Common use of Security Deposit Clause in Contracts

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously with the Upon execution of this Lease, Tenant shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Deposit specified in Paragraph 2.d. above as security for Tenant’s performance of its all of Tenant’s covenants and obligations under this Lease. The ; provided, however, that the Security Deposit is not an advance rent deposit or an advance payment of Rent or any other kind, nor a measure or limit of Landlord’s damages upon an Tenant’s default. Landlord shall not be required to segregate the Security Deposit from its other funds and no interest shall accrue or be payable to Tenant with respect thereto. Landlord may (but shall not be required to) use the Security Deposit or any portion thereof to cure any Event of Default (or to compensate Landlord for any damage Landlord incurs as defined herein). Landlord maya result of Tenant’s failure to perform any of its covenants or obligations hereunder, from time to time following an Event of Default and without prejudice to it being understood that any other remedy, use all or a part of the Security Deposit shall not constitute a bar or defense to perform any obligation of Landlord’s remedies under this Lease or at law. In such event and upon written notice from Landlord to Tenant fails specifying the amount of the Security Deposit so utilized by Landlord and the particular purpose for which such amount was applied, Tenant shall immediately deposit with Landlord an amount sufficient to perform hereunderreturn the Security Deposit to the amount specified in Paragraph 2.d. Following any Tenant’s failure to make such payment to Landlord within five (5) days of Landlord’s notice shall constitute an Event of Default. Within thirty (30) days after the expiration or termination of this Lease, Landlord shall return to Tenant the Security Deposit or the balance thereof then held by Landlord after application of the Security DepositDeposit as permitted hereunder; provided, Tenant however, that in no event shall pay to any such return be construed as an admission by Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its covenants and obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21 below), Landlord shall, within 60 days after the expiration nor any purchaser at any judicial or private foreclosure sale of the Term Real Property or any portion thereof, shall be responsible to Tenant for the Security Deposit unless and Tenant’s surrender only to the extent such holder or purchaser shall have actually received the same. Tenant hereby unconditionally and irrevocably waives the benefits and protections of California Civil Code Section 1950.7, and, without limitation of the Premises in compliance with the provisions scope of this Leasesuch waiver, return to Tenant the portion acknowledges that Landlord may use all or any part of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, compensate Landlord may retain that portion for damages resulting from termination of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations tenancy created hereunder (including, without limitation, damages recoverable under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this California Civil Code Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit1951.2).

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, upon delivery of an executed copy of this Lease to Landlord, a security deposit (the execution “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by Silicon Valley Bank or another FDIC-insured financial institution reasonably satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which funds shall be returned to Tenant within a reasonable period following Tenant’s delivery to Landlord of a substitute Letter of Credit. The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages under California Civil Code Section 1951.2, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amountthe amount set forth on Page 1 of this Lease. Provided Tenant hereby waives the provisions of any law, now or hereafter in force, including, without limitation, California Civil Code Section 1950.7, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant has or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all of its obligations hereunder, amounts to which Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with is entitled under the provisions of this Lease), return shall be returned to Tenant (or, at Landlord’s option, to the portion last assignee of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresinterest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, on or before January 10, 2014, a security deposit (the execution “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so that will restore the Security Deposit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now or hereafter in force which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all of its obligations hereunder, amounts to which Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with is entitled under the provisions of this Lease), return shall be returned to Tenant (or, at Landlord’s option, to the portion last assignee of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresinterest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously Tenant shall deposit with the execution Landlord, upon delivery of an executed copy of this LeaseLease to Landlord, a security deposit (the “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in the Basic Lease Provisions, which Security Deposit shall be in the form of an unconditional, irrevocable and transferable letter of credit (the “Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution reasonably satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which until such time as Tenant provides a substitute Letter of Credit, whereupon Landlord shall forthwith refund such funds to Tenant. The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on within 5 days of demand the amount so that will restore the Security Deposit to the amount set forth in the Basic Lease Provisions. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has performed is not then in default under this Lease, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of its obligations this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease. If, after the fourth anniversary of the Commencement Date, Tenant is not in Default of its obligations under this Lease, then upon written request of Tenant, the Security Deposit shall be reduced to an amount equal to three (3) months’ then applicable monthly Base Rent (the “Reduced Security Deposit”), provided that Tenant is not thereafter in Default of its obligations under this Lease. If the foregoing conditions are met, upon Tenant’s written request, Landlord shall return to Tenant the unapplied portion of the Security Deposit which was not applied then held by Landlord, less the Reduced Security Deposit, to satisfy Tenant within 60 days of Tenant’s obligationsrequest. Notwithstanding Such return may be effected through execution by Landlord and the preceding sentence and issuing bank of an amendment to the extent permitted Letter of Credit or through issuance of a replacement by applicable Lawthe issuing bank of the Letter of Credit in the amount of the Reduced Security Deposit in the same form as the Letter of Credit but for such reduction, provided, however, that, in the event that such a replacement of the Letter of Credit is issued, Landlord may retain that shall have no obligation to deliver the original Letter of Credit unless and until Landlord has received the original replacement of the Letter of Credit in form and substance as required hereunder. If Landlord returns to Tenant any portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under in accordance with this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time Section, then from and after the expiration of the Term that Landlord is actually able to reconcile and confirm date such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant is returned to Tenant, the “Security Deposit” shall be deemed to be the Reduced Security Deposit for all purposes of this Lease, subject to the foregoing shall not exceed 50% terms of the total this Section. The Reduced Security Deposit required by shall be increased in accordance with the terms of this Section if Tenant is in Default hereunder. If Tenant is in Default under the Lease. The , the Security Deposit may shall be commingled with other funds, and no interest increased to an amount equal to $541,424.00. Such increased Security Deposit shall be paid thereonto Landlord within 10 days of Landlord’s written demand, in the case of Tenant’s Default under the Lease. If Tenant is required to increase the Reduced Security Deposit in accordance with this Section, then from and after the date such monies are required to be deposited with Landlord, the “Security Deposit” shall be deemed to be the amount of $541,424.00. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Lease, then Landlord may assign the Section 6. or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously with the Tenant shall pay to Port upon execution of this Lease, Tenant shall pay in addition to Landlord the advance payment of the first month's Base Rent, the Security Deposit, which shall be held in cash, in the sum specified in the Basic Lease Information, as security for the faithful performance by Landlord to secure Tenant’s performance Tenant of its obligations under all terms, covenants and conditions of this Lease. The Security Deposit If Base Rent is not an advance payment increased beyond the amount set forth in the Basic Lease Information for the last year of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord maythe Term, then from time to time following an Event of Default and without prejudice to any other remedyafter such increase, use all or a part Tenant shall increase the amount of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application maintain the same ratio of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amountBase Rent as existed on the date immediately prior to such Base Rent increase. Provided Any increase in the Security Deposit shall be delivered to Port on the same date that such increase in Base Rent is first due. Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after agrees that Port may (but shall not be required to) apply the expiration of the Term and Tenant’s surrender of the Premises Security Deposit in compliance with the provisions of whole or in part to (a) pay any sum due to Port under this Lease; (b) compensate Port for any expense incurred or damage caused by Tenant, return its Agents or Invitees; (c) cure any default by Tenant; or (d) cure, or attempt to cure, any failure of Tenant to perform any other covenant, term or condition contained herein. Tenant shall immediately upon demand pay Port a sum equal to the portion of the Security Deposit which was expended or applied by Port. Port shall not applied be required to satisfy Tenant’s obligationskeep the Security Deposit separate from its general funds, and Tenant shall not be entitled to any interest on the Security Deposit. Notwithstanding Nothing contained in this Section shall in any way diminish or be construed as waiving any of Port's other remedies set forth in this Lease or provided by law or equity. Tenant hereby waives the preceding sentence and to the extent permitted by applicable Lawprovisions of California Civil Code Section 1950.7 and/or any successor statute, Landlord it being expressly agreed that Port may retain that apply all or any portion of the Security Deposit which Landlord in payment of any and all sums reasonably estimates is necessary to pay compensate Port for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any Agent or Invitee of Tenant, and that following a default by Tenant, all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the or any portion of the Security Deposit may be retained by Landlord pursuant Port following a termination of this Lease and applied to the foregoing shall not exceed 50% future damages, including damages for future Rent, pending determination of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositsame.

