder are difficult to determine; and (iii) such Security Deposit to amounts are not the extent provided in this Sectionimposition of a penalty by Lessor.

Security Deposit. Concurrently with Tenant’s delivery of Subject to the provisions herein, as long as ALZA or an ALZA Affiliate is the Tenant under this Lease, Tenant shall not be required to deposit with Landlord a security deposit ("Security Deposit") under this Lease; however, Landlord shall require a Security Deposit in an amount equal to two times the sumlast month's Basic Rent in this Lease in the event this Lease is assigned to an Unaffiliated Assignee and ALZA is released from liability for said Lease, if anyin which case, stated in Item 9 of the Basic Lease Provisions, to said sum shall be held by Landlord as security a Security Deposit for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Lease Term. If Tenant defaults with respect to any provision of this Lease and such default is not cured within any applicable cure period, including, but not limited to, the provisions relating to the payment of Rent or any other monetary sums due hereunder, Landlord may (but shall not be required to) use, apply or retain all or any part of this Security Deposit for the “payment of such amount in default, or any other amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If any portion of the Security Deposit”)Deposit is so used or applied, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in the amount sufficient to restore the Security Deposit to its original amount. Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security such Deposit. Subject to the last sentence If Tenant fully and faithfully performs every provision of this SectionLease to be performed by it, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to the last party recognized by Landlord as Tenant hereunder (or, or at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunder) at the expiration of the Lease Term and after Tenant has vacated the Premises. In the event of termination of Landlord's interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain shall transfer the Security Deposit to Landlord's successor in interest whereupon Tenant agrees to release Landlord from liability for the extent return of such Deposit or the accounting therefor. Notwithstanding the above, Tenant shall have the right, at Tenant's sole election, to substitute for one-half of the cash Security Deposit to be held by Landlord, an irrevocable letter of credit, drawn upon an institutional lender reasonably acceptable and until such accessible to Landlord in form and content reasonably satisfactory to Landlord and for a term equal to at least one year (with the letter of credit required to be renewed or replaced by Tenant so as to be available to be drawn on at any time during the Lease Term plus a period of sixty (60) days). Said financial institution must agree that the presentment for demand may be made in at least one of the following locations: San Jose, Santa Clara, San Francisco or Palo Alto, Californix. Xuch irrexxxxxle letter of credit shall be renewed by the issuer (or replaced with a similarly qualifying letter of credit reasonably acceptable to Landlord) at least twenty (20) days prior to the expiration date thereof from time to time during the Lease Term, and shall be held by Landlord as security for the faithful performance by Tenant of all amounts due from Tenant in accordance with the terms, covenants and conditions of this Lease to be kept and performed by Tenant. If, for any reason, Tenant fails to cause the irrevocable letter of credit to be so renewed or replaced at least twenty (20) days prior to its expiration date, Landlord shall have been determined and paid the right to immediately draw upon the letter of credit in full and hold the proceeds thereof as a cash Security Deposit hereunder. If Tenant agrees has theretofore funded the Security Deposit entirely in cash, one half of the cash Security Deposit held by Landlord shall be refunded to Tenant upon Landlord's receipt of an acceptable irrevocable letter of credit. If Tenant defaults with respect to any provisions of this Lease and such default is not cured within any applicable cure period, including but not limited to provisions relating to the payment of Rent, Landlord may (but shall not be required to) draw down on the irrevocable letter of credit for payment of any sum which Landlord may spend or become obligated to spend by reason of Tenant's default, or to compensate Landlord for any loss or damage which Landlord may suffer by reason of Tenant's default. Landlord and Tenant acknowledge that such irrevocable letter of credit will be treated as if it were a cash Security Deposit, and such irrevocable letter of credit may be drawn down upon by Landlord in the amount then due to Landlord upon demand and presentation of evidence of the identity of Landlord to the issuing bank, in the event that Tenant defaults with respect to any provision of this Lease and such default is not cured within any applicable cure period. Landlord acknowledges that it is not entitled to and shall not draw down such irrevocable letter of credit unless Landlord would have no claim against been entitled to draw upon a cash Security Deposit pursuant to the terms of this Paragraph 4G. Concurrently with the delivery of the required information to the issuing bank, Landlord shall deliver to Tenant written evidence of the default upon which the draw down was based, together with evidence that Landlord has provided to Tenant the written notice of such default which was required under the applicable provision of the Lease, and evidence of the failure of Tenant to cure such default within the applicable grace period following receipt of such notice of default. If any portion of the irrevocable letter of credit is used or applied pursuant hereto, Tenant shall, within ten (10) days after receipt of a written demand therefor from Landlord, restore and replace the value of such security by either (i) depositing cash with Landlord in the amount equal to the sum drawn down under the irrevocable letter of credit, or (ii) increasing the irrevocable letter of credit to its value immediately prior to such application. Tenant's failure to replace the value of the security as provided in the preceding sentence shall be a material breach of its obligation under this Lease. The letter of credit shall further provide to the effect: (i) that it shall automatically renew for additional periods of one (1) year each from the expiry date or future expiry date, unless at least twenty (20) days prior to any expiry date the issuer notifies Landlord by registered mail of the issuer's election not to renew the letter of credit and (ii) if the issuer is unable or unwilling to so renew the letter of credit, the issuer shall deem such to automatically constitute a draw request from Landlord upon the letter of credit without further demand, and with the issuer on or before the expiration of such letter of credit to deposit for Landlord’s retaining such Security Deposit 's account an amount equal to the extent provided amount remaining committed but undrawn under the letter of credit (unless issuer has sought and obtained from Landlord prior thereto a written acknowledgment by Landlord of the termination of the requirement of this Lease for such letter of credit to be so renewed, in this Sectionwhich event issuer shall not be required to make such a deposit for Landlord's account).

Security Deposit. Concurrently with Tenant’s delivery The LICENSEE, prior to the commencement of this Leaseoperations, Tenant shall deposit with Landlord COUNTY a security deposit approximately three (3) times the sumestimated monthly rent, if any, stated in Item 9 fees and charges as determined by the Airport Director. Concurrently with each revision of the Basic Lease Provisionsfees and charges pursuant to Section 3.01 in this LICENSE, the security deposit to be held provided by Landlord the LICENSEE shall be adjusted to approximately three (3) times the estimated monthly fees and charges as determined by the Airport Director to guarantee the faithful performance by the LICENSEE of its obligations under this LICENSE and the payment of all fees and charges due hereunder. PFCs shall be excluded from the fees and charges used to determine the LICENSEE’s security for deposit. The security deposit shall guarantee the LICENSEE's full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general fundsterms, covenants, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence conditions of this SectionLICENSE, and shall take the Security Deposit form of an instrument or instruments of credit from one or more financial institutions, subject to regulation by the State of California or federal government, pledging that funds necessary to secure performance of the LICENSE terms, covenants, and conditions are on deposit and guaranteed for payment, and agreeing that said funds shall be understood trust funds securing the LICENSEE's performance and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of that all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part shall be paid to the COUNTY, or order upon demand by the Airport Director. Both the financial institution(s) and the form of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend instrument(s) must be approved by the Airport Director. All or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied security deposit shall be available unconditionally to the COUNTY for correcting any default or breach of this LICENSE by Landlord the LICENSEE, its successors or assigns, or for payment of expenses incurred by the COUNTY as permitted a result of the failure of the LICENSEE, its successors or assigns, to faithfully perform all terms, covenants, and conditions of this LICENSE. Instrument of Credit to fulfill the security deposit requirements of this LICENSE, shall have the effect of releasing depository or creditor therein from liability on account of the payment of any or all of the principal sum due to the COUNTY, or order upon demand by this Sectionthe Airport Director. In the event the Airport Director withdraws all or any portion of the security deposit as provided herein, Tenant shall the LICENSEE shall, within five ten (510) days after written demand of any withdrawal by Landlord Airport Director, replenish the security deposit cash with Landlord in an amount sufficient to restore maintain it at amounts herein required throughout the Security Deposit LICENSE term. Failure to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit do so shall be returned deemed a default and shall be grounds for immediate termination of this LICENSE, as per Article VIII of this LICENSE. The LICENSEE shall be obligated to Tenant (or, at Landlord’s option, to maintain the last assignee of Tenant’s interest security deposit in this Lease) within thirty (30) days after effect until the expiration termination of the TermLICENSE. The security deposit, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as after deduction of all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant COUNTY, shall have no claim against Landlord for Landlord’s retaining such Security Deposit be rebated, reassigned, released or endorsed by the COUNTY to the extent LICENSEE or order, as applicable, after one hundred twenty (120) days have elapsed or at a time to be determined by the Airport Director, following the termination of the LICENSE, provided in LICENSEE has fully and faithfully performed each and every term, covenant, and condition of this SectionLICENSE.

Security Deposit. Concurrently with Tenant’s delivery Upon execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to Security Deposit. The Security Deposit shall be held by Landlord as security for the full and faithful performance of all the terms of Tenant’s obligations under this Lease (the “to be observed and performed by Tenant. The Security Deposit”). Landlord Deposit shall not be required mortgaged, assigned, transferred or encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If the Annual Fixed Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the Tenant, or Tenant shall fail to keep perform any of the terms of this Lease, then Landlord may, at its option, upon not less than three (3) days' prior notice to Tenant, but without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply the entire Security Deposit separate from its general fundsor so much thereof as may be necessary to compensate Landlord toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach by Tenant; and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord forthwith upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its the original amountsum deposited. If So long as Tenant fully performs shall not be in default 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 4.9, 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, 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 any part thereof not previously applied, shall be turned over by Landlord to Landlord's grantee, and Tenant shall look solely to such grantee for proper application of the Security Deposit in accordance with the terms of this Section 4.9 and the return thereof in accordance herewith. The holder of a mortgage on the Property shall not be responsible to Tenant for the return or application of the Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such holder actually receives the Security Deposit. In addition, at the expiration of the term of the Other Lease, Tenant shall deliver to Landlord a letter of credit (the "Letter of Credit"), which shall (a) be unconditional and irrevocable and otherwise in form and substance satisfactory to Landlord; (b) be at all times in the amount of $150,000, and shall permit multiple draws without a corresponding reduction in the amount of the Letter of Credit; (c) be issued by a commercial bank reasonably acceptable to Landlord from time to time; (d) be made payable to, and expressly transferable and assignable at no charge by, the owner from time to time of the Property (which transfer/assignment shall be returned conditioned only upon the execution by such owner of a written document in connection with such transfer/assignment; (e) be payable at sight upon presentment to a local branch of the issuer of a simple sight draft accompanied by a certificate of Landlord stating that Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest is in default under this Lease, and the amount that Landlord is owed (or is permitted to draw) within in connection therewith; and (f) shall either expire sixty (60) days following the expiration of the term of this Lease, or be replaced not less than thirty (30) days after prior to the expiration of the Term, provided then current Letter of Credit so that the original Letter of Credit or a replacement thereof shall be in full force and effect throughout the Term of this Lease and for a period of sixty (60) days thereafter. Tenant agrees that shall deliver to Landlord may retain the Security Deposit any replacement Letter of Credit not less than thirty (30) days prior to the extent and until such time as all amounts due from Tenant expiration of the then current Letter of Credit. Notwithstanding anything in accordance with this Lease to the contrary, any grace period or cure periods which are otherwise applicable under Section 8.1, hereof, shall not apply to any of the foregoing, and, specifically, if Tenant fails to comply with the requirements of subsection (f) above, Landlord shall have been determined and paid the immediate right to draw upon the Letter of Credit in full and Tenant agrees hold the proceeds thereof as a cash security deposit until such breach or default shall be cured by Tenant. 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 P-2 (or equivalent) by Moodx'x Xxxestor Service, Inc., or at least A-2 (or equivalent) by Standard & Poor's Corporation. If the issuer's credit rating is reduced below P-2 (or equivalent) by Moodx'x Xxxestor Service, Inc., or at least A-2 (or equivalent) by Standard & Poor's Corporation, or if the financial condition of the issuer changes in any other materially adverse way, then Landlord shall have the right to require that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to obtain from a different issuer a substitute Letter of Credit that complies in all respects with the extent provided in requirements of this Section, and Tenant's failure to obtain such substitute Letter of Credit within ten (10) days after Landlord's written demand therefor (with no other notice, or grace or cure period being applicable thereto) shall entitle Landlord to immediately draw upon the existing Letter of Credit in full, without any further notice to Tenant until such substitute Letter of Credit is provided.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord upon signing this Lease and, throughout the sumTerm shall keep on deposit with Landlord, if any, stated the Security Deposit Amount set forth in Item 9 of the Basic Lease Provisions, to be held by Landlord Article 1 as security for the full payment by Tenant of the Rent and for the faithful performance of all the terms, conditions and covenants of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required obligated to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be as a separate fund, but may commingle the property of Landlord upon Security Deposit with Landlord’s receipt thereof, own funds. If at any time during the Term Tenant shall default in the performance of any provisions of this Lease beyond applicable notice and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)cure periods, Landlord may, in its sole and absolute discretion, retainbut shall not be required to, use the Security Deposit, or apply the whole so much thereof as necessary, in payment of any Rent in default, or in reimbursement of any part expense incurred by Landlord or in payment of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that damages incurred by Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this LeaseTenant’s default. In no event shall Landlord be obligated to apply the Security Deposit such event, Tenant shall, upon an Event of Default and written demand from Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due promptly remit to Landlord pursuant to this Lease, shall not be diminished or altered a sufficient amount in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amountequal the Security Deposit Amount. If Tenant fully performs its obligations under Within 30 days after the expiration of this Lease and surrender of the Demised Premises in accordance with the terms and conditions of this Lease, the Security Deposit Deposit, or as much thereof as has not been utilized for such purposes, shall be returned refunded to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that without interest. Landlord may retain deliver the Security Deposit to the extent and until purchaser of Landlord’s interest in the Demised Premises in the event such time as all amounts due interest is sold, and, in such instance, Landlord named herein shall be discharged from Tenant in accordance any further liability with this Lease have been determined and paid in full respect to the Security Deposit and Tenant agrees that shall look to Landlord’s successor for the return of the Security Deposit. Notwithstanding the above provisions of this Section 3.4, if any claims of Landlord exceed the amount of the Security Deposit, Tenant shall have no claim against Landlord remain liable for Landlord’s retaining the balance of such claims. Tenant may maintain the Security Deposit in the form of a letter of credit so long as (i) the form and terms of said letter of credit and the issuing bank thereunder shall each be reasonably satisfactory to Landlord, and (ii) the extent provided in this Sectionletter of credit shall be fully transferable without cost to Landlord.

Security Deposit. Concurrently with Tenant’s delivery Notwithstanding any other provision of this LeaseLease Agreement, Tenant shall the Lessee may on any date secure the payment of Lease Payments by a deposit of (i) an amount of cash that, as required by the Trust Agreement, together with Landlord amounts on deposit in the sumLease Payment Fund and the Insurance and Condemnation Fund, is sufficient to pay all unpaid Lease Payments and Additional Rent, including the principal and interest components thereof, in accordance with the Lease Payment Schedule set forth in Exhibit A hereto, or (ii) Defeasance Obligations, together with cash, if anyrequired, stated in Item 9 such amount as will, in the opinion of an independent certified public accountant pursuant to the terms of the Basic Trust Agreement, together with interest to accrue thereon but without reinvestment thereof and, if required, all or a portion of moneys or Defeasance Obligations then on deposit in the Lease ProvisionsPayment Fund and the Insurance and Condemnation Fund, be fully sufficient to pay all unpaid Lease Payments and Additional Rent on their respective Lease Payment Dates, as the Lessee shall instruct at the time of said deposit. In the event of a deposit pursuant to this Section and upon the defeasance of all the Certificates pursuant to Section 14.1 of the Trust Agreement, all obligations of the Lessee pursuant to this Lease Agreement (except those that survive termination of this Lease Agreement), and all security provided by this Lease Agreement for said obligations, shall cease and terminate, excepting only the obligations of the Lessee to make, or cause to be held made, Lease Payments and Additional Rent from the deposit made by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required Lessee pursuant to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, and title to the Security Deposit Leased Property shall vest in the Lessee on the date of said deposit automatically and without further action by the Lessee or the Lessor. Said deposit shall be understood and agreed deemed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards shall constitute a special fund for the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions Lease Payments and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined Additional Rent in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection accordance with the repair or restoration of the Premises pursuant to Section 15.3 provisions of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionAgreement.

