Common use of Security Deposit Clause in Contracts

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security Landlord currently holds a Ninety Thousand and 00/100 Dollars ($90,000) letter of credit as the Security Deposit under the Lease (the “Existing Letter of Credit”) and Tenant shall be required to provide such Security Deposit to Landlord for the performance and observance duration of the Term of the Lease, as extended by this Amendment pursuant to the terms of the Lease. In addition the following provision is hereby added to the Lease with respect to the Security Deposit: “If at any time during the Term of this Lease (as the same may be extended) Landlord determines that the financial condition of the issuer of the then current letter of credit deposited by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord as the sum specified in Paragraph 1.01ESecurity Deposit (the “Letter of Credit”), which sum shall be held by Landlord as a security deposit during is such that Landlord’s ability to draw upon the Term. If Tenant performs and observes all Letter of it obligations under this Lease, Landlord shall return the security depositCredit is, or balance thereof in the future may be, impaired, restricted, refused or otherwise adversely affected, then held by LandlordTenant shall, without interest, to Tenant within thirty (30) days after of Landlord’s written request to Tenant, obtain a replacement Letter of Credit in substitution for the Expiration Date or after Tenant surrenders possession then current Letter of Credit in the form and amount required herein from an issuer chosen by Tenant, but reasonably acceptable to Landlord. Upon Tenant’s delivery of the Premises, whichever is later. In the event replacement letter of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or credit to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have then simultaneously release the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return prior letter of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be credit being held by Landlord as to Tenant.” Also, any option in the Lease for Tenant to choose to provide the Security Deposit in the form of cash versus a deposit made by letter of credit are hereby deleted, with the assignee, and Landlord Tenant agreeing that that the Security Deposit shall have no further responsibility be required to be in the form of such deposit to the assignora letter of credit.

Security Deposit. 4.01 As Landlord acknowledges receipt of the sum of Thirty Thousand and 00/100THS U.S. Dollars ($30,000.00) paid by Tenant upon the execution hereof. In addition, the Tenant shall pay to Landlord on December 1, 1997 the sum of Twelve Thousand Five Hundred and 00/100ths U.S. Dollars ($12,500.00) for a total security deposit of Forty-two Thousand Five Hundred and 00/100THS U.S. Dollars ($42,500.00), to be retained by Landlord as security for the performance and observance by Tenant of all of its obligations the terms and conditions of this lease Agreement to be performed by Tenant, including payment of all rental due under this Leasethe terms hereof. Landlord shall not owe Tenant any interest on the deposit. At Landlord's election, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall deductions may be held made by Landlord as a security deposit during from the Term. If amount so retained for the reasonable cost of repairs to the premises which should have been performed by Tenant, for any rental payment or other sum delinquent under the terms hereof, and for any sum used by Landlord in any manner to cure any default in the performance of Tenant performs and observes all under the terms of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is laterlease. In the event of a default deductions are so made during the rental term, upon notice by Landlord, Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of shall redeposit such amounts so expended so as to maintain the security deposit in payment the amount as herein provided for, within 10 days after receipt of such rent written demand from Landlord. Nothing herein contained shall limit the liability of Tenant as to any repairs or to cure any other such defaultmaintenance of the premises; and if nothing herein shall limit the obligation of Tenant promptly to pay all sums otherwise due under this lease and to comply with all the terms and conditions hereof. The security deposit, less any sums withheld by Landlord does sopursuant to the terms hereof, shall be repaid to Tenant shall, upon request, deposit with Landlord within sixty days after the amount so applied so that Landlord will have on hand at all times during the Term the full amount date of termination of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundslease. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is four (4) months after the then-current Term Expiration Date (or date of earlier termination), a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date (or date of earlier termination), any Rent remains uncalculated or unpaid, then (i) Landlord shall with reasonable diligence complete any necessary calculations, (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if (i) an uncured Default (as defined below) exists, (ii) as of the date forty-five (45) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after Tenant surrenders possession the then-current expiry date of the PremisesL/C Security, whichever is later(iii) the L/C Security provides for automatic renewals, Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days, (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security (and fails to permit drawing upon the L/C Security by overnight courier or facsimile). This Section does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a default by wrongful draw, the parties shall cooperate to allow Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part to post replacement L/C Security simultaneously with the return to Tenant of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenantwrongfully drawn sums, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely upon request confirm in writing to the new purchaser or issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant for shall at Tenant’s expense, within five (5) business days after receiving a request from Landlord, deliver (and, if the return of such deposit. In the event of a permitted assignment of this Lease by Tenantissuer requires, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit consent to) an amendment to the assignorL/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security Deposit changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Security Deposit. 4.01 As It is understood that upon the execution of this Lease, Tenant shall have deposited the sum of the Security Deposit as security for the faithful performance and observance by Tenant of all the terms, conditions, provisions and covenants of its obligations under this Lease, it being further understood however, that said deposit is not to be considered prepaid Rent. In the event Tenant has deposited with Landlord defaults in respect to any of the sum specified in Paragraph 1.01Eterms, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs conditions, provisions and observes all covenants of it obligations under this Lease, including, but not limited to the payment of Rent, Landlord shall return may use, apply or retain the whole or any part of the security so deposited to the extent required for the payment of any Rent or any other sum as to which Tenant is in default or for any sum which Landlord may expend or may be required to expend by reason of Tenant’s default with respect to this Lease, including but not limited to any amount for which the Tenant is liable under the Article contained herein entitled “DEFAULT” provided, however, that such Security Deposit shall in no way be construed as liquidated damages for any default or breach of any term, condition, provision and covenant of this Lease, nor shall Landlord be required, because of said deposit, to waive its right under the Article contained herein entitled “DEFAULT” to terminate this Lease in the event of default. In the event Landlord uses, applies or retains any part or all of the Security Deposit and the Lease continues or Tenant’s occupancy continues in the Premises, Tenant shall within ten (10) days after written notice from the Landlord make such further or other deposit of moneys as may be necessary to bring the balance thereof then held by Landlordof the deposit to a sum equal to the Security Deposit. In the event the Tenant shall fully and faithfully comply with all of the terms, conditions, provisions and covenants of this Lease, the Security Deposit made hereby (or what may remain thereof) shall be returned, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders termination of the Lease and upon delivery of possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or Premises to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As If a security deposit is specified in Section 1.1 hereof, Tenant agrees that the same will be paid upon execution and delivery of this Lease, and that Landlord shall hold the same throughout the Term of this Lease as security for the performance and observance by Tenant of all obligations on the part of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Termhereunder. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return have the security right from time to time, without prejudice to any other remedy Landlord may have on account thereof, to apply such deposit, or balance thereof then held by Landlord, without interestany part thereof, to Tenant within thirty (30) days after the Expiration Date Landlord’s damages arising from, or after Tenant surrenders possession to cure, any Event of the Premises, whichever is laterDefault. In the event of a default by Tenant under this Lease, whether in payment of rent If Landlord shall so apply any or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does sodeposit, Tenant shall, shall immediately upon request, demand deposit with Landlord the amount so applied to be held as security hereunder. Landlord shall return the deposit, or so that Landlord will much thereof as shall not have theretofore been applied in accordance with the terms of this Section, to Tenant on hand at all times during the expiration or earlier termination of the Term the full amount of this Lease and surrender of possession of the security Premises by Tenant to Landlord at such time, provided that there is then existing no Event of Default (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute an Event of Default). While Landlord holds such deposit. , Landlord may shall have no obligation to pay interest on the same and shall have the right to commingle the security deposit same with Landlord’s other funds. 4.02 In . If Landlord conveys Landlord’s interest under this Lease, the event of a sale deposit, or lease of the Buildingany part thereof not previously applied, may be turned over by Landlord shall have the right to transfer the security deposit to its purchaser or TenantLandlord’s grantee, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the new purchaser or deposit in accordance with the terms of this Section, and the return thereof in accordance herewith. The holder of a mortgage shall not be responsible to Tenant for the return or application of any such deposit. In , whether or not it succeeds to the event position of a permitted assignment of this Lease by TenantLandlord hereunder, the security unless such deposit shall be deemed to be held have been received in hand by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorholder.

Security Deposit. 4.01 Tenant concurrently with the execution of this Lease shall pay the sum of zero dollars. It is understood that Tenant paid a previous Landlord a security deposit of four thousand four hundred twenty-three dollars and 84 cents ($4,423.84), which was never transferred to the current Landlord because the previous Landlord went out of business. Tenant's lease signed June 28, 2001 stated that Xxxxxxx Partners Co. would assume responsibility for this security deposit of $4,423.84 provided Tenant remained in good standing through December 31, 2005, which was the case. As a courtesy for tenant goodwill, this sum shall be deemed by Landlord as security for the performance and observance payment by Tenant of the rents and all other payments herein agreed to be paid by Tenant and for the faithful performance by Tenant of its obligations under the terms, provisions, and conditions of this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interestat Landlord's option, to may at the time of any default by Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession under any of the Premisesterms, whichever is later. In provisions, covenants or conditions of this Lease apply said sum or any part thereof towards the event payment of a default the rents and all other sums payable by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that . Landlord will have on hand at all times during notify the Term the full amount of the security depositTenant in writing when this action has been taken. Tenant shall remain liable for any amounts that such sum shall be insufficient to pay and shall within three (3) days after demand by Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer restore the security deposit to its purchaser the amount originally required hereby. Landlord may exhaust any or Tenant, all rights and Landlord shall thereupon be released by remedies against Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely before resorting to the new purchaser security deposit, but nothing herein contained shall require or Tenant for the return of such depositbe deemed to require Landlord to do so. In the event of a permitted assignment of this Lease by Tenantthe deposit shall not be utilized for any such purpose, the security then such deposit shall be deemed to be held returned by Landlord as a deposit made by to Tenant after the assignee, and expiration of the term of this Lease. Landlord shall have no further responsibility of such deposit not be required to pay Tenant any interest on the assignorsecurity deposit.

Security Deposit. 4.01 As security for the performance and observance by Landlord acknowledges receipt from Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall Security Deposit to be held by Landlord or its agent, as a security deposit security, for and during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to be returned to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession expiration of the Premises, whichever is laterTerm or the termination of this lease provided there exists no breach of any undertaking of Tenant. In Upon the event occurrence of a any default by Tenant under this Leasehereunder, whether in payment of rent or otherwise, then Tenant agrees that Landlord may, at its option and without notice, may apply all or any part of the security deposit in payment Security Deposit together with accrued interest, if any, thereon to any obligation of such rent Tenant hereunder. If all or any portion of the Security Deposit is applied to cure any other such default; and if Landlord does soobligation of Tenant hereunder, Tenant shall, shall immediately upon request, deposit with request by Landlord restore the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security depositSecurity Deposit to its original amount. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord Tenant shall not have the right to transfer call upon Landlord to apply all or any part of the security deposit Security Deposit to its purchaser cure any default or fulfill any obligation of Tenant, but such use shall be solely in the discretion of Landlord. Upon any conveyance of the Premises by Landlord to Landlord’s grantee or transferee, the Security Deposit together with accrued interest, if any, thereon may be delivered by Landlord to Landlord’s grantee or transferee. Upon any such delivery, Tenant hereby releases Landlord herein named of any and Landlord shall thereupon be released by Tenant from all responsibility for liability with respect to the return of such deposit; Security Deposit, its application and return, and Tenant agrees to look solely to the new purchaser such grantee or Tenant for the return of such deposittransferee. In the event of a permitted assignment of It is further understood that this Lease by Tenant, the security deposit provision shall be deemed also apply to be held by Landlord as a deposit made by the assignee, subsequent grantees and Landlord shall have no further responsibility of such deposit to the assignortransferees.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, 12.1 Tenant has deposited with Landlord the sum specified set forth in Paragraph 1.01ESection 2.6 the (“Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Termperiod commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) business days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 12 shall survive the expiration or earlier termination of 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. 12.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the tiling of such proceedings. 12.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 12.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 12.5 [Intentionally omitted] 12.6 If the Security Deposit shall be in cash. Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 12.7 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. 12.7.1 If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. 12.7.2 If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. 12.7.3 Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default (as defined below) exists; (ii) as of the date forty-five (45) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after Tenant surrenders possession the then-current expiry date of the PremisesL/C Security; (iii) the L/C Security provides for automatic renewals, whichever is laterLandlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. 12.7.4 Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a default by wrongful draw, the parties shall cooperate to allow Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part to post replacement L/C Security simultaneously with the return to Tenant of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenantwrongfully drawn sums, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely upon request confirm in writing to the new purchaser or issuer of the L/C Security that Landlord’s draw was erroneous. 12.7.5 If Landlord transfers its interest in the Premises, then Tenant for shall at Tenant’s expense, within five (5) Business Days after receiving a request from Landlord, deliver (and, if the return of such depositissuer requires. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit consent to) an amendment to the assignorL/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then reliant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAlVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by after any application as permitted in this Lease, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. [Intentionally omitted] 11.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is three (3) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations, (ii) Tenant from all responsibility for shall extend the return expiry date of such deposit; L/C Security from time to time as Landlord reasonably requires and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for the performance and observance by 10.1 Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord within five (5) days of the sum specified Execution Date a security deposit in Paragraph 1.01Ethe amount set forth in Section 2.8 (the “Security Deposit”), which sum Security Deposit shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Termperiod commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, increase the amount of the L/C Security or deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its required amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 10 shall survive the expiration or earlier termination of this Lease. 10.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; and (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires (not to exceed 30 days). Tenant shall reimburse Landlord’s reasonable legal costs (as reasonably estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord requests that the issuer confirm the current L/C Security expiry date (with a copy of such request to Tenant), and the issuer fails to do so within fifteen (15) business days after Tenant surrenders possession and the issuer each receives such request; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the PremisesL/C Security; or (v) the issuer of the L/C Security ceases, whichever or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. If Landlord draws on the Security L/C, any amount that is laternot applied in accordance with Section 10.1 hereof shall be held as a cash Security Deposit. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a default by wrongful draw, the parties shall cooperate to allow Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part to post replacement L/C Security simultaneously with the return to Tenant of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenantwrongfully drawn sums, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely upon request confirm in writing to the new purchaser or issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant for shall at Tenant’s expense, within fifteen (15) business days after receiving a request from Landlord, deliver (and, if the return of such deposit. In the event of a permitted assignment of this Lease by Tenantissuer requires, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit consent to) an amendment to the assignorL/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and observes Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of it such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and (provided such purchaser assumes Landlord’s obligations under this Lease, ) thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. [Intentionally omitted] 11.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations; (ii) Tenant from all responsibility for shall extend the return expiry date of such depositL/C Security from time to time as Landlord reasonably requires; and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s reasonable and actual legal costs incurred in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As (a) Concurrently with the execution and delivery of this Lease by Xxxxxx, Tenant shall deposit with Landlord a sum equal to three (3) month’s rent ($42,204.51) as a security deposit (together with any additional security deposit as described below, the “Security Deposit”). Notwithstanding the foregoing, if, as of July 1, 2024, there has not occurred a monetary or material non-monetary event of default beyond the period given to cure such default as set forth in paragraph 19(a) hereof provided, Landlord shall return to Tenant $ 14,068 of the Security Deposit within five (5) business days after such date. The Security Deposit shall be held as security for the performance and observance by Tenant of all of its obligations under the terms, conditions and covenants of this Lease throughout the Term of this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant Xxxxxx performs and observes all of it obligations under the terms, conditions and covenants of this LeaseLease which are required to be performed and observed by it, Landlord shall return the security depositSecurity Deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant Xxxxxx surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in the payment of rent or otherwisethe performance or observance of any of the other terms, conditions or covenants of this Lease beyond the period given to cure such default as set forth in paragraph 19(a) hereof, then Landlord may, at its option and without notice, apply all or any part of the security deposit Security Deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during throughout the Term of this Lease the full amount of the security depositSecurity Deposit. Landlord shall not be required to hold the Security Deposit as a separate account, but may commingle the security deposit it with LandlordXxxxxxxx’s other funds. The use, application or retention of the Security Deposit or any portion thereof by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law (it being intended that Landlord shall not first be required to proceed against the Security Deposit) and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. 4.02 (b) In the event of a sale or lease any other transfer of the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant Xxxxxx agrees to look solely to the new such purchaser or Tenant for the return of such deposit. In the event of a permitted an assignment of this Lease by TenantLease, the security deposit Security Deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility for the return of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit in cash with Landlord the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. The Security Deposit shall be deposited by Tenant as follows: (a) a portion of the Security Deposit equal to two (2) months’ Base Rent shall be deposited with Landlord by the Execution Date, (b) a portion of the Security Deposit equal to four (4) months’ Base Rent shall be deposited with Landlord no later than August 1, 2014 (such that the Security Deposit shall equal six (6) months’ Base Rent as of August 1, 2014), and (c) the balance of the Security Deposit shall be deposited with Landlord by the Term Commencement Date. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) business days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease for a period of one hundred twenty (120) days. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after earlier termination of this Lease. 11.5. Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant surrenders possession with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. Provided that (i) no Default, or event which, with the giving of notice or the Premisespassage of time, whichever is later. In the event of or both, could become a default by Tenant Default, exists under this Lease, whether in payment at the time of rent or otherwisesuch request, and (ii) the Financial Condition (defined below) has been satisfied, as evidenced by delivery to Landlord of (x) a certificate executed by an officer of Tenant certifying that the Financial Condition has been satisfied, and (y) reasonable supporting documentation of satisfaction of the Financial Condition, then Landlord may, at its option and without notice, apply all or any part of commencing in the security deposit month following the month in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord which the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by TenantFinancial Condition was satisfied, the security deposit Security Deposit may be reduced to an amount equal to six (6) months’ of Base Rent. “Financial Condition” shall be deemed mean that Tenant has at least an additional (i) $40,000,000 in cash received from an executed partnership, collaboration or licensing agreement, or (ii) $40,000,000 in Equity (defined below) including any non-dilutive investments that are classified as Equity on Tenant’s balance sheet under GAAP (or a combination (i) and (ii) resulting in an additional $40,000,000) as compared to be held by Landlord Tenant’s Equity as a deposit made by of December 31, 2013. As used herein, “Equity” shall mean financial instruments that are classified as equity on Tenant’s balance sheet in accordance with GAAP, including the assignee, Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No. 150 -Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Landlord shall have no further responsibility of such deposit to the assignorEquity.

Security Deposit. 4.01 As security for On or before the performance and observance by Tenant date of all execution of its obligations under this Leasethe lease, Tenant has deposited will deposit with Landlord the total sum specified in Paragraph 1.01Eof Five thousand Dollars ($5000.00) (hereinafter referred to as "Security Deposit"). For the first three months the base rent will be free. The base rent, which sum plus property taxes, fire insurance, and sales tax for the fourth month will be $5,846.62 due on the first day of the second month. Security Deposit shall be held by Landlord as a security deposit for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Termterm hereof. If Tenant performs defaults with respect to any provision 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 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 said deposit is so used or applied Tenant shall, within five (5) days after written demand therefore deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and observes all Tenant's failure to do so shall be a default under 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 such deposit. If Tenant shall fully and faithfully perform every provision of it obligations under this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within TEN (10) days following expiration of the Lease Term. In the event of termination of Landlord's interest in this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security said deposit to its purchaser or Tenant, Landlord's successor in interest and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorobligation with respect thereto.