Security Deposit. Contemporaneously The Security Deposit shall be deposited with Landlord by Tenant contemporaneously with the execution of this Lease, delivery by Tenant shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is shall be held by Landlord, without liability for interest, as security for the performance by Tenant of Tenant’s covenants and obligations under this Lease, it being expressly understood that the Security Deposit shall not be considered an advance payment of Rent or a measure or limit of LandlordTenant’s liability for damages upon an Event in case of Default (as defined herein)default by Tenant. Landlord may, from time to time following an Event of Default and time, without prejudice to any other remedy, use all or a part of the Security Deposit to perform the extent necessary to make good any arrearages of Rent or to satisfy any other covenant or obligation of Tenant fails to perform hereunderhereunder following the expiration of any applicable cure periods. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations the amount required hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return from time to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereontime. If Landlord transfers its interest in the Premises and Complex during the transferee assumes Landlord’s obligations under term of this Lease, then Landlord may assign the Security Deposit to the transferee and upon assumption by such transferee of liability for the Security Deposit, Landlord thereafter shall have no further liability for the return of such Security Deposit. Upon application of all or any part of the Security Deposit, Tenant must upon demand restore the Security Deposit to the amount required hereunder, from time to time. No application of the Security Deposit by Landlord will be deemed to have cured Tenant’s default. Tenant waives all provisions of Laws, now or hereinafter in force, which restrict the amount or types of claim that a landlord may make upon a security deposit or imposes upon a landlord (or its successors) any obligation with respect to the handling or return of security deposits. The rights and obligations Security Deposit will be released to Tenant within thirty (30) days of the surrender of the Premises to Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed deductions made by Laws applicable Landlord pursuant to the terms of this Lease. Notwithstanding anything to the contrary contained herein, Tenant shall provide the Security DepositDeposit in the form of a Letter of Credit in accordance with Exhibit “M” attached hereto.

Security Deposit. Contemporaneously with the Upon execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit, which . The Security Deposit shall be held by Landlord as security for the faithful performance of all the terms of this Lease to secure be observed and performed by Tenant’s performance . The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. Tenant shall cause the Security Deposit to be maintained throughout the term in the amount set forth in Section 1.1. If the Annual Fixed Rent or Additional Rent payable hereunder shall be overdue and unpaid or should Landlord make any payment on behalf of the Tenant, or Tenant shall fail to perform any of the terms of this Lease, then Landlord may, at its option and without notice or prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply the entire Security Deposit or so much thereof as may be necessary to compensate Landlord toward the payment of Annual Fixed Rent, Additional Rent or other sums or loss or damage sustained by Landlord due to such breach by Tenant; and Tenant shall forthwith upon demand restore the Security Deposit to the amount stated in Section 1.1. Notwithstanding the foregoing, upon the application by Landlord of all or any portion of the Security Deposit (with or without notice thereof to Tenant) to compensate Landlord for a failure by Tenant to pay any Annual Fixed Rent or Additional Rent when due or to perform any other obligation hereunder, and until Tenant shall have restored the Security Deposit to the amount required by Section 1.1, Tenant shall be deemed to be in default in the payment of Additional Rent for purposes of Section 8.1(i) hereof. So long as Tenant shall not be in default of its obligations under this Lease, Landlord shall return the Security Deposit, or so much thereof as shall have not theretofore been applied in accordance with the terms of this Section 4.7, to Tenant promptly following the expiration or earlier termination of the term of this Lease and the surrender of possession of the Premises by Tenant to Landlord in accordance with the terms of this Lease. The While Landlord holds the Security Deposit is not an advance payment of Rent or a measure or limit of Deposit, Landlord shall have no obligation to pay interest on the same and shall have the right to commingle the same with Landlord’s damages upon an Event of Default (as defined herein)other funds. If Landlord mayconveys Landlord’s interest under this Lease, from time the Security Deposit, or any part thereof not previously applied, shall be turned over by Landlord to time following an Event of Default Landlord’s grantee, and without prejudice Tenant shall look solely to any other remedy, use all or a part such grantee for proper application of the Security Deposit in accordance with the terms of this Section 4.7 and the return thereof in accordance herewith. The holder of a mortgage on the Property shall not be responsible to perform any obligation Tenant fails to perform hereunder. Following any such for the return or application of the Security Deposit, Tenant shall pay whether or not it succeeds to the position of Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until unless such time after the expiration of the Term that Landlord is holder actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to receives the Security Deposit.

Security Deposit. Contemporaneously with Subject to the terms of Article 35 below, the Security Deposit, if any, shall be delivered to Landlord upon the execution of this Lease, Lease by Tenant shall pay to Landlord the Security Deposit, which and shall be held by Landlord to secure without liability for interest (unless required by Law) as security for the performance of Tenant’s performance of its obligations under this Leaseobligations. The Security Deposit is not an advance payment of Rent or a measure or limit of LandlordTenant’s damages upon an Event liability for damages. The amount of Default the Security Deposit shall be subject to reduction in the manner and at the times specified as though it were a Letter of Credit (as defined hereindescribed in Article 35). Landlord may, from time to time following an Event of Default and time, without prejudice to any other remedy, use all or a part portion of the Security Deposit to perform satisfy past due Rent or to cure any obligation Tenant fails to perform hereunderuncured default by Tenant. Following any such application of If Landlord uses the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that At the later of (1) termination of this Lease, or (ii) the date Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of surrenders the Premises to Landlord in compliance accordance with the provisions of this Lease, Landlord shall return to Tenant the any unapplied portion of the Security Deposit which was not applied (less any amounts retained to satisfy Tenant’s obligations. Notwithstanding reimburse Landlord for any uncured defaults) to Tenant within 10 Business Days after the preceding sentence date this Lease expires or terminates and to the extent permitted by applicable Law, Landlord may retain that portion Tenant surrenders possession of the Security Deposit which Premises to Landlord reasonably estimates is necessary in accordance with this Lease. In addition to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that any other deductions Landlord is actually able entitled to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord make pursuant to the foregoing terms hereof, Landlord shall not exceed 50% have the right to make a good faith estimate of any unreconciled Expenses and/or Taxes as of the total Termination Date and to deduct any anticipated shortfall from the Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonDeposit. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this LeasePremises, then Landlord may assign the Security Deposit to the transferee and and, following the assignment, Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and , provided that such transferee has agreed in writing to assume the obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable Lease with respect to the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from its other accounts. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code, or any similar or successor Laws now or hereinafter in effect.

Security Deposit. Contemporaneously Section 29.1 Tenant has deposited the Security Deposit with Landlord as security for the execution full and faithful performance of every provision of this Lease to be performed by Tenant through the Term and all renewals thereto. If an Event of Default shall have occurred with respect to any provision of this Lease, including but not limited to the provisions relating to the payment of Fixed Rent and Additional Rent, Landlord may use, apply or retain all or any part of this Security Deposit for the payment of any Fixed or Additional Rent or any other sum as to which Tenant shall pay is in default or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of such Event of Default, or to compensate Landlord for any other loss, cost or damage which Landlord may suffer by reason of such Event of Default to the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations extent permitted under this Lease. The Security Deposit is not an advance payment Landlord shall give Tenant notice contemporaneously with such use or application of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application portion of the Security Deposit. Tenant shall, Tenant shall pay to within ten (10) Business Days after the giving of such notice, deposit with Landlord on demand the cash (or other suitable collateral such as an additional letter of credit) in an amount so applied in order sufficient to restore the Security Deposit to its original amountthe amount then required pursuant to the terms of this Article 29 and Tenant’s failure to do so shall be a breach of this Lease. Provided that Landlord shall not, unless otherwise required by Laws, pay interest to Tenant has performed on the Security Deposit, and if Landlord is required to maintain the Security Deposit in an interest bearing account, Landlord will retain the maximum amount permitted under Laws as a bookkeeping and administrative charge. Tenant shall not assign or encumber any part of the Security Deposit, and no assignment or encumbrance by Tenant of all of any part of the Security Deposit shall be binding upon Landlord, whether made prior to, during, or after the Term. Landlord shall not be required to exhaust its obligations hereunderremedies against Tenant or against the Security Deposit before having recourse to any other form of security held by Landlord and recourse by Landlord to any Security Deposit shall not affect any remedies of Landlord which are provided in this Lease or which are available to Landlord in law or in equity. If Tenant shall fully and faithfully perform every covenant and provision of this Lease to be performed and observed by Tenant, Landlord shall, within 60 days the Security Deposit or any balance thereof shall be returned to Tenant reasonably promptly after the expiration or sooner termination (other than a termination pursuant to Article 17) of the Term and Tenant’s surrender to Landlord of the Premises Premises, but in compliance with no event later than sixty (60) days after such expiration or termination. In the provisions of this Lease, return to Tenant event the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable LawBuilding is sold, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign transfer the Security Deposit to the transferee new owner and Landlord thereafter shall have no further thereupon be released by Tenant from all liability for the return of said Security Deposit; and Tenant agrees to look to the new owner solely for the return of the Security Deposit. The rights and obligations A lease of the entire Building shall be deemed a transfer within the meaning of the foregoing sentence. Landlord shall notify or cause Tenant to be notified in the event of any transfer of the Building. Section 29.2 Landlord agrees to reduce the Security Deposit as set forth below. Landlord shall have no obligation to reduce and Tenant under this Section 6 are subject shall have no right to any other requirements and request a reduction in the Security Deposit unless all of the following conditions imposed by Laws applicable have been satisfied on the date of the scheduled reduction to the Security Deposit: (a) No Event of Default shall have occurred and be continuing under this Lease; and (b) there shall not have occurred any material adverse change in the financial condition of Tenant from the condition described in the financial statements submitted by Tenant to Landlord in connection with this Lease. Notwithstanding the foregoing, if an Event of Default existed on the date of the scheduled reduction of the Security Deposit and Tenant subsequently cures said Event of Default without Landlord having terminated this Lease, Tenant shall then be entitled to an immediate reduction of said Security Deposit at the time of said cure by Tenant by the amount as to which said Security Deposit would have been reduced had such Event of Default not existed. Section 29.3 (a) Subject to the terms in Section 29.2, the Security Deposit shall be reduced from the original Two Hundred Ninety-Five Thousand and no/100 Dollars ($295,000.00): (i) on the first day of December 2006, the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for December 2006 and January 2007; (ii) on the first day of December 2007, the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for December 2006 and January 2008; and (iii) on the first day of December 2008, the Security Deposit shall be reduced by Seventy-Two Thousand Four Hundred Forty-Six and 80/100 Dollars ($72,446.80) and such amount shall be credited towards the monthly Rent for December 2008 and January 2009.