Security Deposit. Concurrently Lessee has deposited with Tenant’s delivery Lessor the sum of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord $59,500.00 as security for the full and faithful observance and performance by Lessee of the terms, covenants and conditions of this Lease. If Lessee defaults in the observance or performance of all any term, covenant or condition of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event the payment of Default by Tenant (as defined in Section 14.1)Rent, Landlord mayLessor may use, in its sole and absolute discretion, retain, use apply or apply retain the whole or any part of the Security Deposit security so deposited to pay the extent required for the payment of any Rent or any other sum as to which Lessee is in default or for any sum which Tenant is obligated to pay under this Lease, sums that Landlord Lessor may expend or may be required to expend by reason of the Event of Default Lessee’s default, including without limitation any damages or deficiency accrued before or after summary proceedings or other reentry by Tenant or any loss or damage that Landlord may suffer by reason Lessor. If Lessee shall fully and faithfully observe and perform all of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination terms, covenants and conditions of this Lease, the security, without interest, shall be returned to Lessee after the end of the Lease Term and after delivery of entire possession of the Demised Premises to Lessor. In no the event of a sale, transfer or leasing of the Demised Premises by Lessor, Lessor shall Landlord have the right to transfer the security to the vendee, transferee or lessee, and Lessor thereupon shall be obligated released by Lessee from all liability for the return of such security. Lessee agrees to look solely to such new owner or landlord for the return of said security. The provisions of this paragraph shall apply to every transfer or assignment of the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure security to pay Basic Rent, Tenant’s Share of Operating Expenses a new owner or any other amount due to Landlord pursuant to this Lease, landlord. Lessee shall not assign or encumber or attempt to assign or encumber the security, and neither Lessor nor the successors or assigns of Lessee shall be diminished bound by any such assignment, encumbrance, or altered in any respect due to the fact that Landlord is holding the Security Depositattempted assignment or encumbrance. If Lessor applies or retains all or any portion of the Security Deposit is security, Lessee on demand shall pay to Lessor the amount so applied by Landlord as permitted by this Section, Tenant or retained which shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient be added to restore the Security Deposit security so that the same shall be replenished to its original amount. If Tenant fully performs its obligations under this Lease, former amount and so that at all times the Security Deposit amount deposited shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section$59,500.00.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated sum set forth in Item 9 Article 1.F. of the Basic Lease Provisions, to be held by Landlord Provisions (the “Security Deposit”) as security for the full and faithful performance of all every provision of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property performed by Tenant. If Tenant breaches any provision of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event but not limited to the payment of Default by Tenant (as defined in Section 14.1)rent, Landlord may, in its sole and absolute discretion, retain, may use or apply the whole all or any part of this security deposit for the Security Deposit to pay payment of any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant rent or any other sums in default, or to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositdefault. If any portion of the Security Deposit said deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall shall, within five (5) days after written demand by Landlord therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original full amount. If Tenant fully performs agrees that Landlord shall not be required to keep the security deposit in trust, segregate it or keep it separate from Landlord’s general funds, but Landlord may commingle the security deposit with its obligations under this Leasegeneral funds and Tenant shall not be entitled to interest on such deposit. At the expiration of the Lease Term, and provided there exists no default by Tenant hereunder, the Security Deposit security deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest Transferee (as such term is defined in Article 15 below)), provided that subsequent to the expiration of this Lease, Landlord may retain from said security deposit (i) an amount reasonably estimated by Landlord to cover potential Direct Cost reconciliation payments due with respect to the calendar year in which this Lease terminates or expires (Such amount so retained shall not, in any event, exceed ten percent (10%) of estimated Direct Cost payments due from Tenant for such calendar year through the date of expiration or earlier termination of this Lease and any amounts so retained and not applied to such reconciliation shall be returned to Tenant within thirty (30) days after Landlord’s delivery of the expiration 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 Article 29(b) below and to repair any damage caused by such removal (in which case any excess amount so retained by Landlord shall be returned to Tenant within thirty (30) days after such removal and repair), and (iii) any and all amounts permitted by law or this Article 4. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code and all other provisions of 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 Article 4 above and/or those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the acts or omissions of Tenant or any officer, employee, agent, contractor or invitee of Tenant. Notwithstanding the above, provided that Tenant is not in default as of the last day of the twenty-fourth (24th) month and the last day of the thirty-sixth (36th) month of the Term, provided that Tenant agrees that respectively, on each of the first day of the twenty-fifth (25th) and thirty-seventh (37th) full months of the Term, Landlord may retain shall apply one-third (1/3) of the Security Deposit (Le., $11,695.20) to the extent monthly Basic Rental payable by Tenant for such 25th and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full 37th months of the Term, and Tenant agrees that Tenant shall have no claim against pay when due any deficiency in the monthly Basic Rentals due and payable for such 25th and 37th months of the Term. Landlord for Landlord’s retaining such shall retain the balance of the Security Deposit (i.e., $11,695.20) to be used, if at all, as set forth in the extent provided in this Sectionpreceding paragraph.

Security Deposit. Concurrently with TenantTenant hereby agrees to pay to Landlord a security deposit of eight thousand four hundred forty dollars and fifty cents ($8,440.50), which is equal to first month’s delivery of this LeaseBase Rental, Tenant shall deposit with Landlord on the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under day this Lease is executed by Tenant (the “Security Deposit”). Upon the occurrence of any Event of Default by Tenant, Landlord may, from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to make good any arrears of Base Rental or Additional Rental or any other payment obligation hereunder, including, but not limited to, the cost of any damage, injury, expense, or liability caused by any Event of Default by Tenant hereunder. Any remaining balance of the Security Deposit shall be returned by Landlord to Tenant within a reasonable period of time after the termination or expiration of this Lease and the satisfaction of Tenant’s obligations hereunder. The Security Deposit shall not be required to keep this Security Deposit separate from its general funds, and considered an advance payment of rental or a measure of Landlord’s damages in case of default by Tenant. Tenant shall not be entitled to receive and shall not receive any interest on the Security Deposit, and Landlord may commingle the same with other monies of Landlord. Subject to In the last sentence of this Section, event Landlord applies the Security Deposit shall be understood and agreed or any portion thereof to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by any sum described above and this Lease is not terminated, Tenant shall immediately deposit with Landlord for which Tenant would an amount of money equal to the amount so applied, and such amount shall be required deemed to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any be part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this LeaseDeposit. In no the event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and a sale or transfer of Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of Premises, Landlord shall have the Term, provided that Tenant agrees that Landlord may retain right to transfer the Security Deposit to the extent purchaser or lessor, as the case may be, and until upon any such time as transfer and acknowledgement of receipt of Security Deposit by such transferee, Landlord shall be relieved of all amounts due from liability to Tenant in accordance with this Lease have been determined and paid in full for the return of the Security Deposit, and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit look solely to the extent provided in this Sectionnew owner or lessor for the return of the Security Deposit.

Security Deposit. Concurrently with Tenant’s delivery 's execution of this Lease, Tenant shall deposit has deposited with Landlord the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to be held by Landlord as security for the full Seven Hundred Forty Thousand Four Hundred Thirty and faithful performance of all of Tenant’s obligations under this Lease No/100 Dollars (the “$740,430.00) ("Security "Deposit”"). Landlord shall not be deemed a trustee of the Security Deposit, may use the Security Deposit in business, and shall not be required to keep this Security Deposit separate segregate it from its general funds, and accounts. Tenant shall not be entitled to interest on the Security Deposit. Subject If Tenant defaults with respect to any provisions of the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event but not limited to the provisions relating to payment of Default by Tenant (as defined in Section 14.1)Base Monthly Rent or other charges, Landlord may, in its sole and absolute discretion, retainto the extent reasonably necessary to remedy Tenant's default, use any or apply the whole or any part all of the Security Deposit to pay towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any sum other amount which Tenant is Landlord may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the Event of Default by Tenant Tenant's default including, but not limited to Tenant's failure to restore or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of clean the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositfollowing vacation thereof. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall shall, within five ten (510) days after written demand by Landlord from Landlord, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full original amount, and shall pay to Landlord such other sums as necessary to reimburse Landlord for any sums paid by Landlord. If Tenant fully performs its obligations under this Leaseshall be in either monetary default or material non- monetary default more than four (4) times in any twelve (12) month period, then the Security Deposit shall, within ten (10) days after demand by Landlord, be increased by Tenant to an amount equal to three (3) times the Base Monthly Rent. Tenant may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration Expiration Date and surrender of the TermPremises to Landlord, provided that Tenant agrees that less any amount deducted in accordance with this Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. In the event of termination of Landlord's interest in this Lease, Landlord may retain deliver or credit the Security Deposit to Landlord's successor in interest in the extent Premises and until such thereupon be relieved of further responsibility with respect to the Security Deposit. Landlord agrees that in lieu of a cash Security Deposit, Tenant may deposit a letter of credit ("Letter of Credit") substantially in the form attached hereto as Exhibit "B". Landlord shall be entitled to draw against the Letter of Credit ----------- at any time provided only that Landlord certifies to the issuer of the Letter of Credit that Tenant is in default under the Lease. Tenant shall keep the letter of credit in effect during the entire Lease Term, as all amounts due from Tenant in accordance with the same may be extended, plus a period of four (4) weeks after expiration of the Lease Term. At least thirty (30) days prior to expiration of any Letter of Credit, the term thereof shall be renewed or extended for a period of at least one (1) year. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease have been determined and paid in full and Tenant agrees that by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall have no claim against replenish the existing Letter of Credit or cause a new Letter of Credit to be issued such that the aggregate amount of letters of credit available to Landlord for Landlord’s retaining such at all times during the Lease Term is the amount of the Security Deposit to the extent provided in this Sectionoriginally required.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord on the sumsigning of this Lease the Security Deposit, if anyas set forth in Paragraph 1, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its 's obligations under this Lease, including, without limitation, the surrender of possession of the Demised Premises to Landlord as herein provided. If Landlord applies any part of said Security Deposit to cure any default of Tenant, Tenant shall, on demand, deposit with Landlord the amount so applied so that Landlord shall have the full Security Deposit on hand at all times during the Term. Landlord, in the event that the Demised Premises are sold, shall transfer and deliver the Security Deposit Deposit, as such, to the purchaser of the Demised Premises and shall notify Tenant thereof, and thereupon Landlord shall be discharged from any further liability in reference thereto. The Security Deposit, (less any portions thereof used, applied or retained by Landlord in accordance with the provisions of this Paragraph 41) which need not be placed in any separate account of Landlord, shall be returned to Tenant (orTenant, at Landlord’s optionwithout interest, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration or sooner termination of this Lease without the fault of Tenant and after delivery of the Term, provided entire Demised Premises to Landlord in accordance with the provisions of this Lease and satisfaction of an ISRA or other environmental requirements still pending at the time of expiration or termination of the Lease. Tenant covenants that Tenant agrees that Landlord may retain it will not assign or encumber or attempt to assign or encumber the Security Deposit and Landlord shall not be bound by any such assignment, encumbrance or attempt thereof. In the event of the insolvency of Tenant, or in the event of the entry of a bankruptcy judgment in any court against Tenant which is not discharged within thirty (30) days after entry, or in the event a petition is filed by or against Tenant under any chapter of the bankruptcy laws of the State of New Jersey or the United States of America, then in such event, Landlord may require Tenant to deposit additional security, to be held by, Landlord pursuant to the extent and until such time as terms of this Lease, in an amount which in Landlord's sole judgment would be sufficient to adequately assure Tenant's performance of all amounts due from Tenant in accordance with of its obligations under this Lease have been determined and paid in full and including all payments subsequently accruing. Failure of Tenant to deposit the security required by this paragraph, within ten (10) days after Landlord's written demand, shall constitute a material breach of this Lease by Tenant. Landlord further agrees that Tenant shall have no claim against upon the Tenant's initial public offering and submission to Landlord for Landlord’s retaining of documentation confirming such initial public offering, the Security Deposit amount shall be reduced to the extent provided in this Sectionthree (3) months' Basic Rent.

Security Deposit. Concurrently with Tenant’s delivery Tenant shall pay to Landlord, immediately upon execution of this Lease, Tenant the Security Deposit, which shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term hereof. If Tenant defaults with respect to any provision of the Lease, including but not limited to, the provisions relating to the payment of Rent, Landlord may (but shall not be required to) use, apply or retain all or any part of the “Security Deposit”)Deposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of 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 the Security Deposit is so used or applied, Tenant shall, upon demand therefor, deposit with Landlord cash, in an amount sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence If Tenant shall fully and faithfully perform every provision of this SectionLease to be performed by it, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to Tenant (or, or at Landlord’s option, 's option to the last assignee of Tenant’s 's interest in this Leasehereunder) within thirty (30) days after the following expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts any amount due from Tenant in accordance with this Lease have hereof has been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.full. Initials /s/ EJC -------- Initials --------

Security Deposit. Concurrently with Tenant’s delivery Upon execution of this Lease, the Tenant shall deposit with make a cash payment to the Landlord in the sumamount of $4,750.00 (the "SECURITY DEPOSIT"), if any, stated in Item 9 of the Basic Lease Provisions, to which shall be held by Landlord as security for the full and faithful Tenant's performance of all of Tenant’s its obligations under this Lease (as herein provided. On the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general fundsExpansion Space Commencement Date, and the Tenant shall not make an additional cash payment to the Landlord in the amount of $2,500.00, which shall be entitled added to interest on the Security Deposit. Subject The Landlord shall have no obligation to the last sentence of this Section, segregate the Security Deposit shall be understood and agreed from other funds or to be accrue interest thereon for the property benefit of Landlord upon Landlord’s receipt thereofthe Tenant. If the Tenant fails to pay Basic Rent, and may be utilized by Landlord in Additional Rent or any other charges due hereunder, or fails to fulfill any of its sole and absolute discretion towards the payment obligations hereunder, or otherwise defaults with respect to any provision of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event the Landlord shall have the right to draw the lesser of Default by Tenant (i) the entire amount of the Security Deposit, or (ii) so much of the Security Deposit as defined in Section 14.1equals the defaulted payment(s), plus any interest or other charges due thereon in accordance with this Lease, for the payment of-any such amount or charge due hereunder, to pay any other sum to which the Landlord maymay become obligated by reason of the Tenant's default, in its sole and absolute discretionor to compensate the Landlord for any loss or damage that the Landlord may suffer thereby. The Tenant shall not have the, retain, use or right to call upon the Landlord to apply the whole all or any part of the Security Deposit to pay cure any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend default or be required to expend by reason fulfill any obligation of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason hereunder, but such use shall be solely in the discretion of the Event of Default or costs incurred by Landlord- If the Landlord in connection with the repair or restoration of the Premises pursuant elects to Section 15.3 of this Lease make a partial draw upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of , the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written immediately upon demand by Landlord deposit cash with Landlord in the Landlord, pay to the Landlord, as Additional Rent, an amount sufficient to restore the Security Deposit to its original amount. The Landlord's election to draw upon the Security Deposit shall in no event prejudice or waive the Landlord's right to terminate this Lease if permitted by the terms and provisions hereof, nor shall such election prejudice or waive any other remedy of the Landlord reserved under the terms of this Lease or available at law or in equity. If the Tenant fully performs its all of the Tenant's obligations under this Leasehereunder, and provided that there exists no breach of any undertaking of the Tenant hereunder and Tenant has vacated and surrendered the Premises as required herein, the Security Deposit shall be returned to Tenant (orreturned, at Landlord’s optionwithout payment of interest or other amount for its use, to the last assignee Tenant within a reasonable period of Tenant’s interest in this Lease) within thirty (30) days after time following the expiration of the Term, provided . The Tenant acknowledges that Tenant agrees that Landlord may retain the Security Deposit to is not an advance payment of any kind or measure of the extent and until such time as all amounts due from Landlord's damages in the event of a Tenant in accordance default. The Tenant hereby waives the provisions of any law that are inconsistent with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided provisions set forth above in this Section.Paragraph 33,

Security Deposit. Concurrently Lessor hereby acknowledges the receipt of an initial security deposit in the Initial Amount and Lessee hereby agrees to deposit with Tenant’s Lessor on or before thirty (30) days prior to the Estimated Delivery Date, a final installment of the security deposit in the Further Additional Amount (collectively, the "Security Deposit"). The Security Deposit shall be non-refundable during the Term hereof; provided that the Security Deposit shall be promptly refunded by Lessor to Lessee in the event that Lessor shall fail to tender the Aircraft for delivery in accordance with Section 3 of this Lease on or prior to May 30, 1999, despite Lessee's satisfaction of all conditions to such tender, and Lessee elects to terminate this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held . Such sums are received by Landlord Lessor as security for the full timely and faithful performance by Lessee of all of Tenant’s Lessee's obligations under this Lease (the “Security Deposit”Lease, and Lessee hereby grants Lessor a security interest therein and in all other sums deposited under this Section 15(j). Landlord Lessor shall not be required entitled to keep this commingle the Security Deposit separate from with its general other funds, and Tenant Lessee shall not be entitled to any interest on the Security Depositor other earnings thereon. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord If Lessee is in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord mayhereunder, in its sole and absolute discretionaddition to all other rights Lessor shall have under the California Uniform Commercial Code as a secured party, retainLessor may use, use apply or apply the whole retain all or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied in partial payment for sums due to Lessor by Landlord Lessee, to compensate Lessor for any sums it may in its discretion advance as permitted a result of a Default by this SectionLessee, Tenant or to apply toward losses or expenses Lessor may suffer or incur as a result of Lessee's Default. If Lessor uses or applies all or any portion of such Security Deposit, such application shall not be deemed a cure of any Defaults, and Lessee shall within five (5) days after written demand by Landlord therefore deposit with Lessor in cash with Landlord in an amount sufficient to restore the Security Deposit to its original amountsum and the failure of Lessee to do so shall be a material breach of this Lease by Lessee. If Tenant fully performs its obligations Provided Lessee is not in Default under this Lease, the principal amount of such Security Deposit Deposit, without interest, and less any costs incurred by Lessor in connection with the termination of the Lease or return of the Aircraft and any amounts owed by Lessee to Lessor under this Lease or otherwise, shall be returned to Tenant (or, at Landlord’s option, to Lessee on the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the TermExpiration Date, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant Lessee shall have no claim against Landlord for Landlord’s retaining such Security Deposit to returned the extent provided Aircraft in this Sectioncompliance with Section 12 hereof.