Security Deposit. 4.01 As security Concurrently with Subtenant’s execution of this Sublease, Subtenant shall provide to Sublandlord a cash Security Deposit (“Security Deposit”) in the amount of Fifty Two Thousand Five Hundred Forty and 4/100 U.S. Dollars ($52,540.04), but in no event shall Subtenant enter the Subleased Premises until the Security Deposit has been delivered. If Subtenant fails to pay Rent or any other sums as and when due hereunder, or otherwise defaults with respect to any provision of this Sublease, in each case beyond the applicable notice and cure period, Sublandlord may (but shall not be obligated to) use, apply or retain all or any portion of the Security Deposit for payment of any sum for which Subtenant is obligated or which will compensate Sublandlord for any costs, loss or damage which Sublandlord may suffer thereby. Any draw or partial draw of the performance and observance Security Deposit shall not constitute a waiver by Tenant of all Sublandlord of its obligations under this Leaseright to enforce its other remedies hereunder, Tenant has deposited at law or in equity. If any portion of the Security Deposit is so used or applied, Subtenant shall, within five (5) business days after written demand therefor, deposit cash with Landlord Sublandlord in an amount sufficient to restore the sum specified in Paragraph 1.01E, which sum Security Deposit to its original amount. Subtenant’s failure to do so shall be held by Landlord as a security deposit during default of this Sublease. Sublandlord shall not be required to keep the TermSecurity Deposit separate from its general funds, and Subtenant shall not be entitled to interest thereon. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, The Security Deposit or any remaining balance thereof then held by Landlordshall be returned to Subtenant, without interestor, to Tenant at Sublandlord’s discretion, Subtenant’s last assignee, if applicable, within thirty forty-five (3045) days after the Expiration Date or after Tenant surrenders possession expiration of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option Sublease Term and without notice, apply all or any part Subtenant’s vacation and surrender of the security deposit Subleased Premises in payment the condition required by the terms of such rent or to cure any this Sublease. Subtenant hereby waives the provisions of California Civil Code Section 1950.7, other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenantthan Paragraph 1950.7(b), and Landlord 1951.7 and agrees that the Security Deposit shall thereupon be released governed by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment provisions of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorSublease.

Security Deposit. 4.01 As security for (a) Prior to the performance and observance by Tenant of all of its obligations under this LeaseCommencement Date, Tenant has deposited Sublessee shall deposit with Landlord Sublessor the sum specified in Paragraph 1.01E, of $53,390 (the “Security Deposit”) which sum shall be held by Landlord Sublessor as a security deposit for the faithful performance by Sublessee of all of the terms, covenants and conditions of this Sublease to be performed by Sublessee during the Term. If Tenant performs period commencing on the Commencement Date and observes all ending upon the expiration or termination of it Sublessee’s obligations under this LeaseSublease. If Sublessee is in monetary default or otherwise defaults with respect to any provision of this Sublease, Landlord including any provision relating to the payment of Rent, in any case beyond applicable notice and cure periods, then Sublessor may (but shall return not be required to) use, apply or retain all or any part of the security depositSecurity Deposit for the payment of any Rent or any other sum in default, or to compensate Sublessor for any other loss or damage that Sublessor may suffer by reason of Sublessee’s default. If any portion of the Security Deposit is so used or applied, then Sublessee shall, within ten (10) days following demand therefor, deposit cash with Sublessor in an amount sufficient to restore the Security Deposit to its original amount, and Sublessee’s failure to do so shall be a material breach of this Sublease. The provisions of this Section 14 shall survive the expiration or earlier termination of this Sublease. (b) In the event of bankruptcy or other debtor-creditor proceedings against Sublessee, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Sublessor for all periods prior to the filing of such proceedings. (c) Sublessor may deliver to any purchaser of Sublessor’s interest in the Subleased Premises the funds deposited hereunder by Sublessee, and thereupon Sublessor shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. (d) If Sublessee shall fully and faithfully perform every provision of this Sublease to be performed by it, then the Security Deposit, or any balance thereof then held by Landlordthereof, without interestshall be returned to Sublessee (or, at Sublessor’s option, to Tenant the last assignee of Sublessee’s interest hereunder) within thirty (30) days after the Expiration Date expiration or earlier termination of this Sublease. (e) If the Security Deposit shall be in cash, Sublessor shall hold the Security Deposit in an account at a banking organization selected by Sublessor; provided, however, that Sublessor shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Sublessor. Sublessor shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Sublessor shall not be required to credit Sublessee with any interest for any period during which Sublessor does not receive interest on the Security Deposit. (f) The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Sublessor in its sole discretion. Sublessee may at any time, except when Sublessee is in default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (i) If Sublessee elects to deliver L/C Security, then Sublessee shall provide Sublessor, and maintain in full force and effect throughout the Term and until the date that is thirty (30) days after Tenant surrenders possession the expiration or termination of the PremisesTerm, whichever is later. In a letter of credit in the event of a default form reasonable acceptable to Sublessor issued by Tenant under this Leasean issuer reasonably satisfactory to Sublessor, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part the amount of the security deposit in payment Security Deposit, with an initial term of such rent or at least one year. Sublessor may require the L/C Security to cure be re-issued by a different issuer at any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Sublessor reasonably believes that the full issuing bank of the L/C Security is or may soon become insolvent; provided, however, Sublessor shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Sublessee shall immediately deliver to Sublessor (without the requirement of notice from Sublessor) either cash in the amount of the security deposit. Landlord may commingle Security Deposit or substitute L/C Security issued by an issuer reasonably satisfactory to Sublessor, and otherwise conforming to the security deposit with Landlord’s other funds. 4.02 In requirements set forth in this Section 5, and Sublessor shall return the event of a sale or lease existing L/C Security to the existing issuer immediately upon receipt of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely substitute L/C Security. As used herein with respect to the new purchaser or Tenant for issuer of the return L/C Security, “insolvent” shall mean the determination of insolvency as made by such deposit. In the event of a permitted assignment of this Lease by Tenantissuer’s primary bank regulator (i.e., the security deposit shall be deemed to be held by Landlord as a deposit made by state bank supervisor for state chartered banks; the assigneeOCC or OTS, and Landlord shall have no further responsibility of such deposit respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). Except with respect to the assignorinitial letter of credit delivered prior to the Commencement Date, Sublessee shall reimburse Sublessor’s legal costs (as estimated by Sublessor’s counsel) in handling Sublessor’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for the performance and observance by 11.1 Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during period commencing on the Execution Date and ending upon the expiration or termination of the Term. If Tenant performs and observes all Defaults (as defined below) with respect to any provision of it obligations under this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5 If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument proposed by Tenant that is acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is four (4) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations, (ii) Tenant from all responsibility for shall extend the return expiry date of such deposit; L/C Security from time to time as Landlord reasonably requires and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit the L/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension, not to the assignorexceed Five Thousand Dollars ($5,000) in any one instance.

Security Deposit. 4.01 As security for On or before the performance and observance by Tenant Execution Date of all of its obligations under this Lease, Tenant has deposited with Landlord shall deposit the sum specified in Paragraph 1.01Ecash set forth in Section 2.2 (the "Security Deposit"), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Upon distribution of any portion of the Holdback Escrow Amount to any party in accordance with the terms of the Holdback Escrow Agreement, the Security Deposit shall 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 performs and observes all defaults with respect to any provision of it obligations under this Lease, then without notice to Tenant, Landlord may (but shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30not be required to) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in Security Deposit for the payment of such rent any Rent or to cure any other such sum in default; and if Landlord does so. If any portion of the Security Deposit is so used or applied, then Tenant shall, upon requestdemand therefor, deposit with Landlord restore the amount so applied so that Landlord will have on hand at all times during Security Deposit to its original amount. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Term the full amount unapplied portion of the security depositSecurity Deposit shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the Term. Landlord Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in the future may commingle have under any provision of law which (i) establishes the time frame by which a landlord must refund a security deposit with Landlord’s other funds. 4.02 In the event of under a sale lease, or lease of the Building, Landlord shall have the right to transfer the (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary to its purchaser remedy defaults in the payment of rent, to repair damage caused by a tenant, or Tenant, to clean the subject premises. Tenant acknowledges and Landlord shall thereupon be released by Tenant from all responsibility agrees that (A) any statutory time frames for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made are superseded by the assigneeexpress period identified in this Section 6.4, and (B) rather than be so limited, Landlord shall have no further responsibility of such deposit to may claim from the assignor.Security Deposit (i) any and all sums expressly identified in this Section 6.4, and (ii) any additional

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. [Intentionally omitted] 11.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations, (ii) Tenant from all responsibility for shall extend the return expiry date of such deposit; L/C Security from time to time as Landlord reasonably requires and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s actual, reasonable legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. [Intentionally omitted] 11.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations, (ii) Tenant from all responsibility for shall extend the return expiry date of such deposit; L/C Security from time to time as Landlord reasonably requires and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, 12.1. Tenant has deposited with Landlord the sum specified set forth in Paragraph 1.01ESection 2.7 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Termperiod commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant performs and observes all Defaults with respect to any provision of it obligations under this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 12 shall survive the expiration or earlier termination of this Lease. TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE WITH RESPECT TO THE USES TO WHICH SECURITY DEPOSITS MAY BE APPLIED PURSUANT TO THIS LEASE AND SUCH SECTION, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 12.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 12.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant; and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 12.4. Provided Tenant has surrendered the security depositPremises to Landlord, the Security Deposit, or any balance thereof then held by Landlord(after Landlord has made appropriate deductions, without interestif any, to restore the condition of the Premises to that required by the Lease and to cure any other defaults by Tenant under the Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 12.5. [Intentionally omitted] 12.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 12.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires, but no longer than ninety (90) days; and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension, not to exceed Five Hundred Dollars ($500) per occurrence. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. Tenant may at any time replace the L/C Security with a cash Security Deposit, at which time Landlord shall return the L/C Security to Tenant. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default (as defined below) exists; (ii) as of the date thirty (30) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after Tenant surrenders possession the then-current expiry date of the PremisesL/C Security; (iii) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (iv) provided the issuer will not accept draw requests by overnight courier, whichever is laterthe issuer of the L/C Security ceases, or announces that it will cease, to maintain an office within twenty (20) miles of the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a default by wrongful draw, the parties shall cooperate to allow Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part to post replacement L/C Security simultaneously with the return to Tenant of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenantwrongfully drawn sums, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely upon request confirm in writing to the new purchaser or issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant for shall at Tenant’s expense, within five (5) Business Days after receiving a request from Landlord, deliver (and, if the return of such deposit. In the event of a permitted assignment of this Lease by Tenantissuer requires, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit consent to) an amendment to the assignorL/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Security Deposit. 4.01 As security for On or before the performance and observance by Tenant Execution Date of all of its obligations under this Lease, Tenant has deposited with Landlord shall deposit the sum specified in Paragraph 1.01Ecash set forth in Section 2.2 (the "Security Deposit"), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. If Tenant performs defaults with respect to any provision of this Lease beyond applicable notice and observes all of it obligations under this Leasecure periods, then without notice to Tenant, Landlord may (but shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30not be required to) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in Security Deposit for the payment of such rent any Rent or to cure any other such sum in default; and if Landlord does so. If any portion of the Security Deposit is so used or applied, then Tenant shall, upon requestdemand therefor, deposit with Landlord restore the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its purchaser or Tenant, original amount. If Tenant shall fully and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment faithfully perform every provision of this Lease to be performed by it, then the unapplied portion of the Security Deposit shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby irrevocably waives and relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in the future may have under any provision of law which (i) establishes the time frame by which a landlord must refund a security deposit shall be deemed under a lease, or (ii) provides that a landlord may claim from a security deposit only those sums reasonably necessary to be held remedy defaults in the payment of rent, to repair damage caused by Landlord as a deposit made by tenant, or to clean the assignee, and Landlord shall have no further responsibility of such deposit to the assignorsubject premises.

Security Deposit. 4.01 As additional security for the full and prompt performance and observance by Tenant of all the terms and covenants of its obligations under this Lease, Tenant has deposited with Landlord a sum of Thirty Thousand Nine Hundred and Twenty Nine Dollars and seventeen cents ($28,525.00) at the sum specified in Paragraph 1.01Etime of lease execution, which sum shall not constitute rent for any month unless so applied by Landlord on account of Tenant's default. To the extent that Landlord has not applied the Security Deposit on account of a default, the Security Deposit shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, returned to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession termination of the Premises, whichever is laterthis Lease. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part fails to take possession of the security deposit in payment of such rent Demised Premises on the Lease Commencement Date or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord vacates or abandons the amount so applied so that Landlord will have on hand at all times Demised Premises during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by TenantTerm, the security deposit Security Deposit shall not be deemed to be held by Landlord as a deposit made by the assigneeliquidated damages, and such application of the Security Deposit shall not preclude Landlord from recovering from Tenant all additional damages incurred by Landlord. If Tenant fails at any time to perform its obligations, Landlord may at its option apply said deposit, or so much thereof as is required, to cure Tenant's default, but if prior to the termination of this lease Landlord depletes said deposit in whole or in part, Tenant shall immediately restore the amount so used by Landlord. Following termination of this lease and satisfaction of all Tenant obligations thereunder, Landlord shall have no further responsibility return to Tenant any unused portion of such deposit to the assignorSecurity Deposit. Upon execution of the Lease, the Tenant shall also provide its first (1st) monthly rental payment due hereunder.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01Eof Thirty Six Thousand Seven Hundred Seventy and 00/100 Dollars ($36,770.00), which represents the security deposit (“Security Deposit”). Said sum shall be held by Landlord as a security deposit during for Tenant’s faithful performance of the Termterms, covenants, and conditions of this Lease. If Tenant performs defaults with respect to any provision of this Lease, including but not limited to the payment of Rent, Landlord may (but shall not be required to) use, apply, and observes retain all or any part of it obligations the Security Deposit for the payment of any Rent or any other sum in default, for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default (including without limitation damages for rent lost after the termination of this Lease and all other amounts recoverable under California Civil Code section 1951.2), or repair damage to the Premises caused by Tenant or for which Tenant is liable under this Lease, or to clean the Premises upon the termination of this Lease. If any portion of the Security Deposit is so used or applied, Tenant shall, within five (5) days after written demand therefor, deposit with Landlord, in Immediate Funds, 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. Tenant shall not be entitled to receive interest on the Security Deposit and Landlord shall return not be required to segregate the security deposit, or Security Deposit from its general funds. Landlord shall refund the unused balance thereof then held by Landlord, without interest, to Tenant of the Security Deposit within thirty (30) days after the Expiration Date or after Tenant surrenders later of Landlord’s recovery of possession of the Premises, whichever is laterPremises or the termination of this Lease. In Upon the event termination of a default by Tenant under Landlord’s interest in this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of shall transfer the security deposit in payment of such rent or Security Deposit to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by successor in interest. Tenant from waives all responsibility for the return of such deposit; and Tenant agrees to look solely rights under California Civil Code section 1950.7 to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of extent inconsistent with this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorLease.

Security Deposit. 4.01 As security for the performance and observance by 10.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit in cash with Landlord on or before the Effective Date the sum specified set forth in Paragraph 1.01ESection 2.7 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs and observes all Defaults with respect to any provision of it obligations under this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 10.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease; provided, whether in payment of rent or otherwisehowever, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full may retain an amount of the security deposit. Security Deposit, as it shall reasonably determine, to secure the payment of any Rent, the amount of which Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right is then unable to transfer the security deposit to its purchaser or Tenant, determine finally (and Landlord shall thereupon be released by return any such retained amount to Tenant from all responsibility for promptly following the return final determination of such deposit; Rent amount and Tenant agrees the full payment to look solely to the new purchaser or Tenant for the return Landlord of such depositRent). 10.5. In the event The Security Deposit shall not be deemed an advance payment of Rent or a permitted assignment measure of Landlord’s damages for any default under this Lease by Tenant, the security deposit nor shall it be a bar or defense to any action that Landlord may at any time commence against Tenant. The Security Deposit shall be deemed to be held by the property of Landlord as a deposit made by the assignee, and Landlord may commingle the Security Deposit with other assets of Landlord or its affiliates and Tenant shall have no further responsibility of such deposit not be entitled to any interest on the assignorSecurity Deposit.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant defaults with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) after notice and the expiration of three (3) business days, use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) business days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord shall return deliver to any purchaser of Landlord’s interest in the security Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is ninety (90) days after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit D issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be reissued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if the full amount issuing bank of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the BuildingL/C Security becomes insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall within five (5) business days deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.otherwise

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit during for the Term. If faithful performance by Tenant performs and observes of all of it the terms, covenants and conditions of this Lease to be kept and performed by Tenant during period commencing on the Execution Date and ending upon the expiration or termination of Tenant’s obligations under this Lease. If Tenant defaults with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease. 11.5. If the Security Deposit shall be in cash, whether Landlord shall hold the Security Deposit in payment an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of rent Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or otherwise, then any other security instrument acceptable to Landlord in its sole discretion. Tenant may, at its option any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and without noticemaintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date, apply all or any part a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the security deposit in payment Security Deposit, with an initial term of such rent or at least one year. Landlord may require the L/C Security to cure be re-issued by a different issuer at any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations; (ii) Tenant from all responsibility for shall extend the return expiry date of such depositL/C Security from time to time as Landlord reasonably requires; and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit the L/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension, not to the assignorexceed Two Thousand Five Hundred Dollars ($2,500.00).

Security Deposit. 4.01 As Lessee has deposited with Lessor the sum set forth in Article 1i. as the security deposit (“Security Deposit”). The Security Deposit shall be held by Lessor as security for the faithful performance and observance by Tenant 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) use, apply or retain all or any part of the Security Deposit for the payment of any Rentals or any other sum in default, or for the payment of any amount which Lessor may spend or become obligated to spend by reason of Lessee’s default, or to compensate Lessor for any other loss or damage which Lessor may suffer by reason of Lessee’s default. If any portion of the Security Deposit is so used or applied, Lessee shall within five (5) business days after written demand therefore, deposit cash with Lessor in an amount sufficient to restore the Security Deposit to its original amount and Lessee’s failure to do so shall be a material breach of this Lease. 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, Tenant has deposited with Landlord (i) then the sum specified in Paragraph 1.01Emonthly Base Rent for the months of July, which sum 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 held 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 Landlord as a security deposit during the Term. If Tenant performs and observes all Lessor pursuant to any provision of it obligations under this Lease, Landlord shall return the security depositbe returned to Lessee (or, or balance thereof then held by Landlord, without interestat Lessor’s option, to Tenant within the last assignee of Lessee’s interests hereunder) no later than thirty (30) days after the Expiration Date or after Tenant surrenders date Lessor receives possession of the Premises, whichever together with a written statement that 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 later. In transferred, Lessor may transfer the event of a default by Tenant under this LeaseSecurity Deposit to Lessor’s successor in interest, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or upon such transfer Lessor shall be released from any part liability to Lessee with respect to the Security Deposit and Lessee shall look only to the transferee for any return of the security deposit in payment Security Deposit to which Lessee may be entitled. Lessee hereby waives all rights Lessee may have under Section 1950.7 of such rent the California Civil Code or to cure under any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount statute or common law principle of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundssimilar effect. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, 9.1. Tenant has deposited with Landlord the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Termperiod commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 9 shall survive the expiration or earlier termination of 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. 9.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 9.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 9.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after earlier termination of this Lease. 9.5. Provided that Tenant surrenders possession is not then in default of the Premises, whichever is later. In the event of a default by Tenant its obligations under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part upon the expiration of the security deposit in payment thirty-sixth (36th) month of such rent or the Term, the Security Deposit requirement shall be reduced to cure any other such default; $78,889.20 and if (a) Landlord does so, Tenant shall, upon requeston or before the end of the thirty-seventh (37th) month of the Term, deposit with Landlord refund to Tenant the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security depositSecurity Deposit held by Landlord in excess thereof or (b) the amount of the L/C Security (as defined below) shall be reduced accordingly, as applicable. 9.6. If the Security Deposit shall be in cash, Landlord shall deposit the Security Deposit into an interest-bearing account at a banking organization selected by Landlord. All interest and/or dividends, if any, accruing on the Security Deposit, less a one percent (1%) per annum charge on the Security Deposit for administrative expenses, shall be added to, held and included within the term Security Deposit and, provided that no Default shall have occurred and be continuing, shall accrue to the account of Tenant. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 9.7. The Security Deposit may commingle be in the form of cash, a letter of credit or any other security deposit instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord hereby approves of Silicon Valley Bank as the issuer of Tenant’s L/C Security. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s actual legal costs (as calculated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default exists; (ii) as of the date 30 (thirty) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after the then-current expiry date of the L/C Security; (iii) the L/C Security provides for automatic renewals, Landlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days; (iv) Tenant fails to pay (when and as Landlord reasonably requires, provided that Tenant shall not be required to pay any such charges earlier than twenty (20) days following Landlord’s demand therefor) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security, and Tenant fails to obtain a replacement letter of credit conforming to the requirements of this Lease at least fifteen (15) business days prior to such cessation. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s other fundsdraw under L/C Security, even if it violates this Lease. 4.02 In (e) If Landlord transfers its interest in the event of Premises, then Tenant shall at Tenant’s expense, within five Business Days after receiving a sale or lease of request from Landlord, deliver (and, if the Buildingissuer requires, Landlord shall have consent to) an amendment to the right to transfer L/C Security naming Landlord’s grantee as substitute beneficiary. If the security deposit to its purchaser or Tenantrequired Security changes while L/C Security is in force, and then Tenant shall deliver (and, if the issuer requires, Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely consent to) a corresponding amendment to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorL/C Security.