Security Deposit. Contemporaneously Concurrently with the Tenant’s execution of this Lease, Tenant shall pay deliver to Landlord a sum equal to the Security Deposit, which shall be held amount stated in Section l(i) as security for the performance by Landlord to secure Tenant’s performance Tenant of its obligations under every covenant and condition of this Lease. The Landlord’s obligations with respect to the Security Deposit are those of a debtor and not a trustee. Landlord may maintain such sums separate and apart from Landlord’s general funds or may commingle them with Landlord’s general or other funds. Landlord is not an advance required to pay Tenant interest on such sums, or any portion thereof. If Tenant defaults with respect to any covenant or condition of this Lease beyond any applicable notice and cure period, including but not limited to the payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). rent, Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all may apply the whole or a part of the Security Deposit to perform the payment of any obligation Tenant fails sum in default or any other sum which Landlord may be required to perform hereunderspend by reason of Tenant’s default. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all replenish any amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained spent by Landlord pursuant to the foregoing shall terms of Section 23 below within thirty (30) days following receipt of notice from Landlord. Within a reasonable period of time (not to exceed 50% thirty (30) days) after expiration of the total Lease Term or earlier termination of this Lease, the Security Deposit shall be returned to Tenant, less those amounts that may be required by Landlord under the terms of this Lease (a) to remedy defaults on the part of Tenant in the payment of Rent or otherwise, (b) to repair damages to the Premises caused by Tenant, provided Landlord is entitled to the same under the terms of this Lease, and (c) to restore the Premises to the condition required by this Lease. The If Landlord disposes of its interest in the Premises, Landlord shall deliver or credit the Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its to Landlord’s successor in interest in the Premises and the transferee provided such successor assumes Landlord’s obligations under this Leasehereunder, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no be relieved of further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable responsibility with respect to the Security Deposit.

Security Deposit. Contemporaneously with The Security Deposit shall be due and payable to Landlord within ten (10) business days after the execution of this LeaseLease (but in no event later than the commencement of any Early Occupancy), Tenant shall pay to Landlord the Security Deposit, which and shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Leaseobligations. The Security Deposit is not an advance payment of Rent rental deposit, or a measure or limit of Landlord’s damages upon in an Event of Default (as defined hereinhereinafter defined). Landlord may, from time to time following an Upon any Event of Default Default, Landlord may use all, or part of, the Security Deposit to pay delinquent payments due under this Lease, and the cost of any damage, injury, expense or liability caused by such Event of Default, without prejudice to any other remedy, use all remedy provided herein or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunderprovided by law. Following any such application of the Security Deposit, Tenant shall pay to Landlord on within ten (10) business days of Landlord’s demand the amount so applied in order to that will restore the Security Deposit to its original amount. Provided ▇▇▇▇▇▇▇▇’s obligation respecting the Security Deposit is that Tenant has performed all of its obligations hereundera debtor, Landlord shallnot a trustee. The Security Deposit shall be the property of Landlord, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion any remaining amount of the Security Deposit which was not applied shall be paid to satisfy Tenant when Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant obligations under this Lease have been paid fulfilled. Landlord shall not be required to keep the Security Deposit separate from its general accounts, and no interest shall accrue thereon. Landlord shall be released from any obligation with respect to the Security Deposit upon transfer of this Lease and the Premises to a person or entity assuming Landlord’s obligations. The Security Deposit under the Lease shall be USD$150,000.00, in the form of an unconditional, irrevocable letter of credit from a bank reasonably acceptable to Landlord and in compliance with the material terms shown in Exhibit G attached hereto (“Letter of Credit”). The Letter of Credit shall either provide that it does not expire until 60 days following the Expiration Date or, if it is for less than the full Lease Term, shall be renewed by Tenant (e.g.at least 60 days prior to its expiration during the Lease Term. The Letter of Credit shall provide that it may be drawn down upon by Landlord at any time Landlord delivers its site draft to the bank. If Landlord sells or conveys the Premises, Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax shall, at ▇▇▇▇ from all applicable taxing authorities at ▇▇▇▇▇’s request, cooperate in having the time Letter of Credit transferred to the purchaser and Landlord agrees to notify Tenant in the event of such expiration); provided, however, transfer. If the portion Letter of the Security Deposit retained Credit is ever drawn upon by Landlord pursuant to the foregoing shall not exceed 50% terms of the total Security Deposit required by Lease, Tenant shall within ten (10) business days thereafter cause the Letter of Credit to be restored to the then existing amount at the time immediately prior to the draw down. Notwithstanding anything contained herein to the contrary, in the event Tenant fails to renew the Letter of Credit in accordance with the terms and conditions as set forth in this Paragraph 7, or in the event that Tenant shall commence any proceeding for relief, as defined in Paragraph 24(b) of the Lease. The Security Deposit may be commingled with other funds, and no interest an immediate Event of Default shall be paid thereon. If Landlord transfers its interest deemed to have occurred, without the requirement of notice or opportunity to cure, in the Premises and the transferee assumes Landlord’s obligations under this Lease, then which case Landlord may assign immediately draw down on the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return Letter of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositCredit.

Security Deposit. Contemporaneously with Upon the later of execution of this Lease, Tenant shall pay to Landlord Amendment and Landlord's receipt of Tenant's deposit in the amount of $150,000.00 (the "Security Deposit"), which shall be held by Landlord agrees to secure waive the requirement of a letter of credit as security for Tenant’s performance of its 's obligations under this the Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use may apply all or a part of the Security Deposit to perform any obligation Tenant fails unpaid Rent or to perform hereundercure any other defaults of Tenant. Following If Landlord uses any such application part of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amountamount within 1O business days after Landlord's written request. Provided that Tenant's failure to do so shall be a default under the Lease and the overdue amount shall accrue interest as any delinquent payment. If twice within any 12 month period, late charges are assessed against Tenant has performed all of its obligations hereunderby Landlord, Landlord shallmay, by written notice to Tenant, require Tenant to pay Landlord an amount equal to two months Base Rent as an increase in the Security Deposit, due within 60 5 business days after the expiration Tenant's receipt of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonnotice. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this LeasePremises, then Landlord may assign shall transfer the Security Deposit to its successor in interest, and notify Tenant in writing of such transfer, including the transferee date of the transfer, the amount transferred, and the name and address of the transferee, whereupon Landlord thereafter shall have no further be automatically released from any liability for the return of the Security Deposit. The rights If, at the end of the Term, Tenant has fully complied with all obligations under the Lease, then the remaining Security Deposit shall be returned to Tenant after Landlord has verified that Tenant has fully vacated the Premises, removed all of its property and surrendered the Premises in the condition required; provided that Landlord may hold back a reasonable portion of the Security Deposit until final determination of Tenant's Share of Common Expenses due hereunder, which shall be made no later than 6 months following the expiration of the Term or earlier termination of the Lease, whereupon any final adjustment shall be made and any remaining Security Deposit shall be returned to Tenant. Landlord's obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable with respect to the Security Deposit are those of a debtor and not of a trustee, and Landlord can commingle the Security Deposit with Landlord's general funds and no interest shall be paid to Tenant on the Security Deposit. If the Premises is further increased in size due to any option Tenant exercises or otherwise, the Security Deposit shall be increased to an amount to be determined by Landlord at the time of expansion.