Security Deposit. (a) Concurrently with Tenant’s delivery the execution of this Lease, Tenant shall deliver to Landlord within ten (10) days following receipt of Landlord's written request a security deposit with (the "Security Deposit") in the amount of Ten Million Four Hundred Sixty-One Thousand Seven Hundred and no/100 Dollars ($10,461,700.00). The Security Deposit shall, at Tenant's option, be in the form of (i) cash (the "Cash Security Deposit") or (ii) an irrevocable Letter of Credit (the "Letter of Credit") issued by a bank reasonably acceptable to Landlord and in form and substance reasonably satisfactory to Landlord. Provided no Event of Default then exists, Tenant shall have the sumright, if any, stated in Item 9 of the Basic Lease Provisionsat any time at its option, to be held by Landlord substitute a Cash Security Deposit for the Letter of Credit or to substitute a Letter of Credit for the Cash Security Deposit. The Security Deposit shall serve as security for the full payment by Tenant of the Rent and faithful all other charges or payments to be paid hereunder and the performance of all the covenants and obligations contained herein. If the Security Deposit is in the form of Tenant’s obligations under this Lease (the “Cash Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Cash Security Deposit shall be understood and agreed to be the property deposited in an interest bearing money market account with a national financial institution of Landlord upon Landlord’s receipt thereof's choosing and, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any so long as no Event of Default by shall have occurred and be continuing, upon the annual written request of Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use all accrued interest thereon shall be disbursed to Tenant on an annual basis commencing on or apply about the whole or any part first anniversary of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason date of the establishment of such account. So long as no Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of shall have occurred and be continuing, the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Cash Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositcommingled with other funds of Landlord. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Leaseform of the Letter of Credit, the Security Deposit Letter of Credit shall remain in full force and effect during the Term, and shall be returned to Tenant (or, renewed at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within least thirty (30) days prior to any expiration thereof. If Tenant fails to renew the Letter of Credit by such date, time being of the essence, Landlord shall have the right at any time after the thirtieth (30th) day before such expiration date to draw on the Letter of Credit and to deposit the proceeds of the Term, provided that Tenant agrees that Letter of Credit in any account for the benefit of Landlord may retain or to declare an Event of Default. The proceeds of any draw on the Letter of Credit shall be and constitute the Cash Security Deposit to hereunder, and shall be held as such by the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Landlord acknowledges receipt from the Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisionssum of Twelve Thousand, Six Hundred & No/100 Dollars ($ 12,600.00 ) to be held retained by Landlord without responsibility for payment of interest thereon, as security for the full and faithful performance of all the terms and conditions of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed Agreement to be the property of Landlord upon Landlord’s receipt thereofperformed by Tenant, and may be utilized by Landlord in its sole and absolute discretion towards the including payment of all expenses rent due under the terms hereof. Deductions may be made by Landlord from the amount so retained for which Tenant would be required the reasonable cost of repairs to reimburse Landlord under this Leasethe Leased Premises (ordinary wear and tear, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event acts of Default God, casualties, condemnation, Hazardous Materials (other than those stored, used or disposed of by Tenant (as defined in Section 14.1or about the Leased Premises in violation of Hazardous Materials Laws) and Alterations with respect to which Landlord has not reserved the right to require removal excepted), Landlord may, in its sole and absolute discretion, retain, use or apply for any rent delinquent under the whole or any part of the Security Deposit to pay terms hereof and/or for any sum which used in any manner to cure any default of Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination terms of this Lease. In no the event deductions are so made, the Tenant shall, within ten (10) days after receipt of notice from the Landlord, redeposit with the Landlord such amounts so expended so as to maintain the deposit in the amount as herein provided for, and failure to so redeposit shall be deemed a failure to pay rent under the terms hereof. Nothing herein contained shall limit the liability of Tenant as to any damage to the Leased Premises, and Tenant shall be responsible for the total amount of any damage and/or loss occasioned by actions of Tenant. Landlord may deliver the funds deposited hereunder by Tenant to any purchaser of Landlord's interest in the Leased Premises in the event such interest shall be obligated sold, and thereupon Landlord shall be discharged from any further liability with respect to apply such deposit. Landlord shall return the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned balance thereof to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after Tenant vacates the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionLeased Premises.

Security Deposit. Concurrently Tenant, concurrently with Tenant’s delivery the execution of this Lease, Tenant shall deposit has deposited with Landlord the sum, if any, stated in Item 9 of sum shown under the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance Leasing Information of all of Tenant’s obligations under this Lease as the “Security Deposit” (the “Security Deposit”), the receipt of which is hereby acknowledged by Landlord, which sum shall be retained by Landlord as security for the payment by Tenant of the Rent and all other payments herein agreed to be paid by Tenant, and for the faithful performance by Tenant of the terms, provisions, covenants and conditions of this Lease. It is agreed that Landlord, at Landlord’s option, may at the time of any default by Tenant under any of the terms, provisions, covenants or conditions of this Lease apply this sum or any part thereof towards the payment of the Rent and all other sums payable by Tenant under this Lease, and towards the performance of each and every one of Tenant’s covenants under this Lease, but such covenants and Tenant’s liability under this Lease shall thereby be discharged only pro tanto and Tenant shall remain liable for any amounts that the sum shall be insufficient to pay and, in addition, shall be obligated to immediately deposit with Landlord the amount necessary to increase the Security Deposit to its original amount; that Landlord may exhaust any and all rights and remedies against Tenant before resorting to this sum, but nothing herein contained shall require or be deemed to require Landlord to do so; that, in the event the Security Deposit shall not be utilized for any such purposes, then the Security Deposit shall be returned by Landlord to Tenant within the later of thirty (30) days next after the expiration of the Term of this Lease; or (ii) the determination and payment of the amounts due elsewhere under this Lease, including the determination and payment of the Additional Rent due under Paragraph 5 within the time period provided in Paragraph 5. Landlord shall not be required to keep this Security Deposit separate from its general funds, and pay Tenant shall not be entitled to any interest on the Security Deposit. Subject In this connection, it is expressly understood and agreed that Landlord shall not be obligated to the last sentence of this Section, segregate the Security Deposit shall be understood and agreed from any other funds or to be hold same in escrow during the property term of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and or to pay any interest to Tenant Improvement costsin respect of the Security Deposit. Upon any Event of Default by Tenant (as defined in Section 14.1)On the contrary, Landlord mayshall have the absolute right, at any and all times during the term of this Lease, to commingle the Security Deposit with any of Landlord’s other funds, to utilize the Security Deposit at any time and for any purpose, to retain all interest and/or other proceeds and/or avails earned or accrued in its sole respect of the Security Deposit, and absolute discretion, retainotherwise to treat, use or apply the whole or any part and dispose of the Security Deposit as if, for all purposes, the same were the absolute property of Landlord (it being understood, however, that nothing in the foregoing shall be deemed to pay any sum which Tenant is obligated relieve Landlord of its obligation to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply return the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses (or any other amount due to Landlord pursuant to this Lease, such portion thereof as shall not be diminished or altered have been used and applied in the event of any respect due to default by Tenant as described and in the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5manner set forth above) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Lease Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently Tenant shall, concurrently with Tenant’s its execution and delivery of this LeaseFirst Amendment, Tenant shall pay to Landlord, in cash, the amount of $33,000.00 as and for a security deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance by Tenant of all each and every term, covenant and condition of Tenant’s obligations under this Lease (the “Security Deposit”)Lease, as amended hereby. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Depositsecurity deposit. Subject to the last sentence of this Section, the Security Deposit shall be It is expressly understood and agreed that such deposit will not be deemed to be the property an advance rental deposit or a measure of Landlord upon Landlord’s receipt thereof, and may be utilized damages in case of Tenant’s default. Actions by Landlord against Tenant for breach of the Lease, as amended hereby, shall in its sole no way be limited or restricted by the amount of the security deposit and absolute discretion towards neither the payment of all expenses such security deposit to Landlord nor Landlord’s election to resort to such deposit in the event of a default hereunder shall be deemed a waiver of any other rights, or constitute an election of remedies, by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costsLandlord. Upon the occurrence of any Event event of Default default by Tenant (as defined in Section 14.1)Tenant, Landlord mayshall have the right, in its sole and absolute discretionwithout prejudice to any other remedy, retainto use the security deposit, use or apply portions thereof, to the whole or any part of the Security Deposit extent necessary to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord arrearages in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or and any other amount due to Landlord pursuant to this Leasedamage, shall not be diminished injury or altered in expense. Following any respect due to the fact that Landlord is holding the Security Deposit. If such application of all or any portion of the Security Deposit is applied by Landlord as permitted by this Sectionsecurity deposit, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord pay to Landlord, on demand, the amount so applied in an amount sufficient order to restore the Security Deposit security deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, is not in default at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term or the termination of this Lease, any remaining balance of the security deposit not so used by Landlord shall be applied, first, to the Note “A” Accrued Amount payable by Tenant, if any such amount then remains payable, second, to any other Rent payable under the Lease, as amended hereby, that is then outstanding, and, third, to any other liabilities of Tenant to Landlord. If Landlord transfers an interest in the Premises during the Term, provided that Tenant agrees that Landlord may retain assign the Security Deposit security deposit to the extent transferee, and, in such event, Landlord shall thereafter have no further liability to Tenant for the security deposit. Notwithstanding the foregoing, so long as no event of default is then subsisting (and until no event or circumstance that would become an event of default with the giving of notice or the passage of time has then occurred), then at such time as all amounts due from the aggregate of the Payable Amount and the Note “A” Accrued Amount remaining to be paid by Tenant is equal to or less than the security deposit then held by Landlord, Tenant may apply the security deposit to such Payable Amount and Note “A” Accrued Amount remaining to be paid. At the expiration of the Term of the Lease and the surrender of the Premises to Landlord in accordance with this Lease have been determined the applicable terms and paid in full and provisions of the Lease, Landlord shall refund to Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit any portion of the security deposit not then applied pursuant to the extent provided in terms of this Section.

Security Deposit. Concurrently Under the Prior Lease, Tenant has a $15,000 security deposit with Tenant’s delivery Landlord. Upon the execution of this Lease, Tenant shall deliver to Landlord, by check, an additional security deposit of Thirty-Five Thousand Dollars ($35,000) (together with Landlord the sumexisting security deposit of $15,000, if any, stated in Item 9 of the Basic Lease Provisions, to "Security Deposit"). The Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence provisions of this Section, the Security Deposit shall be understood and agreed Lease. If Tenant fails to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord pay Rent or other charges due under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon or any other Event of Default by Tenant (as defined in Section 14.1)occurs, Landlord maymay use, in its sole and absolute discretion, retain, use apply or apply the whole retain all or any part portion of the Security Deposit for the payment of Rent or other charge in default or for the payment of any other sum to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend become obligated by reason of the Event of Default by Tenant Default, or to compensate Landlord for any loss or damage that which Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If Landlord so uses or applies all or any portion of the Security Deposit is applied by Landlord as permitted by this SectionDeposit, Tenant shall within five ten (510) days after written demand by Landlord therefor deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amountthe full amount stated above and Tenant's failure to do so shall be a material breach of this Lease. If Tenant fully performs its obligations No later than 30 days after the end of the term, providing no Event of Default has occurred and is continuing and the Premises is returned to Landlord in the condition required under this Lease, 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 in this Lease) within thirty (30) . No later than ten days after following the expiration of the TermTerm or earlier termination of this Lease, provided that Landlord and Tenant agrees that shall conduct a joint walkthrough to assess the condition of the Premises. No trust relationship is created herein between Landlord may retain and Tenant with respect to the Security Deposit nor is the Landlord obligated to segregate or pay interest on such Security Deposit. The application by Landlord of the extent and until such time as all amounts due from Security Deposit against any obligation owing by Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against or to compensate Landlord for Landlord’s retaining such Security Deposit any damage sustained by it hereunder shall not constitute a waiver by Landlord of any other remedy that may be available to the extent provided in this Sectionit.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord as a security deposit under this Lease the sumfollowing amounts: (a) an amount equal to one month’s Minimum Rent payable upon Lease execution; (b) an amount equal to one month’s Minimum Rent payable upon Landlord obtaining a building permit for Landlord’s Work (provided no Tenant default exists, if anyafter any applicable notice and opportunity to cure, stated in Item 9 this amount shall be applied at the commencement of the Basic Lease Provisionsterm in payment of the first month’s Minimum Rent); and (c) an amount equal to one month’s Minimum Rent payable upon delivery by Landlord of a written notice of completion of Landlord’s Work (provided no Tenant default exists, this amount shall be applied by Landlord to Tenant’s Minimum Rent for the last month of the term), as the same may be extended pursuant to the terms hereof. Such security deposit shall be held by Landlord Landlord, without interest, as security for the full and faithful performance by Tenant of all the terms of Tenant’s obligations under this Lease (to be observed and performed by Tenant unless Landlord applies it to the “Security Deposit”)Minimum Rent as provided above. Landlord The security deposit shall not be required to keep this Security Deposit separate from its general fundsmortgaged, assigned, transferred, or encumbered by Tenant without the written consent of Landlord; and any such act on the part of Tenant shall be without force and effect and shall not be entitled binding upon Landlord. If any Minimum Rent or other sum payable by Tenant to interest Landlord is overdue and unpaid, or if Landlord makes any payments on behalf of Tenant, or if Tenant fails to perform any of the Security Deposit. Subject to the last sentence terms of this SectionLease, the Security Deposit shall be understood then Landlord, at its option and agreed without prejudice to be the property of any other remedy which Landlord upon Landlord’s receipt may have on account thereof, appropriate and apply such deposit or so much thereof as may be utilized by Landlord in its sole and absolute discretion towards necessary toward the payment of all expenses the rent or other sum due Landlord by Landlord for which reason of such breach on the part of Tenant would be required to reimburse Landlord or toward the performance of any other overdue obligation of Tenant under this Lease, including without limitation brokerage commissions ; and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease forthwith upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord shall restore such deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations complies with all of the terms of this Lease and pays all Minimum Rent and other sums payable under this Lease, then such deposit (or the Security Deposit portion thereof not applied by Landlord to cure a default by Tenant) shall be returned to Tenant within sixty (or, at Landlord’s option, 60) days following the end of the Term and Xxxxxxxx's determination of all amounts owing by Tenant pursuant to the last assignee provisions hereof. In the event of bankruptcy or other creditor proceedings against Tenant’s , such security deposit shall be deemed to be applied first to the payment of rent and other sums due Landlord for periods prior to the commencement of such proceedings. Landlord may deliver such security deposit to the purchaser of Landlord's interest in this Lease) within thirty (30) days after the expiration of Premises in the Termevent that such interest is sold, provided that Tenant agrees that and thereupon Landlord may retain the Security Deposit shall be discharged from any further liability with respect to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectiondeposit.