Security Deposit. 4.01 As security for the performance full and observance by Tenant faithful payment of all of its obligations sums due under this LeaseLease and the full and faithful performance of every covenant and condition of this Lease to be performed by Tenant, Tenant has deposited with agrees to pay to Landlord upon execution of this Lease the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Termdefinition of the term Security Deposit. If Tenant performs and observes all shall breach or default with respect to any payment obligation or other covenant or condition of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, may apply all or any part of the security deposit in Security Deposit to the payment of any sum in default or any damage suffered by Landlord as a result of such rent breach or to cure any other default, and in such default; and if Landlord does soevent, Tenant shall, upon requestdemand by Landlord, deposit with Landlord the amount so applied so that Landlord will shall have the full amount of the Security Deposit on hand at all times during the Term the full amount Lease Term. Landlord's use or application of all or any portion of the security depositSecurity Deposit shall not impair any other rights or remedies provided under this Lease or under applicable law and shall not be construed as a payment of liquidated damages. Landlord may commingle the security deposit If Tenant shall have fully complied with Landlord’s other funds. 4.02 In the event of a sale or lease all of the Buildingcovenants and conditions of this Lease, Landlord the Security Deposit shall have the right be repaid to transfer the security deposit to its purchaser or Tenant, without interest, within ten (10) Business Days after the expiration of this Lease. Tenant may not mortgage, assign, transfer or encumber the Security Deposit and Landlord any such act on the part of Tenant shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser without force or Tenant for the return of such depositeffect. In the event of a permitted assignment of this Lease any bankruptcy, insolvency, reorganization or other creditor-debtor proceedings shall be instituted by or against Tenant, the security deposit Security Deposit shall be deemed to be held applied first to the payment of Base Rent, Additional Rent and all other sums payable under this Lease to Landlord for all periods prior to the institution of such proceedings and the balance, if any, may be retained by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorapplied against Landlord's damages.

Security Deposit. 4.01 As security If an amount is set forth in the Basic Lease Provisions as the Security Deposit, upon execution of this Lease, Landlord acknowledges receipt of Tenant’s Security Deposit for the full and faithful performance and observance by Tenant of all of its obligations under the covenants and terms of this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum Lease required to be performed by Xxxxxx. Such Security Deposit shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, returned to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession expiration of this Lease provided Xxxxxx has fully and faithfully carried out all of Tenant’s obligations hereunder, including the payment of all amounts due to Landlord hereunder and the surrender of the PremisesPremises to Landlord in the condition required herein. However, whichever is laterLandlord, 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 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 default by Tenant under sale of the Building subject to this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its the purchaser or Tenantto be held under the terms of this Lease, and Landlord shall thereupon be released by Tenant from all responsibility liability for the return of such depositthe Security Deposit; and Tenant Xxxxxx agrees to look solely to the new purchaser or Tenant Landlord for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorSecurity Deposit.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall of Three Thousand seven hundred thirty seven dollars and fifty cents Dollars ($ 3,737.50) as security for the full and faithful performance of every provision of this Lease to be held performed by Landlord as a security deposit during the TermTenant. If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, Landlord shall return including but not limited to the security deposit, or balance thereof then held by Landlord, without interest, provisions relating to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwiseRent, then Landlord may, at its option and without noticemay use, apply or retain all or any part of the this security deposit in for the payment of such rent 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 cure compensate Landlord for any other such loss, cost or damage which landlord may suffer by reason of Tenant’s default; and if Landlord does so. If any portion of said deposit is so use or applied, Tenant shall, upon requestwithin five (5) days after written demand therefore, deposit cash with Landlord the in an amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right sufficient to transfer restore the security deposit to its purchaser or original amount and Tenant, and ’s failure to do so shall be a breach of this Lease. Landlord shall thereupon not, unless otherwise required by law, be released required to keep this security deposit separate from its general funds, nor pay interest to Tenant. If Landlord is required to maintain said deposit in an interest bearing account, Landlord will retain the maximum amount permitted under applicable law as a bookkeeping and administrative charge. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant from all responsibility (or, at Landlord’s option, to the last transferee of Tenant’s interest hereunder) at the expiration of the Lease term and upon Tenant’s vacation of the Premises. In the event the Building is sold, the security deposit will be transferred to the new owner and the new owner will be solely responsible for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorTenant.

Security Deposit. 4.01 As Concurrently with Xxxxxx'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 Tenant's obligations under this Lease (the Security Deposit ). Upon any default by Tenant, including specifically Tenant's failure to pay rent or to abide by its obligations under Sections 7.1 and observance 15.3 below, Landlord may apply all or part of the Security Deposit as full or partial compensation for that default. If any portion of the Security Deposit is so applied, 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. Landlord shall not be required to keep this Security Deposit separate from its general funds and Tenant of all of shall not be entitled to interest on the Security Deposit. If Tenant fully performs its obligations 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 Lease) after the expiration of the Term, provided that Landlord may retain the Security Deposit until such time as all amounts due from Tenant in accordance with this Lease have been determined and paid in full. Provided Tenant has deposited with Landlord the sum specified not been in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit default of any provision of this Lease during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty one-third (301/3) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In Security Deposit will be returned to the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part during the twenty-fifth (25th) month of the security deposit in payment Term and one-third (1/3) of such rent or the Security Deposit will be returned to cure any other such default; and if Landlord does so, the Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount sixty-first (61st) month of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundsTerm. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01Eof $3,000, which sum shall be held (Three Thousand Dollars) hereinafter referred to as "the Security Deposit," to secure the faithful performance by Landlord as a security deposit during the TermTenant of each term, covenant, and condition of this Lease. If Tenant performs shall at any time fail to make any payment or fail to keep or perform any term, covenant, and observes all of it obligations condition on its part to be made or performed or kept under this Lease, Landlord may, but shall return the security deposit, not be obligated to and without waiving or balance thereof then held by Landlord, without interest, to releasing Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant from any obligation under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without noticeuse, apply all or retain the whole or any part of the security deposit in Security Deposit (i) to the extent of any sum due to Landlord; or (ii) to make any required payment of on Tenant's behalf; or (iii) to compensate Landlord for any loss, damage, attorneys fees, or expense sustained by Landlord due to Tenants default. In such rent or to cure any other such default; and if Landlord does soevent, Tenant shallshall within 10 days of written demand by Landlord, upon request, deposit with remit to Landlord sufficient funds to restore the amount Security Deposit to its original sum. Tenant's failure to do so applied so that Landlord will have on hand at all times during the Term the full amount shall be a material breach of the security depositthis Lease. Landlord may commingle shall not be required to keep the security deposit with Landlord’s other Security Deposit separate from its general funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord Tenant shall thereupon not be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees entitled to look solely to the new purchaser or Tenant for the return of interest on such deposit. In Should Tenant comply with all of the event of a permitted assignment terms, covenants, and conditions of this Lease and at the end of the term of this Lease leave the Premises in the condition required by this Lease, then the Security Deposit, less any sums owing to Landlord, shall be returned to Tenant (or, at Landlord's option, to the first assignee of Tenant's interests hereunder) within 30 days after the termination of this Lease and vacancy of the Premises by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the date that is five (5) business days after the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit during for the Termfaithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant. If Tenant performs and observes all Defaults (as defined below) with respect to any provision of it obligations under this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. So long as no Default exists, Tenant has not received written notice from Landlord that any failure of Tenant to act or any state of facts exists that (with the security depositpassage of time) could ripen into a Default, and Tenant surrenders the Premises to Landlord in the condition required by this Lease, then the Security Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit D issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations, (ii) Tenant from all responsibility for shall extend the return expiry date of such deposit; L/C Security from time to time as Landlord reasonably requires and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for the performance and observance by Tenant Upon execution of all of its obligations under this LeaseAgreement, Tenant has deposited shall deposit with Landlord the sum specified in Paragraph 1.01Eof $ , which sum shall be held by Landlord as a security deposit during for the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default faithful performance by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposithis obligations hereunder. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the This security deposit shall be deemed returned to Tenant upon termination of this Lease and surrender by Tenant of the Leased Premises, subject, but not limited, to the following conditions: (a) There shall be held by Landlord as a deposit made by no damage to the assigneeLeased Premises beyond ordinary wear and tear; (b) The Leased Premises, including all appurtenances, shall be clean, and Landlord the refrigerator shall be defrosted; (c) All rent due and payable under the terms of this Lease shall be paid to Landlord; (d) All keys shall have no further responsibility of such deposit been returned to the assignorLandlord; (e) All debris and rubbish and discards shall have been placed in proper rubbish containers; (f) All late charges and service charges for bad checks, if any, shall have been paid; and (g) Tenant shall have left a forwarding address with the Landlord. The security deposit, less any deduction, with an itemized list of damages, shall be returned to Tenant within 30 days of any termination of this Lease. IT IS SPECIFICALLY UNDERSTOOD THAT THE AFORESAID SECURITY DEPOSIT SHALL NOT BE CONSIDERED PREPAID RENT AND SHALL NOT BE APPLIED BY THE TENANT ON THE LAST MONTH’S RENT.

Security Deposit. 4.01 As security for Concurrently with the performance and observance by Tenant execution of all of its obligations under this Lease, Tenant has deposited with Landlord one month’s Base Rent in the sum specified in Paragraph 1.01Eamount of Thirty-Five Thousand Eight Hundred Thirty-Three and 33\100 Dollars ($35,833.33), which sum amount shall be held by Landlord as a security deposit during for the Term. If faithful performance by Tenant performs and observes of all of it obligations under the terms, covenants, conditions and agreements of this Lease, . Landlord shall return the not be required to separate such security deposit, or balance thereof then held by from Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later’s general funds and no interest shall be payable thereon. In the event Tenant shall default in any of a default by Tenant under this Leasesuch terms, whether in covenants, conditions, or agreements, including, but not limited to, the payment of rent or otherwise, then any Rent thereunder. Landlord may, at its option and without noticemay use, apply all or retain the whole or any part of the security deposit in required for the payment of such rent any Rent or to cure any other sum expended by Landlord by reason of Tenant’s default. Tenant, within five (5) days after written demand by Landlord, shall replenish the security or any portion hereof so used or applied by Landlord; Tenant’s failure to restore such default; security shall constitute a material breach of the Lease. The security deposit shall not be deemed an advance payment of Rent. If Lessee shall faithfully comply with all terms, covenants, conditions and if Landlord does soagreements of this Lease, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount any balance of the security depositdeposit then due shall be returned within fourteen (14) days after termination of this Lease, but only after delivery of entire possession of the Premises to Landlord and other performance by Tenant of all obligations required hereunder. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of sale of the Premises or of a sale or lease of the BuildingLandlord’s interest in this Lease, Landlord shall have the right to transfer the security deposit to its purchaser or Tenanttransferee, and upon such transfer, Landlord shall thereupon be released by Tenant from form all responsibility liability with regard thereto, Tenant looking solely to the new landlord for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorsaid security.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. Landlord shall provide notice of such transfer to Tenant, which notice shall include the security depositname and address of the transferee. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by Tenant Concurrently with Tenant's execution of all of its obligations under this Lease, Tenant has deposited with Landlord shall pay to Landlord, the sum specified in Paragraph 1.01Ethe Basic Lease Information, which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to be kept and performed by Tenant. Tenant agrees that Landlord may apply the security deposit to remedy any failure by Tenant to repair or maintain the Premises or to perform any other terms, covenants and conditions contained herein. If Tenant shall perform all terms, covenants and conditions of this Lease during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security depositwill, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of termination hereof, return the Premises, whichever is latersecurity deposit to Tenant. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then If Landlord may, at its option and without notice, apply all or shall use any part portion of the security deposit in payment of such rent or to cure any other such default; and if Landlord does sodefault by Tenant hereunder, Tenant shall, upon request, deposit with shall within ten (10) days of written demand by Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer replenish the security deposit to its purchaser or the original amount and Tenant, and 's failure to do so shall be a material default of this Lease. Landlord shall thereupon not be released by Tenant required to keep the security deposit separate from all responsibility for the return of such deposit; its general funds and Tenant agrees shall not be entitled to look solely to the new purchaser or Tenant for the return of interest on any such deposit. In Upon the event occurrence of a permitted assignment any events of default described in Paragraph 19 of this Lease by Tenant, the security deposit shall be deemed become due and payable to be held by Landlord to the extent required to compensate Landlord for damages incurred, or to reimburse Landlord as a deposit made by the assigneeprovided herein, and Landlord shall have no further responsibility in connection with any such event of such deposit to the assignordefault.

Security Deposit. 4.01 As On or before the Commencement Date, Tenant will deposit with Landlord a sum in an amount of THIRTY ONE THOUSAND SIX HUNDRED FOUR DOLLARS AND 8 CENTS ($31,604.08), as security for the full and faithful performance and observance of every provision of this Lease to be performed by Tenant. If Tenant defaults with respect to any provision of all of its obligations under this Lease, Tenant has deposited with Landlord including but not limited to the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during provisions relating to the Term. If Tenant performs and observes all payment of it obligations under this LeaseRent, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without noticemay use, apply or retain all or any part of the this security deposit in for the payment of such rent any Rent or to cure any other such 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; and if Landlord does so. If any portion of said deposit is to be used or applied, Tenant shall, upon requestwithin five (5) days after written demand therefor, deposit cash with Landlord the in an amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right sufficient to transfer restore the security deposit to its purchaser or original amount and Tenant, and ’s failure to do so shall be a breach of this Lease. Landlord shall thereupon not, unless otherwise required by law, be released required to keep this security deposit separate from its general funds. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely (or, at Landlord’s option, to the new purchaser last transferee of Tenant’s interest hereunder) at the expiration of the Lease term (or Tenant for earlier termination pursuant to Section 2 herein) and upon Tenant’s vacation of the return of such depositPremises. In the event of a permitted assignment of this Lease by Tenantthe Building is sold, the security deposit shall will be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit transferred to the assignornew owner.

Security Deposit. 4.01 As If a Security Deposit is specified in Section 1.2, Xxxxxx agrees that the same will be paid upon execution and delivery of this Lease, and that Landlord shall hold the same throughout the Term as security for the Tenant’s performance and observance by Tenant of all of its obligations under this Lease. Landlord shall have the right from time to time without prejudice to any other remedy Landlord may have on account thereof, to apply such deposit, or any part thereof, to Landlord’s damages arising from any default on the part of Tenant. If all or any part of the deposit is applied to an obligation of Tenant hereunder, Tenant has deposited with Landlord shall immediately upon request by Xxxxxxxx restore said deposit to its original amount. Within thirty days of the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all expiration of it obligations under termination of this Lease, Landlord shall return the security depositSecurity Deposit, or balance so much thereof then held by Landlord, without interestas shall not have theretofore been applied in accordance with the terms of this Article XVI, to Tenant within thirty (30) days after on the Expiration Date expiration or after Tenant surrenders earlier termination of the Term and Xxxxxx’s surrender of possession of the PremisesPremises to Landlord, whichever is laterso long as Tenant shall not then be in Default. In While Landlord holds the event of a default by Tenant under this LeaseSecurity Deposit, whether in payment of rent or otherwise, then Landlord may, at its option it shall have no obligation to pay interest thereon and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to commingle the same with Landlord’s funds. If Landlord conveys its interest under the Lease, the Security Deposit, or any part thereof not previously applied shall be turned over to the grantee, and, upon such transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant Xxxxxx agrees to look solely to such grantee for proper application of the new purchaser or Tenant for Security Deposit in accordance with the terms of this Article XVI, and the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorthereof in accordance herewith.

Security Deposit. 4.01 As security for the performance and observance by Tenant Concurrently with Tenant's execution of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which $6,875.00. Said sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Termterm hereof. If Tenant performs 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 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 said security deposit is so used or applied, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in any amount sufficient to restore the security deposit to its original amount and observes all Tenant's failure to do so shall be a default under this Lease. Landlord shall not be required to keep this security deposit separate from its other funds, and (unless otherwise required by law) Tenant shall not be entitled to interest of it obligations under such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interest hereunder) within ten (10) days following expiration of this Lease term. In the event of termination of Landlord's interest in this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security said deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.Landlord's successor in interest,

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.5 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following 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. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant is not in default at the security depositend of thirty (30) days following the expiration or earlier termination of this Lease, then the Security Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is three (3) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit F issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely otherwise conforming to the new purchaser or Tenant for the return of such depositrequirements set forth in this Article. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit As used herein with respect to the assignor.issuer of the L/C

Security Deposit. 4.01 As security for the performance and observance by Tenant A. Upon execution of all of its obligations under this Lease, Tenant has will have deposited with Landlord Landlord, funds comprised of a bidding deposit of Thirty Thousand and Four Hundred and Twenty Dollars ($30,420) hereafter referred to as "Security Deposit". B. Said Security Deposit shall secure the sum specified in Paragraph 1.01Etimely, which sum full and faithful performance by Tenant of each term, covenant and condition of this Lease. If, at any time, Tenant shall fail to make any payment or fail to keep or perform any term, covenant or condition on its part to be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations made or performed or kept under this Lease, Landlord may, but shall return not be obligated to and without waiving or releasing Tenant from any obligation under this Lease, use, apply or retain the security depositwhole or any part of the Security Deposit: (a) to the extent of any sum due to Landlord; (b) to make any required payment on Tenant's behalf; or, (c) to compensate Landlord for any Xxxx, damage, or balance thereof then held expense sustained by Landlord due to Tenant's default. In such event, Tenant shall, within five (5) days of written demand by Landlord, without interestremit to Landlord sufficient funds to restore the Security Deposit to its original sum. No interest shall accrue on the Security Deposit. Landlord shall not be deemed a trustee of the Security Deposit, and may commingle the Security Deposit with its other funds. Should Tenant comply with all the terms, covenants, and conditions of this Lease and at the end of the term of this Lease leave the Premises in the condition required by this Lease, then said Security Deposit, less any sums owing to Landlord, shall be returned to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment termination of this Lease and vacancy of the Premises by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall of Ten thousand and 00/100 ($10,000.00) as security for the full and faithful performance of every provision of this Lease to be held performed by Landlord as a security deposit during the TermTenant. If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, Landlord shall return including but not limited to the security deposit, or balance thereof then held by Landlord, without interest, provisions relating to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwiserent, then Landlord may, at its option and without noticemay use, apply or retain all or any part of the this security deposit in for the payment of such any rent or to cure any other such sum in default; and if , or for the payment of any other amount which Landlord does somay 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 said deposit is so used or applied, Tenant shall, upon requestwithin five (5) days after written demand therefor is made, deposit cash with Landlord the in an amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right sufficient to transfer restore the security deposit to its purchaser or Tenant, and original amount. Landlord shall thereupon not be released by Tenant required to keep this security deposit separate from all responsibility for the return of such deposit; its general funds and Tenant agrees shall not be entitled to look solely to the new purchaser or Tenant for the return of interest on such deposit. In the event of a permitted assignment If Tenant shall fully and faithfully perform every provision of this Lease to be performed by Tenantit, the security deposit or any balance thereof shall be deemed returned to be held Tenant within ninety (90) days after the expiration of the lease term and upon the vacation of the Premises by Tenant. Landlord as shall deliver the funds deposited herein by Tenant to the purchaser of the Building in the event the Building is sold (or give such purchaser a deposit made by credit against the assigneepurchase price in the amount of such deposit), and thereupon, Landlord shall have no be discharged from further responsibility of liability with respect to such deposit to the assignordeposit.