Security Deposit. Contemporaneously with the Upon Tenant’s execution of this Lease, Tenant shall pay to Landlord deposit with Landlord, cash in the amount of the Security DepositDeposit set forth in the Principal Lease Provisions, which shall be held by Landlord to secure the performance by Tenant of its obligations under this Lease, including without limitation Tenant’s obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant’s agents, employees, contractors, licensees, and invitees (collectively, “Tenant’s Invitees”), (iii) to surrender the Premises in the condition required by Paragraph 24, below, and (iv) to remedy any other Event of Default by Tenant in the performance of any of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon If Tenant commits an Event of Default (as defined herein). under this Lease, Landlord may, from time to time following an Event of Default and without prejudice to any other remedyat its election, use all or a part of the Security Deposit to perform any obligation Tenant fails cure such Event of Default, and to perform hereundercompensate Landlord for all damage suffered by Landlord which are directly attributable to such Event of Default, including, without limitation, reasonable attorneys’ fees and costs incurred by Landlord. Following any such application of the Security DepositUpon demand by Landlord, Tenant shall promptly pay to Landlord on demand the amount so applied in order a sum equal to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the any portion of the Security Deposit which was not applied so used by Landlord, in order to satisfy maintain the Security Deposit in the amount set forth in the Principal Lease Provisions. Following the Expiration Date, and within the earlier of 30 days or the time frame otherwise required by applicable law, Landlord shall deliver to Tenant, at Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Lawlast known address, Landlord may retain that any portion of the Security Deposit which not used by Landlord, as provided in this Paragraph. Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of may commingle the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then other funds and Landlord may assign the will not pay interest on such Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositTenant.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to deposit with Landlord the Security Deposit, which shall be held as security for the prompt, full and faithful performance by Landlord to secure Tenant’s performance Tenant of its each and every provision of this Lease and of all obligations under this Leaseof Tenant hereunder. The Security Deposit is not an advance payment shall be in the form of Rent or a measure or limit of Landlord’s damages upon cash. If an Event of Default (as defined herein). occurs, Landlord maymay use, from time to time following an Event of Default and without prejudice to apply or retain the whole or any other remedy, use all or a part of the Security Deposit for the payment of (i) any Base Rent or Additional Rent which Tenant shall not have paid or which may become due after the occurrence of such Event of Default, (ii) any sum expended by Landlord on Tenant's behalf in accordance with the provisions of this Lease or (iii) any other sum which Landlord may expend or be required to perform any obligation Tenant fails to perform hereunderexpend by reason of Tenant's default, including damages or deficiency in the reletting of the Premises. Following any such The use, application or retention of the Security Deposit, or any portion thereof, by Landlord shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by law and shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled. If any portion of the Security Deposit is used, applied or retained by Landlord for the purposes set forth above, Tenant shall pay agrees, within fifteen (15) days to deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to the amount held by Landlord prior to Landlord's exercising any of its original amountrights to use or apply the Security Deposit hereunder. Provided that If Tenant has performed shall fully and faithfully comply with all of its obligations hereunderthe provisions of this Lease, Landlord shallthe Security Deposit, or any balance thereof, shall be returned to Tenant within 60 Thirty (30) days after the expiration of the Term and Tenant’s surrender Term, with interest accruing at three percent (3%) per annum. In the absence of evidence satisfactory to Landlord of any permitted assignment of the Premises right to receive the Security Deposit, or the remaining balance thereof, Landlord may return the same to Tenant, regardless of one or more assignments of Tenant's interest in compliance with this Lease or the provisions of this LeaseSecurity Deposit. In such event, upon the return to Tenant the portion of the Security Deposit which was not applied (or balance thereof) to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion shall be completely relieved of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant liability under this Lease (including all reconciliation amounts payable by Tenant for Article. In the year in which the Term expires) until such time after the expiration event of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share a transfer of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its Landlord's interest in the Premises and the transferee assumes Landlord’s obligations under this LeasePremises, then Landlord may assign shall transfer the Security Deposit to the transferee thereof. In such event, upon the delivery by Landlord to the transferee of Landlord's interest of the Security Deposit, Landlord shall be deemed to have been released by Tenant from all liability or obligation for the return of such Security Deposit, and Landlord thereafter shall have no further liability Tenant agrees to look solely to such transferee for the return of the Security DepositDeposit and the transferee shall be bound by all provisions of this Lease relating to the return of the Security Deposit provided however that Landlord's lender is not responsible for the Security Deposit unless actually received by Landlord's lender or its affiliate. The rights and obligations Security Deposit shall not be mortgaged, assigned or encumbered in any manner whatsoever by Tenant without the prior written consent of Landlord to be granted or withheld in Landlord's sole and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositabsolute discretion.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, upon delivery of an executed copy of this Lease to Landlord, a security deposit (the execution “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by Silicon Valley bank or another FDIC-insured financial institution reasonably satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which funds shall be returned to Tenant within a reasonable period following Tenant’s delivery to Landlord of a substitute Letter of Credit. The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages under California Civil Code Section 1951.2, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amountthe amount set forth on Page 1 of this Lease. Provided Tenant hereby waives the provisions of any law, now or hereafter in force, including, without limitation, California Civil Code Section 1950.7, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant has or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all of its obligations hereunder, amounts to which Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with is entitled under the provisions of this Lease), return shall be returned to Tenant (or, at Landlord’s option, to the portion last assignee of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresinterest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously with the execution of Upon signing this Lease, Tenant shall pay to immediately deposit with Landlord the amount set forth in Article 1 as the “Security Deposit” as security for the performance by Tenant of the terms of this Lease to be performed by Tenant, which shall be held by Landlord to secure Tenant’s performance and not as prepayment of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)rent. Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all may apply such portion or a part portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to perform remedy any obligation default by Tenant fails in the payment of Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent; (ii) to perform hereunderrepair damage to the Leased Premises caused by Tenant; (iii) to clean and repair the Leased Premises following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2; and (iv) to remedy any other default of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant’s behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant’s request to the Leased Premises. Following In this regard, Tenant hereby waives any such application restriction on the uses to which the Security Deposit may be applied as contained in Section 1950.7(c) of the California Civil Code and/or any successor statute. In the event the Security DepositDeposit or any portion thereof is so used, Tenant shall pay to Landlord on demand the Landlord, promptly upon demand, an amount so applied in order cash sufficient to restore the Security Deposit to the full original sum. Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the Security Deposit in Landlord’s ordinary business and shall not be required to segregate it from its original amountgeneral accounts. Provided that Tenant has performed all of its obligations hereundershall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building during the Lease Term, Landlord shall, within 60 days after shall pay the expiration of the Term and Tenant’s surrender of the Premises Security Deposit to any subsequent owner in compliance conformity with the provisions of this Lease, return to Tenant the portion Section 1950.7 of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable LawCalifornia Civil Code and/or any successor statute, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which event the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ transferring landlord shall be released from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights Tenant specifically grants to Landlord (and obligations hereby waives the provisions of California Civil Code Section 1950.7 to the contrary) a period of sixty days following a surrender of the Leased Premises by Tenant to Landlord within which to return the Security Deposit (less permitted deductions) to Tenant, it being agreed between Landlord and Tenant under this Section 6 are subject that sixty days is a reasonable period of time within which to any other requirements inspect the Leased Premises, make required repairs, receive and conditions imposed by Laws applicable verify workmen’s ▇▇▇▇▇▇▇▇ therefore, and prepare a final accounting with respect to such deposit. In no event shall the Security Deposit, or any portion thereof, be considered prepaid rent.