Security Deposit. Concurrently Contemporaneously with Tenant’s delivery the execution of this Lease, Tenant shall deposit with pay to Landlord the sumamount of Security Deposit specified in Section 1.11, if any, stated in Item 9 of the Basic Lease Provisions, to which shall be held by Landlord as security to secure the payment by Tenant of any and all present and future debts and liabilities of Tenant to Landlord and for the full and faithful Tenant’s performance of all of Tenant’s its obligations under this Lease (the “Security Deposit”)Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence No portion of this Section, the Security Deposit shall be understood and agreed considered an advance by Tenant of the last month’s rent. If Tenant defaults with respect to be any provision of this Lease, including, without limitation, the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards provisions relating to the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)Rent, Landlord may, in its sole and absolute discretionbut shall not be required to, retainreasonably use, use apply or apply the whole retain all or any part of the Security Deposit to pay (i) for the payment of any Rent or any other sum in default, (ii) for the payment of any other amount which Tenant is Landlord may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the Event of Default such default by Tenant or Tenant, and (iii) to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of the Event of Default or costs incurred such default by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall within five (5) days after written shall, upon demand therefor by Landlord Landlord, deposit cash with Landlord cash in an amount sufficient to restore the Security Deposit to its original amountthe amount required to be maintained by Tenant hereunder. If Landlord shall return to Tenant fully performs its obligations under this Lease, the remaining portion of the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration date that Landlord receives possession of the TermPremises, provided that Tenant agrees that unless a determination of the amount Landlord may is entitled to retain reasonably takes more than thirty days, in which case the remaining portion of the Security Deposit shall be returned to tenant within thirty days after such determination. Landlord shall not be required to keep the Security Deposit separate from its general funds, and any interest paid thereon shall become funds of the Landlord, and shall not accrue to the benefit of Tenant. If Landlord conveys, assigns or otherwise disposes of its interest in this Lease, Landlord shall deliver or credit the Security Deposit to the extent its successor, and until such time shall give Tenant notice thereof as all amounts due from Tenant in accordance with this Lease have been determined required by California Civil Code Section 1950.7 or any successor statute, and paid in full and Tenant agrees that Tenant Landlord thereafter shall have no claim against Landlord further liability for Landlord’s retaining such the return of the Security Deposit. So long as Tenant is not then in default under this Lease (beyond any applicable notice and cure period), and has paid rent not later than five (5) days after the Due Date for each of the preceding twelve calendar months, as of the first anniversary, second anniversary and third anniversary of the Commencement Date, the Security Deposit shall be reduced by $32,932.50 (for a total reduction of $98,797.50), and the reduced amount held by Landlord shall be promptly returned to the extent provided in this SectionTenant.

Security Deposit. Concurrently with Tenant’s delivery Upon execution of this LeaseSublease, Tenant Subtenant shall deposit with Landlord Sublandlord $[…***…] in cash and a letter of credit from Silicon Valley Bank in the sum, if any, stated in Item 9 amount of $[…***…] (the Basic Lease Provisions, to be held by Landlord “Letter of Credit”) as security for the full and faithful performance of every provision of this Sublease to be performed by Subtenant. The Letter of Credit shall be reduced annually throughout the Term according to the following schedule: * Confidential Treatment Requested 12 Date Reduction Remaining Amount Following Reduction […***…] July 31, 2009 $39,681.50 $158,726.00 July 31, 2010 $39,681.50 $119,044.50 July 31, 2011 $39,681.50 $79,363.00 July 31, 2012 $39,681.50 $39,681.50 July 31, 2013 $39,681.50 -0- If Subtenant defaults with respect to any provision of this Sublease and such default continues beyond any applicable grace or cure period, including but not limited to the provisions relating to the payment of rent, Sublandlord may use, apply or retain all or any part of Tenantsaid security deposit for the payment of any Rent and any other sum in default, or for the payment of any out-of-pocket sum which Subland lord may spend or become obligated to spend by reason of Subtenant’s obligations under default or to compensate Sublandlord for any other actual loss or direct damage which Sublandlord may suffer by reason of Subtenant’s default. If any portion of said security deposit is so used or applied during the Term, Subtenant shall, within 5 days after written demand therefor, deposit cash with Sublandlord in an amount sufficient to restore the security deposit to its Prime amount and Subtenant’s failure to do so shall be a material breach of this Lease (Sublease. Except to the “Security Deposit”). Landlord extent required by law, Sublandlord shall not be required to keep this Security Deposit said security deposit separate from its general funds, funds and Tenant Subtenant shall not be entitled to interest on the Security Depositany security deposit. Subject to the last sentence If Subtenant shall fully and faithfully perform every provision of this Section, the Security Deposit shall be understood and agreed Sublease to be the property of Landlord upon Landlord’s receipt thereofperformed by it, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole said security deposit or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) Subtenant within thirty (30) 30 days after the expiration of the Term, provided that Tenant agrees that Landlord may retain Term and Subtenant’s vacation of the Security Deposit Premises. Nothing herein shall be construed to limit the amount of damages recoverable by Sublandlord or any other remedy to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectionsecurity deposit.

Security Deposit. Concurrently Lessee shall deposit with TenantLessor upon Lessee’s delivery receipt of the Initial SNDA the security deposit set forth in Section 1.9 of the Basic Lease Provisions as security for Lessee’s faithful performance of Lessee’s obligations hereunder. If Lessee falls to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this Lease, Tenant shall Lessor may use, apply or retain all or any portion of said deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the payment of any rent or other charge in default for the payment of any other sum to which Lessor may become obligated by reason of Lessee’s default, or to compensate Lessor for any actual loss or actual damage which Lessor may suffer thereby. If Lessor so uses or applies all or any portion of said deposit, Lessee shall within ten (10) days after written demand therefor deposit cash with Lessor in an amount sufficient to restore said deposit to the full and faithful performance amount then required of all of Tenant’s obligations under this Lease (the “Security Deposit”)Lessee. Landlord Lessor shall not be required to keep this Security Deposit said security deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Depositaccounts. Subject Six (6) months prior to the last sentence of this Sectionthen scheduled Expiration Date, Lessor shall provide Lessee with evidence reasonably satisfactory to Lessee that funds in the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part amount of the Security Deposit have been reserved and are available for refund to Lessee, subject to Lessor’s rights under this Section 5 to deduct sums therefrom. If Lessor fails to provide such evidence by such date, Lessee shall thereupon have the irrevocable right to offset its obligations to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due Rent up to the fact that Landlord is holding the Security Deposit. If any portion amount of the Security Deposit is (and all interest earned thereon). If Lessee performs all of Lessee’s obligations hereunder, said deposit, or so much thereof as has not heretofore been applied by Landlord as permitted by this SectionLessor, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned returned, with payment of all actual interest earned thereon, to Tenant Lessee (or, at LandlordLessor’s option, to the last assignee assignee, if any, of TenantLessee’s interest hereunder) at the expiration of the Term hereof, and after Lessee has vacated the Premises. No trust relationship is created herein between Lessor and Lessee with respect to said Security Deposit. In the event that Lessee’s non-pledged cash reserves (“Available Cash”) falls below the amount reasonably estimated by Lessee’s chief financial officer necessary to fund the reasonably anticipated cost of normal business operations for the following six (6) months (“Cash Requirement”), Lessee shall provide Lessor with an irrevocable letter of credit (the “Letter of Credit”) with a term of at least one (1) year in an amount equal to the then unamortized principal amount of the Financed Cost (as defined in the Work Letter), which amount is referred to as the “Extra Deposit.” Lessee shall provide quarterly reports which shall include the budget referred to below and shall be prepared on a cash basis and shall also reasonably describe Lessee’s financial condition. The quarterly reports shall be submitted on or before the first day of each calendar quarter and shall be certified by Lessee’s chief financial officer. The quarterly reports must detail the level of Available Cash and current estimated costs of normal reasonably anticipated business operations for the next succeeding six (6) month period. If after providing the Letter of Credit, Lessee demonstrates pursuant to the next subsequent quarterly financial reports prepared in accordance with the requirements of this LeaseSection reasonably prepared by Lessee’s chief financial officer that its Available Cash is equal to or in excess of the Cash Requirement for the next six (6) month period, Lessor shall, within five (5) business days thereafter surrender the Letter of Credit. In no event shall Lessee be obligated to deliver such Letter of Credit or the quarterly reports after the initial Term. In the event that (x) Lessee delivers any quarterly report indicating that no Letter of Credit needs to be then delivered (the “Subject Report”) and (y) Lessor does not have possession of the Letter of Credit (delivered pursuant to a previous quarterly report) then, no later than ninety (90) days after the delivery of the Subject Report and not after the next quarterly report has been delivered, during the initial Term (but not in any event during Lessee’s first fiscal quarter in any year), Lessor shall have the right to audit Lessee’s financial records relating to Lessee’s financial condition (other than those records and materials which are the subject (i) to any confidentiality agreement or non-disclosure obligation or (ii) of any attorney-client privilege or attorney work product doctrine) to confirm that Lessee is not obligated to deliver the Letter of Credit. Such audit must be concluded within thirty (30) days after commencement and shall be conducted by an independent firm of certified public accountants with a national or regional reputation and with extensive experience in auditing companies such as Lessee. Such auditors shall not be compensated on the expiration basis of a contingency fee. In the event such audit discloses that the Available Cash was less than the Cash Requirement with respect to the period covered by such quarterly report, Lessee shall in addition to providing the Letter of Credit, shall pay the reasonable and actual cost of the Termaudit (disregarding any bonus or other incentive compensation). In no event shall Lessor have the right to conduct an audit under this Section 5 after Lessee has completed its initial public offering. At any time during the pendency of the audit, provided that Tenant agrees that Landlord may retain Lessee shall have the Security Deposit right to deliver the extent Letter of Credit and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant thereupon Lessor shall terminate the audit. Lessee shall have no claim against Landlord for Landlord’s retaining such Security Deposit right to challenge its obligation to deliver the extent provided in this SectionLetter of Credit unless Lessee shall have delivered the Letter of Credit to Lessor “under protest.”

Security Deposit. Concurrently with Tenant’s delivery the execution of this LeaseSublease, Tenant Subtenant shall deposit with Landlord Sublandlord the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to be held by Landlord Two Hundred Thirty Thousand Dollars ($230,000.00) as security for the full and faithful performance of all every provision of Tenant’s obligations under this Lease Sublease to be performed by Subtenant. If Subtenant breaches any provision, covenant or condition of this Sublease, including, but not limited to, the payment of Base Rent or Additional Rent, Sublandlord may (the “Security Deposit”). Landlord but shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of to) use all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of such security deposit for the Security Deposit payment of any sums in default, or to pay compensate Sublandlord for any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any other loss or damage that Landlord which Sublandlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and LandlordSubtenant’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositdefault. If any portion of the Security Deposit such security deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall Subtenant shall, within five (5) days after written demand by Landlord therefor, deposit cash with Landlord Sublandlord in an amount sufficient to restore the Security Deposit security deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit amount and Subtenant’s failure to do so shall be returned a material breach of this Sublease. Sublandlord shall not be required to Tenant (or, at Landlord’s option, keep the security deposit separate from its general funds and Subtenant shall not be entitled to the last assignee of Tenant’s interest in this Lease) within on such deposit. Within thirty (30) days after the expiration of the Sublease Term, and provided there exists no default by Subtenant hereunder, the Security Deposit or any balance thereof shall be returned to Subtenant (or, at Sublandlord’s option, to Subtenant’s assignee if such assignee is consented to by Sublandlord in its sole and absolute discretion), provided that Tenant agrees that Landlord subsequent to the expiration (or earlier termination) of this Sublease, Sublandlord may retain from said Security Deposit (a) any and all amounts necessary to cure any default in the payment of Base Rent and/or Additional Rent, to repair any damage to the Sublease Premises caused by the Subtenant, and to clean the Sublease Premises upon termination of this Sublease, (b) any amounts that Sublandlord may incur or be obligated to incur in exercising Sublandlord’s rights under this Sublease and (c) any expense, loss or damage that Sublandlord reasonably estimates it may suffer because of Subtenant’s default (including, without limitation, any and all amounts of Base Rent and/or Additional Rent that would have been due under this Sublease had the Sublease remained in effect for the entire term). Without limiting the generality of the preceding sentence, Sublandlord and Subtenant hereby agree that Sublandlord may, in addition, claim and retain from the Security Deposit those sums necessary to compensate Sublandlord for any other foreseeable or unforeseeable loss or damage caused by the extent act or omission of Subtenant or Subtenant’s officers, agents, employees, independent contractors or invitees or the default of Subtenant under this Sublease, including, without limitation, the unamortized portion of any leasing commissions and until such time as all amounts due from Tenant tenant improvement costs (which commissions and tenant improvement costs shall be amortized over the Sublease Term) incurred by Sublandlord in accordance connection with this Lease have been determined Sublease and paid any damages to which Sublandlord is entitled under applicable law (including, without limitation, Section 1951.2 of the California Civil Code) as a result of Subtenant’s default under this Sublease. Should Sublandlord transfer its interest in full this Sublease during the term hereof, and Tenant agrees that Tenant if Sublandlord deposits with the assignee the then unapplied funds deposited by Subtenant as aforesaid, Sublandlord shall have no claim against Landlord for Landlord’s retaining be discharged from any liability with respect to such Security Deposit Deposit. Subtenant hereby waives the provisions of California Civil Code § 1950.7, and all other provisions of law now or hereafter in force, that provide that Sublandlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the extent provided in this Sectionpayment of rent, to repair damage caused by Subtenant, or to clean the Sublease Premises.

Security Deposit. Concurrently with Tenant’s delivery of this LeasePrior to March 1, 2005, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to be held by Landlord as security for the full Seven Hundred Fifty One Thousand Eight Hundred Ninety Four and faithful performance of all of Tenant’s obligations under this Lease No/100 Dollars (the “$751,894.00) ("Security "Deposit”"). Landlord shall not be deemed a trustee of the Security Deposit, may use the Security Deposit in business, and shall not be required to keep this Security Deposit separate segregate it from its general funds, and accounts. Tenant shall not be entitled to interest on the Security Deposit. Subject If Tenant defaults with respect to any provisions of the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event but not limited to the provisions relating to payment of Default by Tenant (as defined in Section 14.1)Base Monthly Rent or other charges, Landlord may, in its sole after the expiration of all applicable notice and absolute discretioncure periods, retainto the extent reasonably necessary to remedy Tenant's default, use any or apply the whole or any part all of the Security Deposit to pay towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any sum other amount which Tenant is Landlord may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the Event of Default by Tenant Tenant's default including, but not limited to Tenant's failure to restore or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of clean the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositfollowing vacation thereof. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall shall, within five ten (510) business days after written demand by Landlord from Landlord, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full original amount, and shall pay to Landlord such other sums as necessary to reimburse Landlord for any sums paid by Landlord. If Tenant fully performs its obligations under this Leaseshall default more than three (3) times in any twelve (12) month period, irrespective of whether or not such default is cured, then the Security Deposit shall, within ten (10) days after demand by Landlord, be increased by Tenant to an amount equal to three (3) times the Base Monthly Rent. Tenant may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration Expiration Date and surrender of the TermPremises to Landlord, provided that Tenant agrees that less any amount deducted in accordance with this Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. In the event of termination of Landlord's interest in this Lease, Landlord may retain deliver or credit the Security Deposit to Landlord's successor in interest in the extent Premises and until thereupon be relieved of further responsibility with respect to the Security Deposit provided such successor assumes, in writing, Landlord's obligations with respect to such Security Deposit. Landlord agrees that in lieu of a cash Security Deposit, Tenant may deposit a letter of credit ("Letter of Credit") substantially in the form attached hereto as Exhibit "B". Landlord shall be entitled to draw against the Letter of Credit at any time provided only that Landlord certifies to the issuer of the Letter of Credit that Tenant is in default under the Lease. Tenant shall keep the letter of credit in effect during the entire Lease Term, as all amounts due from Tenant in accordance with the same may be extended, plus a period of four (4) weeks after expiration of the Lease Term. At least thirty (30) days prior to expiration of any Letter of Credit, the term thereof shall be renewed or extended for a period of at least one (1) year. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease have been determined and paid in full and Tenant agrees that by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall have no claim against replenish the existing Letter of Credit or cause a new Letter of Credit to be issued such that the aggregate amount of letters of credit available to Landlord for Landlord’s retaining such at all times during the Lease Term is the amount of the Security Deposit to the extent provided in this Sectionoriginally required.