Security Deposit. 4.01 As Upon the execution of this Lease, Tenant shall deposit ---------------- with Landlord the sum equal to $28,395.00 of which $11,750.00 shall be credited against the first month's rent payable hereunder and the balance of $16,645.00 shall be held by Landlord as security for the faithful performance and observance by Tenant of all the terms, covenants and conditions of this Lease. Landlord shall retain said funds, as its obligations under own, (without being liable for interest thereon) and may use, apply or retain the whole or any part of the funds so deposited to the extent required for the payment of any rent, additional rent or other sums as to which Tenant is in default, or for the payment of any amount which Lessor may be required to expend by reason of Tenant's default in respect of any of the terms of this Lease. Landlord shall give Tenant five (5) days' written notice before applying the deposit to any default. Should Tenant comply with all of the terms of this Lease, Tenant has deposited with Landlord so much of said security deposit not spent or applied pursuant to the sum specified in Paragraph 1.01E, which sum provisions of this paragraph shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, returned to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment . If any portion of rent said deposit is so used or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does soapplied, Tenant shall, upon requestwithin ten (10) days after the demand therefor, deposit cash with Landlord the in an amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right sufficient to transfer restore the security deposit to its original amount and Tenant's failure to do so shall be a material breach of this Lease. Should Landlord sell its interest in the Premises during the term hereof and if Landlord delivers to the purchaser or Tenantthereof the then unappropriated funds deposited by Tenant as aforesaid, and thereupon Landlord shall thereupon be released by Tenant discharged from any and all responsibility for the return of such deposit; and Tenant agrees liability, with respect to look solely to the new purchaser or Tenant for the return of such said security deposit. In the event of a permitted assignment of this Lease by Tenant, the The security deposit shall may not be deemed used to be held by Landlord as a deposit made by pay the assignee, and Landlord shall have no further responsibility of such deposit to the assignorlast month's rent.

Security Deposit. 4.01 As security At the time Lessee the first rental payment shall be due but not later then the date on which any site preparation for construction on the performance demised premises commences, Lessee shall furnish a bond or $100,000 cash (herein “Security Deposit”) to cover the cost to remove the improvements to be constructed or in the event that Rent is not paid in full or the buildings and observance by Tenant improvements not removed at the end of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum Term. The Security Deposit shall be held by Landlord as a security deposit during the TermLessor and, if cash, may be commingled with other funds. If Tenant performs and observes all Upon the expiration of it obligations under the term of this Lease, Landlord shall return the security depositif all Rent and all other obligations are paid in full and all buildings and improvements are removed as required herein, or balance thereof then held as otherwise mutually agreed, in writing, between the parties, the Security Deposit shall be returned to Lessee. The Security Deposit also secures Lessee's covenant to pay the rental herein reserved and for the keeping and performance of all other covenants and obligations required to be kept or performed by Landlord, without interest, to Tenant within thirty (30) days after Lessee under the Expiration Date or after Tenant surrenders possession of the Premises, whichever is laterterms and provisions hereof. In the event of a any default by Tenant under this Lease, whether on the part of Lessee in the payment of rent said rental, or otherwisein the keeping or performance of any of the other covenants required to be kept or performed by Lessee, then Landlord mayLessor shall have the right, at its option and without noticebut not the obligation, to apply all said security deposit, or any part of the security deposit in payment of such rent or thereof, to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event the security is reduced by reason of a sale or lease of the Buildingsuch application, Landlord then within five (5) days after notice thereof from Lessor, Lessee shall have the right deposit with Lessor such sum as may be necessary to transfer restore the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such depositoriginal amount. In the event absence of a permitted assignment any default on the part of the Lessee, Lessor shall repay the said security deposit without reduction to Lessee promptly upon the termination of this Lease Lease. Lessee shall not be entitled to interest or the payment by TenantLessor of any interest which is or may be earned upon a cash security deposit. If the Lessee shall choose to post a bond as security, the security deposit bond be in the form approved or required by the Lessor. Lessee shall submit a proposed bond form to Lessor at least 60 days prior to the date such Security Deposit shall be deemed to be held required for Lessor’s review and approval. Lessee may only post a bond if the bond is executed by Landlord such sureties as a deposit made are named in the current list of “Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies” as published in Circular 570 (amended) by the assigneeFinancial Management Service, Surety Bond Branch, U.S. Department of the Treasury and Landlord licensed to business in the State of Illinois. All bonds signed by an agent must be accompanied by a certified copy of the agent’s authority to act. If the surety on any bond furnished by Xxxxxx is declared bankrupt or becomes insolvent or its right to do business is terminated in the State of Illinois or it ceases to meet the requirements of this Section, Lessee shall have no further responsibility promptly notify Lessor and shall, within 20 days after the event giving rise to such notification, provide another bond and surety, both of such deposit to which shall comply with the assignorrequirements of this Section.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, 12.1 Tenant has deposited with Landlord the sum specified set forth in Paragraph 1.01ESection 2.9 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit during for the Termfaithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant through the Term Expiration Date. If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. Nothing in this paragraph limits Tenant’s rights to deliver L/C Security in compliance with Section 12.7. 12.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 12.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 12.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 12.5 If the Security Deposit shall by in cash, Landlord shall deposit the Security Deposit into an interest-bearing account at a banking organization selected by Landlord. All interest and/or dividends, if any, accruing on the Security Deposit, less a one percent (1%) per annum charge to the Security Deposit for administrative expenses, shall be added to, held and included within the term Security Deposit and, provided that no Default shall have occurred and be continuing, shall accrue to the account of Tenant. In the event that the Security Deposit accrues less than one (1%) interest during any year (before taking into account Landlord’s administrative fee), Landlord’s administrative fee under this paragraph for such year shall be equal to the amount of such interest. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit in excess of the administrative fee. 12.6 [Intentionally omitted] 12.7 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default, deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit K issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (a) Landlord shall with reasonable diligence complete any necessary calculations; (b) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires; and (c) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s reasonable legal costs related to replacement or extension of L/C Security. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (a) an uncured Default exists; (b) as of the date 45 days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (i) three (3) months after the then-current Term Expiration Date or (ii) the date one year after Tenant surrenders possession the then-current expiry date of the PremisesL/C Security; (c) the L/C Security provides for automatic renewals, whichever is laterLandlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days; (d) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (e) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a default by wrongful draw, the parties shall cooperate to allow Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part to post replacement L/C Security simultaneously with the return to Tenant of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenantwrongfully drawn sums, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely upon request confirm in writing to the new purchaser or issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant for shall at Tenant’s expense, within five Business Days after receiving a request from Landlord, deliver (and, if the return of such deposit. In the event of a permitted assignment of this Lease by Tenantissuer requires, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit consent to) an amendment to the assignorL/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Security Deposit. 4.01 As Tenant shall deposit with Landlord simultaneous hereto the amount of Five Hundred Seventeen Thousand Six Hundred Eighty-Six Dollars ($517,686) as security for the full and faithful performance of every provision of this Lease to be performed by Tenant; provided that the Security Deposit shall, provided Tenant is not in default at the time of the proposed reduction or has not been in monetary default within the immediately prior twelve (12) month period, be reduced (a) on August 1, 2008 to $388,265; (b) on August 1, 2010 to $258,843 and observance by (b) on August 1, 2011 to $129,422 and any such excess deposit amount as of such dates shall be promptly returned to Tenant. If Tenant is in Default with respect to any provision of all of its obligations under this Lease, including, but not limited to, the provisions relating to the payment of Rent, Landlord may use, apply or retain all or any part of the security deposit for the payment of any Rent and any other sum with respect to which Tenant has deposited is 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 to be used or applied, Tenant, within fifteen (15) days after written demand therefor, shall deposit cash with Landlord in an amount sufficient to restore the sum specified in Paragraph 1.01E, which sum security deposit to its then current required amount and Tenant's failure to do so shall be held by a material breach of this Lease. Landlord as a shall not be required to keep the security deposit during the Termseparate from its general funds and Tenant shall not be entitled to interest on any security deposit. If Tenant fully and faithfully performs and observes all every provision of it obligations under this LeaseLease to be performed by it, Landlord shall return the security deposit, deposit or any balance thereof then held by Landlord, without interest, shall be returned to Tenant (or at Landlord's option to the last assignee of Tenant's interest hereunder) within thirty (30) days after the Expiration Date or after Tenant surrenders possession expiration of the Term and Tenants vacation of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As A security deposit in the amount of $25,011.56 (the "Security Deposit")shall be paid by the Tenant to the Landlord on the Commencement Date of this Lease. Such Security Deposit shall be deposited by Landlord in an interest bearing account and held as collateral security for the payment of any rents or other sums of money payable by Tenant under this Lease and for the faithful performance and observance by Tenant of all other covenants, conditions and agreements of this Lease. The amount of the Security Deposit, together with all interest earned thereon, shall be repaid to the Tenant within ten (10) days after the expiration or termination of this Lease and any renewal thereof, provided the Tenant shall have made all such payments and performed all such covenants, conditions and agreements. Upon any default by the Tenant hereunder, all or part of said Security Deposit may, at any time and in Landlord's sole discretion, be applied on account of such default. Thereafter the Tenant shall restore the resulting deficiency in said Security Deposit within ten (10) days of notice of Landlord's application. Tenant's failure to restore said deficiency shall constitute a default hereunder. Tenant hereby waives the benefit of any provision of law requiring such Security Deposit to be held in escrow or in trust. The Tenant shall have the option to replace this Security Deposit with a Letter of Credit at any time, provided it gives two months' notice of its obligations under this Lease, intention to do so. Simultaneously with the delivery by Tenant has deposited with to Landlord of the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all letter of it obligations under this Leasecredit, Landlord shall return the security depositcash Security Deposit, or balance thereof then held by Landlord, without interesttogether with all interest earned thereon, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundsTenant. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for 12.1. On the performance and observance by Tenant of all of its obligations under this LeaseTerm Commencement Date, Tenant has deposited shall deposit with Landlord the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Termperiod commencing on the Execution Date and ending upon the expiration or termination of this Lease. If Tenant performs defaults with respect to any provision of this Lease beyond the applicable notice and observes cure period (if any), including, but not limited to, any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of it the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article 12 shall survive the expiration or earlier termination of 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. 12.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 12.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and provided the purchaser assumes Landlord’s obligations under hereunder, Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 12.4. The Security Deposit, or any balance thereof remaining after deductions properly made by Landlord pursuant to this Lease, Landlord shall return the security depositbe returned to Tenant (or, or balance thereof then held by at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 12.5. Provided that Tenant is not then in default under this Lease, Landlord shall return Seventy-Five Thousand Dollars ($75,000) of the Security Deposit to Tenant (or offset the same against the next payment of Rent owing from Tenant) on each annual anniversary of the Term Commencement Date until the Security Deposit required under this Lease equals Four Hundred Thousand Dollars ($400,000). In no event shall the required Security Deposit be less than Four Hundred Thousand Dollars ($400,000). 12.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 12.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except during Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows. (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall with reasonable diligence complete any necessary calculations; (ii) Tenant shall extend the expiry date of such L/C Security from time to time as Landlord reasonably requires; and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the L/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension. (b) If Tenant delivers to Landlord satisfactory L/C Security in place of the entire Security Deposit, Landlord shall remit to Tenant any cash Security Deposit Landlord previously held. If Tenant delivers to Landlord cash in the amount of the Security Deposit, Landlord shall return to Tenant any L/C Security previously held. (c) Landlord may draw upon the L/C Security, and hold and apply the proceeds in the same manner and for the same purposes as the Security Deposit, if: (i) an uncured Default (as defined below) exists; (ii) as of the date forty-five (45) days before any L/C Security expires (even if such scheduled expiry date is after the Term Expiration Date) Tenant has not delivered to Landlord an amendment or replacement for such L/C Security, reasonably satisfactory to Landlord, extending the expiry date to the earlier of (1) six (6) months after the then-current Term Expiration Date or (2) the date one year after Tenant surrenders possession the then-current expiry date of the PremisesL/C Security; (iii) the L/C Security provides for automatic renewals, whichever is laterLandlord asks the issuer to confirm the current L/C Security expiry date, and the issuer fails to do so within ten (10) business days; (iv) Tenant fails to pay (when and as Landlord reasonably requires) any bank charges for Landlord’s transfer of the L/C Security; or (v) the issuer of the L/C Security ceases, or announces that it will cease, to maintain an office in the city where Landlord may present drafts under the L/C Security and Tenant does not replace the L/C Security with a new L/C Security acceptable to Landlord at least ten (10) days prior to the date on which such cessation occurs. This paragraph does not limit any other provisions of this Lease allowing Landlord to draw the L/C Security under specified circumstances. (d) Tenant shall not seek to enjoin, prevent, or otherwise interfere with Landlord’s draw under L/C Security, even if it violates this Lease. Tenant acknowledges that the only effect of a wrongful draw would be to substitute a cash Security Deposit for L/C Security, causing Tenant no legally recognizable damage. Landlord shall hold the proceeds of any draw in the same manner and for the same purposes as a cash Security Deposit. In the event of a default by wrongful draw, the parties shall cooperate to allow Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part to post replacement L/C Security simultaneously with the return to Tenant of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenantwrongfully drawn sums, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely upon request confirm in writing to the new purchaser or issuer of the L/C Security that Landlord’s draw was erroneous. (e) If Landlord transfers its interest in the Premises, then Tenant for shall at Tenant’s expense, within five (5) Business Days after receiving a request from Landlord, deliver (and, if the return of such deposit. In the event of a permitted assignment of this Lease by Tenantissuer requires, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit consent to) an amendment to the assignorL/C Security naming Landlord’s grantee as substitute beneficiary. If the required Security changes while L/C Security is in force, then Tenant shall deliver (and, if the issuer requires, Landlord shall consent to) a corresponding amendment to the L/C Security.

Security Deposit. 4.01 As Lessee paid Lessor a Security Deposit of Three Hundred Fifteen Dollars ($315.00) upon signing the original Lease Agreement on August 7, 2023 and an additional Security Deposit of One Thousand One Hundred Forty Dollars ($1,140.00) upon signing an additional Lease Agreement on October 10, 2023 which Lessor still holds. Xxxxxx agrees and acknowledges that this payment shall continue to apply as a security deposit for Xxxxxx’s full and faithful performance of all terms and conditions of this Lease. Said deposit shall be held by Xxxxxxxx, without liability for interest, as security for the faithful performance and observance by Tenant of all of its obligations under the terms, covenants, and conditions of this Lease, Tenant has deposited with Landlord and may be applied by Xxxxxxxx, in whole or in part for the sum specified in Paragraph 1.01E, payment of any past due rent or other money damage or loss which sum shall may be held sustained by Landlord as because of a security deposit during the Term. If Tenant performs and observes all breach of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held Lease by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is laterXxxxxx. In the event of a default any such application by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does soLandlord, Tenant shall, upon requestthe written demand of Landlord, forthwith remit to Landlord sufficient funds to restore the security to the original sum deposited. Said deposit shall be returned to Tenant upon termination of Xxxxxx’s occupancy hereunder, provided Xxxxxx has complied with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security terms, covenants and conditions of this Lease, including those relating to the condition in which the Premises shall be left by Tenant. Landlord may deliver such deposit to any purchaser or other transferee of Landlord’s interest in the Building and connected real estate, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. Landlord shall not be required to hold such security deposit in a separate account but may commingle the security deposit it with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease. 11.5. If the Security Deposit shall be in cash, whether Landlord shall hold the Security Deposit in payment an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of rent Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or otherwiseany other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Landlord mayTenant shall provide Landlord, at its option and without notice, apply all or any part of the security deposit maintain in payment of such rent or to cure any other such default; full force and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during effect throughout the Term and until the full date that is ninety (90) days after the then-current Term Expiration Date, a letter of credit substantially in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord (it being agreed that Silicon Valley Bank, N.A. is satisfactory), in the amount of the security deposit. Landlord may commingle the security deposit Security Deposit, with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.an {A0622646.2 } 13

Security Deposit. 4.01 As Upon the execution and delivery of this Lease, Tenant shall deliver to Landlord a security deposit in the amount of Three Hundred Thirty-Six Thousand and 00/100 Dollars ($336,000.00) (the “Security Deposit”). Landlord shall hold the same throughout the Lease Term as security for the performance and observance by Tenant of all obligations on the part of Tenant hereunder. Landlord shall have the right from time to time, without prejudice to any other remedy Landlord may have on account thereof, to apply such Security Deposit, or any part thereof, to Landlord’s damages arising from, or to cure, any default by Tenant of its obligations under this Leasehereunder beyond the expiration of any applicable grace periods. If Landlord shall so apply any or all of such Security Deposit, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, immediately upon request, demand deposit with Landlord the amount so applied to be held as security hereunder. Landlord shall return the Security Deposit, or so that Landlord will much thereof as shall have theretofore not been applied in accordance with the terms of this Section 4.1, to Tenant on hand at all times during the Term the full amount expiration or earlier termination of the security depositLease Term and the surrender of possession of the Premises by Tenant to Landlord at such time, provided that there is then existing no default of Tenant (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute a default of Tenant). While Landlord may holds such Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the security deposit same with Landlord’s other funds. 4.02 In . If Landlord conveys Landlord’s interest under this Lease, the event of a sale Security Deposit, or lease of the Buildingany part thereof not previously applied, shall be turned over by Landlord shall have the right to transfer the security deposit to its purchaser or TenantLandlord’s grantee, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the new purchaser or Security Deposit in accordance with the terms of this Section 4.1, and the return thereof in accordance herewith. Landlord’s Mortgagee shall not be responsible to Tenant for the return or application of any such deposit. In Security Deposit, whether or not it succeeds to the event position of a permitted assignment of this Lease by TenantLandlord hereunder, the security unless such deposit shall be deemed to be held have been received in hand by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorMortgagee.

Security Deposit. 4.01 As security for the performance and observance by Tenant Concurrently with Tenant's execution of all of its obligations under this Lease, Lease Tenant has deposited with Landlord Laxxxxxx a sum equivalent to the sum specified set forth in Paragraph 1.01E, which Section 1j) hereof. Said sum shall be held by Landlord as a security deposit for the faithful performance by Tenant ox xxx xxe terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Termterm hereof. If Tenant performs and observes all defaults with respecx xx xny provision of it obligations under this Lease, Landlord shall return including, but not limited to the security deposit, or balance thereof then held by Landlord, without interest, provisions relating to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent Landlord may (but shall not be required to) use, apply, or otherwise, then Landlord may, at its option and without notice, apply retain all or any part of the this security deposit in for the payment of such any rent or to cure any other such sum in default; and if , or for the payment of any amount which Landlord does so, may spend or become obligated to spend by reason of Tenant's default. If any portion of said deposit is so used or applied Tenant shall, upon requestwithin five (5) days after written demand therefor, deposit cash with Landlord the in an amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right sufficient to transfer restore the security deposit to its purchaser or Tenantoriginal amount, and Landlord Tenant's failure to do so shall thereupon be released by Tenant a default under this Lease. If the monthly Base Rent shall, from all responsibility for time to time, increase during the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment time of this Lease by TenantLease, Tenant shall, within five (5) days after written demand therefor, deposit with Landlord additional security so that the amount of security deposit shall be deemed to be held by Landlord shall at all times bear the same proportion to current Base Rent as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.Section 1

Security Deposit. 4.01 As security for the performance and observance by Tenant Concurrently with Tenant's delivery of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount sum, if any, stated in Item 9 of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the BuildingBasic Lease Provisions, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as security for the full and faithful performance of Tenants obligations under this Lease (the "Security Deposit"). Upon any Default by Tenant, including specifically Tenant's failure to pay rent or to abide by its obligations under Sections 7.1 and 15.3 below, whether or not Landlord is informed of or has knowledge of the Default, the Security Deposit shall be deemed to be automatically and immediately applied, without waiver of any rights Landlord may have under this Lease or at law or in equity as a result of the Default as a setoff for full or partial compensation for that Default. If any portion of the Security Deposit is applied after a Default by Tenant, Tenant shall, within five (5) days after written demand by Landlord, deposit made by cash with Landlord in an amount sufficient to restore the assigneeSecurity 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. 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 sixty (60) days after the expiration of the Term, provided that Landlord may, in its reasonable discretion, retain all or a portion 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, with any balance of the Security Deposit being returned to Tenant within sixty (60) days after the expiration of the Term. Provided that Tenant has not at any time been in default under this Lease, and provided further that Tenant has not at any time been more than five (5) days late with respect to any payments of rent due under this Lease more than once during the Term, then Landlord shall have no further responsibility return to Tenant a portion of such deposit to the assignorSecurity Deposit in the form of a credit against Basic Rent in accordance with the following schedule: (a) Twenty-One Thousand Seven Hundred Sixty-One Dollars ($21,761.00) credited against the Basic Rent due and payable for the thirty-fifth (35th) month of the Term; and (b) Twenty-One Thousand Seven Hundred Sixty One Dollars ($21,761.00) credited against the Basic Rent due and payable for the thirty-sixth (36th) month of the Term.