Security Deposit. Contemporaneously with The Security Deposit shall be delivered to Landlord upon the execution of this Lease, Lease by Tenant shall pay to Landlord the Security Deposit, which shall be and held by Landlord to secure without liability for interest (unless required by Law) as security for the performance of Tenant’s performance of its obligations under this Leaseobligations. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)damages. If Tenant is in Default, Landlord may, may from time to time following an Event of Default and without prejudice to any other remedyremedy provided in this Lease or by Law, use all or a part portion of the Security Deposit to perform the extent necessary to satisfy past due Rent or to satisfy any obligation Tenant fails to perform hereunderother loss or damage resulting from Tenant’s Default under this Lease. Following If Landlord uses any such application portion of the Security Deposit, Tenant Tenant, within 10 days after written demand, shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, shall return to Tenant the any unapplied portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding Tenant within forty-five (45) days following the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the Termination Date or earlier expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to a successor or transferee and, following the transferee and assignment, Landlord thereafter shall have no further liability for the return of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from its other accounts. Notwithstanding anything in this Section 6 to the contrary, Tenant shall satisfy the requirement of delivery of the Security Deposit by the delivery to Landlord of an unconditional and irrevocable letter of credit (“Letter of Credit”) in the amount of the Security Deposit set forth in Section 1.10 above, and in a form acceptable to Landlord in its reasonable discretion. The rights Letter of Credit shall be issued by a bank reasonably satisfactory to Landlord; provided that Landlord hereby approves Silicon Valley Bank as the issuing bank. Tenant shall ensure that at all times after the execution and obligations delivery of this Lease until forty-five (45) days after the Termination Date, as the same may be extended, an unexpired Letter of Credit in the amount of the Security Deposit set forth in Section 1.10 above shall be in the possession of Landlord. The Letter of Credit shall contain a so-called “evergreen” clause providing that the Letter of Credit shall not be canceled unless the issuing bank delivers thirty (30) days’ prior written notice to Landlord. Tenant shall deliver to Landlord, no later than ten (10) days prior to the expiry date of the then outstanding and expiring Letter of Credit (a) a replacement Letter of Credit or (b) cash in the amount then required as the Security Deposit. Landlord shall be entitled to draw on the Letter of Credit (i) if Tenant fails to deliver any replacement Letter of Credit or pay the amount of the Security Deposit in cash as required, in which event Landlord shall be permitted to retain the entire proceeds of such Letter of Credit for application as the Security Deposit hereunder, (ii) to cure or attempt to cure, in whole or in part, any Default by Tenant under this Lease, in which event Tenant shall replenish the amount so drawn upon demand by Landlord, and (iii) if the credit rating of the long-term debt of the issuer of the Letter of Credit (according to ▇▇▇▇▇’▇ or similar national rating agency) is downgraded to a grade below investment rate), or if the issuer of the Letter of Credit shall enter into any supervisory agreement with any governmental authority, or if the issuer of the Letter of Credit shall fail to meet any capital requirements imposed by applicable Law, unless Tenant delivers to Landlord a replacement Letter of Credit complying with the terms of this Lease or cash in the amount required as the Security Deposit within ten (10) days after written demand therefor from Landlord. Each Letter of Credit shall be for the benefit of Landlord and its successors and assigns and shall entitle Landlord or its successors or assigns to draw from time to time under the Letter of Credit in portions or in whole upon presentation of a sight draft and statement by Landlord that Landlord is entitled to draw thereunder pursuant to the terms and provisions of this Lease. Landlord shall have an unrestricted right to transfer the Letter of Credit at any time and to any party selected by the Landlord. Tenant shall pay any transfer commission (fee) and all other costs (hereinafter collectively referred to as the “Transfer Fee”) which may be imposed by the bank issuing the Letter of Credit for the transfer of the Letter of Credit by Landlord. The Tenant’s failure to pay the Transfer Fee, which failure continues for ten (10) days following written notice from Landlord of same, shall constitute a Default of this Lease, and Landlord shall have the right to pursue any and all remedies provided Landlord under this Section 6 are subject to any other requirements Lease, in equity and conditions imposed by Laws applicable to the Security Depositat law.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, upon delivery of an executed copy of this Lease to Landlord, a security deposit (the execution “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time following a Default by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by Silicon Valley Bank or another FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amountthe amount set forth on Page 1 of this Lease. Provided Tenant hereby waives the provisions of any law, now or hereafter in force which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant has or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all of its obligations hereunder, amounts to which Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with is entitled under the provisions of this Lease), return shall be returned to Tenant (or, at Landlord’s option, to the portion last assignee of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresinterest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon. If at any time after the 24th month following the Commencement Date, (i) Tenant is not in default under this Lease, (ii) Tenant is a public company, and (iii) Tenant’s market capitalization exceeds $3.5 Billion for at lease 60 consecutive days (collectively, the “Reduction Requirements”), then the Security Deposit shall be reduced to an amount equal to $952,170.00 (the “Reduced Security Deposit”). If Tenant delivers a written request to Landlord for such reduction of the Security Deposit along with evidence reasonably satisfactory to Tenant that the Reduction Requirements have been satisfied, then, so long as all of the Reduction Requirements have been met, Landlord shall cooperate with Tenant, at no cost, expense or liability to Landlord, to reduce the Letter of Credit then held by Landlord to the amount of the Reduced Security Deposit. If the Security Deposit is reduced as provided herein, then from and after the date of such reduction, the “Security Deposit” shall be deemed to be the Reduced Security Deposit, for all purposes of this Lease.

Security Deposit. Contemporaneously with Within ten (10) days of the execution of this LeaseEffective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Item 13 of the Summary of Basic Lease Terms as security for the full and faithful performance by Tenant of all Tenant’s obligations hereunder. No interest shall be paid upon the Security Deposit nor shall Landlord be required to maintain the deposit in a segregated account. The Security Deposit shall not be construed as prepaid Rent. In the event that Tenant shall default in the full and faithful performance of any of the terms hereof, then Landlord may either retain the Security Deposit as liquidated damages, or a portion thereof, for damages caused by Tenant beyond ordinary wear and tear, or Landlord may retain the same and apply it toward any damages sustained by Landlord, including but not limited to actual damages sustained by the Landlord by reason of the default of Tenant, including any past due Rent. Upon each such application, Tenant shall, on demand, pay to Landlord the Security Depositsum so applied, which shall be held added to the Security Deposit so that the same shall be restored to the amount first set forth above. In the event of bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily instituted by or against Tenant, the Security Deposit shall be deemed to be applied in the following order: to actual damages caused by Tenant beyond ordinary wear and tear, obligations and other charges, including any damages sustained by Landlord, other than unpaid Rent, due to Landlord for all periods prior to the filing of such proceedings; to accrued and unpaid Rent prior to the filing of such proceeding, and thereafter to actual damages, obligations, other charges and damages sustained by Landlord and Rent due the Landlord for all periods subsequent to secure Tenant’s performance such filing. In the event of its obligations under this Lease. The Security Deposit is not an advance payment a sale of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). the Land and the Building, Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of shall transfer the Security Deposit to perform any the buyer, and shall confirm the same to Tenant in writing, after which transfer and written confirmation Landlord shall have no further obligation Tenant fails to perform hereunder. Following any such application of regarding the Security Deposit. Notwithstanding the foregoing, and so long as Tenant shall pay to Landlord on demand the amount so applied is not in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all default of its obligations hereunderthis Lease beyond any applicable cure period, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, shall return to Tenant the (or, at Tenant’s option, or apply to subsequent payments of Rent due hereunder) a portion of the Security Deposit which was not applied to satisfy Tenant’s obligationsin the amount of Sixty Thousand and 00/100 Dollars ($60,000.00) upon the first anniversary of the Commencement Date and also upon the date that is eighteen (18) months after the Commencement Date. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion The remaining balance of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) shall be held until such time after the expiration of the Term that Landlord is actually able to reconcile Lease Term. If Tenant fully and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g.faithfully complies with all of the terms hereof, Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant or any balance thereof shall be returned to the foregoing shall not exceed 50% Tenant within thirty (30) days after expiration of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in Lease Term or thirty (30) days after the Premises and final day Tenant occupies the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositPremises.