Security Deposit. Concurrently with Tenant’s delivery of Upon signing this Lease, Tenant shall immediately deposit with Landlord Landlord, in cash, the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord Security Deposit as security for the full and faithful performance by Tenant of all the terms of Tenant’s obligations under this Lease to be performed by Tenant, and not as prepayment of Rent. At Tenant's option, at any time following execution of this Lease by Landlord and Tenant and Tenant's initial deposit with Landlord of the cash Security Deposit as required in the preceding sentence, the cash Security Deposit may be replaced with an unconditional, clean, irrevocable, standby letter of credit complying with the terms of this Section 3.7 and the terms and conditions set forth in Exhibit D attached hereto and incorporated herein by reference (the “Security Deposit”"Letter of Credit"). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use apply such portion or apply the whole or any part portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to pay remedy any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default default (after applicable notice and cure periods) by Tenant in the payment of Base Monthly Rent or any loss Additional Rent or a late charge or interest on defaulted Rent; (ii) to repair damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of to the Premises caused by Tenant; (iii) to clean and repair the Premises following their surrender to Landlord if not surrendered in the condition required pursuant to Section 15.3 the provisions of this Lease upon expiration Article 2; and (iv) to remedy any other default (after applicable notice and cure periods) of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant's behalf any sums claimed by material men or earlier termination contractors of this LeaseTenant to be owing to them by Tenant for work done or improvements made at Tenant's request to the Premises. In no event shall Landlord be obligated this regard, Tenant hereby waives any restriction on the uses to apply which the Security Deposit upon an Event may be applied as contained in Section 1950.7(c) of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or the California Civil Code and/or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to successor statute. In the fact that Landlord is holding the Security Deposit. If any portion of event the Security Deposit or any portion thereof is applied by Landlord as permitted by this Sectionso used, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in pay to Landlord, promptly upon demand, an amount in cash sufficient to restore the Security Deposit to its the full original amountsum. If Tenant fully performs its obligations under this Lease, Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the Security Deposit in Landlord's ordinary business and shall not be required 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 Term, Landlord may transfer the Security Deposit to any subsequent owner in conformity with the provisions of Section 1950.7 of the California Civil Code and/or any successor statute, in which event Landlord shall be returned released from all liability for the return of the Security Deposit. Tenant specifically grants to Tenant Landlord (or, at Landlord’s option, and hereby waives the provisions of California Civil Code Section 1950.7 to the last assignee contrary) a period of Tenant’s interest in this Lease) within thirty (30) days after the expiration following a surrender of the Term, provided that Premises by Tenant agrees that to Landlord may retain in accordance with the terms of this Lease within which to return the Security Deposit (less permitted deductions) to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full Tenant, it being agreed between Landlord and Tenant agrees that Tenant thirty (30) days is a reasonable period of time within which to inspect the Premises, make required repairs, receive and verify workmen's xxxxxxxx therefore, and prepare a final accounting with respect to such deposit. In no event shall have no claim against Landlord for Landlord’s retaining such the Security Deposit to the extent provided in this SectionDeposit, or any portion thereof, be considered prepaid Rent.

Security Deposit. (a) Concurrently with Tenant’s delivery the execution of this Lease, Tenant shall deliver to Landlord a security deposit with in the amount of Two Million One Hundred Fifty Thousand and xx/100 ($2,150,000.00) Dollars (the "Security Deposit"). The Security Deposit shall be in the form of either cash (a "Cash Security Deposit") or an irrevocable letter of credit (the "Letter of Credit") and issued by a bank (or bank subsidiary or other financial institution issuing the Letter of Credit) reasonably acceptable to Landlord and having a long-term unsecured debt rating of not less than "AA" from Standard & Poor's Corporation and otherwise in form and substance satisfactory to Landlord. The Security Deposit shall remain in full force and effect during the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord Term as security for the full payment by Tenant of the Rent and faithful all other charges or payments to be paid hereunder and the performance of all the covenants and obligations contained herein, and if the Security Deposit is in the form of Tenant’s obligations under this Lease a Letter of Credit, same shall be renewed at least thirty(30) days prior to any expiration thereof (and may be in the “Security Deposit”form of a one year automatically renewable or "evergreen" letter of credit). If Tenant fails to timely renew any Letter of Credit, time being of the essence, Landlord shall have the right at any time after the thirtieth(30th) day before such expiration date to draw on such Letter of Credit and to deposit the proceeds of such Letter of Credit as a cash security deposit in any account for the benefit of Landlord or to declare an Event of Default. The Cash Security Deposit shall not be required to keep this Security Deposit separate from its general fundscommingled with other funds of Landlord and shall be deposited in an interest bearing account in a bank selected by Landlord. Provided that an Event of Default has not occurred and is not then continuing, and Tenant shall not be entitled to any interest earned on the Security Deposit. Subject to the last sentence of this Section, the such Cash Security Deposit shall be understood and agreed paid to be the property of Tenant annually, less any administrative fee that Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be is required to reimburse pay in connection with the maintenance or servicing of such account, which annual administrative fee shall not exceed one(1%) percent of the amount of such Cash Security Deposit. Provided that no Event of Default has occurred and is then continuing, Tenant shall have the right at anytime during the Term, upon not less than thirty(30) days prior written notice to Landlord, to tender a Letter of Credit to Landlord under meeting the requirements of this Paragraph 35 in substitution of a Cash Security Deposit. Notwithstanding the foregoing provisions of this Paragraph 35(a), Landlord has agreed that it shall, concurrently with the execution of this Lease, including without limitation brokerage commissions advance and deposit on behalf of Tenant Improvement coststhe Security Deposit in the amount of $2,150,000.00 which Security Deposit shall be assigned to and held by Lender in accordance with provisions of Paragraph 35(d) below. Upon any Event In consideration of Default such advance by Landlord, Tenant (as defined in Section 14.1), covenants and agrees that it shall reimburse to Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part amount of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred so advanced by Landlord in connection with two installments; the repair or restoration first installment in the amount of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event One Million and xx/100 ($1,000,000.00) Dollars shall Landlord be obligated to apply the Security Deposit upon an Event of Default due and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due payable to Landlord pursuant to this Leaseon or before March 31,2005, shall not be diminished or altered in any respect due to and the fact that Landlord is holding second installment the Security Deposit. If any portion amount of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five One Million One Hundred Fifty Thousand and xx/100 (5$1,150,000.00) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit Dollars shall be returned due and payable to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectionon or before March 31,2006.

Security Deposit. Concurrently with Tenant’s delivery 's execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to ONE HUNDRED NINETY THREE THOUSAND FOUR HUNDRED EIGHTY FOUR AND 80/100 Dollars ($ 193,484.80). Said sum shall be held by Landlord as security a Security Deposit for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term hereof. If Tenant defaults with respect to any provision of this Lease, including, but not limited to, the provisions relating to the payment of rent and any of the monetary sums due herewith, Landlord may (but shall not be required to) use, apply or retain all or any part of this Security Deposit for the “payment of any other amount which Landlord may spend by reason of Tenant's default or to compensate Landlord for Initials: [ILLEGIBLE] 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 ten (10) days after written demand therefor, deposit cash with Landlord in the amount sufficient to restore the Security Deposit”)Deposit to its original amount. Tenant's failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security such Deposit. Subject to the last sentence If Tenant fully and faithfully performs every provision of this SectionLease to be performed by it, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to Tenant (or, or at Landlord’s 's option, to the last assignee of Tenant’s 's interest hereunder) at the expiration of the Lease term and after Tenant has vacated the Premises. In the event of termination of Landlord's interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Landlord shall transfer said Deposit to Landlord's successor in interest whereupon Tenant agrees that to release Landlord may retain from liability for the Security return of such Deposit to or the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectionaccounting therefor.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) business days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery of 11.1 Tenant has this Lease, Tenant shall deposit day deposited (by check subject to collection) with Landlord the sumSecurity Deposit as set forth in Section 1.1 (N), if any, stated in Item 9 of the Basic Lease Provisionsabove, to be held by Landlord as security for secure the full and faithful performance by Tenant of all the terms, covenants and conditions of this Lease upon Txxxxx’s part to be performed, which sum shall be returned to Tenant without interest after the expiration of the Term, provided Tenant has fully and faithfully carried out all of the terms, covenants and conditions on Tenant’s obligations under this Lease part to be performed (the “Security Deposit”but no such return shall be deemed an estoppel against or an admission by Landlord that Tenant is then in compliance with its obligations). Landlord shall not be required have the right to keep this Security Deposit separate from its general fundsuse, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use apply or apply the whole or retain any part or all of the Security Deposit to pay remedy any sum which default of Tenant is obligated hereunder, repair damage to pay under this Lease, sums that Premises or to other property of Landlord may expend or be required to expend by reason of the Event of Default caused by Tenant or any loss of its agents, employees, invitees or damage licensees, or expenses of re-renting and redecorating the Premises in the event Tenant vacates same prior to the expiration of the Term. If Landlord applies any part of said Security Deposit to remedy any default of Tenant, Tenant shall, upon demand, deposit with Landlord the amount so applied so that Landlord may suffer by reason of shall have the Event of Default or costs incurred by Landlord in connection with full Security Deposit on hand at all times during the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination Term of this Lease. In no event shall Landlord Tenant be obligated entitled to apply credit against any Rent due hereunder by virtue of the Security Deposit upon an Event deposit of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the such Security Deposit. If any portion In the event of a sale of the Security Deposit is applied by Property, Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient have the right to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain transfer the Security Deposit to the extent vendee for the benefit of Tenant, and, after notice to Tenant of such sale and until the name of the new landlord, Landlord shall be considered released by Tenant from all liability for the return of such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Security Deposit; Tenant shall have no claim against Landlord look to the new landlord solely for Landlord’s retaining such the return of the Security Deposit, and it is agreed that this shall apply to every transfer or assignment made of the Security Deposit to a new landlord. The Security Deposit shall not be mortgaged, assigned or encumbered by Tenant without the extent provided in this Sectionprior written consent of Landlord.

Security Deposit. Concurrently Tenant, contemporaneously with Tenant’s delivery the execution ---------------- of this Lease, Tenant shall deposit has deposited with Landlord the sumsum set forth in paragraph (F) of Section I of this Lease, if any, stated in Item 9 the receipt of the Basic Lease Provisions, to which is hereby acknowledged by Landlord. Said deposit shall be held by Landlord Landlord, without liability for interest, as security for the full and faithful performance by Tenant of all of Tenant’s obligations under the terms, covenants and conditions of this Lease (by said Tenant to be kept and performed during the “Security Deposit”)Term hereof. Landlord shall not Said deposit may be required commingled with other funds of Landlord. In the event of the failure of Tenant to keep and perform any of the terms, covenants and conditions of this Security Deposit separate from its general fundsLease to be kept and performed by Tenant, then at the option of Landlord, Landlord may appropriate and Tenant shall not apply said entire deposit, or so much thereof as may be entitled necessary, to interest compensate Landlord for all loss or damage sustained or suffered by Landlord due to such breach on the Security Depositpart of Tenant. Subject to Should the last sentence of this Sectionentire deposit, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt or any portion thereof, and may be utilized so appropriated or so applied by Landlord in its sole and absolute discretion towards for the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions overdue rent or other sum due and Tenant Improvement costs. Upon any Event of Default payable by Tenant (as defined hereunder, then Tenant shall, upon the written demand of Landlord, forthwith remit to Landlord a sufficient amount in Section 14.1)cash to restore said security to the original sum deposited, Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s 's failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall do so within five (5) days after written receipt of such demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under shall constitute a breach of this Lease. Should Tenant comply with all of the terms, covenants and conditions and promptly pay all of the Security Deposit rental herein provided for as it falls due, and all other sums payable by Tenant hereunder, said deposit shall be returned in full to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration end of the Term, provided that Tenant agrees that or upon the earlier termination of this Lease. Landlord may retain deliver the Security Deposit funds deposited hereunder by Tenant to the extent purchaser of Landlord's interest in the Premises in the event that such interest is sold, and until thereupon Landlord shall be discharged from any further liability with respect to such time as all amounts due from Tenant in accordance deposit; provided, however, that the purchaser shall agree to assume Landlord's obligations hereunder with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit respect to the extent provided in this Sectionsaid deposit.