Security Deposit. 4.01 As security for the performance and observance by Tenant Concurrently with Tenant’s execution of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord the sum specified amount set forth in Paragraph 1.01E1.8 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance of all of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Termterm hereof. Landlord shall not be required to segregate the Security Deposit from its general funds or in any other manner, nor shall Landlord be obligated to pay Tenant interest on the Security Deposit for any reason(s). If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, including. without limitation, the provisions relating to the payment of rental and other sums due hereunder, Landlord shall return have the security depositright, or balance thereof then held by Landlord, without interestbut shall not be required, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without noticeuse, apply or retain all or any part of the security deposit in Security Deposit for the payment of such rent rental or any other amount which Landlord may spend or become obligated to spend by reason of Tenant’s default or to cure compensate Landlord for any other such default; loss or damage which Landlord may suffer by reason of Tenant’s default (in addition to all other Landlord rights and if remedies at law or in equity). In the event Landlord does soutilizes all or any portion of the Security Deposit as permitted hereunder, Tenant shallshall promptly (and in no event later than ten (10) days following written request therefore) reinstate that portion of the Security Deposit so utilized, upon requestand any such reinstatement amount shall constitute additional rent due by Tenant hereunder). The Security Deposit, or any balance thereof, shall be returned to Tenant or to the last assignee of Tenant’s interest hereunder within sixty (60) days of the expiration of the Term of this Lease and Tenant’s vacation of the Premises (except as otherwise required by law). In the event that Annual Base Rent is increased during any Option Period(s), Tenant shall immediately thereupon deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord increase as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignoran increased Security Deposit.

Security Deposit. 4.01 As Section 36.01. Concurrently with the execution of this Lease, Tenant shall deposit with Landlord the sum of $200,000.00, either in cash or by Letter of Credit as provided in Section 36.02, as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease. Tenant agrees that, in the event that Tenant defaults in respect of any of the terms, provisions and conditions of this Lease (including the payment of minimum rent and additional rent), after any applicable notice and expiration of any applicable cure period, Landlord may use, apply or retain the whole or any part of the cash security so deposited or may notify the "Issuing Bank" (as such term is defined in Section 36.02) and thereupon receive all of its obligations the monies represented by the said Letter of Credit and use, apply, or retain the whole or any part of such proceeds, as the case may be, to the extent required for the payment of any rent, additional rent, or any other sum as to which Tenant is in default, or for any sum that Landlord may expend or may be required to expend by reason of Tenant's default, in respect of any of the terms, covenants and conditions of this Lease (including any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord). In the event that Landlord applies or retains any portion or all of the cash security or the proceeds of such Letter of Credit, as the case may be, Tenant shall, within five (5) days after demand by Landlord, restore the amount so applied or retained so that, at all times, the amount deposited shall be $200,000.00. Upon Tenant's making such additional deposit, Landlord is hereby authorized to act as Tenant's agent to use the proceeds of the Letter of Credit to obtain a new Letter of Credit and Tenant hereby irrevocable appoints Landlord as Tenant's agent and attorney-in-fact to obtain a replacement Letter of Credit from the Issuing Bank or any other qualifying bank (such qualifying bank shall then be the Issuing Bank). If Tenant shall fail or refuse to make such additional deposit, Landlord shall have the same rights in law and in equity and under this Lease as it has with respect to a default by Tenant in the payment of minimum rent. In the event that Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this Lease, the cash security or Letter of Credit, as the case may be, shall be returned to Tenant has deposited within twenty (20) days after the expiration date and after delivery of possession of the entire Demised Premises to Landlord in the condition provided in this Lease for such delivery of possession. Section 36.02. Such letter of credit (the "Letter of Credit") shall be a clean, irrevocable and unconditional Letter of Credit issued by and drawn upon any commercial bank (the "Issuing Bank") with Landlord offices for banking purposes in the sum specified in Paragraph 1.01ECity of New York and having combined capital and surplus of not less than $100,000,000.00, which sum Letter of Credit shall be held by Landlord as have an initial term of not less than one year or thereafter having a security deposit during term expiring not less than ninety (90) days following the Term. If Tenant performs and observes all expiration of it obligations under the term of this Lease, Landlord shall return permit multiple drawings, shall be transferable by the security deposit, beneficiary at one or balance thereof then held by more occasions at no charge to the beneficiary and otherwise be in form and content satisfactory to Landlord, without interestbe for the account of Landlord and be in the amount of $200,000.00. Notwithstanding the foregoing, to if at any time the combined capital and surplus of the Issuing Bank is less than $100,000,000.00 or its rating is downgraded from its current rating, and provided Tenant does not replace the existing Letter of Credit with a Letter of Credit meeting the criteria of Section 36.02 within the sooner of thirty (30) days after the Expiration Date or after following Tenant's receipt of Landlord's notice to Tenant surrenders possession of either of the Premisesforegoing events or the number of days remaining until the expiration date of the existing Letter of Credit, whichever Landlord shall have the right, at any time thereafter, to draw down the entire proceeds pursuant to the terms of Section 36.01 as cash security pending the replacement of such Letter of Credit. The Letter of Credit shall provide that: (a) the Issuing Bank shall pay to Landlord or its duly authorized representative an amount up to the face amount of the Letter of Credit upon presentation of the Letter of Credit and a sight draft, in the amount to be drawn; (b) it shall be deemed automatically renewed, without amendment, for consecutive periods of one (1) year each thereafter during the term of this Lease, unless Issuing Bank sends written notice (hereinafter referred to as the Non-Renewal Notice) to Landlord by certified or registered mail, return receipt requested, not less than sixty (60) days next preceding the expiration date of the Letter of Credit that it elects not to have the Letter of Credit renewed, and it being agreed that the giving of such Non-Renewal Notice shall for the purpose of this Article 37 be deemed a default under this Lease, unless Tenant replaces the Letter of Credit with a substitute Letter of Credit meeting the criteria of this Section 36.02 or with a cash deposit at least thirty (30) days prior to the expiration date of the Letter of Credit. (c) Landlord, subsequent to its receipt of a Non-Renewal Notice, and prior to the expiration date of the Letter of Credit, shall have the right, exercisable by means of sight draft, to receive the monies represented by the Letter of Credit and hold such proceeds pursuant to the terms of Section 36.01 as cash security pending the replacement of such Letter of Credit; and (d) upon Landlord's sale or assignment of its estate as Tenant under any Superior Lease, the Letter of Credit shall be transferable by Landlord, as provided in Section 36.03. Section 36.03. At any time, and from time to time during the term of this Lease, if Landlord is laterthen holding a cash security deposit, Tenant may substitute a Letter of Credit to replace the same and the cash will then be returned to Tenant, or if Landlord is then holding a Letter of Credit as security, Tenant may deposit cash with Landlord to replace the Letter of Credit and Landlord will then return the Letter of Credit to Tenant. Section 36.04. In the event Landlord's estate as tenant under any Superior Lease is sold or assigned, or (if the Superior Lease shall terminate and Tenant shall attorn to the lessor under the Superior Lease which had terminated) the fee title of a default by Tenant under this Lease, whether in payment of rent Landlord covering the Land and/or Building is transferable or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingconveyed, Landlord shall have the right to transfer the security deposit Letter of Credit then held by Landlord to its purchaser the vendee, transferee or Tenantassignee, and Landlord shall thereupon be released by Tenant from all responsibility liability for the return of such deposit; and Letter of Credit. In such event, Tenant agrees to look solely to the new purchaser or Tenant Landlord for the return of said Letter of Credit. It is agreed that the provisions hereof shall apply to every transfer or assignment made of the Letter of Credit to a new Landlord. Section 36.05. Tenant covenants that it will not assign or encumber, or attempt to assign or encumber, the Letter of Credit deposited hereunder as security, and that neither Landlord nor its successors or assigns shall be bound by any such depositassignment, encumbrance, attempted assignment, or attempted encumbrance. Section 36.06. In The use of the event security, as provided in this Article, shall not be deemed or construed as a waiver of Tenant's default or as a permitted assignment waiver of any other rights and remedies to which Landlord may be entitled under the provisions of this Lease by Tenantreason of such default, it being intended that Landlord's rights to use the whole or any part of the security deposit shall be deemed in addition to be held by Landlord as a deposit made by the assignee, but not in limitation of any such other rights and remedies; and Landlord shall have no further responsibility may exercise any of such deposit to the assignorother rights and remedies independent of or in conjunction with its rights under this Article.

Security Deposit. 4.01 As security Prior to occupancy of the premises, Tenant shall deposit with Owner/Agent the SECURITY DEPOSIT, the primary function of which is to secure the performance of the Rental Contract for the performance premises or any part thereof, and observance by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum such deposit shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is laternot constitute pre-paid rent. In the event of a default by Tenant under this Leasesale of the premises and/or change of management thereof, whether in payment Xxxxxx hereby agrees custody of rent or otherwisethe security deposit is transferred to the succeeding Owner/Agent. Upon such transfer, then Landlord Xxxxxx Management, Inc. shall be released from any and all liability for the security deposit. Agent may, at its option and without noticebut need not, apply all or portions of the Security Deposit to satisfy any part defaults by Tenant. After expiration of this Rental Contract and any extension thereof, if Tenant has completely performed the Rental Contract obligations, then the unused portion of the security deposit less any move-out charges (if any) and utility bills, shall be refunded within sixty (60) days from the termination of this Lease, as defined in payment paragraph 19, “TERMINATION”. Tenant acknowledges and consents to the fact that the security deposit is being held in an interest bearing account and that all interest income from such accounts shall be retained by Xxxxxx Management, Inc. for purposes of such rent offsetting expenses associated with maintenance or management of these accounts. Tenant will be responsible for providing Owner/Agent with the address to cure which the security deposit and any other such default; accounting for it will be sent, in writing. Tenant understands and if Landlord does soagrees that the security deposit is made jointly as one deposit, Tenant shalleven where there is more than one Tenant, upon requestand the entire amount shall be maintained by Owner/Agent until the Term, deposit with Landlord including any extensions, has ended, and the amount so applied so that Landlord will have on hand at all times during property has been returned to the Term Owner/Agent in the full amount condition required by this Rental Contract. No partial return of any portion of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundswill be made to any departing Tenant. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 (a) As security for the faithful performance and observance by Tenant throughout the Lease Term, and any extensions or renewals thereof, of all the terms and conditions of its obligations under this LeaseLease on the part of Tenant to be performed, Tenant has deposited with Landlord on the sum specified date of execution of the Lease the Security Deposit set forth in Paragraph 1.01E, which sum the Basic Lease Information. The Security Deposit shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlordreturned to Tenant, without interest, to Tenant within thirty not later than sixty (3060) days after the Expiration Date expiration or after earlier termination of this Lease provided Tenant surrenders possession has fully and faithfully observed and performed all of the Premisesterms, whichever is latercovenants, agreements, warranties and conditions hereof on its part to be observed and performed. In Landlord shall have the event of a default by Tenant under this Leaseright to use, whether in payment of rent retain or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in Security Deposit, including all amounts which may be added thereto pursuant to the terms hereof, toward the cure of any default of Tenant, including, but not limited to, for the payment of such rent any Rent or any other sum in default, or for the payment of any amount that Landlord may spend or become obligated to spend by reason of Tenant's default, or to cure compensate Landlord for any other such loss or damage that Landlord may suffer by reason of Tenant's default; and if . If all or any part of the Security Deposit is so applied by Landlord, then Tenant shall within five (5) days after written demand therefor, pay to Landlord does so, Tenant shall, upon request, an amount sufficient to return the Security Deposit to the balance on deposit with Landlord the amount prior to said application (and Tenant's failure to do so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundsshall be a default under this Lease.) 4.02 (b) In the event of a sale or transfer of Landlord's interest in the Premises or the Building or a lease by Landlord of the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its the purchaser or Tenantlessee, as the case may be, and in such event Landlord shall thereupon be released by relieved of all liability to Tenant from all responsibility for the return of such deposit; and the Security Deposit. The Tenant agrees to shall look solely to the new purchaser owner or Tenant lessor for the return of such depositsaid Security Deposit. The Security Deposit shall not be mortgaged, assigned or encumbered by Tenant. In the event of a permitted assignment of under this Lease by Tenant, the security deposit Security Deposit shall be deemed to be held by Landlord as a deposit made by the assignee, permitted assignee and the Landlord shall have no further responsibility liability with respect to the return of said Security Deposit to the original Tenant. (c) Landlord shall not be required to keep the Security Deposit separate from its general accounts. (d) Tenant shall provide Landlord with the letters of credit in the form and at the time required by Exhibit "F" and at the times described in Section 4.4. All proceeds of such deposit letters of credit, if drawn by Landlord, may be used by Landlord to the assignorpay for amounts for which Tenant is responsible hereunder and to reimburse Landlord for damages it suffers and costs it incurs in connection with any event of default by Tenant.

Security Deposit. 4.01 As 39.1 Upon the Commencement Date, Tenant shall deposit with Landlord the sum of Fifty-Nine Thousand Fifteen 00/100 60 Dollars ($59,015.00)* as security for the faithful performance and observance by Tenant of all the terms, provisions and conditions of its obligations under this Lease. Said sum shall be deposited in an interest bearing account, and the interest shall be paid annually to Tenant, provided that Tenant is not in material default hereunder beyond any applicable notice and grace periods. It is agreed that in the event Tenant defaults beyond applicable grace periods in respect of any of the terms, provisions and conditions of this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01Eincluding, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs but not limited to, payment of fixed annual rent and observes all of it obligations under this Leaseadditional rent, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without noticemay use, apply all or retain the whole or any part of the security deposit in so deposited to the extent required for the payment of such any rent and additional rent or to cure any other such default; and if sum as to which Tenant is in default or for any sum which Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount may expend or may be required to expend by reason of Tenant's default in respect of any of the security deposit. Landlord may commingle terms, covenants and conditions of this Lease, including but not limited to, any damages or deficiency in the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease reletting of the Buildingdemised premises, Landlord shall have the right to transfer the security deposit to its purchaser whether such damages or Tenant, and Landlord shall thereupon be released deficiency accrued before or after summary proceedings or other re-entry by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such depositLandlord. In the event that Tenant shall fully and faithfully comply with all of a permitted assignment the terms, provisions, covenants and conditions of this Lease by TenantLease, the security deposit shall be deemed returned to be held by Landlord as a deposit made by Tenant at the assignee, and Landlord shall have no further responsibility expiration of such deposit to the assignorthis Lease.

Security Deposit. 4.01 As security for the performance and observance by Tenant Upon execution of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord the sum specified Security Deposit in Paragraph 1.01E, which sum the amount set forth in Article 1. The Security Deposit shall be held by Landlord as a security deposit for the full and faithful performance by Tenant of all of the terms, covenants and provisions of this Lease during the Termterm hereof. If Tenant performs and observes all of it obligations under this Lease, In no event shall Landlord shall return the security depositbe obligated to pay, or balance thereof then held by LandlordTenant is entitled to receive, without interest, to Tenant within thirty (30) days after the Expiration Date any interest or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have earnings on hand at all times during the Term the full amount of the security deposit. Landlord shall not be obligated to hold the Security Deposit in trust or in a separate account but may freely commingle the security deposit with Landlord’s other funds. 4.02 . In the event Tenant fails to keep and perform any of the terms, covenants or provisions of this Lease, then Landlord, at Landlord’s option, may appropriate and apply the Security Deposit, or so much thereof as may be necessary to pay any Rent or other sums due hereunder for which Tenant shall be in default of payment. Tenant, upon notice from Landlord, immediately shall remit to Landlord an amount sufficient to restore this Security Deposit to the amount required to be maintained in accordance with this Article. Upon Txxxxx’s full and complete performance and compliance with all of the terms, covenants and provisions of this Lease during the lease term, upon the expiration of the term and Txxxxx’s proper surrender of the Premises, the Security Deposit shall be returned to Tenant. In the event of a sale or lease of the Building, Landlord shall have may deliver the right Security Deposit to transfer the security deposit to its purchaser or Tenantpurchaser, and upon such delivery, Landlord shall thereupon be released by Tenant discharged from all responsibility for the return of such deposit; and Tenant agrees to look solely any further liability with respect to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorSecurity Deposit.

Security Deposit. 4.01 As security for the performance and observance by 10.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit during for the Termfaithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant. If Tenant performs and observes all Defaults (as defined below) with respect to any provision of it obligations under this Lease, Landlord shall return including any provision relating to the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwiseRent, then Landlord may, at its option and without noticemay (but shall not be required to) use, apply or retain all or any part of the security deposit in Security Deposit for the payment of such rent any Rent or any other sum in default, or to cure compensate Landlord for any other such loss or damage that Landlord may suffer by reason of Tenant’s default; and if Landlord does so. If any portion of the Security Deposit is so used or applied, then Tenant shall, upon requestwithin ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the amount Security Deposit to its original amount, and Tenant’s failure to do so applied so that Landlord will have on hand at all times during shall be a material breach of this Lease. The provisions of this Article shall survive the Term the full amount expiration or earlier termination of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundsthis Lease. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit10.2. In the event of a permitted assignment of this Lease by bankruptcy or other debtor-creditor proceedings against Tenant, the security deposit Security Deposit shall be deemed to be held applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within sixty (60) days after the expiration or earlier termination of this Lease. 10.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 10.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a deposit letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is ninety (90) days after the then-current Term Expiration Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” means the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the assigneestate bank supervisor for state chartered banks; the OCC or OTS, and respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall have no further responsibility with reasonable diligence complete any necessary calculations, (ii) Tenant shall extend the expiry date of such deposit L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As (CASH). Tenant shall upon execution hereof deposit with Landlord the sum of Three Million Two Hundred Ninety Four Thousand Seventy Two Dollars ($3,294,072.00) (the "Security Deposit") as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease; it is agreed that in the event Tenant defaults in respect of any of the terms, provisions or conditions of this Lease including the payment of Base Monthly Rent, Additional Rent, or any other sum due hereunder, Landlord may use, apply or retain the whole or any part of the Security Deposit so deposited to the extent required for the payment of any Base Monthly Rent, Additional Rent or other sum due hereunder or for any sum which Landlord may expend or may be required to expend by reason of Tenant's default including any damages or expenses suffered or incurred by reason of Tenant's default. Tenant shall, within five (5) days of Landlord's written demand therefor, deposit with Landlord the full amount of Security Deposit so used or applied by Landlord, in order that Landlord shall have the full Security Deposit on hand at all times prior to the Return Date (as defined below). If on or after the last day of its obligations the sixtieth (60th) full calendar month of the Lease Term (the "Return Date") Landlord holds all or any part of the Security Deposit (in cash) and Tenant is not then in default under any of the terms, covenants or conditions of this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, then Landlord shall return the security deposit, Security Deposit (or balance thereof then part thereof) so held by Landlord, without interest, Landlord to Tenant within thirty (30) days after following the Expiration Date or after Tenant surrenders possession of the Premises, whichever is laterReturn Date. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease other transfer of the Property or any part thereof including the Building or ground or master leasing of the Property or any part thereof including the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its purchaser the transferee or Tenant, lessee and Landlord shall thereupon be released by Tenant from all responsibility liability for the return of such deposit; the Security Deposit and Tenant agrees to look solely to the new purchaser or Tenant landlord solely for the return of such depositthe Security Deposit; and it is agreed that the provisions hereof shall apply to every transfer or assignment made of the Security Deposit to a new landlord. In Tenant further covenants that it shall not assign or encumber or attempt to assign or encumber the event of a permitted assignment of this Lease by Tenant, the monies deposited herein as security deposit and that neither Landlord nor its successors or assigns shall be deemed to be held bound by Landlord as a deposit made by the assigneeany such assignment, and Landlord shall have no further responsibility of such deposit to the assignorencumbrance, attempted assignment or attempted encumbrance.