Security Deposit. Contemporaneously with Tenant shall, at the execution of time that Tenant executes and delivers this LeaseLease to Landlord, Tenant shall pay to Landlord a security deposit (the “Security Deposit”) in the amount set forth in Exhibit 1 securing Tenant’s obligations under this Lease. In no event shall the Security Deposit, which Deposit be deemed to be a prepayment of rent or a measure of liquidated damages. ▇▇▇▇▇▇ agrees that no interest shall be held by accrue on the Security Deposit and that Landlord shall have the right to secure Tenant’s performance commingle the Security Deposit with other funds of Landlord. In the event that Tenant shall default in any of its obligations under this Lease. The , Landlord shall have the right, without prior notice to Tenant, to apply the Security Deposit is not an advance payment (or any portion thereof) towards the cure of Rent any such default. Tenant shall promptly, upon notice from Landlord, pay to Landlord any amount so applied by Landlord in order to restore the full amount of the Security Deposit. In addition, in the event of a termination based upon the default of Tenant under this Lease, or a measure or limit rejection of Landlord’s damages upon an Event this Lease pursuant to the provisions of Default the Federal Bankruptcy Code, Landlord shall have the right to apply the Security Deposit (as defined herein). Landlord may, from time to time following an Event time, if necessary) to cover the full amount of Default damages and without prejudice other amounts due from Tenant to Landlord under this Lease. Any amounts so applied shall, at ▇▇▇▇▇▇▇▇’s election, be applied first to any unpaid rent and other remedy, use charges which were due prior to the filing of the petition for protection under the Federal Bankruptcy Code. The application of all or a any part of the Security Deposit to perform any obligation or default of Tenant fails to perform hereunder. Following under this Lease shall not deprive Landlord of any such application of the Security Deposit, Tenant shall pay to other rights or remedies Landlord on demand the amount so applied in order to restore the Security Deposit to its original amountmay have or constitute a waiver by Landlord. Provided that Tenant has performed all is not in default of any of its obligations hereunder, Landlord shall, within 60 days after under this Lease at the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this LeaseTerm, return Landlord shall refund to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that any portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositholding.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, on or before October 25, 2012, a security deposit (the execution “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft (which may be presented by delivery by overnight courier) at the financial institution’s offices in the United States. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so that will restore the Security Deposit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all of its obligations hereunder, amounts to which Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with is entitled under the provisions of this Lease), return shall be returned to Tenant (or, at Landlord’s option, to the portion last assignee of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresinterest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon. If, as of the expiration of the 24th month of the Base Term, Tenant is not in Default of this Lease and has not been in Default of this Lease at any time during the Term (“Reduction Requirement”), then the Security Deposit shall be reduced to $213,507.38 (the “Reduced Security Deposit”). If Tenant has met the Reduction Requirement and delivers a written request to Landlord for such reduction of the Security Deposit, Landlord shall cooperate with Tenant, at no cost, expense or liability to Landlord, to reduce the Letter of Credit then held by Landlord to the amount of the Reduced Security Deposit. If the Security Deposit is reduced as provided herein, then from and after the date of such reduction, the “Security Deposit” shall be deemed to be the Reduced Security Deposit, for all purposes of this Lease.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, on or before the execution Commencement Date, a security deposit (the “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth on page 1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit until such time as Tenant delivers to Landlord the a replacement Letter of Credit, at which time such amounts drawn shall be delivered to Tenant. The Security Deposit, which Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages under California Civil Code Section 1951.2, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Landlord’s right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amountthe amount set forth on Page 1 of this Lease. Provided Tenant hereby waives the provisions of any law, now or hereafter in force, including, without limitation, California Civil Code Section 1950.7, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant has or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. If Tenant shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all of its obligations hereunder, amounts to which Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with is entitled under the provisions of this Lease), return shall be returned to Tenant (or, at Landlord’s option, to the portion last assignee of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresinterest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon. If, as of the expiration of the 45th month of the Base Term, (i) Tenant is not in Default of this Lease, (ii) Tenant has not been in Default of this Lease at any time during the Term of this Lease, and (iii) so long as Tenant can reasonably demonstrate to Landlord’s reasonable satisfaction that Tenant has cash on hand of no less than $150,000,000 (collectively, the “Reduction Requirements” and each a “Reduction Requirement”), then the Security Deposit shall be reduced to an amount equal to 2 months of the then applicable monthly Base Rent (the “Reduced Security Deposit”). If Tenant delivers a written request to Landlord for such reduction of the Security Deposit along with evidence reasonably satisfactory to Tenant that the Reduction Requirements have been satisfied, then, so long as all of the Reduction Requirements have been met, Landlord shall cooperate with Tenant, at no cost, expense or liability to Landlord, to reduce the Letter of Credit then held by Landlord to the amount of the Reduced Security Deposit. If the Security Deposit is reduced as provided herein, then from and after the date of such reduction, the “Security Deposit” shall be deemed to be the Reduced Security Deposit, for all purposes of this Lease.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay agrees to Landlord deposit the Security Deposit, which Deposit with Landlord on the date hereof. The Security Deposit shall be held retained by Landlord to secure Tenant’s as security for the faithful performance and observance by Tenant of its obligations under this Lease. The , it being expressly agreed that the Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event of Default 's damages. Except as may otherwise be required by applicable law, (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice a) Tenant shall not be entitled to any interest on the Security Deposit, (b) Landlord shall not be obligated to hold the Security Deposit in trust or in a separate account, and (c) Landlord shall have the right to commingle the Security Deposit with its other remedyfunds. If Tenant defaults under this Lease and such default extends beyond any applicable grace or cure period (following notice of default being given to Tenant to the extent required hereunder), use all without limiting any other right or a remedy of Landlord, Landlord may also apply the whole or any part of the Security Deposit to perform the extent required for the payment of any obligation Rent or other sums payable under this Lease as to which Tenant fails is in default or on account of any sum which Landlord may expend or may be required to perform hereunderexpend by reason of Tenant's default. Following If any such application portion of the Security DepositDeposit is applied by Landlord for any such purpose, Tenant shall pay to shall, within ten (10) days after demand is made by Landlord, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to its original amount. Provided that If Tenant has performed shall fully and faithfully comply with all of its obligations hereunderthe covenants and conditions of this Lease, Landlord shall, within 60 days the Security Deposit shall be promptly returned to Tenant after the expiration date of the Term and Tenant’s the surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of Landlord. In no event shall the Security Deposit which was not be applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and last monthly installment of Base Rent or Additional Rent due prior to the extent permitted by applicable Lawexpiration date of the Term. In the event of a sale of the Premises, Landlord may retain that portion of shall have the Security Deposit which Landlord reasonably estimates is necessary right to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign transfer the Security Deposit to the transferee and purchaser subject to the terms of this Lease, whereupon Landlord thereafter shall have no further be released by Tenant from all liability for the return of the Security Deposit. The rights and obligations of Landlord Deposit and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall look solely to the Security Depositnew landlord for its return.

Security Deposit. Contemporaneously Tenant shall deposit with the execution Landlord, upon delivery of an executed copy of this LeaseLease to Landlord, a security deposit (the “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in the Basic Lease Provisions, which Security Deposit shall be in the form of an unconditional, irrevocable and transferable letter of credit (the “Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution reasonably satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which until such time as Tenant provides a substitute Letter of Credit, whereupon Landlord shall forthwith refund such funds to Tenant. The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on within 5 days of demand the amount so that will restore the Security Deposit to the amount set forth in the Basic Lease Provisions. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has performed is not then in default under this Lease, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of its obligations this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease. If, after the fourth anniversary of the Commencement Date, Tenant is not in Default of its obligations under this Lease, then upon written request of Tenant, the Security Deposit shall be reduced to an amount equal to three (3) months’ then applicable monthly Base Rent (the “Reduced Security Deposit”), provided that Tenant is not thereafter in Default of its obligations under this Lease. If the foregoing conditions are met, upon Tenant’s written request, Landlord shall return to Tenant the unapplied portion of the Security Deposit which was not applied then held by Landlord, less the Reduced Security Deposit, to satisfy Tenant within 60 days of Tenant’s obligationsrequest. Notwithstanding Such return may be effected through execution by Landlord and the preceding sentence and issuing bank of an amendment to the extent permitted Letter of Credit or through issuance of a replacement by applicable Lawthe issuing bank of the Letter of Credit in the amount of the Reduced Security Deposit in the same form as the Letter of Credit but for such reduction, provided, however, that, in the event that such a replacement of the Letter of Credit is issued, Landlord may retain that shall have no obligation to deliver the original Letter of Credit unless and until Landlord has received the original replacement of the Letter of Credit in form and substance as required hereunder. If Landlord returns to Tenant any portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under in accordance with this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time Section, then from and after the expiration of the Term that Landlord is actually able to reconcile and confirm date such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant is returned to Tenant, the “Security Deposit” shall be deemed to be the Reduced Security Deposit for all purposes of this Lease, subject to the foregoing shall not exceed 50% terms of the total this Section. The Reduced Security Deposit required by shall be increased in accordance with the terms of this Section if Tenant is in Default hereunder. If Tenant is in Default under the Lease. The , the Security Deposit may shall be commingled with other funds, and no interest increased to an amount equal to $576,232.00. Such increased Security Deposit shall be paid thereonto Landlord within 10 days of Landlord’s written demand, in the case of Tenant’s Default under the Lease. If Tenant is required to increase the Reduced Security Deposit in accordance with this Section, then from and after the date such monies are required to be deposited with Landlord, the “Security Deposit” shall be deemed to be the amount of $576,232.00. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, upon delivery of an executed copy of this Lease to Landlord, a security deposit (the execution “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in the provisions on page 1 of this Lease, which Security Deposit shall be in the form of cash or an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord’s choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord .draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of of. Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so that will restore the Security Deposit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of its obligations this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to deposit with Landlord the amount set forth in Article 1 (“Security Deposit”), which shall be held by Landlord to secure upon Tenant’s performance execution and submission of its obligations under this Lease. The Security Deposit is not an advance payment shall serve as security for the prompt, full and faithful performance by Tenant of Rent the provisions of this Lease. If Tenant commits a Default, or a measure owes any amounts to Landlord upon the expiration or limit earlier termination of Landlord’s damages upon an Event of Default this Lease (including estimated amounts under Article 3, which shall remain subject to reconciliation against actual amounts as defined hereinfurther provided therein). , Landlord may, from time to time following an Event of Default and without prejudice to may use or apply the whole or any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform for the payment of Tenant’s obligations hereunder. Following any such The use or application of the Security DepositDeposit 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 use or application, Tenant shall pay to deposit with Landlord on demand the within ten (10) days after notice, an amount so applied in order sufficient to restore the full amount of the Security Deposit. Landlord shall not be required to keep the Security Deposit to its original amountseparate from Landlord’s general funds or pay interest on the Security Deposit. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the Any remaining portion of the Security Deposit which was not used or applied hereunder shall be returned to satisfy Tenant (or, at Landlord’s option, to the last assignee of Tenant’s obligationsinterest in this Lease) within thirty (30) days after Tenant (or such assignee) has vacated the Premises in accordance with Article 23 and this obligation shall survive termination of the Lease. Notwithstanding If the preceding sentence Premises shall be expanded at any time, or if the Term shall be extended at an increased rate of Rent, the Security Deposit shall thereupon be proportionately increased. Tenant shall not assign, pledge or otherwise transfer any interest in the Security Deposit except as part of an assignment of this Lease approved by Landlord under Article 13, and any attempt to do so shall be null and void. Landlord shall provide Tenant with written notice of the extent permitted by applicable Law, Landlord may retain that portion transfer of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositparty.