Security Deposit. Concurrently with Tenant’s delivery execution of this Lease, Tenant shall deposit with Landlord, or secure at its option by a Letter of Credit (defined below, the sum of One Hundred Twenty Thousand and 00/100 ($120,000.00) Dollars. If the deposit begins as a cash deposit, Tenant may subsequently change it to a Letter of Credit. If Tenant elects to use a Letter of Credit, then Landlord the sum, if any, stated in Item 9 shall return any cash deposit to Tenant within five (5) business days of the Basic Lease Provisions, delivery of the Letter of Credit to Landlord. Said sum or Letter of Credit shall be held by Landlord as security a Security Deposit for the full and faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the term hereof. If Tenant defaults with respect to any provisions of this Lease, including, but not limited to, the provisions relating to the payment of rent and any of the monetary sums due herewith, Landlord may (but shall not be required to ) use, apply or retain all or any part of this Security Deposit for the payment of any other amount which Landlord may spend by reason of Tenant’s obligations under 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 ten (10) days after written demand therefor, deposit cash with Landlord in the amount sufficient to restore the Security Deposit to its original amount. Tenant’s failure to do so shall be a material breach of this Lease (the “Security Deposit”)Lease. Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security such Deposit. Subject to the last sentence If Tenant fully and faithfully performs every provision of this SectionLease to be performed by it, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to Tenant (or, or at Landlord’s option, to the last assignee of Tenant’s interest in this Leasehereunder) within thirty (30) days of the expiration of the Lease term and after Tenant has vacated the Premises. In the event of termination of Landlord’s interest in this Lease, Landlord shall transfer said Deposit to Landlord’s successor in interest whereupon Tenant agrees to release Landlord from liability for the return of such Deposit or the accounting therefor. If Tenant chooses to use a letter of credit, then Tenant shall provide to Landlord an unconditional, clean, irrevocable Letter of Credit (“Letter of Credit”) in the amount specified above in favor of Landlord and issued by a bank (which accepts deposits, maintains accounts and will negotiate a letter of credit, and whose deposits are insured by the FDIC) located in the Bay Area and reasonably acceptable to Landlord (“Issuer”). The Letter of Credit shall (1) be fully transferable by Landlord without payment of transfer fees, (2) permit multiple drawings, and (3) provide that draws, including partial draws, at Landlord’s election, will be honored upon the delivery to the Issuer a certificate signed by Landlord, or its authorized agent, that Landlord is entitled to make the requested draw pursuant to the terms of the Lease. The Letter of Credit is to be issued pursuant to ISP98 rather than UCP 500. If Tenant fails to pay Basic Rent or any other sums as and when due hereunder, or otherwise defaults with respect to any provision of this Lease, Landlord may (but shall not be obligated to) use, apply or retain all or any portion of the Letter of Credit for payment of any sum for which Tenant is obligated or which will compensate Landlord for any loss or damage which Landlord may suffer thereby. Any draw or partial draw of the Letter of Credit shall not constitute a waiver by Landlord of its right to enforce its other remedies hereunder, at law or in equity. If any portion of the Letter of Credit is drawn upon, Tenant shall, within ten (10) days after delivery of written demand from Landlord, restore said Letter of Credit to its original amount. The Letter of Credit shall be in effect for the entire Term plus thirty (30) days beyond the expiration of the Term, provided . The parties agree that Tenant agrees that Landlord may retain the Security Deposit provisions of Civil Code Sections 1950.7 and 1951.7 do not apply to the extent and until such time as all amounts due Letter of Credit or any proceeds from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionLetter of Credit.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Section 30.1 Tenant shall deposit has deposited with Landlord the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to be held by Landlord Five Hundred Thousand and 00/100 Dollars ($500,000.00) as security for the full and faithful performance of all of Tenant’s the obligations of Tenant under this Lease (all or any part of such amount, the “Security Deposit”). Landlord If an Event of Default shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord occur under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)Landlord may use, Landlord may, in its sole and absolute discretion, retain, use apply or apply the whole retain all or any part of the Security Deposit to pay for the payment of any Fixed or Additional Rent or any other sum in default or for the payment of any other amount which Tenant is Landlord may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the such Event of Default by Tenant Default, or to compensate Landlord for any loss other loss, cost or damage that which Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an such Event of Default. Tenant shall, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days Business Days after written demand by Landlord notice from Landlord, deposit cash with Landlord cash or a letter of credit in an amount sufficient to restore the Security Deposit to its original amountthe amount then required pursuant to the terms of this Article 30. If Tenant’s obligation to make such payment shall be deemed a requirement that Tenant fully performs its obligations under pay an item of Additional Rent, and Tenant’s failure to do so shall be a breach of this Lease. Landlord shall not, unless otherwise required under applicable Law, 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 applicable 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 exhaust its remedies against Tenant or against the Security Deposit before having recourse to any other form of security held by Landlord, and recourse by Landlord to any portion of the Security Deposit shall not affect any remedies of Landlord provided in this Lease or available to Landlord under applicable Laws. So long as no Event of Default shall then have occurred and be continuing, 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 in this Lease) within thirty (30) days reasonably promptly after the expiration or sooner termination (other than a termination pursuant to Article 16) of the Term, provided that Tenant agrees that Term and Tenant’s surrender to Landlord may retain of the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionPremises.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord upon opening for business the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to be held by Landlord FOUR THOUSAND SEVEN HUNDRED FIFTY DOLLARS & 00/100 (4750.00) Dollars as security for the full and Tenant's faithful performance of Tenant's obligations hereunder. If Tenant fails to pay rent or other charges due hereunder or otherwise defaults with respect to any provision of this 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 obligations under 's default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of said deposit Tenant shall within ten (10) days after written demand therefor deposit cash with Landlord in an amount to restore said deposit full amount hereinabove stated and Tenant's failure to do so shall be a breach of this Lease (the “Security Deposit”)Lease, and Landlord may at his option terminate this Lease. Landlord shall not be required to keep this Security Deposit said deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amountaccounts. If Tenant fully performs its all of Tenant's obligations under this Leasehereunder, the Security Deposit said deposit or so much thereof as had not theretofore been applied by Landlord, shall be returned returned, without payment of interest or other increment for its use, to Tenant (or, at Landlord’s 's option, to the last assignee assignee, if any, of Tenant’s 's interest in this Leasehereunder) within thirty fifteen (3015) days after the expiration of the Termterm hereof, provided that or after Tenant agrees that Landlord may retain has vacated the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionPremises, whichever is later.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant The Security Deposit specified in paragraph 1.14 shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance by Tenant of all each and every term, covenant and condition of this Lease on the part of Tenant to be observed and performed, and Landlord shall have no liability to pay interest thereon unless required by law. If any rent or Additional Rent herein reserved or any other sums payable by Tenant hereunder shall be overdue and unpaid or should Landlord make payments on behalf of Tenant’s obligations under this Lease (, or should Tenant fail to perform any of the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence terms of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), then Landlord may, in at its sole option, and absolute discretion, retain, use or apply the whole or without prejudice to any part of the Security Deposit to pay any sum other remedy which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to have on account thereof, apply the Security Deposit upon an Event or so much thereof as may be necessary to compensate Landlord toward the payment of Default and Landlord’s rights and remedies the rents or other sums due from Tenant, or towards any loss, damage or expense sustained by Landlord resulting from an Event such default on the part of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered ; and in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, such event Tenant shall within five (5) days after written forthwith upon demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and the sum required to so restore the Security Deposit shall be Additional Rent hereunder. If In the event Tenant shall have fully performs its obligations under and faithfully complied with all of the terms, covenants and conditions of this Lease, the Security Deposit shall be returned in full to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after following the expiration end of the TermTerm or earlier termination of this Lease. In the event that any bankruptcy, provided that insolvency, reorganization or other creditor/debtor proceedings shall be instituted by or against Tenant agrees that or its successors or assigns, Landlord may retain apply the Security Deposit first to the payment of any rent, Additional Rent, and other amounts due Landlord hereunder, and the balance, if any, of the Security Deposit may be retained by Landlord in partial Liquidation of Landlord's damages. Landlord may deliver the Security Deposit to the extent purchaser of Landlord's interest in the Premises, in the event that such interest is sold, and until such time as all amounts due Landlord shall thereupon be discharged from Tenant in accordance any further liability with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit respect to the extent provided in this SectionSecurity Deposit.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, Tenant shall deposit with Landlord or Landlord's Agent simultaneously with the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence execution of this SectionLease, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord amount stipulated in its sole and absolute discretion towards Section 1.6 as a security deposit. Provided Tenant is not in default in the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this LeaseBase Annual Rent, including without limitation brokerage commissions Additional Rent or any other charges due Landlord, and Tenant Improvement costs. Upon any Event of Default by Tenant (further provided the Demised Premises are left in good condition, reasonable wear and tear excepted, as defined described in Section 14.1)6.10, Landlord may, in its sole and absolute discretion, retain, use or apply said deposit (which shall not bear interest to Tenant) shall be returned to Tenant within sixty (60) days after the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In Notwithstanding the foregoing, the full or partial return by Landlord to Tenant of the security deposit shall at no event shall time be deemed to constitute a waiver by Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event any of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to 's obligations under this Lease, shall not be diminished or altered in nor an acknowledgment by Landlord that any respect due such obligations are limited to the fact that Landlord is holding amount, if any, of the Security Depositsecurity deposit retained by Landlord. If any portion Tenant is in default or is otherwise indebted to Landlord hereunder or if the Demised Premises are not left in good condition, or if Tenant has failed or refused to remove Tenant's Property after Landlord's request to do so, then the security deposit shall be applied to the extent available on account of sums due Landlord or the Security Deposit is applied by cost of repairing damages to the Demised Premises or to remove Tenant's Property. In the event the funds deposited with Landlord as permitted by this Sectionsecurity are applied during the Lease Term on account of sums due Landlord or to the cost of repairing damages or removing Tenant's Property, then Tenant shall shall, within five fifteen (515) days after written demand by Landlord, deposit with the Landlord deposit cash with Landlord in an amount sufficient additional funds to restore the Security Deposit security deposit to its original amount. If In the event of the sale or transfer of Landlord's interest in the Building, Landlord shall have the right to transfer the security deposit to such purchaser or transferee, in which event Tenant fully performs its obligations under this Lease, shall look only to the Security Deposit new landlord for the return of the security deposit and Landlord shall thereupon be returned released from all liability to Tenant (or, at Landlord’s option, to for the last assignee return of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectionsecurity deposit.

Security Deposit. Concurrently with Tenant’s delivery Tenant shall, upon the execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full payment of rent and faithful the performance of all other covenants to be performed by Tenant, the sum of Tenant’s obligations under this Lease One Thousand, Eight Hundred and Fifty and no/100 dollars (the “Security Deposit”$1,850.00). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit Said security deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord non-interest bearing. If Tenant defaults in its sole and absolute discretion towards the payment of all expenses any monthly rental installment, or fails to perform any other covenant within three (3) days after receipt of written demand therefor, Landlord, at its option, may apply sufficient sums from the security deposit towards payment thereof. If Landlord elects to so apply the security deposit, Tenant shall be obligated to immediately replenish the security deposit for the amount so applied by Landlord. The total security deposit shall be held by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part until expiration of the Security Deposit to pay initial term or until expiration of any sum renewal term if any renewal option which Tenant exists is obligated to pay under this Leaseexercised, sums that Landlord may expend or be required to expend by reason and the unused portion of the Event of Default security deposit shall be refunded by Landlord to Tenant or any loss or damage that Landlord may suffer by reason at the end of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 Term of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Leaserenewal thereof. Provided, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Leasehowever, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to Landlord may hold the last assignee security deposit for a period of Tenant’s interest in this Lease) within thirty (30) days after the expiration following surrender of the Termpossession of the Premises, provided and may deduct from the amount refunded any rental due and payable, the costs of repairing any damage or replacing any damaged portion of the Premises or of the Building or other real estate of which the Premises form a part and the costs of cleaning the same if the Tenant fails to do so prior to surrender of possession. Provided, however, said Security Deposit does not constitute a limitation of any kind to a claim by Landlord against Tenant for nonpayment of rentals or other sums under this Lease or for costs of repair, replacement and cleaning of the Premises as discussed herein. In the event proceedings begin it is agreed that Tenant agrees that Landlord may retain the Security Deposit held hereunder shall be deemed to be applied first to rent and other charges first due to Landlord for all periods prior to the extent and until filing of any such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant proceedings. The security deposit shall have no claim against Landlord for not be applied to rent except upon approval of Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery Upon the execution of this Lease, Tenant shall deposit with Landlord a Letter of Credit as described in this Section (the sum“Letter of Credit”), if any, stated in Item 9 as security for the punctual performance of each and every obligation of Tenant under this Lease. Tenant shall simultaneously deliver to Landlord such documentation as Landlord may reasonably require to demonstrate that Tenant’s obligation to the issuer of the Basic Lease ProvisionsLetter of Credit is a secured obligation. In no event shall the Security Deposit be deemed to be a prepayment of Rent nor shall it be considered a measure of liquidated damages. The Letter of Credit shall be an irrevocable standby letter of credit, in form and content and issued by Silicon Valley Bank or another commercial bank satisfactory to Landlord in its sole discretion (Landlord agreeing not to unreasonably withhold, delay or condition its approval of another commercial bank with a credit rating at that time from Xxxxx’x Investors Service or Standard & Poor’s equal to or better than that of Silicon Valley Bank as of the date of this Lease), which Letter of Credit shall provide that it may be drawn upon in Boston, Massachusetts (i) in part or in whole, upon the presentation of a sight draft accompanied by a certificate signed by a representative of Landlord, setting forth the amount due to Landlord by reason of the occurrence of an Event of Default by Tenant hereunder, or (ii) in whole, upon the presentation of a sight draft accompanied by a certificate signed by a representative of Landlord, stating that (a) such Letter of Credit will expire within thirty (30) days of such certificate, and (b) Tenant has not deposited a substitute Letter of Credit in the form, amount and issued by a bank as required by this Section. Any payment drawn by Landlord under the Letter of Credit pursuant to clause (ii) of the preceding sentence shall be held by Landlord as security for a cash Security Deposit (“Cash Security”) pursuant to the full and faithful performance provisions of all of Tenant’s obligations under this Lease (the “Security Deposit”)Article. Landlord shall not be required to keep this may commingle any Cash Security Deposit separate from its general with Landlord’s other funds, and no interest shall be due thereon. The Letter of Credit shall remain in full force and effect for a period of at least one hundred twenty (120) days beyond the expiration of the Term. Tenant shall not be entitled to interest on deposit the Security Deposit. Subject to original Letter of Credit with Landlord and shall keep the last sentence Letter of Credit in full force and in compliance with the provisions of this Section, Lease throughout the Term. Landlord may apply the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant and/or damages sustained by Landlord as a result thereof. In the event that Landlord so draws upon and applies or retains any portion or all of the proceeds of the Letter of Credit, or so applies all or any portion of the Cash Security, Tenant shall pay to Landlord, as Additional Rent, the amount so expended by Landlord (or shall deliver an amendment to the Letter of Credit increasing the amount of the Letter of Credit by the amount so drawn by Landlord) within three (3) Business Days of notice given by Landlord so that at all times (subject to the 3-Business Day grace period herein referenced) Landlord shall be entitled to draw down upon the full aggregate amount of the Letter of Credit or hold the full Cash Security, or some combination thereof. Notwithstanding anything contained in this Lease to the contrary, any failure of Tenant to restore any amount drawn under the Letter of Credit or expended from the Cash Security within the time and manner specified in this Section shall immediately constitute an Event of Default hereunder (without the necessity of any additional notice or the passage of any additional time) and entitle Landlord to immediately draw down the Letter of Credit then in force or effect and Landlord shall retain such cash amounts as a Security Deposit pursuant to the provisions of this Section. Tenant shall be solely responsible for the payment of all costs associated with obtaining, replacing (as defined in Section 14.1necessary), Landlord maytransferring, extending and maintaining the Letter of Credit in its sole and absolute discretion, retain, use or apply accordance with the whole terms of this Section. The application of all or any part of the Security Deposit to pay any sum which Event of Default of Tenant is obligated to pay under this Lease shall not deprive Landlord of any other rights or remedies Landlord may have, nor shall such application by Landlord constitute a waiver by Landlord. In addition, in the event of a termination based upon an Event of Default of Tenant under this Lease, sums or a rejection of the Lease pursuant to the provisions of the Federal Bankruptcy Code, Landlord shall have the right to apply the Security Deposit (from time to time, if necessary) to cover up to the full amount of damages and other amounts due from Tenant to Landlord under the Lease. Any amounts so applied shall, at Landlord’s election, be applied first to any unpaid Rent and other charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code. Landlord shall assign the Security Deposit to any purchaser of the Building, and thereafter Landlord shall have no further responsibility therefor. Upon request of Landlord or any such purchaser of the Building, Tenant shall, at its expense, cooperate with Landlord in obtaining an amendment to or replacement of any Letter of Credit which Landlord is then holding so that the amended or new Letter of Credit reflects the name of the new owner of the Building. Within one hundred twenty (120) days after the expiration or earlier termination of the Term, Landlord shall inspect the Premises, make such draw upon the Letter of Credit or apply all or any portion of the Cash Security as may expend or be required to expend by reason of the cure any Event of Default by Tenant hereunder or any loss or damage that Landlord may suffer to make payment on account of damages suffered by reason of the Landlord, and, if no Event of Default is then continuing, Landlord shall redeliver the original Letter of Credit (as may have previously been drawn on by Tenant) or costs incurred by Landlord in connection with pay the repair or restoration balance of the Premises pursuant Cash Security, as the case may be, to Section 15.3 of this Lease upon expiration or earlier termination of this LeaseTenant. In Notwithstanding the foregoing, provided that: (i) no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default on the part of Tenant has occurred prior to the applicable “Reduction Date” (as hereinafter defined), and no such Event of Default is continuing as of such Reduction Date, and (ii) (a) with respect to the first Reduction Date, Tenant demonstrates to Landlord’s rights and remedies resulting from reasonable satisfaction that at all times during the twelve (12) months prior to such Reduction Date Tenant has held unrestricted cash in an Event amount equal to at least three (3) times the then-applicable amount of DefaultBase Rent for the next twelve (12) months commencing on such Reduction Date, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any (b) with respect due to the fact second Reduction Date, Tenant demonstrates to Landlord’s reasonable satisfaction that at all times during the twelve (12) months prior to such Reduction Date Tenant has held unrestricted cash in an amount equal to at least two (2) times the then-applicable amount of Base Rent for the next twelve (12) months commencing on such Reduction Date; and (iii) the Lease is then in full force and effect, Landlord is holding agrees to accept a reduction in the Security Deposit. If any portion amount of the Letter of Credit which it is then holding so as to cause the total Security Deposit is applied to be reduced as of each Reduction Date to the amount shown in the following schedule: Reduction Date New Reduced Amount of Security Deposit 1st day of 37th month after 9 months of Base Rent and Operating Costs Rent Commencement Date at then-current rates as of the Reduction Date 1st day of 61st month after 6 months of Base Rent and Operating Costs Rent Commencement Date at then-current rates as of the Reduction Date Any reduction in a Letter of Credit held by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to accomplished by Tenant (orproviding Landlord with a substitute Letter of Credit in the reduced amount in exchange for the existing Letter of Credit(s) which Landlord is then holding, at Landlord’s option, or by an amendment to the last assignee existing Letter of Credit(s) then held by Landlord, in form and substance reasonably acceptable to Landlord, which is accepted by Landlord in writing. If Tenant does not satisfy the requirements for a reduction in the amount of the Letter of Credit on a Reduction Date as specified above, then Tenant shall have the right to extend such Reduction Date for up to four (4) months by written notice given to Landlord prior to such Reduction Date in order to enable Tenant to satisfy such requirements as of such extended Reduction Date; failing which Tenant shall be deemed to have irrevocably forfeited its right to the corresponding reduction in the amount of the Letter of Credit (but such a forfeiture of Tenant’s interest right to the first reduction in this Lease) within thirty (30) days after the expiration amount of the Term, provided that Tenant agrees that Landlord may retain Letter of Credit shall not affect Tenant’s right to receive the Security Deposit second reduction in the amount of the Letter of Credit if the requirements of this paragraph are timely satisfied with respect to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectionsecond reduction).

Security Deposit. Concurrently with Tenant’s delivery Tenant shall pay to Landlord, immediately upon execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated sum specified in Item 9 of the Basic Lease Provisions, to be held by Landlord Provisions 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 provisions of this Lease, including, but not limited to, the provisions relating to the payment of rent, Landlord may (but shall not be required to) use, apply or retain all or any part of this security deposit for the payment of any rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant’s obligations under '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 an amount sufficient to restore the security deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. At Landlord's election, if the monthly Base Rent shall from time to time increase during the term of this Lease, Tenant shall, within ten (10) days after request by Landlord, deposit with Landlord additional money as a security deposit so that the total amount of the security deposit held by Landlord shall bear the same proportion to the then current Base Rent as the initial security deposit bears to the initial Base Rent as set forth in the Basic Lease (the “Security Deposit”)Provisions. Landlord shall not be required to keep this Security Deposit security deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Depositsuch deposit. Subject No trust relationship is created hereby with respect to the last sentence of this Section, the Security Deposit such security deposit. If Tenant shall be understood fully and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 faithfully perform every provision of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord to be obligated to apply performed by it, the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses security deposit or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit balance thereof shall be returned to the Tenant (or, or at the Landlord’s 's option, to the last assignee of Tenant’s interest in this Lease's interests hereunder) within thirty (30) days after at the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and security deposit until such time as all amounts any amount due from the Tenant in accordance with this Lease have hereof has been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectionfull.