Security Deposit. 4.01 As Tenant will deposit with Landlord concurrently with executing this Lease the sum of SIX THOUSAND TWO HUNDRED FIFTY and 00/lOO DOLLARS ($6,250.00) as security for the performance full and observance faithful peiformance of every provision of this Lease to be peiformed by Tenant. If Tenant defaults with respect to any provision of all of its obligations under this Lease, Tenant has deposited with Landlord including but not limited to the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during provisions relating to the Term. If Tenant performs and observes all payment of it obligations under this LeaseRent, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without noticemay use, apply or retain all or any part of the this security deposit in for the payment of such rent any Rent or any other sum in default or for the payment of any other amount which, Landlord may spend or become obligat~d to spend by reason of Tenant's default, or to cure compensate Landlord for any other such loss, cost or damage which Landlord may suffer by reason of Tenant's default; and if Landlord does so. If any portion of said deposit is to be used or applied, Tenant shall, upon requestwithin five (5) days after written demand therefor, deposit cash with Landlord the in an amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right sufficient to transfer restore the security deposit to its purchaser or original amount and Tenant, and 's failure to do so shall be a breach of this Lease. Landlord shall thereupon not be released by required to keep this security deposit separate from its general funds, or to pay interest to Tenant. If Tenant from all responsibility for the return of such deposit; shall fully and Tenant agrees to look solely to the new purchaser or Tenant for the return of such depositfaithfully peiform every. In the event of a permitted assignment provision of this Lease to be peiformed by Tenantit, the security secUrity deposit or any balance thereof shall be deemed returned to be held by Landlord as a deposit made by the assigneeTenant (or, and Landlord shall have no further responsibility of such deposit at Landlord's option, to the assignor.last transferee of Tenant's interest hereunder) after the expiration of the Lease term and after Tenant's

Security Deposit. 4.01 As security for Concurrently with the performance and observance by Tenant execution of all of its obligations under this Lease, Tenant has deposited with Landlord one month’s Base Rent in the sum specified in Paragraph 1.01Eamount of Eighteen Thousand Five Hundred and no\100 Dollars ($18,500.00), which sum amount shall be held by Landlord as a security deposit during for the Term. If faithful performance by Tenant performs and observes of all of it obligations under the terms, covenants, conditions and agreements of this Lease, . Landlord shall return the not be required to separate such security deposit, or balance thereof then held by from Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later’s general funds and no interest shall be payable thereon. In the event Tenant shall default in any of a default by Tenant under this Leasesuch terms, whether in covenants, conditions, or agreements, including, but not limited to, the payment of rent or otherwise, then any Rent thereunder. Landlord may, at its option and without noticemay use, apply all or retain the whole or any part of the security deposit in required for the payment of such rent any Rent or to cure any other sum expended by Landlord by reason of Tenant’s default. Tenant, within five (5) days after written demand by Landlord, shall replenish the security or any portion hereof so used or applied by Landlord; Tenant’s failure to restore such default; security shall constitute a material breach of the Lease. The security deposit shall not be deemed an advance payment of Rent. If Lessee shall faithfully comply with all terms, covenants, conditions and if Landlord does soagreements of this Lease, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount any balance of the security depositdeposit then due shall be returned within fourteen (14) days after termination of this Lease, but only after delivery of entire possession of the Premises to Landlord and other performance by Tenant of all obligations required hereunder. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of sale of the Premises or of a sale or lease of the BuildingLandlord’s interest in this Lease, Landlord shall have the right to transfer the security deposit to its purchaser or Tenanttransferee, and upon such transfer, Landlord shall thereupon be released by Tenant from form all responsibility liability with regard thereto, Tenant looking solely to the new landlord for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorsaid security.

Security Deposit. 4.01 As security The Tenant shall pay to the Landlord, at the latest on the effective date of this lease, the sum mentioned in Article 7 of the Special Conditions, corresponding to three months of rent in principal, as a guarantee for the performance and observance by Tenant payment of the Rent, of all accessories, of its obligations under this the proper performance of the clauses and conditions of the Lease, of the rental repairs and of all sums owed by the Tenant has deposited with for which the Landlord the sum specified in Paragraph 1.01E, which sum could be responsible. This security deposit is not interest bearing and shall be held by Landlord increased or decreased when the amount of the Rent is modified so as a security deposit during to always be equal to three months’ rent excluding taxes. In no event shall the Term. If Tenant performs and observes be entitled to offset all or part of it obligations under this Leasethe Rent, Landlord shall return charges or other debts resulting from the Lease or the occupation of the Leased Premises against the security deposit. If for any reason whatsoever, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession security deposit is used during the term of the Lease for the payment of sums due under the Lease, the Lessor shall be required to notify the Lessee of such use, who shall then be required to replenish the said deposit, under penalty of application of the resolutory clause of the Lease. This security deposit shall be reimbursed to the Tenant at the end of the period of use, after deduction of all sums due by the Tenant for the occupation of the Rented Premises and, following the rendering of the final accounts, within a maximum period of six (6) months from the latter. However, if the accounts are not settled within nine months from the date of return of the Leased Premises, whichever is later. the Parties may agree to pay the balance of the security deposit to the Tenant, less a provision equal to (15) fifteen percent of the actual cost of charges, taxes and duties for the previous fiscal year, calculated, where applicable, on a pro rata temporis basis, which shall remain in the hands of the Landlord pending the final settlement of the accounts In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part sale of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord Building on which the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by TenantRented Premises depend, the security deposit shall be deemed to be held by Landlord as a deposit made transferred by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorpurchaser who shall become the sole debtor to the Tenant, which the latter acknowledges, by undertaking to request the return of the security deposit only to the purchaser.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant defaults with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations; (ii) Tenant from all responsibility for shall extend the return expiry date of such depositL/C Security from time to time as Landlord reasonably requires; and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s reasonable out-of-pocket legal costs in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for 11.1 Tenant shall deposit with Landlord, on or before the performance and observance by Tenant of all of its obligations under this LeaseExecution Date, Tenant has deposited with Landlord the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Xxxxxx during the Term. If Tenant performs defaults (after applicable notice and observes cure periods) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of it the Security Deposit for the payment of any Rent or any other sum in default (after applicable notice and cure periods), or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of such default. If, at any time prior to the date that is [***] days prior to the expiration of the Term, any portion of the Security Deposit is so used or applied, then Tenant shall, within [***] business days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2 In the event of bankruptcy or other debtor-creditor proceedings against Xxxxxx, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3 Landlord may deliver to any purchaser of Landlord’s entire interest in the Premises the Security Deposit delivered hereunder by Xxxxxx, and, upon such purchaser’s agreement in writing to assume Landlord’s obligations under this LeaseLease with respect to the Security Deposit, Landlord shall return the security depositbe discharged from any further liability with respect to such Security Deposit. This provision shall also apply to any subsequent transfers. 11.4 The Security Deposit, or the remaining balance thereof then held by following Xxxxxxxx’s use, application or retention of the Security Deposit pursuant to Section 11.1, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Xxxxxx’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by Tenant Concurrent with Tenant's execution of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord a security deposit (the sum specified "Security Deposit") in Paragraph 1.01E, which sum the amount set forth in Section 10 of the Summary. The Security Deposit shall be held by Landlord as a security deposit for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and [FINAL EXECUTION COPY]SMRH:478611488.18 -32- 600 B STREETMitek Systems, Inc. 92917 35XW-244846 performed by Tenant during the Lease Term. If Tenant performs and observes all defaults with respect to any provisions of it obligations under this Lease, Landlord shall return including, but not limited to, the security deposit, or balance thereof then held by Landlord, without interest, provisions relating to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwiseRent, then Landlord may, at its option and without noticebut shall not be required to, use, apply or retain all or any part of the security deposit in Security Deposit for the payment of such rent any Rent or any other sum in default, or for the payment of any amount that Landlord may spend or become obligated to spend by reason of Tenant's default, or to cure compensate Landlord for any other such loss or damage that Landlord may suffer by reason of Tenant's default; and if Landlord does so. If any portion of the Security Deposit is so used or applied, Tenant shall, upon requestwithin ten (10) business days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its purchaser or Tenantoriginal amount, and Landlord Tenant's failure to do so shall thereupon be released by a default under this Lease. If Tenant from all responsibility for the return of such deposit; shall fully and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment faithfully perform every provision of this Lease to be performed by it, the Security Deposit, or any balance thereof, shall be returned to Tenant, or, at Landlord's option, to the last assignee of Tenant's interest hereunder, within sixty (60) days following the expiration of the Lease Term. Tenant shall not be entitled to any interest on the Security Deposit. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, and all other provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit shall be deemed only those sums reasonably necessary to be held remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord as a deposit made may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the assigneeact or omission of Tenant or any officer, and Landlord shall have no further responsibility employee, agent or invitee of such deposit to the assignorTenant.

Security Deposit. 4.01 As The Tenant deposited with the Landlord, simultaneously with the execution of this Lease, the sum of four thousand and eight hundred and eighty dollars and seventy five cents ($4,880.75) (the "Security Deposit") as security for the Rent payable hereunder, for the return of the Leased Premises in good order and condition, and the performance of each and observance every one of the covenants, conditions and agreements herein stipulated. The said sum shall not be applicable to the payment of Rent by Tenant of all of its obligations the Tenant, or any other charges for which it may become liable under this Lease, and such deposit shall, in no way, relieve Tenant has deposited with from the faithful performance of all covenants and conditions hereby imposed upon it. Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes may use so much or all of it the Security Deposit for payment of past-due obligations under of Tenant, and, upon notice and demand from Landlord, Tenant shall, within five (5) days, pay sufficient sums to restore the Security Deposit to its original amount. Landlord agrees that at the termination of this Lease, Landlord or at the termination of any extension thereof, the deposit shall return the security deposit, or balance thereof then held by Landlord, without interest, be returned to Tenant within thirty (30) days after the Expiration Date or after Leased Premises have been vacated in good order and condition, provided that the Tenant surrenders possession of shall have complied in all respects with the Premisesterms, whichever is latercovenants and conditions herein. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease leasing of the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its purchaser or Tenant, vendee and Landlord shall thereupon be released by Tenant from all responsibility liability for the return of the Security Deposit. In such deposit; and event, Tenant agrees to look solely to the new purchaser or Tenant landlord for the return of such said deposit. In The provisions hereof shall apply to every transfer or assignment made of the event of Security Deposit to a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignornew landlord.

Security Deposit. 4.01 As security for the performance and observance by 11.1 Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit during for the Termfaithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Xxxxxx. If Tenant performs and observes all Defaults (as defined below) with respect to any provision of it obligations under this Lease, Landlord shall return including any provision relating to the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwiseRent, then Landlord may, at its option and without noticemay (but shall not be required to) use, apply or retain all or any part of the security deposit in Security Deposit for the payment of such rent any Rent or any other sum in default, or to cure compensate Landlord for any other such default; and if loss or damage that Landlord does somay suffer by reason of Tenant’s Default. If any portion of the Security Deposit is so used or applied, then Tenant shall, upon requestwithin ten (10) business days following written demand therefor, deposit cash with Landlord in an amount sufficient to restore the amount Security Deposit to its original amount, and Xxxxxx’s failure to do so applied so that Landlord will have on hand at all times during shall be a material breach of this Lease. The provisions of this Article shall survive the Term the full amount expiration or earlier termination of the security depositthis Lease. Landlord may commingle the security deposit with Landlord’s other fundsTENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 4.02 11.2 In the event of a sale bankruptcy or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenantother debtor-creditor proceedings against Xxxxxx, the security deposit Security Deposit shall be deemed to be held applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Xxxxxx, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within sixty (60) days after the expiration or earlier termination of this Lease. 11.5 If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a deposit letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is four (4) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the Security Deposit, with an initial term of at least one year. Landlord approves Silicon Valley Bank as the issuer of the initial L/C Security as of the Execution Date; provided, however, that Landlord reserves the right to require a different issuer in the event Silicon Valley Bank’s financial status changes after the Execution Date. Landlord may require the L/C Security to be re-issued by a different issuer at any time during the Term if Landlord reasonably believes that the issuing bank of the L/C Security is or may soon become insolvent; provided, however, Landlord shall return the existing L/C Security to the existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall promptly deliver to Landlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” means the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the assigneestate bank supervisor for state chartered banks; the OCC or OTS, and respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall have no further responsibility with reasonable diligence complete any necessary calculations, (ii) Tenant shall extend the expiry date of such deposit L/C Security from time to time as Landlord reasonably requires and (iii) in such extended period, Landlord shall not unreasonably refuse to consent to an appropriate reduction of the assignorL/C Security. Tenant shall reimburse Landlord’s reasonable legal costs incurred in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, 12.1 Tenant has deposited with Landlord the sum specified amount set forth in Paragraph 1.01E, which sum shall be held by Landlord Section y1.10 (the "SECURITY DEPOSIT") in cash as a security deposit during the Term. If Tenant performs and observes all for performance of it Tenant's obligations under this Lease, Landlord . The Security Deposit shall return the security deposit, or balance thereof then held by Landlordbe returned to Tenant, without interest, to Tenant within thirty (30) days after the Expiration Date later of: (i) the expiration of the Term; or after (ii) the date on which Tenant surrenders vacates the Premises and tenders possession of the Premisessame to Landlord, whichever is laterprovided that Tenant has discharged all such obligations. In Landlord may apply the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or Security Deposit to cure any other such default; Event of Default of Tenant, and if Landlord does so, Tenant shall, upon request, shall deposit with Landlord the amount so applied so that Landlord will have on hand at all times during within ten (10) days after written demand in the Term the full amount form of cash or other current funds. Landlord's application of the security deposit. Security Deposit shall not prevent Landlord from exercising any other right or remedy under this Lease or at law, and shall not operate as a limitation on any recovery to which Landlord may commingle the security deposit with Landlord’s other fundsotherwise be entitled. 4.02 In 12.2 If Landlord's interest in the event of a sale or lease of the BuildingPremises is transferred, Landlord shall have the right to transfer the security deposit unapplied portion of the Security Deposit to its purchaser or Tenantthe transferee thereof. In such event, and Landlord shall thereupon be deemed to have been released by Tenant from all responsibility liability or obligation for the return of such deposit; and the Security Deposit, Tenant agrees to look solely to the new purchaser or Tenant such transferee for the return of such deposit. In the event of a permitted assignment Security Deposit, and the transferee shall be bound by all provisions of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit relating to the assignorreturn of the Security Deposit.

Security Deposit. 4.01 As Tenant shall deposit with Landlord a letter of credit ("Letter of Credit") in the amount set forth in Article 1 ("Security Deposit"), upon Xxxxxx's execution and submission of this Lease. The Security Deposit shall serve as security for the prompt, full and faithful performance and observance by Tenant of all the terms and provisions of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all commits a Default, or owes any amounts to Landlord upon the expiration or earlier termination of it obligations under this Lease, Landlord shall return may use or apply the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all whole or any part of the security deposit in Security Deposit for the payment of such rent Tenants obligations hereunder. The use or to cure application of the Security Deposit or any portion thereof shall not prevent Landlord from exercising any other right or remedy provided hereunder or under any Law and shall not be construed as liquidated damages. In the event the Security Deposit is reduced by such default; and if Landlord does so, use or application. Tenant shall, upon request, shall deposit with Landlord the within ten (10) days after notice, an amount so applied so that Landlord will have on hand at all times during the Term sufficient to restore the full amount of the security depositSecurity Deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the BuildingUnless required by applicable Law, Landlord shall have not be required to keep any cash portion of the right Security Deposit separate from Landlord's general funds or pay interest on the Security Deposit. Any remaining portion of the Security Deposit shall be returned to transfer the security deposit to its purchaser or TenantTenant (or, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely at Landlord's option, to the new purchaser last assignee of Tenant's interest in this Lease) within sixty (60) days after Tenant (or such assignee) has vacated the Premises in accordance with Article 23. Tenant for shall not assign, pledge or otherwise transfer any interest in the return Security Deposit except as part of such deposit. In the event of a permitted an assignment of this Lease approved by TenantLandlord under Article 13, the security deposit and any attempt to do so shall be deemed to be held by Landlord as a deposit made by the assignee, null and Landlord shall have no further responsibility void. See Exhibit l for additional requirements regarding this Letter of such deposit to the assignorCredit.

Security Deposit. 4.01 As security for the performance and observance by Tenant Concurrently with Tenant’s delivery of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount sum, if any, stated in Item 9 of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the BuildingBasic Lease Provisions, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as security for the full and faithful performance of Tenants obligations under this Lease (the “Security Deposit”). Upon any Default by Tenant, including specifically Tenant’s failure to pay rent or to abide by its obligations under Sections 7.1 and 15.3 below, whether or not Landlord is informed of or has knowledge of the Default, the Security Deposit shall be deemed to be automatically and immediately applied, without waiver of any rights Landlord may have under this Lease or at law or in equity as a result of the Default as a setoff for full or partial compensation for that Default. If any portion of the Security Deposit is applied after a Default by Tenant, Tenant shall, within five (5) days after written demand by Landlord, deposit made by cash with Landlord in an amount sufficient to restore the assigneeSecurity 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. 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 sixty (60) days after the expiration of the Term, provided that Landlord may, in its reasonable discretion, retain all or a portion 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, with any balance of the Security Deposit being returned to Tenant within sixty (60) days after the expiration of the Term. Provided that Tenant has not at any time been in default under this Lease, and provided further that Tenant has not at any time been more than five (5) days late with respect to any payments of rent due under this Lease more than once during the Term, then Landlord shall have no further responsibility return to Tenant a portion of such deposit to the assignorSecurity Deposit in the form of a credit against Basic Rent in accordance with the following schedule: (a) Twenty-One Thousand Seven Hundred Sixty-One Dollars ($21,761.00) credited against the Basic Rent due and payable for the thirty-fifth (35th) month of the Term; and (b) Twenty-One Thousand Seven Hundred Sixty One Dollars ($21,761.00) credited against the Basic Rent due and payable for the thirty-sixth (36th) month of the Term.

Security Deposit. 4.01 As Subject to the terms hereof, Landlord shall ------------ ---------------- hold and retain a security deposit in the amount of Twelve Thousand Dollars ($12,000) throughout the term hereof as security for the faithful performance and observance by Tenant of all each and every term, condition, covenant and provision of its obligations under this Lease, Tenant has deposited with . Landlord may apply all or any portion of the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during to repair damage to the Term. If leased premises or to the restoration thereof or to any rent, including Tenant's proportionate share of Taxes and Operating Costs which may be due from Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by to Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then that Landlord may, at its option and without notice, shall so apply all or any part portion of the said security deposit, Tenant shall immediately upon notice, restore the same to its full amount. All or any portion of the security deposit in payment of such rent remaining at the expiration or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment termination of this Lease by which has not been so applied shall be returned to Tenant. If but only if Tenant shall not have been in default of any of the terms and conditions of this Lease beyond applicable notice and cure periods, Three Thousand Dollars ($3,000) of the security deposit shall be deemed applied to Tenant's rental obligations for the thirteenth (13th) calendar month of the term hereof; if but only if Tenant shall not have been in default of any of the terms and conditions of this Lease beyond applicable notice and cure periods, Three Thousand Dollars ($3,000) of the security deposit shall be held by Landlord as a deposit made by applied to Tenant's rental obligations for the assignee, and Landlord shall have no further responsibility twenty-fifth (25th) calendar month of such deposit to the assignorterm hereof.