Security Deposit. Contemporaneously with the 9.1 Upon execution of this Lease, Tenant shall pay deposit with Landlord cash in the amount of $268,583 as security for the faithful performance by Tenant of all of the terms, covenants, and conditions of this Lease to Landlord be kept and performed by Tenant during the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default term and without prejudice any extension term hereof If Tenant defaults with respect to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions provision of this Lease, return including but not limited to Tenant any provision relating to the portion payment of the Security Deposit which was not applied Rent, and subject to satisfy any notice requirements and cure periods for Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Lawbenefit set forth in Article 24, Landlord may (but shall not be required) to use, apply or retain that portion 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 which Landlord may suffer by reason of Tenant’s default. Landlord may use the security deposit without giving notice of default to Tenant as otherwise required by Article 24 if Landlord is precluded from giving such notice by any provision of the Security Deposit which Bankruptcy Code. Tenant hereby grants to Landlord reasonably estimates a security interest in the security deposit in accordance with the applicable provisions of the California Commercial Code to secure the obligations of this Lease. 9.2 In the event any or all of the security deposit is necessary used to pay cure a Tenant default, Tenant shall within fifteen (15) days after request therefore replenish the security deposit to the full amount set forth above. 9.3 In the event of bankruptcy or 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 amounts payable by periods prior to the filing of such proceedings. 9.4 Landlord shall deliver the security deposit to any purchaser of Landlord’s interest in the Premises, and thereupon Landlord shall be discharged from any further liability with respect thereto provided that such purchaser has agreed to assume in writing the obligations of Landlord hereunder. This provision shall also apply to any subsequent transfers. 9.5 The security deposit shall be returned to Tenant under this Lease within thirty (including all reconciliation amounts payable by Tenant for the year in which the Term expires30) until such time after days following the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then except for amounts which are actually used to pay or reimburse Landlord may assign the Security Deposit for costs incurred by Landlord to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to cure any other requirements and conditions imposed default by Laws applicable to the Security DepositTenant.

Security Deposit. Contemporaneously 9.1. Tenant has deposited with the execution of this Lease, Tenant shall pay to Landlord the sum set forth in Section 2.6 (the “Security Deposit”), which sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to secure Tenant’s performance be kept and performed by Tenant during the period commencing on the Execution Date and ending upon the expiration or termination of its obligations under this Lease. The Security Deposit is If Tenant defaults with respect to any provision of this Lease, including, but not an advance limited to, any provision relating to the payment of Rent Rent, then Landlord may (but shall not be required to) use, apply or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use retain all or a any part of the Security Deposit for the payment of any Rent or any other sum in default, or to perform compensate Landlord for any obligation Tenant fails to perform hereunderother loss or damage that Landlord may suffer by reason of Tenant’s default. Following If any such application portion of the Security DepositDeposit is so used or applied, then Tenant shall pay to shall, within ten (10) days following demand therefor, deposit cash with Landlord on demand the in an amount so applied in order 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 be discharged from any further liability with respect to such deposit. This provision shall also apply to any subsequent transfers. 9.4. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, then the Security Deposit, or any balance thereof, 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. 9.5. Provided that Tenant has performed all is not then in default of its obligations hereunderunder this Lease, Landlord shall, within 60 days after upon the expiration of the Term and Tenant’s surrender thirty-sixth (36th) month of the Premises in compliance with Term, the provisions Security Deposit requirement shall be reduced to $78,889.20 and (a) Landlord shall, on or before the end of this Leasethe thirty-seventh (37th) month of the Term, return refund to Tenant the portion amount of the Security Deposit which was not applied to satisfy Tenant’s obligationsheld 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. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of If the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year shall be in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g.cash, Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of shall deposit the Security Deposit retained into an interest-bearing account at a banking organization selected by Landlord pursuant 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 foregoing account of Tenant. Landlord shall not exceed 50% of be required to credit Tenant with any interest for any period during which Landlord does not receive interest on the total Security Deposit required by this LeaseDeposit. 9.7. The Security Deposit may be commingled with in the form of cash, a letter of credit or any other fundssecurity 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 no interest 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 paid thereonrequired 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 draw under L/C Security, even if it violates this Lease. (e) If Landlord transfers its interest in the Premises and Premises, then Tenant shall at Tenant’s expense, within five Business Days after receiving a request from Landlord, deliver (and, if the transferee assumes issuer requires, Landlord shall consent to) an amendment to the L/C Security naming Landlord’s obligations under this Leasegrantee 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 may assign the Security Deposit shall consent to) a corresponding amendment to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositL/C Security.

Security Deposit. Contemporaneously Tenant shall deposit with the execution Landlord, upon delivery of an executed copy of this LeaseLease to Landlord, a security deposit ("Security Deposit") for the performance of all of Tenant's obligations hereunder in the amount set forth in the Basic Lease Provisions, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit ("Letter of Credit"): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the state of Landlord's choice. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure Tenant’s as security for the performance of its Tenant's obligations under this Lease. The Security Deposit is not an advance payment of Rent Rental deposit or a measure or limit of Landlord’s 's damages upon an Event in case of Tenant's Default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall shalt pay to Landlord on demand or provide a replacement Letter of Credit in the amount so that will restore the Security Deposit to the amount set forth in the Basic Lease Provisions. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss, or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all of its obligations hereunder, amounts to which Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with is entitled under the provisions of this Lease), return shall be returned to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and (or, at Landlord's option, to the extent permitted by applicable Law, Landlord may retain that portion last assignee of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresTenant's interest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s 's obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant's right to the return of the Security Deposit shall apply solely against Landlord's transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord's damages in case of Tenant's Default. Landlord's obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously Tenant has deposited with the execution of this Lease, Tenant shall pay to Landlord the Security DepositDeposit set forth in the Basic Provisions as security for the full and faithful performance of every provision of this Lease to be performed by Tenant. If Tenant fails to pay Base Rent, Additional Rent or other charges due hereunder or otherwise defaults with respect to any provision of the Lease, Landlord may use, apply or retain all or any portion of the Security Deposit for the payment of any Base Rent, Additional Rent or other charge in default or for the payment of any other sum to which shall be held Landlord may become entitled by Landlord to secure reason of Tenant’s performance of its obligations under this Leasedefault, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. The Tenant acknowledges and agrees that the Security Deposit is not an advance payment of Rent or Rent, nor a measure of or limit on the amount of Landlord’s damages upon an Event in the event of Default (as defined herein)any default by Tenant. If Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use uses or applies all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application portion of the Security Deposit, Tenant shall pay to within ten (10) days after written demand, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term full amount stated above and Tenant’s surrender of the Premises in compliance with the provisions failure to do so shall be a material breach of this Lease, return . Landlord shall not be required to Tenant the portion of keep the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary separate from its general accounts or to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of on the Security Deposit. The rights and balance of the Security Deposit after deducting any amounts applied by Landlord as provided above, shall be returned, without payment of interest for its use, to Tenant (or at Landlord’s option, to the last assignee, if any, of Tenant’s interest hereunder) within thirty (30) days of the later of (i) the last day of the Term, (ii) the date Tenant vacated the Premises, or (iii) the date Tenant has fulfilled all its obligations of hereunder. No trust relationship is created between Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to regarding the Security Deposit.

Security Deposit. Contemporaneously Section 15.01. Tenant has deposited with Landlord the execution sum stipulated in the Basic Lease Provisions, as security for the full and faithful performance of every provision of this LeaseLease to be performed by Tenant. If Tenant defaults with respect to any provision of this Lease (after notice and the expiration of any applicable cure period), including but not limited to the provisions relating to the payment of Basic Rent and Additional Rent, Landlord may use, apply or retain all or any part of this security deposit for the payment of any Basic Rent or Additional Rent or other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s default. If any portion of said deposit is so used or applied, Tenant shall pay within five (5) days after written demand therefor deposit cash with Landlord in amount sufficient to Landlord restore the Security Deposit, which security deposit to its original amount and Tenant’s failure to do so shall be held an Event of Default under this Lease. Landlord shall not be required to keep this security deposit separate from its funds, and Tenant shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the security deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) at the expiration of the Term. In the event of the insolvency of Tenant or in the event of the entry of a judgment in bankruptcy in any court against Tenant which is not discharged within thirty (30) days after entry, or in the event a petition is filed by or against Tenant under any chapter of the bankruptcy laws of the State of New Jersey or the United States of America, then and in such event Landlord may require the Tenant to secure deposit additional security in an amount which in Landlord’s sole judgment would be sufficient to adequately assure Tenant’s performance of all of its obligations under this Lease, including all payments subsequently accruing. Failure of Tenant to deposit the security required by this Section within ten (10) days after Landlord’s written demand shall constitute a material breach of this Lease by Tenant. The Security Deposit security deposit is not being made by means of an advance payment irrevocable “evergreen” letter of Rent or credit, which shall be in form and substance, and drawn on a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or bank which is a part member of the Security Deposit New York clearinghouse, satisfactory to perform any obligation Tenant fails to perform hereunderLandlord. Following any such application It shall have a final expiry of not less than six (6) months after the Security DepositExpiration Date. In the event that the “Guarantor Loan” (hereinafter defined) shall be accepted by Landlord, then, provided that Tenant shall pay to Landlord on demand not be in default in the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all performance or observance of any of its obligations hereunder, Landlord shall, within 60 not later than ninety (90) days after the expiration Rent Commencement Date, the security deposit shall be reduced by an amount equal to two (2) months Basic Rent and a new letter of credit, in such reduced amount (but otherwise conforming to the provisions hereof) shall be substituted therefor. As the Basic Rent increases throughout the Term, the amount of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Leasesecurity shall be increased accordingly, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term so that Landlord is actually able shall at all times have a security deposit letter of credit in an amount equal to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant ten (e.g.10) or twelve (12) months Basic Rent, Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for as the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit case may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositbe.