Security Deposit. Concurrently with Tenant’s delivery execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated Security Deposit specified in Item 9 of the Basic Lease Provisions, to be held by Landlord Information as security for the full and faithful performance of all each and every term, covenant and condition of Tenant’s obligations under this Lease (the “Security Deposit”)Lease. Landlord shall not be required to keep this Security Deposit separate from its general fundsmay use, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use apply or apply retain the whole or any part of the Security Deposit as may be reasonably necessary (a) to pay remedy any sum which Default by Tenant is obligated to pay under this Lease, sums that (b) to repair damage to the Premises caused by Tenant, (c) to clean the Premises upon termination of this Lease, (d) to reimburse Landlord for the payment of any amount which Landlord may expend reasonably spend or be required to expend spend by reason of the Event of Default by Tenant or Tenant’s Default, and (e) to compensate Landlord for any other loss or damage that which Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection Tenant’s Default. Should Tenant faithfully and fully comply with the repair or restoration all of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination terms, covenants and conditions of this Lease. In no event shall Landlord be obligated to apply , within thirty (30) days following the expiration of the Term, the Security Deposit upon an Event or any balance thereof shall be returned to Tenant or, at the option of Default and Landlord’s rights and remedies resulting from an Event , to the last assignee of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to interest in this Lease, . Landlord shall not be diminished or altered in any respect due required to the fact that Landlord is holding keep the Security DepositDeposit separate from its general funds and Tenant shall not be entitled to any interest on such deposit. If Landlord so uses or applies all or any portion of the Security Deposit is applied by Landlord as permitted by this Sectionsaid deposit, Tenant shall within five (5) business days after written demand by Landlord therefor Tenant shall deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original the full extent of the above amount. If Tenant fully performs its obligations , and Tenant’s failure to do so shall be a default under this Lease, . In the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s event Landlord transfers its interest in this Lease) within thirty (30) days after , Landlord shall transfer the expiration then remaining amount of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent Landlord’s successor in interest, and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant thereafter Landlord shall have no claim against Landlord for Landlord’s retaining further liability to Tenant with respect to such Security Deposit to the extent provided in this SectionDeposit.

Security Deposit. Concurrently with Tenant’s delivery of Upon the date this LeaseLease is executed by Lessee, Tenant Lessee shall deposit with Landlord Lessor a Security Deposit equal to twelve (12) month’s estimated Base Rent in the sumamount of Five Million, if anyNine Hundred Sixty-Four Thousand, stated Six Hundred Thirty and no cents ($6,051,864.00) in Item 9 the form of the Basic Lease Provisionscash or an unconditional, irrevocable letter of credit without documents, with Lessor as beneficiary, drawable in whole or in part, and providing for payment in San Francisco on presentation of Lessee’s drafts on sight, drawable and otherwise from a bank and in a form acceptable to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease Lessor (the “Security Deposit”). Landlord The Security Deposit shall be held by Lessor as security for the faithful performance by Lessee of all of the terms, covenants, and conditions of this Lease applicable to Lessee. If Lessee is in breach of this Lease (beyond any applicable cure period provided herein) with respect to any provision of this Lease, including but not limited to the provisions relating to the condition of the Premises upon Lease Termination, Lessor may (but shall not be required to keep this Security Deposit separate from its general fundsto) use, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of apply or retain all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay for the payment of any sum amount which Tenant is obligated to pay under this Lease, sums that Landlord Lessor may expend or be required to expend spend by reason of the Event of Default by Tenant Lessee’s default or to compensate Lessor for any loss or damage that Landlord which Lessor may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and LandlordLessee’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositdefault. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall Lessee shall, within five (5) ten days after written demand by Landlord therefor, deposit cash with Landlord Lessor in an amount sufficient to restore the Security Deposit to its original amount. Lessee’s failure to do so shall be a Default by Lessee. The rights of Lessor pursuant to this Section 4.06. are in addition to any rights which Lessor may have pursuant to Article 12 below. If Tenant Lessee fully and faithfully performs its obligations under every provision of this LeaseLease to be performed by it, the Security Deposit or any balance thereof shall be returned (without interest) to Tenant Lessee (or, at LandlordLessor’s option, to the last assignee of TenantLessee’s interest in this Leaseinterests hereunder) within thirty (30) days at Lease expiration or termination and after Lessee has vacated the expiration of the Term, provided that Tenant agrees that Landlord may retain Premises. Lessor shall not be required to keep the Security Deposit separate from Lessor’s general funds or be deemed a trustee of same. Subject to the extent prior written approval of Lessor and until such time as all amounts due from Tenant Lessor’s lender(s), the letter of credit may be reduced to an amount not less than the total of three (3) months of Base Rent at the then current rate, if Lessee establishes through financial statements prepared in accordance with this Lease have been determined generally accepted accounting principles and paid in full a form acceptable to Lessor that Lessee has achieved annual revenue for a period of at least one (1) fiscal year of at least Seven Hundred Fifty Million Dollars ($750,000,000) and Tenant agrees that Tenant shall have no claim against Landlord has further achieved quarterly operating profit of at least One Hundred Million Dollars ($75,000,000) for Landlord’s retaining such not less than four (4) consecutive calendar quarters. If the Security Deposit is in whole or in part in the form of a Letter of Credit, failure of Lessee to deliver a replacement Letter of Credit to Lessor at least forty-five (45) days prior to the extent provided in this Sectionexpiration date of any current Letter of Credit shall constitute a separate default entitling Lessor to draw down immediately and entirely on the current Letter of Credit and the proceeds shall constitute a cash Security Deposit.

Security Deposit. Concurrently with Tenant’s delivery of this Lease, The Landlord acknowledges receipt from the Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general funds, in the amount set forth in Section 1.1(h) and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be held by the property of Landlord upon Landlord’s receipt thereof, without liability for interest and may be utilized applied, in the Landlord’s discretion, to remedy any default by Landlord the Tenant hereunder, whether in its sole and absolute discretion towards respect to the payment of all expenses by Landlord for which Tenant would be required Rent or other payments due to reimburse the Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination terms of this Lease. In no the event shall Landlord be obligated to apply the entire Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit thereof is applied by the Landlord as permitted by this Sectiontowards the payment of overdue Rent prior to the expiration of the Term, then the Tenant shall within five (5) days after shall, on written demand by of the Landlord, forthwith remit to the Landlord deposit cash with Landlord in an amount such sum as is sufficient to restore the such Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within Within thirty (30) days after the expiration of the Term and subject to delivery of exclusive possession of the Premises by the Tenant to the Landlord in the state of repair required by the Tenant pursuant to Section 9.1 hereof, the Landlord, without limiting any of its rights or remedies under this Lease or at law, shall return the Security Deposit, or so much thereof as has not been applied by the Landlord, as aforesaid, without interest to the Tenant, less all costs and expenses which the Landlord, at the Landlord’s option, may incur (i) in correcting or satisfying any default, or any Rent owing by the Tenant, under this Lease, (ii) in returning the Premises to the state of repair required by the Tenant pursuant to Section 9.1 hereof, and (iii) in employing security personnel to be on site during the Tenant’s move from the Building at the expiration of the Term, provided that Tenant agrees that . The Landlord may retain deliver the Security Deposit to any purchaser of the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining interest in the Building and the Landlord shall thereby be discharged of any further liability with respect to such Security Deposit. The Landlord may commingle the Security Deposit to with its own funds and shall not hold the extent provided in this SectionSecurity Deposit as a trustee.

Security Deposit. Concurrently with Tenant’s delivery of this LeaseUpon listing below the amount, Tenant shall deposit with check number, date, or other appropriate information, the Landlord acknowledges the sum, if any, stated in Item 9 receipt of the Basic Lease Provisions, following security deposit: Until receipt of a security deposit of THIRTEEN THOUSAND FOUR HUNDRED AND 001100 DOLLARS ($13,400.00) This lease shall not be binding on the Landlord. The security deposit is given to be held by Landlord as security for secure the full and faithful performance by the Tenant of all of Tenant’s obligations under the terms, covenants, and conditions of this Lease lease by Tenant to be kept and performed during the term hereof. Tenant agrees that if the Tenant shall fail to pay the rent herein reserved promptly when due, said deposit may, at the option of the Landlord (the “Security Deposit”). but Landlord shall not be required to), be applied to keep any rent due and unpaid, and if the Tenant violates any of the other terms, covenants, and conditions of this Security Deposit separate from its general fundslease, said deposit may be applied to any damages suffered by Landlord as a result of Tenant's default to the extent of the amount of damages suffered. Nothing contained in this Article shall in any way diminish or be construed as waiving any of Landlord's other remedies as provided in this lease or by law or in equity. Should the entire security deposit, or any portion thereof, be appropriated and applied by Landlord for the payment of overdue rent or other sums due and payable to Landlord by Tenant hereunder, then Tenant shall, on the written demand of Landlord, forthwith remit to Landlord a sufficient amount of cash within ten (10) days after receipt of such demand, or it shall constitute a breach of this lease. Should Tenant comply with all of the terms and covenants and conditions of this lease and promptly pay all of the rental herein provided for as it falls due, and all other sums payable to Landlord by Tenant hereunder, said security deposit shall be returned in full to Tenant after the end of the term of this lease. In no event shall Landlord be deemed to be a trustee of the security deposit, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord any sums deposited under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Sectionsection.

Security Deposit. (a) Concurrently with Tenant’s delivery Xxxxxx's execution of this Lease, Tenant shall deposit with deliver to Landlord an unconditional, irrevocable, transferable letter of credit in the sumstated amount of Six Hundred Seventy-Six Thousand One Hundred Dollars ($676,100) issued by a bank approved by Landlord in favor of Landlord as beneficiary, if anyfor the term provided for below and otherwise in form and substance satisfactory to Landlord ("Letter of Credit"). The Letter of Credit shall be issued for an initial term of one year following the date of this Lease, stated in Item 9 and Tenant shall cause the Letter of Credit to be renewed for successive twelve-month periods throughout the Term not less than thirty (30) days prior to each expiration date of the Basic Lease ProvisionsLetter of Credit, until Tenant shall have the right to reduce the amount of the Letter of Credit as provided in subparagraph (b) below. The Letter of Credit shall entitle Landlord to draw the entire stated amount thereof upon presentation of a sight draft in the amount of the draw. The Letter of Credit shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s the covenants, agreements and obligations under this Lease to be performed by Tenant during the Term. If Tenant shall fail to pay Monthly Base Rental or other amounts payable by Tenant to Landlord under this Lease, or if Tenant shall otherwise default with respect to any provision of this Lease after the expiration of any applicable cure period, Landlord shall have the right, but shall not be obligated, to draw the entire stated amount of the Letter of Credit and to hold the proceeds thereof as a cash security deposit (the “"Security Deposit”"), and to use, apply or retain all or any portion of the Security Deposit for the payment of rental or any other amount which Landlord may expend or become obligated to expend by reason of Tenant's default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default. If Landlord shall make any draw upon the Letter of Credit and apply such draw to the cure of any default, Tenant shall, within ten (10) days after Landlord's written demand therefor, deposit with Landlord a replacement, additional or amended Letter or Letters of Credit in the same form (including total stated amount and issuer) as the Letter of Credit drawn upon by Landlord. If Landlord shall so use or apply any portion of any cash Security Deposit held by Landlord. Tenant shall, within ten (10) days after Landlord's written demand therefor, deposit cash with Landlord in the amount so used or applied by Landlord. Landlord shall not be required to keep this any Security Deposit separate from its general Landlord's other funds, and Tenant shall not be entitled to any interest on the any Security Deposit. Subject to Landlord shall return the last sentence Letter of this SectionCredit, any Security Deposit, and/or any balance thereof not applied in accordance with the Security Deposit shall be understood and agreed to be the property provisions of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after following the expiration of this Lease and after Xxxxxx has surrendered the Term, provided that Tenant agrees Premises to Landlord in the condition required under this Lease. In the event that Landlord may retain shall transfer its interest in the Premises, Landlord shall transfer the Letter of Credit (to the extent transferable) and/or any funds then held by Landlord on account of any cash Security Deposit to Landlord's transferee, and Landlord shall thereupon be released from all liability to Tenant for return of the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Letter of Credit and/or cash Security Deposit to the extent provided in this SectionDeposit.

Security Deposit. Concurrently with Tenant’s delivery Upon execution of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to Security Deposit. The Security Deposit shall be held by Landlord as security for the full and faithful performance of all the terms of Tenant’s obligations under this Lease (the “to be observed and performed by Tenant. The Security Deposit”). Landlord Deposit shall not be required to keep this Security Deposit separate from its general fundsmortgaged, assigned, transferred or encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord binding upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which . Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of shall cause the Security Deposit to pay be maintained throughout the term in the amount set forth in Section 1.1. If the Annual Fixed Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any sum which payment on behalf of the Tenant, or Tenant is obligated shall fail to pay under perform any of the terms of this Lease, sums that then Landlord may, at its option and without notice or prejudice to any other remedy which Landlord may expend have on account thereof, appropriate and apply the entire Security Deposit or so much thereof as may be required necessary to expend by reason compensate Landlord toward the payment of the Event of Default by Tenant Annual Fixed Rent, Additional Rent or any other sums or loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred sustained by Landlord in connection with the repair or restoration of the Premises pursuant due to Section 15.3 of this Lease such breach by Tenant; and Tenant shall forthwith upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply demand restore the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that amount stated in Section 1.1. Notwithstanding the foregoing, upon the application by Landlord is holding the Security Deposit. If of all or any portion of the Security Deposit is applied (with or without notice thereof to Tenant) to compensate Landlord for a failure by Landlord as permitted by this SectionTenant to pay any Annual Fixed Rent or Additional Rent when due or to perform any other obligation hereunder, and until Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore have restored the Security Deposit to its original amountthe amount required by Section 1.1, Tenant shall be deemed to be in default in the payment of Additional Rent for purposes of Section 8.1(i) hereof. If So long as Tenant fully performs shall not be in default 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, 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 any part thereof not previously applied, shall be turned over by Landlord to Landlord’s grantee, and Tenant shall look solely to such grantee for proper application of the Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with the terms of this Lease have been determined Section 4.7 and paid the return thereof in full and accordance herewith. The holder of a mortgage on the Property shall not be responsible to Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such the return or application of the Security Deposit Deposit, whether or not it succeeds to the extent provided in this Sectionposition of Landlord hereunder, unless such holder actually receives the Security Deposit.