Security Deposit. 4.01 As (a) Tenant shall deliver to Landlord a security deposit (the "Security Deposit") in the amount of Four Hundred Twenty-Six Thousand Three Hundred Dollars ($426,300). The Security Deposit shall be either a cash security deposit ("Cash Security Deposit") or in the form of an irrevocable letter of credit (the "Letter of Credit") which shall be issued by a bank acceptable to Landlord and shall have a long-term unsecured debt rating of not less than "A" from Standard & Poor's Corporation and in form and substance satisfactory to Landlord. The Security Deposit shall remain in full force and effect during the Term as security for the performance and observance payment by Tenant of the Rent and all other charges or payments to be paid hereunder and the performance of its the covenants and obligations under this Leasecontained herein. If the Security Deposit is in the form of a Letter of Credit, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum Letter of Credit shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within renewed at least thirty (30) days after prior to any expiration thereof. If Tenant fails to renew the Expiration Date or after Tenant surrenders possession Letter of Credit by such date, time being of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingessence, Landlord shall have the right at any time after the thirtieth (30th) day before such expiration date to transfer draw on the security Letter of Credit and to deposit the proceeds of the Letter of Credit as a Cash Security Deposit in any account for the benefit of Landlord. Any Cash Security Deposit shall not be commingled with other funds of Landlord or other Persons and no interest thereon shall be due and payable to Tenant. (b) If at any time an Event of Default shall have occurred and be continuing, Landlord shall be entitled, at its sole discretion, to draw on the Letter of Credit or to withdraw the Cash Security Deposit from the above-described account and to apply the proceeds in payment of (i) any Rent or other charges for the payment of which Tenant shall be in default, (ii) prepaid Basic Rent, (iii) any expense incurred by Landlord in curing any default of Tenant, and/or (iv) any other sums due to Landlord in connection with any default or the curing thereof, including, without limitation, any damages incurred by Landlord by reason of such default, including any rights of Landlord under Paragraph 23 or to do any combination of the foregoing, all in such order or priority as Landlord shall so determine in its sole discretion. Tenant further acknowledges and agrees that (1) Landlord's application of the proceeds of the Letter of Credit or Cash Security Deposit towards the payment of Basic Rent, Additional Rent or the reduction of any damages due Landlord in accordance with Paragraph 23 of this Lease, constitutes a fair and reasonable use of such proceeds, and (2) the application of such proceeds by Landlord towards the payment of Basic Rent, Additional Rent or any other sums due under this Lease shall not constitute a cure by Tenant of the applicable default provided that an Event of Default shall not exist if Tenant restores the Security Deposit to its purchaser or Tenant, full amount within five (5) days and Landlord shall thereupon be released by Tenant from all responsibility for in accordance with the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment requirements of this Lease by TenantParagraph 35, so that the security deposit original amount of the Security Deposit shall be deemed again on deposit with Landlord. (c) At the expiration of the Term and so long as no Event of Default exists the Letter of Credit or the Cash Security Deposit, as the case may be, shall be returned to be held by Landlord as a deposit made by the assignee, and Tenant. (d) Landlord shall have no further responsibility the right to designate Lender or any other holder of a Mortgage as the beneficiary of the Letter of Credit or the Cash Security Deposit during the term of the applicable Loan, and such deposit Lender or other holder of a Mortgage shall have all of the rights of Landlord under this Paragraph 35. Tenant covenants and agrees to execute such agreements, consents and acknowledgments as may be requested by Landlord from time to time to change the assignorholder of the Security Deposit as hereinabove provided.

Security Deposit. 4.01 As security for the performance and observance by Tenant Simultaneously with its execution of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord the sum specified Security Deposit set forth in Paragraph 1.01EIt above, which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Termterm hereof. If Tenant performs and observes all defaults with respect to any provision of it obligations under this Lease, Landlord shall return including, but not limited to the security deposit, or balance thereof then held by Landlord, without interest, provisions relating to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwiseRent, then Landlord may, at its option and without noticemay (but shall not be required to) use, apply or retain all or any part of the security deposit in Security Deposit for the payment of such rent any Rent or for the payment of any amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to cure compensate Landlord for any other such loss or damage which Landlord may suffer by reason of Tenant’s default; and if Landlord does so. If any portion of said Security Deposit is so used or applied, Tenant shall, upon requestshall 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 applied so that Landlord will have on hand at all times during the Term the full amount shall be an Event of the security depositDefault under this Lease. Landlord may commingle shall not be required to keep the security deposit with Landlord’s other Security Deposit separate from its general funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord Tenant shall thereupon not be released by entitled to interest on the Security Deposit. If Tenant from all responsibility for the return of such deposit; shall fully and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment faithfully perform every provision of this Lease to be performed by Tenantit, the security deposit Security Deposit or any balance thereof shall be deemed returned to be held by Landlord as a deposit made by the assigneeTenant (or at Landlord’s option, and Landlord shall have no further responsibility of such deposit to the assignorlast assignee of Tenant’s interest hereunder) within sixty (60) days after the expiration of the Primary Lease Term or any extension period thereof.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) business days following its receipt of written demand therefor from Landlord, 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. The provisions of this Article shall survive the expiration or earlier termination of this Lease. NOTE: FOR CALIFORNIA LEASES ONLY: TENANT HEREBY WAIVES THE REQUIREMENTS OF SECTION 1950.7 OF THE CALIFORNIA CIVIL CODE, AS THE SAME MAY BE AMENDED FROM TIME TO TIME. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Term Commencement Date the sum specified set forth in Paragraph 1.01ESection 2.7 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs and observes all Defaults (as defined below) with respect to any provision of it obligations under this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5. [Intentionally left blank]. 11.6. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.7. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is ninety (90) days after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit H issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations; (ii) Tenant from all responsibility for shall extend the return expiry date of such depositL/C Security from time to time as Landlord reasonably requires; and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As 30.01 The sum specified in the Lease Summary shall be deposited by Tenant with Landlord as security (the "Security Deposit") for the full and faithful performance and observance by Tenant of each and every term, provision, covenant and conditions of the Lease. If Tenant defaults in respect of any of the terms, provisions, covenants and conditions of this Lease then Landlord may, but shall not be required to, use, apply or retain the whole or any part of the Security Deposit for the payment of any Rent in default or for any other sum which Landlord may expend by reason of Tenant's default, including any damages as set forth in Section 17.03 or deficiency in Rent in the re-letting of the Demised Premises. If Landlord shall so use, apply or retain the whole or any part of the Security Deposit, Tenant shall upon demand immediately deposit with Landlord a sum equal to the amount so used, applied or retained in order to restore the Security Deposit to its original amount. 30.02 If Tenant fully and faithfully performs all the terms, provisions, covenants and conditions of its obligations under this Lease, Tenant has deposited with Landlord then the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security depositSecurity Deposit, or balance thereof then held by Landlordthereof, without interest, shall be returned to Tenant within thirty (30) business days after the Expiration Date or after removal of Tenant surrenders and surrender of possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or Demised Premises to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 30.03 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit Security Deposit to its the purchaser or Tenant, lessee and Landlord shall thereupon be released by Tenant from all responsibility liability for the return of such deposit; the Security Deposit and Tenant agrees to shall look solely to the new purchaser or Tenant Landlord for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.thereof

Security Deposit. 4.01 As security for the performance and observance by Tenant of all of its obligations under this Lease, Section 38.01. Tenant has deposited with Landlord the sum specified of $96,493.35 (the “Security Deposit”), as security for the faithful performance and observance by Tenant of the terms, provisions and conditions of this Lease; it is agreed that in Paragraph 1.01Ethe event Tenant defaults beyond any applicable notice and grace period with respect to any of the terms, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs provisions and observes all conditions of it obligations under this Lease, Landlord shall return may use, apply or retain the whole or any part of the security depositso deposited to the extent required for the payment of any sum as to which Tenant is in default beyond any applicable notice and grace period. Landlord shall hold Tenant’s security deposit in a separate interest bearing account (of which Tenant shall receive the interest less one (1%) percent that may be retained by Landlord as an administrative fee). In the event that Tenant shall fully and faithfully comply with all of the terms, or balance thereof then held by Landlordprovisions, without interestcovenants and conditions of this Lease, the security shall be returned to Tenant within thirty (30) days after the Expiration Date or and after Tenant surrenders delivery of entire possession of the Premises, whichever is laterPremises to Landlord in the condition required in this Lease. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part sale of the security deposit in payment of such rent or to cure any other such default; Land and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, the vendee and Landlord shall thereupon be released by Tenant from all responsibility liability for the return of such security. If, as a result of any application of all or any part of the security deposit; and Tenant agrees to look solely to , the new purchaser or Tenant for the return amount of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit being held by Landlord shall be deemed less than the amount required to be held by hereunder (a minimum of two (2) months Fixed Rent), Tenant shall forthwith and upon demand provide Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit with additional funds in an amount equal to the assignordeficiency.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As Concurrently with the execution and delivery of this Lease, Tenant shall deposit with Landlord the amount of ten thousand dollars ($10,000.00) per acre prorated (the “Security Deposit”) to be held as collateral security for the payment of Rent and for the faithful performance and observance by Tenant of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit covenants and conditions herein contained. If at any time during the Term, any of the Rent herein reserved shall be overdue and unpaid, then Owner may, at its option, appropriate and apply all or any portion of the Security Deposit to the payment of any such overdue Rent. If In the event of the failure of Tenant performs to keep and observes perform any of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant, then Owner at its option may appropriate and apply all or any portion of it obligations under this Leasethe Security Deposit, to compensate Owner for loss or damage sustained or suffered by Landlord shall return due to such breach on the security depositpart of Tenant. Should the entire Security Deposit, or balance thereof any portion thereof, be appropriated and applied by Owner, then held by LandlordTenant shall, without interestupon the written demand of Owner, forthwith remit to Tenant Owner a sufficient amount to restore said Security Deposit to the original sum deposited, and Xxxxxx’s failure to do so within thirty THIRTY (30) days after the Expiration Date or after Tenant surrenders possession receipt of the Premises, whichever is later. In the event of such demand shall constitute a default under this Lease. If Xxxxxx fully observes and performs every provision of this Lease to be observed and performed by Tenant Xxxxxx, the Security Deposit, or any balance then remaining (less any amount which has been applied as permitted under this Lease, whether in payment shall be returned to Tenant at Tenant’s last known address within SIXTY (60) of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part days after the later of: (a) the Expiration Date of the security deposit in payment of such rent or to cure any other such defaultLease; and if Landlord does so, (b) the date Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlordhas fully satisfied Tenant’s other fundssurrender obligations hereunder. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As security for the performance and observance by 11.1 Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5 If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations, (ii) Tenant from all responsibility for shall extend the return expiry date of such deposit; L/C Security from time to time as Landlord reasonably requires and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As (a) Simultaneously with the execution of this Lease, Tenant shall deposit with Landlord the sum of FIVE HUNDRED TWENTY-SEVEN AND 63/100 DOLLARS ($527.63) representing Two (2) Months’ Fixed Annual Rent in Lease Year Two (2), as a security deposit. Landlord shall not be required to maintain the Security Deposit in a separate account. The Security Deposit shall be security for the performance and observance by Tenant of all of its obligations Tenant’s obligations, covenants, conditions and agreements under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty . (30b) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a any default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times hereunder during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the BuildingLease Term, Landlord shall have the right to transfer use, apply or retain all or any portion of the security Security Deposit for (a) the payment of any rent, fees, charges or costs as to which Tenant is in default, or (b) the payment of any amount which Tenant may be obligated to pay to repair physical damage to the Premises or the Building pursuant to this Lease, or (c) the payment of any amount which Tenant may be obligated to pay for the compensation to Landlord for any losses incurred by reason of Tenant’s default, including, but not limited to, any damage or deficiency arising in connection with the reletting of the Premises. If any portion of the Security Deposit is so used or applied, then within three (3) business days after written notice to Tenant of such use or application, Tenant shall deposit with Landlord cash in an amount sufficient to restore the Security Deposit to its purchaser or original amount, and Tenant’s failure to do so shall constitute a default under this Lease. The Security Deposit is not a measure of damages, and Landlord’s use of the Security Deposit is not a measure of waiver of its other rights and remedies. Provided Tenant is not in default hereunder, Landlord shall return the Security Deposit to Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of less such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord portion thereof as a deposit made by the assignee, and Landlord shall have no further responsibility applied or be entitled to apply to satisfy any default by Tenant hereunder, within forty five (45) days following the later to occur of such deposit the expiration of the Lease Term or the vacating and surrendering of the Premises by Tenant to the assignorLandlord.

Security Deposit. 4.01 As security for Simultaneously with Tenant’s execution of this Lease, Tenant shall deliver the Security Deposit of Three-Hundred and Seventy-Five Thousand and No/100 Dollars ($375,000.00) to Landlord. The Security Deposit shall secure the performance and observance by Tenant of all of its Tenant’s obligations and liabilities under this Lease, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum and shall be held in addition to any and all remedies which may be permitted by law or by other provisions of this Lease. To the maximum extent permitted under applicable laws, Landlord as a security deposit during may commingle the TermSecurity Deposit with its other funds. If No interest shall be earned, paid, payable or owing to Tenant performs with respect to the Security Deposit, and observes Landlord may retain all of it obligations interest and other amounts generated thereby. Landlord may, from time to time and without prejudicing any other remedy available under this Lease, at law or in equity, apply the Security Deposit to: (i) pay any past due Rent; (ii) reimburse Landlord shall return for any damages, injuries, expenses or liabilities that it suffers or incurs as a result of Tenant’s default under this Lease; or (iii) cover the security deposit, or balance thereof then held cost of curing any Event of Default. Following any application of the Security Deposit by Landlord, without interestTenant shall pay to Landlord, upon demand, the amount of the Security Deposit so applied in order to restore the Security Deposit to its original amount. Although the Security Deposit shall be deemed the property of Landlord, if Tenant fully and faithfully complies with all of the terms hereof, any remaining balance of the same shall be reduced by One-Hundred and Eighty-Seven Thousand, Five-Hundred and No/100 dollars ($187,500.00) upon the earlier of either (a) Landlord obtaining permanent financing for the Building, or (b) at the end of the 2nd Lease Year, payable to Tenant within thirty (30) days of Tenant’s written request to Landlord following the expiration of the 2nd Lease Year or the Landlord obtaining permanent financing on the Building. Although the Security Deposit shall be deemed the property of Landlord, any remaining balance of the same shall be returned to Tenant within sixty (60) days after the Expiration Date or after Tenant surrenders possession later of the Premises, whichever is later. In the event termination of a default by Tenant under this Lease, whether in payment or the date all of rent or otherwise, then Landlord may, at its option Tenant’s obligations and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security depositliabilities under this Lease are satisfied. Landlord may commingle shall assign the security deposit with Security Deposit to any person or entity that acquires Landlord’s other funds. 4.02 In interest in the event of a sale or lease of the BuildingLeased Premises, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and whereupon Landlord shall have no further liability or responsibility of such deposit for its return to the assignorTenant.

Security Deposit. 4.01 As security for the performance and observance by Tenant 10.1. Landlord acknowledges receipt of all of its obligations under this Lease, Tenant has deposited with Landlord the sum specified set forth in Paragraph 1.01ESection 2.6 or a letter of credit in the amount of such sum (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant defaults with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. Notwithstanding anything to the contrary contained in this Article 10, Landlord acknowledges that it is presently in possession of a letter of credit issued by Silicon Valley Bank (as LOC No. SVBSF005422) in the sum of $300,000 (the “SVB L/C Security”), and that such letter of credit is acceptable (both as to the form of the letter of credit and the amount thereof) for satisfying Tenant’s obligations under this Section 10.1; provided, however, that, in the event Tenant obtains a new letter of credit to satisfy Tenant’s obligations pursuant to this Section 10.1, Landlord reserves the right to require that Tenant obtain such letter of credit in the form attached as Exhibit E to this Lease in accordance with the provisions of Section 10.6 below. 10.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall return be deemed to be applied first to the security payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 10.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 10.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 10.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 10.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is sixty (60) days after the then-current Term Expiration Date or after Tenant surrenders possession Date, a letter of credit in the form of Exhibit E (other than as provided in Section 10.1 above with respect to the SVB L/C Security) issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall promptly deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations; (ii) Tenant from all responsibility for shall extend the return expiry date of such depositL/C Security from time to time as Landlord reasonably requires; and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit the L/C Security. Tenant shall reimburse Landlord’s out-of-pocket legal costs not to exceed the assignorsum of Two Thousand Five Hundred Dollars ($2,500) (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As Subtenant shall, upon the execution of this Sublease, deposit with Tenant as security for the payment of rent and the performance and observance by Tenant of all other covenants to be performed by Subtenant, the sum of its obligations under $595,434 (the “Security Deposit”) in the form of a letter of credit meeting the requirements of Section 9.19 of the Lease (with any references to the amount of the Letter of Credit being the amount set forth in this Section 4) or a cash security deposit; provided, however, the form attached hereto as Exhibit “C” shall replace Exhibit G of the Lease, Tenant has deposited with Landlord as amended by Exhibit H of the sum specified in Paragraph 1.01EThird Amendment. In the event such Security Deposit shall be held as cash, which sum it shall be non-interest bearing and shall be held by Landlord as a security deposit during Tenant for the entire Term. If Tenant performs and observes Subtenant defaults in the payment of any monthly Rent installment or fails to perform any other covenant, all prior to the expiration of it obligations under this Leaseany applicable cure period, Landlord shall return Tenant, at its option, may apply sufficient sums from the security depositdeposit towards payment thereof. If Tenant elects to so apply the Security Deposit, or balance thereof then any part thereof, Subtenant shall be obliged to promptly (and no later than ten (10) days) replenish the Security Deposit for the amount so applied by Tenant. The total Security Deposit shall be held by LandlordTenant until expiration of the Term, without interest, and the unused portion of the Security Deposit not having been drawn against shall be refunded by Tenant to Tenant Subtenant within thirty (30) days after following the Expiration Date or after Tenant surrenders possession end of the PremisesTerm or earlier expiration thereof. Upon the start of Sublease Year 3, whichever is later. In the provided that no event of a default by Tenant under this Lease, whether in payment Sublease or Event of rent or otherwise, then Landlord may, at its option Default under the Lease has occurred and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenantis continuing, the security deposit Security Deposit shall be deemed reduced to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor$297,717.

Security Deposit. 4.01 As security for In connection with Tenant's entry into the performance and observance by Tenant of all of its obligations under this "Suite 220 Lease" (as defined in Paragraph 59, below) Tenant has deposited with Landlord a security deposit in the sum specified amount of $3,000. On the Commencement Date Tenant shall deposit with Landlord an additional security deposit in the amount of $2,654.55. Simultaneously with Tenant's execution and delivery of this Lease to Landlord, Tenant shall deliver to Landlord the Letter of Credit described in Paragraph 1.01E56, which sum below. Said cash deposit, in the total amount of $5,654.55, and said Letter of Credit shall together constitute the Security Deposit. The Security Deposit, including the Letter of Credit, shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants, and conditions of this Lease to be kept and performed by Tenant during the Termterm hereof. If Tenant performs and observes all defaults with respect to any provisions of it obligations under this Lease, Landlord shall return including but not limited to the security deposit, or balance thereof then held by Landlord, without interest, provisions relating to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwiserent, then Landlord may, at its option and without noticemay (but shall not be required to) use, apply or retain all or any part of the security deposit in Security Deposit and/or at Landlord's option, draw upon the Letter of Credit, for the payment of such any rent or to cure any other such sum in default; and if , or for the payment of any other amount which Landlord does somay 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. If any portion of said deposit is so used or applied, Tenant shall, upon requestwithin ten (10) days after demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, or if Landlord so draws upon the Letter of Credit, Tenant shall reinstate the Letter of Credit to its full face amount as required pursuant to Paragraph 56, and, in either event, Tenant's failure to do so applied so that Landlord will have on hand at all times during the Term the full amount shall be a material breach of the security depositthis Lease. Landlord may commingle shall not be required to keep the security deposit with Landlord’s other Security Deposit separate from its general funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord Tenant shall thereupon not be released by entitled to interest on the Security Deposit, except as described in Paragraph 56. If Tenant from all responsibility for the return of such deposit; shall fully and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment faithfully perform every provision of this Lease to be performed by Tenantit, the security deposit Security Deposit or any balance thereof shall be deemed returned to be held Tenant (or at Landlord's option, to the last assignee of Tenant's interests hereunder) at the expiration of the Lease term, provided that Landlord may retain the Security Deposit until such time as any amount due from Tenant in accordance with Paragraph 5 and 6 hereof has been determined and paid in full. Should Landlord sell its interest in the Premises during the term hereof and if Landlord deposits with the purchaser thereof the then unappropriated funds deposited by Landlord Tenant as a deposit made by the assigneeaforesaid, and assigns to the purchaser thereof Landlord's beneficial interest in the Letter of Credit, thereupon Landlord shall have no be discharged from any further responsibility of such deposit liability with respect to the assignorSecurity Deposit.

Security Deposit. 4.01 As Upon the commencement of this Lease in accordance with the Deposit Agreement and PARAGRAPH NUMBERED 1 hereof, from the RENTAL DEPOSIT referred to in PARAGRAPH NUMBERED 28A, the sum of THIRTY SEVEN THOUSAND EIGHT HUNDRED AND TWENTY AND 50/100 DOLLARS ($37,820.50) shall be deemed deposited with LANDLORD as security for the faithful performance and observance by Tenant of all of its obligations under the terms and conditions of this Lease on the part of TENANT to be performed. This deposit is not rent, but shall be applied to the Minimum Rent for the 47th and 48th months of the Term of this Lease, provided Tenant has deposited with Landlord the sum specified is not in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all default of it obligations under any term or condition of this Lease, Landlord shall return The deposit will be returned to TENANT upon the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession earlier expiration of the Premisesterm hereof if TENANT has fully performed TENANT's obligations hereunder and if TENANT leaves the premises in the condition required by the Lease. LANDLORD shall not be required to hold said security deposit as a separate fund, whichever is laterand no interest shall be payable thereon. In If at any time during the event term of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part prior to the application of the security deposit to Minimum Rent as aforesaid, any of the rent herein reserved shall, in payment of such rent accordance with the default provisions hereof, be overdue and unpaid or to cure any other such default; and if Landlord does so, Tenant sum payable by TENANT to LANDLORD hereunder shall, upon requestin accordance with said default provisions, deposit with Landlord the amount so applied so that Landlord will have on hand be overdue and unpaid, then LANDLORD may, at all times during the Term the full amount LANDLORD's option and after written notice to TENANT, appropriate and apply any portion of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser the payment of the overdue rent or Tenantother sum, and Landlord If LANDLORD does apply any portion of the security deposit for any such purpose, then TENANT shall thereupon be released by Tenant from all responsibility for promptly redeposit with LANDLORD a sufficient amount of cash to restore the return of such deposit; and Tenant agrees to look solely security to the new purchaser or Tenant for proper amount, TENANT's failure to do so within THIRTY (30) DAYS after the return of such deposit. In the event of date due shall constitute a permitted assignment breach of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as and a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignordefault hereunder.

Security Deposit. 4.01 As security for the performance and observance by 11.1. Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the First Financing Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant defaults with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2. In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3. Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after earlier termination of this Lease. If Tenant surrenders possession fails to fully and faithfully perform every provision of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without noticemay (but shall not be required to) use, apply or retain all or any part of the security deposit in Security Deposit for the payment of such rent any Rent or any other sum in default, or to cure compensate Landlord for any other such defaultloss or damage that Landlord may suffer by reason of Tenant’s failure to fully and faithfully perform every provision of this Lease. 11.5. If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; and provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does sonot receive interest on the Security Deposit. 11.6. The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant shallmay at any time, upon requestexcept when Tenant is in Default (as defined below), deposit with Landlord deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is six (6) months after the then-current Term Expiration Date, a letter of credit in the form of Exhibit E issued by an issuer reasonably satisfactory to Landlord, in the amount so applied so that of the Security Deposit, with an initial term of at least one year. Landlord will have on hand may require the L/C Security to be re-issued by a different issuer at all times any time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then: (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations; (ii) Tenant from all responsibility for shall extend the return expiry date of such depositL/C Security from time to time as Landlord reasonably requires; and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.

Security Deposit. 4.01 As security for the performance and observance by 11.1 Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant commits any Default, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s Default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of 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. 11.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3 Landlord shall return deliver to any purchaser of Landlord’s interest in the security Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date expiration or after Tenant surrenders possession earlier termination of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As Upon the execution and delivery of this Lease, Tenant shall deliver to Landlord a security deposit in the amount of Sixteen Thousand Two Hundred Thirty-Five and 00/100 Dollars ($16,235.00) (the “Security Deposit”). Landlord shall hold the same throughout the Lease Term as security for the performance and observance by Tenant of all obligations on the part of Tenant hereunder. Landlord shall have the right from time to time, without prejudice to any other remedy Landlord may have on account thereof, to apply such Security Deposit, or any part thereof, to Landlord’s damages arising from, or to cure, any default by Tenant of its obligations under this Leasehereunder beyond the expiration of any applicable grace periods. If Landlord shall so apply any or all of such Security Deposit, Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs and observes all of it obligations under this Lease, Landlord shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, immediately upon request, demand deposit with Landlord the amount so applied to be held as security hereunder. Landlord shall return the Security Deposit, or so that Landlord will much thereof as shall have theretofore not been applied in accordance with the terms of this Section 4.1, to Tenant on hand at all times during the Term the full amount expiration or earlier termination of the security depositLease Term and the surrender of possession of the Premises by Tenant to Landlord at such time, provided that there is then existing no default of Tenant (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute a default of Tenant). While Landlord may holds such Security Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the security deposit same with Landlord’s other funds. 4.02 In . If Landlord conveys Landlord’s interest under this Lease, the event of a sale Security Deposit, or lease of the Buildingany part thereof not previously applied, shall be turned over by Landlord shall have the right to transfer the security deposit to its purchaser or TenantLandlord’s grantee, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and and, if so turned over, Tenant agrees to look solely to such grantee for proper application of the new purchaser or Tenant for Security Deposit in accordance with the terms of this Article 4, and the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorthereof in accordance herewith.

Security Deposit. 4.01 As security for Concurrently with the performance and observance by Tenant execution of all of its obligations under this Lease, Tenant has deposited with Landlord one month’s Base Rent in the sum specified in Paragraph 1.01Eamount of Eighteen Thousand Five Hundred and 00/100 Dollars ($18,500.00), which sum amount shall be held by Landlord as a security deposit during for the Term. If faithful performance by Tenant performs and observes of all of it obligations under the terms, covenants, conditions and agreements of this Lease, . Landlord shall return the not be required to separate such security deposit, or balance thereof then held by from. Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later’s general funds and no interest shall be payable thereon. In the event Tenant shall default in any of a default by Tenant under this Leasesuch terms, whether in covenants, conditions, or agreements, including, but not limited to, the payment of rent or otherwiseany Rent hereunder, then Landlord may, at its option and without noticemay use, apply all or retain the whole or any part of the security deposit in required for the payment of such rent any Rent or to cure any other sum expended by Landlord by reason of Tenant’s default. Tenant, within five (5) days after written demand by Landlord, shall replenish the security or any portion thereof so used or applied by Landlord; Tenant’s failure to restore such default; security shall constitute a material breach of the Lease. The security deposit shall not be deemed an advance payment of Rent. If Lessee shall faithfully comply with all terms, covenants, conditions and if Landlord does soagreements of this Lease, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount any balance of the security depositdeposit then due shall be returned within fourteen (14) days after termination of this Lease, but only after delivery of entire possession of the Premises to Landlord and other performance by Tenant of all obligations required hereunder. Landlord may commingle the security deposit with Landlord’s other funds. 4.02 In the event of sale of the Premises or of a sale or lease of the BuildingLandlord’s interest in this Lease, Landlord shall have the right to transfer the security deposit to its purchaser or Tenanttransferee, and upon such transfer, Landlord shall thereupon be released by Tenant from form all responsibility liability with regard thereto, Tenant looking solely to the new landlord for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignorsaid security.

Security Deposit. 4.01 As security for The following text shall be added to the performance and observance by Lease as a ---------------- new Article 31: Security Deposit - Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord of TWENTY-TWO THOUSAND SEVEN HUNDRED SEVENTY ONE 91/100 DOLLARS (22771.91) as a security deposit during ("Security Deposit"). The Security Deposit shall not bear interest to Tenant and shall be security for the Term. If Tenant performs payment and observes all performance of it obligations under the obligations, covenants, conditions and agreements in this Lease, Landlord . The Security Deposit shall return the security deposit, or balance thereof then held by Landlord, without interest, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession not constitute an advance payment of the Premises, whichever is later. In the event of a default any amounts owed by Tenant under this Lease, whether in payment or a measure of rent damages to which Landlord shall be entitled upon a breach of this Lease by Tenant or otherwise, then Landlord may, at its option and without notice, apply all or any part upon termination of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security depositthis Lease. Landlord may commingle without prejudice to any other remedy, use the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely Security Deposit to the new purchaser extent necessary to remedy any default in the payment of any Rent installment or Tenant for the return any other amounts due to Landlord under this Lease, or to satisfy any other obligation of such depositTenant. In the event Landlord uses any or all of a permitted assignment the Security Deposit to remedy any Tenant default, Tenant shall promptly restore the Security Deposit to its original amount. If Landlord transfers its interest in the leased premises during the Term, Landlord may assign the Security Deposit to Its transferee who shall become obligated to the tenant for its return pursuant to the terms of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assigneeLease, and thereafter Landlord shall have no further responsibility liability for the return of such deposit the Security Deposit. So long as Tenant is not in default of any of the provisions of this Lease, Landlord agrees to accept the assignorpayment of the Security Deposit in six (6) equal monthly installments of FOUR THOUSAND ONE HUNDRED SIXTY 80/100 DOLLARS ($4,160.89) each, due on the first day of each calendar month beginning July, 1999 through December, 1999.

Security Deposit. 4.01 As security for the performance and observance by Upon execution of this lease Tenant of all of its obligations under this Lease, Tenant has deposited will deposit with Landlord the sum specified in Paragraph 1.01E, which sum shall of One hundred fifteen thousand four hundred eighteen dollars and seventy four cents ($115,418.74) as security (“Security Deposit”) for the full and faithful performance of every provision of this Lease to be held performed by Landlord as a security deposit during the TermTenant. If Tenant performs and observes all is in Default with respect to any provision of it obligations under this Lease, including, but not limited to, the provisions relating to the payment of Rent, Landlord may use, apply or retain all or any part of the security deposit for the payment of any Rent and any other sum with respect to which Tenant is 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 Ten ant’s Default. If any portion of the security deposit is to be used or applied, Tenant, within five (5) days after written demand therefore, shall 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. Landlord shall return not be required to keep the security deposit separate from its general funds and Tenant shall not be entitled to interest on any security deposit. If Tenant fully and faithfully performs every provision of this Lease to be performed by it, the security deposit or any balance thereof then held by Landlord, without interest, shall be returned to Tenant (or at Landlord’s option to the last assignee of Tenant’s interest hereunder) within thirty (30) days after the Expiration Date or after Tenant surrenders possession expiration of the Term and Tenant’s vacation of the Premises. Notwithstanding the foregoing, whichever is laterTenant may substitute the three (3) months cash security with a standby Letter of Credit (LOC). In Such LOC will be in a form acceptable to Landlord, renewable yearly, evergreen and must be restored to the event of a default original amount by Tenant under this Leaseif drawn upon, whether within five (5) business days, with a failure to replenish, to be considered a Default. If after the first twelve (12) months of paying rent, Tenant is not in payment Default, the LOC will be decreased to equal two (2) months of rent or otherwiseBase Rent. If after twenty four (24) months of paying rent, then Landlord mayTenant is not in Default, at its option and without notice, apply all or any part the Security Deposit will be reduced to equal one (1) month of Base Rent for the remainder of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times during the Term the full amount of the security deposit. Landlord may commingle the security deposit with Landlord’s other fundsLease. 4.02 In the event of a sale or lease of the Building, Landlord shall have the right to transfer the security deposit to its purchaser or Tenant, and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to the new purchaser or Tenant for the return of such deposit. In the event of a permitted assignment of this Lease by Tenant, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility of such deposit to the assignor.

Security Deposit. 4.01 As A. Upon the commencement date of this Lease, Tenant’s previous lease shall be terminated and any pre-paid rents, deposits and monies owed shall be transferred to this Lease. Tenant’s security deposit (in the amount of $4,833.60) shall be security for the full and faithful performance and observance by the Tenant of all the terms, covenants, and conditions of its obligations under this Leaselease upon the Tenant’s part to be performed, which said security deposit shall be returned to the Tenant after the time fixed as the expiration of the term hereof, provided the Tenant has deposited with Landlord the sum specified in Paragraph 1.01E, which sum shall be held by Landlord as a security deposit during the Term. If Tenant performs fully and observes faithfully carried out all of it obligations under this Leasesaid terms, covenants and conditions on the Tenant’s part to be performed. Landlord shall return have the security depositright, or balance thereof then held by Landlord, without interestbut not the obligation, to Tenant within thirty (30) days after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, at its option and without notice, apply all or any part of the security said deposit in payment of such rent or to cure any default of the Tenant, and without prejudice to any other such default; and remedy Landlord may have on account thereof, and, if the Landlord does so, Tenant shall, upon requestdemand, deposit with Landlord the amount so applied so that the Landlord will shall have the full deposit on hand at all times during the Term term of this lease. Tenant’s failure to pay to Landlord a sufficient amount to restore said security to the full amount original sum deposit within five (5) days after receipt of demand therefore shall constitute a breach of this Lease. No interest shall be paid by the Landlord to the Tenant on such security deposit. Should Tenant comply with all of said terms, covenants, and conditions and promptly pay all of the rental herein provided for as it falls due, and all other sums payable by the Tenant to the Landlord may commingle hereunder, the security said deposit with shall be returned to the Tenant within thirty (30) days after Landlord’s other fundsinspection of the Leased Premises. 4.02 B. In the event of bankruptcy or other creditor or debtor proceedings against the Tenant, all security shall be deemed to be applied first to the payment of rent and other charges due Landlord for all periods prior to the filing of such proceedings. C. In the event of a sale of the building or a lease of the Buildingland on which it stands, subject to this Lease, the Landlord shall have the right to transfer the security deposit to its purchaser the vendee or Tenant, lessee and the Landlord shall thereupon be considered released by the Tenant from all responsibility liability for the return of such deposit; security and the Tenant agrees to shall look solely to the new purchaser or Tenant landlord solely for the return of such depositthe said security and it is agreed that this shall apply to every transfer or assignment made of the security to a new Landlord. In the event of a permitted assignment of The security deposit under this Lease by Tenantshall not be mortgaged, the security deposit shall be deemed to be held by Landlord as a deposit made assigned, transferred, or encumbered by the assignee, Tenant without the prior written consent of the Landlord and Landlord shall have no further responsibility may be co-mingled with other funds of such deposit to the assignorLandlord.

Security Deposit. 4.01 As security for the performance and observance by 11.1 Tenant of all of its obligations under this Lease, Tenant has deposited shall deposit with Landlord on or before the Execution Date the sum specified set forth in Paragraph 1.01ESection 2.6 (the “Security Deposit”), which sum shall be held by Landlord as a security deposit for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to be kept and performed by Tenant during the Term. If Tenant performs period commencing on the Execution Date and observes all ending upon the expiration or termination of it Tenant’s obligations under this Lease. If Tenant Defaults (as defined below) with respect to any provision of this Lease, including any provision relating to the payment of Rent, then Landlord may (but shall not be required to) use, apply or retain all or any part of the Security Deposit for the payment of any Rent or any other sum in default, or to compensate Landlord for any other loss or damage that Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so used or applied, then Tenant shall, within ten (10) days following demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount, and Tenant’s failure to do so shall be a material breach of this Lease. The provisions of this Article shall survive the expiration or earlier termination of this Lease. 11.2 In the event of bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings. 11.3 Landlord may deliver to any purchaser of Landlord’s interest in the Premises the funds deposited hereunder by Tenant, and thereupon Landlord shall return be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 11.4 If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the security depositSecurity Deposit, or any balance thereof then held by thereof, shall be returned to Tenant (or, at Landlord, without interest’s option, to Tenant the last assignee of Tenant’s interest hereunder) within thirty (30) days after the expiration or earlier termination of this Lease. 11.5 If the Security Deposit shall be in cash, Landlord shall hold the Security Deposit in an account at a banking organization selected by Landlord; provided, however, that Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord. Landlord shall be entitled to all interest and/or dividends, if any, accruing on the Security Deposit. Landlord shall not be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the Security Deposit. 11.6 The Security Deposit may be in the form of cash, a letter of credit or any other security instrument acceptable to Landlord in its sole discretion. Tenant may at any time, except when Tenant is in Default (as defined below), deliver a letter of credit (the “L/C Security”) as the entire Security Deposit, as follows: (a) If Tenant elects to deliver L/C Security, then Tenant shall provide Landlord, and maintain in full force and effect throughout the Term and until the date that is four (4) months after the then-current Term Expiration Date Date, a letter of credit in the form of Exhibit E, or after Tenant surrenders possession such other form that Landlord may approve in its sole discretion, issued by an issuer reasonably satisfactory to Landlord, in the amount of the PremisesSecurity Deposit, whichever is laterwith an initial term of at least one year. In Landlord may require the event of L/C Security to be re-issued by a default by Tenant under this Lease, whether in payment of rent or otherwise, then Landlord may, different issuer at its option and without notice, apply all or any part of the security deposit in payment of such rent or to cure any other such default; and if Landlord does so, Tenant shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times time during the Term if Landlord reasonably believes that the full amount issuing bank of the security deposit. Landlord L/C Security is or may commingle the security deposit with Landlord’s other funds. 4.02 In the event of a sale or lease of the Buildingsoon become insolvent; provided, however, Landlord shall have return the right existing L/C Security to transfer the security deposit existing issuer immediately upon receipt of the substitute L/C Security. If any issuer of the L/C Security shall become insolvent or placed into FDIC receivership, then Tenant shall immediately deliver to its purchaser or TenantLandlord (without the requirement of notice from Landlord) substitute L/C Security issued by an issuer reasonably satisfactory to Landlord, and otherwise conforming to the requirements set forth in this Article. As used herein with respect to the issuer of the L/C Security, “insolvent” shall mean the determination of insolvency as made by such issuer’s primary bank regulator (i.e., the state bank supervisor for state chartered banks; the OCC or OTS, respectively, for federally chartered banks or thrifts; or the Federal Reserve for its member banks). If, at the Term Expiration Date, any Rent remains uncalculated or unpaid, then (i) Landlord shall thereupon be released by with reasonable diligence complete any necessary calculations, (ii) Tenant from all responsibility for shall extend the return expiry date of such deposit; L/C Security from time to time as Landlord reasonably requires and Tenant agrees to look solely to the new purchaser or Tenant for the return of (iii) in such deposit. In the event of a permitted assignment of this Lease by Tenantextended period, the security deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further responsibility not unreasonably refuse to consent to an appropriate reduction of such deposit to the assignorL/C Security. Tenant shall reimburse Landlord’s legal costs (as estimated by Landlord’s counsel) in handling Landlord’s acceptance of L/C Security or its replacement or extension.