Security Deposit. Concurrently with Tenant’s delivery A Security Deposit of $11,186.66 will be paid by the Tenant upon the Commencement Date and held by the Landlord at all times while this LeaseLease is in effect. The parties acknowledge that this amount is already in the possession of Landlord, Tenant being the Security Deposit amount from the previous lease term. The Security Deposit shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord without liability for interest and as security for the full and faithful timely performance of all by Tenant of Tenant’s covenants and obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general fundsLease, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, it being expressly understood that the Security Deposit shall not be understood and agreed to be the property considered an advance payment of Landlord upon rental or a measure or limitation of Landlord’s receipt thereof, and may be utilized damages in case of default by Landlord in its sole and absolute discretion towards the payment of all expenses Tenant. Unless otherwise provided by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1)mandatory non-waivable law or regulation, Landlord may, in its sole and absolute discretion, retain, use or may co-mingle the Security Deposit with Landlord’s other funds. If the Landlord must apply the whole or any part of the Security Deposit to cure any default of Tenant hereunder, but the Lease remains in effect, the Tenant shall promptly pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding upon demand such amount as will restore the Security Deposit. If any portion full balance of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original $11,186.66 amount. If the leased premises are in substantially as good a condition, reasonable and normal wear and tear excepted, as exists upon the commencement of this tenancy, and Tenant fully performs its obligations is not in default under any other provisions of this Lease and is current in all payments owed to Landlord, the entire Security Deposit, or balance thereof after any such application to cure any default, shall be returned without interest to Tenant within a reasonable time after the expiration or termination of this Lease. Landlord may, however, retain an amount from the Security Deposit shall be returned as is reasonably estimated to Tenant (or, at Landlord’s option, to the last assignee of cover any projected shortfall in Tenant’s interest in Triple Net payments as have not been reconciled at the time of the termination of this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery Landlord hereby acknowledges receipt from tenant the sum of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance by the Tenant of all the covenants, conditions, rules and regulations contained herein. The security deposit shall be placed by the Landlord in an interest-bearing account with High Country Bank of Xxxxx, Xxxxx Xxxxxxxx 00000, and any interest thereon shall be the property of the Landlord. The Security Deposit, or any portion thereof, may be withheld for unpaid rent, cleaning charges, damages due to breach of this Lease or for damage by Tenant or the Tenant’s obligations under this Lease (agents, employees, guests or invitees in excess of ordinary wear and tear to the “Premises, common areas and major appliances owned by the Landlord. It is understood and agreed, however, that irrespective of said Security Deposit”), rent shall be paid when due, in accordance with the terms hereof. The Tenant shall have the right to be present when the Landlord, or the Landlord’s agent, inspects the Premises in order to determine if any damage was done to the Premises. In the event of sale or transfer of the Premises by Landlord, the Landlord shall not be required have the right to keep this Security Deposit separate from its general fundstransfer, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Sectionin accordance with applicable law, the Security Deposit to the vendee, or other transferee, and Landlord shall be understood released by Tenant from all liability for the return of such Security Deposit and agreed Tenant shall look to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards transferee for the payment return of all expenses by Landlord for which Tenant would be required said Security Deposit. It is agreed that this shall apply to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use every transfer or apply the whole or any part assignment made of the Security Deposit to pay any sum which Tenant is obligated to pay under this Leasesuch transferee. The Security Deposit shall not be mortgaged, sums that Landlord may expend assigned or be required to expend by reason of the Event of Default encumbered by Tenant or without the prior written consent of Landlord and any loss or damage attempt to do so shall be void. Tenant fully understands that Landlord may suffer by should he/she for any reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration decide not to take possession of the Premises pursuant to Section 15.3 of and/or break this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Leaselease, the Security Deposit remains the property of the Landlord and is not refundable. The tenant shall be returned have the right to Tenant (orreceive, at Landlord’s optionby first class mail, delivered to the last assignee known address of the Tenant’s interest in this Lease) , a written list of the charges against the Security Deposit claimed by the Landlord, within thirty (30) days after the expiration termination of the Term, provided that Tenant agrees that tenancy and delivery of possession by Tenant. The Landlord may retain shall be further obligated to return any unused portion of the Security Deposit Deposit, by first class mail, addressed to the extent and until such time as all amounts due from Tenant in accordance Tenant’s last known address with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to thirty (30) days after the extent provided in this Sectiontermination of the tenancy.

Security Deposit. Concurrently Tenant, contemporaneously with Tenant’s delivery the execution of this Lease, Tenant shall deposit has deposited with Landlord the sumsum specified in Section 1.10 hereof, the receipt of which is hereby acknowledged by Landlord, said deposit being given to secure the faithful performance by the Tenant of all terms, covenants, and conditions of this Lease by the Tenant to be kept and performed during the term hereof. Tenant agrees that if anythe Tenant shall fail to pay the rent herein reserved or any other sum required hereby promptly when due, stated in Item 9 said deposit may, at the option of the Basic Lease Provisions, Landlord be applied to be held by Landlord as security for any rent or other sum due and unpaid (provided that the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord shall not be required to keep this Security Deposit separate from its general fundsdo so), and if the Tenant shall not violates any of the other terms, covenants, and conditions of this Lease, said deposit may, at Landlord's option, be entitled applied to interest on the Security Deposit. Subject any damages suffered by Landlord as a result of Tenant's default to the last sentence extent of the amount of the damages suffered. Nothing contained in this SectionSection 33.26, shall in any way diminish or be construed as waiving any of the Security Deposit shall be understood and agreed to be Landlord's other remedies as provided in Section 23 hereof, or by law or in equity. Should the property of Landlord upon Landlord’s receipt entire security deposit, or any portion thereof, be appropriated and may be utilized applied by Landlord in its sole and absolute discretion towards for the payment of all expenses by overdue rent or other sums due and payable to Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined hereunder, then Tenant shall, on the written demand of Landlord, forthwith remit to Landlord a sufficient amount in Section 14.1)cash to restore said security deposit to its original amount, Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s 's failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall do so within five (5) days after written receipt of such demand shall constitute a breach of this Lease. Should Tenant comply with all of the terms, covenants, and conditions of this Lease and promptly pay all of the rental herein provided for as it falls due, and all other sums payable by Tenant to Landlord hereunder, said security deposit cash with Landlord shall be returned in an amount sufficient full to restore Tenant at the Security Deposit to its original amount. If Tenant fully performs its obligations under end of the term of this Lease, or upon the Security Deposit earlier termination of this Lease pursuant to the provisions of Section 21 hereof, except in the event the Demised Premises are sold as a result of the exercise of any power of sale under any mortgage or deed of trust, in which event, this Lease shall be returned automatically amended to delete any reference to this Section 33.26, and Tenant shall be entitled to immediate reimbursement of its security deposit from the party then holding said deposit. Within five (or, at Landlord’s option, 5) days following the increase of the GMMR pursuant to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration of the Termterms contained herein, provided that Tenant agrees that shall deliver to Landlord may retain the Security Deposit an amount equal to the extent and until such time as all amounts due from Tenant percentage increase in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against GMMR times the amount of security deposit Landlord for Landlord’s retaining such Security Deposit is then entitled to the extent provided in this Sectionhold hereunder.

Security Deposit. Concurrently with Tenant’s 's delivery of this Lease, Tenant shall deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s 's obligations under this Lease (the “"Security Deposit”"). Landlord shall not be required to keep this Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s 's receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend by reason of the Event of Default by Tenant or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s 's rights and remedies resulting from an Event of Default, including without limitation, Tenant’s 's failure to pay Basic Rent, Tenant’s 's Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Deposit. If any portion of the Security Deposit is applied by Landlord as permitted by this Section, Tenant shall within five (5) days after written demand by Landlord deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant fully performs its obligations under this Lease, the Security Deposit shall be returned to Tenant (or, at Landlord’s 's option, to the last assignee of Tenant’s 's interest in this Lease) within thirty (30) days after the expiration of the Term, provided that Tenant agrees that Landlord may retain the Security Deposit to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s 's retaining such Security Deposit to the extent provided in this Section.

Security Deposit. Concurrently with Tenant’s delivery Tenant shall deposit upon the execution of this LeaseLease as a security deposit the Deposit specified in Section 1.11, provided, however, the obligation of Tenant to pay the Deposit to Landlord shall be deferred until such time under this Lease (if at all) that Tenant fails to pay Rent when due or otherwise is in default under this Lease (each without regard to any applicable cure periods). After the occurrence of such default by Tenant and without regard to whether such default was cured, Tenant shall deposit with Landlord pay the sum, if any, stated in Item 9 Deposit within five (5) days written notice of the Basic Lease Provisions, to Landlord’s demand. The Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant’s obligations under the provisions of this Lease (the “Security Deposit”)to be performed or observed by Tenant. Landlord shall not be required If Tenant fails to keep this Security Deposit separate from its general fundspay Rent or other charges due hereunder, and Tenant shall not be entitled or otherwise defaults with respect to interest on the Security Deposit. Subject to the last sentence any provision of this SectionLease, Landlord may use, apply or retain all or any portion of the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards for the payment of all expenses by Landlord any Rent or other charge incurred as a result of such an event of default, or for the payment of any other sum to which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay any sum which Tenant is obligated to pay under this Lease, sums that Landlord may expend or be required to expend become obligated by reason of the Event of Default by Tenant Tenant’s default, or to compensate Landlord for any loss or damage that which Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositthereby. If Landlord so uses or applies all or any portion of the Security Deposit is applied by Deposit, Landlord as permitted by this Sectionshall notify Tenant of such use or application, and Tenant shall shall, within five ten (510) days after written demand by Landlord Landlord’s demand, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the full amount thereof and Tenant’s failure to do so shall be a material breach of this Lease. Landlord shall not be required to keep the Deposit separate from its original amountgeneral accounts. If Tenant fully performs its all of Tenant’s obligations under this Leasehereunder, the Security Deposit Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned returned, without payment of interest or other increment for its use, to Tenant (or, at Landlord’s option, to the last assignee assignee, if any, of Tenant’s interest in this Leasehereunder) within thirty (30) days after at the expiration or earlier termination of the Term, provided that and after Tenant agrees that has vacated the Premises. No trust relationship is created herein between Landlord may retain the Security Deposit and Tenant with respect to the extent and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant shall have no claim against Landlord for Landlord’s retaining such Security Deposit to the extent provided in this SectionDeposit.

Security Deposit. Concurrently Lessee has deposited with Tenant’s delivery of this Lease, Tenant shall Lessor the sum set forth in Article 1i. as the security deposit with Landlord the sum, if any, stated in Item 9 of the Basic Lease Provisions, to be held by Landlord as security for the full and faithful performance of all of Tenant’s obligations under this Lease (the “Security Deposit”). Landlord The Security Deposit shall be held by Lessor as security for the faithful performance by Lessee of all the terms, covenants and conditions of this Lease to be kept and performed by Lessee during the Term. If Lessee defaults with respect to any provision of this Lease, including, but not limited to the provisions relating to the payment of Rentals or the condition of the Premises at Lease Termination, Lessor may (but shall not be required to keep this Security Deposit separate from its general fundsto) use, and Tenant shall not be entitled to interest on the Security Deposit. Subject to the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of apply or retain all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event of Default by Tenant (as defined in Section 14.1), Landlord may, in its sole and absolute discretion, retain, use or apply the whole or any part of the Security Deposit to pay for the payment of any Rentals or any other sum in default, or for the payment of any amount which Tenant is Lessor may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the Event of Default by Tenant Lessee’s default, or to compensate Lessor for any other loss or damage that Landlord which Lessor may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and LandlordLessee’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositdefault. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant Lessee shall within five (5) business days after written demand by Landlord therefore, deposit cash with Landlord Lessor in an amount sufficient to restore the Security Deposit to its original amountamount and Lessee’s failure to do so shall be a material breach of this Lease. If Tenant fully performs Lessor shall not be required to keep the Security Deposit separate from its general funds, and Lessee shall not be entitled to interest on the Security Deposit. Lessor is not a trustee of the Security Deposit and may use it in ordinary business, transfer it or assign it, or use it in any combination of such ways, subject to the provisions of this Lease governing the disposition of the Security Deposit. Provided there is no continuing default by Lessee of any of its obligations under this Lease, (i) then the monthly Base Rent for the months of July, August and September of 2012, and, if this Lease is not effectively terminated by Lessee pursuant to Article 3a., an amount equal to $22,192.00 against the monthly Base Rent for October of 2013, shall be paid to Lessor from the Security Deposit in lieu of Lessee’s monthly Base Rent payments for the months of July, August and September of 2012 and such portion of the monthly Base Rent payment for the month of October of 2013, and (ii) the remainder of the Security Deposit, less any portion of the Security Deposit that has or is to be used or retained by Lessor pursuant to any provision of this Lease, shall be returned to Tenant Lessee (or, at LandlordLessor’s option, to the last assignee of TenantLessee’s interest in this Leaseinterests hereunder) within no later than thirty (30) days after the expiration date Lessor receives possession of the TermPremises, provided together with a written statement that Tenant agrees that Landlord details such use or retention by Lessor. Lessee shall not transfer or encumber the Security Deposit nor shall Lessor be bound by Lessee’s attempt to do so. If Lessor’s interest in this Lease is transferred, Lessor may retain transfer the Security Deposit to Lessor’s successor in interest, and upon such transfer Lessor shall be released from any liability to Lessee with respect to the extent Security Deposit and until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full and Tenant agrees that Tenant Lessee shall have no claim against Landlord look only to the transferee for Landlord’s retaining such any return of the Security Deposit to which Lessee may be entitled. Lessee hereby waives all rights Lessee may have under Section 1950.7 of the extent provided in this SectionCalifornia Civil Code or under any other statute or common law principle of similar effect.

Security Deposit. Concurrently with Tenant’s delivery 's execution of this Lease, Tenant shall deposit has deposited with Landlord the sum, if any, stated in Item 9 sum of the Basic Lease Provisions, to be held by Landlord as security for the full Two Hundred Forty Three Thousand Five Hundred and faithful performance of all of Tenant’s obligations under this Lease No/100 Dollars (the “$243,500.00) ("Security "Deposit”"). Landlord shall not be deemed a trustee of the Security Deposit, may use the Security Deposit in business, and shall not be required to keep this Security Deposit separate segregate it from its general funds, and accounts. Tenant shall not be entitled to interest on the Security Deposit. Subject If Tenant defaults with respect to any provisions of the last sentence of this Section, the Security Deposit shall be understood and agreed to be the property of Landlord upon Landlord’s receipt thereof, and may be utilized by Landlord in its sole and absolute discretion towards the payment of all expenses by Landlord for which Tenant would be required to reimburse Landlord under this Lease, including without limitation brokerage commissions and Tenant Improvement costs. Upon any Event but not limited to the provisions relating to payment of Default by Tenant (as defined in Section 14.1)Base Monthly Rent or other charges, Landlord may, in its sole and absolute discretion, retainto the extent reasonably necessary to remedy Tenant's default, use any or apply the whole or any part all of the Security Deposit to pay towards payment of the following: (i) Base Monthly Rent or other charges in default; (ii) any sum other amount which Tenant is Landlord may spend or become obligated to pay under this Lease, sums that Landlord may expend or be required to expend spend by reason of the Event of Default by Tenant Tenant's default including, but not limited to Tenant's failure to restore or any loss or damage that Landlord may suffer by reason of the Event of Default or costs incurred by Landlord in connection with the repair or restoration of clean the Premises pursuant to Section 15.3 of this Lease upon expiration or earlier termination of this Lease. In no event shall Landlord be obligated to apply the Security Deposit upon an Event of Default and Landlord’s rights and remedies resulting from an Event of Default, including without limitation, Tenant’s failure to pay Basic Rent, Tenant’s Share of Operating Expenses or any other amount due to Landlord pursuant to this Lease, shall not be diminished or altered in any respect due to the fact that Landlord is holding the Security Depositfollowing vacation thereof. If any portion of the Security Deposit is applied by Landlord as permitted by this Sectionso used or applied, Tenant shall shall, within five ten (510) days after written demand by Landlord from Landlord, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its full original amount, and shall pay to Landlord such other sums as necessary to reimburse Landlord for any sums paid by Landlord. If Tenant fully performs its obligations under this Leaseshall be in either monetary default or material non-monetary default more than four (4) times in any twelve (12) month period, then the Security Deposit shall, within ten (10) days after demand by Landlord, be increased by Tenant to an amount equal to three (3) times the Base Monthly Rent. Tenant may not assign or encumber the Security Deposit without the consent of Landlord. Any attempt to do so shall be void and shall not be binding on Landlord. The Security Deposit shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest in this Lease) within thirty (30) days after the expiration Expiration Date and surrender of the TermPremises to Landlord, provided that Tenant agrees that less any amount deducted in accordance with this Section, together with Landlord's written notice itemizing the amounts and purposes for such deduction. In the event of termination of Landlord's interest in this Lease, Landlord may retain deliver or credit the Security Deposit to Landlord's successor in interest in the extent Premises and until such thereupon be relieved of further responsibility with respect to the Security Deposit. Landlord agrees that in lieu of a cash Security Deposit, Tenant may deposit a letter of credit ("Letter of Credit") substantially in the form attached hereto as Exhibit "B". Landlord shall be entitled to draw against the Letter of Credit ----------- at any time provided only that Landlord certifies to the issuer of the Letter of Credit that Tenant is in default under the Lease. Tenant shall keep the letter of credit in effect during the entire Lease Term, as all amounts due from Tenant in accordance with the same may be extended, plus a period of four (4) weeks after expiration of the Lease Term. At least thirty (30) days prior to expiration of any Letter of Credit, the term thereof shall be renewed or extended for a period of at least one (1) year. Tenant's failure to so renew or extend the Letter of Credit shall be a material default of this Lease have been determined and paid in full and Tenant agrees that by Tenant. In the event Landlord draws against the Letter of Credit, Tenant shall have no claim against replenish the existing Letter of Credit or cause a new Letter of Credit to be issued such that the aggregate amount of letters of credit available to Landlord for Landlord’s retaining such at all times during the Lease Term is the amount of the Security Deposit to the extent provided in this Sectionoriginally required.