Security Deposit. Contemporaneously with Upon the execution of this LeaseExecution Date, Tenant shall pay to deposit with Landlord the Security Deposit, which shall be held by Landlord to secure Deposit as security for Tenant’s faithful performance of its Tenant’s obligations under this Leasehereunder. The Security Deposit is not an advance payment of Rent If Tenant fails to timely pay rent or a measure other charges due hereunder, or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice otherwise defaults with respect to any other remedyprovisions of this Lease beyond applicable notice and cure periods hereunder, use Landlord may use, apply, or retain all or a part any portion of the Security Deposit for the payment of any rent or other charge in default or for the payment of any other sum to perform which Landlord may become obligated by reason of Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. Landlord shall have no obligation to apply the Security Deposit against any amount due or owing from Tenant fails to perform hereunderunder this Lease or against any Advance made by Landlord, nor shall the rights and remedies of Landlord under this Lease be affected in any manner by the fact that Landlord holds the Security Deposit. Following If, however, Landlord so uses or applies all or any such application portion of the Security Deposit, Tenant shall pay to within ten (10) days after written demand therefor, deposit with Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to the full amount stated above, and Tenant’s failure to do so shall constitute a default under this Lease. Landlord shall not be required to keep the security deposit separate from its original amountgeneral accounts or to pay interest thereon, unless otherwise required by applicable law. Provided that If Tenant has performed performs all of its Tenant’s obligations hereunder, the Security Deposit, or so much thereof after application thereof by Landlord shallin accordance with this Section 3.7, within 60 days after as has not been applied by Landlord, shall be returned, in cash, without payment of interest or other increment for its use, to Tenant at the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligationsLease Term. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates No trust relationship is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of created herein between Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable with respect to the Security Deposit.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord upon execution hereof that sum identified in the execution Summary as the Security Deposit (the “Security Deposit”) as security for Tenant’s faithful performance of Tenant’s obligations hereunder. If Tenant fails to pay rent or other charges due hereunder (all of which, collectively, are defined to be “Rent”), or otherwise defaults with respect to any provision of this Lease, Landlord may use, apply, or retain all or any portion of said deposit for the payment of any rent or other charge in default or for the payment of any other sum to which Landlord may become obligated by reason of Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. The use, application, or retention of the Security Deposit by Landlord shall not prevent Landlord from exercising any other remedy provided hereunder or at law and shall not be construed as liquidated damages. If Landlord so uses or applies all or any portion of said deposit, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore said deposit to the full amount then required of Tenant. Landlord shall not be required to keep the Security Deposit separate from its general accounts and Tenant shall not be entitled to, and Tenant hereby specifically waives any requirement that Landlord pay to Landlord interest on the Security Deposit. If Tenant performs all of Tenant’s obligations hereunder, the Security Deposit, which or so much thereof as has not theretofore been applied by Landlord, shall be held by Landlord returned, without payment of interest or other increment for its use, to secure Tenant or, at Landlord’s option, to the last assignee, if any, of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform interest hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after at the expiration of the Term hereof, and Tenant’s surrender of after Tenant has vacated the Premises in compliance Leased Premises. No trust or fiduciary relationship is created herein between Landlord and Tenant with the provisions of this Lease, return respect to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonDeposit. If Landlord transfers its interest in the Leased Premises and during the transferee assumes Landlord’s obligations under this LeaseTerm hereof, then Landlord may assign pay the Security Deposit to Landlord’s successor in interest in accordance with Civil Code § 1950.7 or any successor statute, in which event the transferee and transferring Landlord thereafter shall have no further be released from all liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously Tenant shall deposit with the execution Landlord, upon delivery of an executed copy of this LeaseLease to Landlord, a security deposit (the “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in the Basic Lease Provisions, which Security Deposit shall be in the form of an unconditional, irrevocable and transferable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the Commonwealth of Massachusetts or the State of California. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on within 5 business days of demand the amount so that will restore the Security Deposit to the amount set forth in the Basic Lease Provisions. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 business days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has performed is not then in default under this Lease, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of its obligations this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Lease, then Landlord may assign the Section 6. or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously with The Security Deposit shall be delivered to Landlord upon the execution of this Lease, Lease by Tenant shall pay to Landlord the Security Deposit, which and shall be held by Landlord to secure Tenant’s without liability for interest (except as required by law) and as security for the performance of its Tenant's obligations under this Lease. The Security Deposit is shall not be considered an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)Tenant's liability for damages. Landlord may, from time to time following an Event of Default and time, without prejudice to any other remedy, use all or a part portion of the Security Deposit to perform make good any arrearage of Rent, to repair damages to the Premises, to clean the Premises upon termination of this Lease or otherwise to satisfy any other covenant or obligation of Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that If Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after is not in default at the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions termination of this Lease, return after Tenant surrenders the Premises to Landlord in accordance with this Lease and all amounts due Landlord from Tenant are finally determined and paid by Tenant or through application of the portion Security Deposit, the balance of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until remaining after any such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest application shall be paid thereonreturned to Tenant. If Landlord transfers its interest in the Premises and during the transferee assumes Landlord’s obligations under this LeaseLease Term, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of such Security Deposit. Tenant agrees to look solely to such transferee or assignee for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under its successors and assigns shall not be bound by any actual or attempted assignment or encumbrance of the Security Deposit by Tenant, provided, however, if Tenant's interest in this Section 6 are subject Lease has been assigned, Landlord shall, provided that Landlord has been furnished with a fully executed copy of the agreement assigning such Security Deposit, return the Security Deposit to such assignee in accordance with the terms and conditions hereof. If Landlord return the Security Deposit to Tenant's assignee as aforesaid, Landlord will have no further obligation to any other requirements and conditions imposed by Laws applicable party with respect thereto. Landlord shall not be required to keep the Security DepositDeposit separate from its other accounts.

Security Deposit. Contemporaneously Tenant shall deposit with the execution Landlord, upon delivery of an executed copy of this LeaseLease to Landlord, a security deposit (the “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in the Basic Lease Provisions, which Security Deposit shall be in the form of an unconditional, irrevocable and transferable letter of credit (the “Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary, (Hi) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by Boston Private Bank or another FDIC-insured financial institution satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in California or Massachusetts. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which until such time as Tenant provides a substitute Letter of Credit, whereupon Landlord shall forthwith refund such funds to Tenant. The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so that will restore the Security Deposit to the amount set forth in the Basic Lease Provisions. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 10 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has performed is not in Default at the end of the Term, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of its obligations this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously Tenant agrees to deposit with Landlord $198,800.00 as security for the performance by Tenant of every covenant and condition of this Lease by Tenant to be performed (the “Security Deposit”). Notwithstanding the foregoing, Landlord has waived the requirement of Tenant to deposit with Landlord the Security Deposit in the amount set forth in this Section 3.06 concurrently upon the execution of this Lease. Nevertheless, if Tenant defaults in the timely payment of the Base Rent or any Additional Rent required under this Lease on more than two (2) occasions during the Term of this Lease, then Tenant shall pay be required, within ten (10) days written notice from Landlord to deposit with Landlord the Security Deposit, which shall be held by Landlord to secure Deposit as security for Tenant’s complete performance of its obligations under this LeaseLease and the remainder of the terms and provisions of this Section 3.06 shall be applicable to the Security Deposit. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). failure by Tenant to deposit with Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit as required hereunder shall constitute a material default under this Lease and Landlord shall not be required to perform deliver to Tenant any obligation Tenant fails to perform hereunderfurther notice of such default or allow any grace period for the cure of such default. Following any such application Said deposit may be commingled with other funds of Landlord, and shall bear no interest. Upon the deposit of the Security Deposit, if Tenant shall pay default with respect to any covenant or condition of this Lease, including, but not limited to, the payment of any sum due hereunder, then Landlord on demand may use such portion of the amount Security Deposit as is necessary to cure such default. In the event Landlord so applied uses the Security Deposit in order to part or in whole, Tenant will restore the Security Deposit to its original amountthe required amount upon notice of said default and failure to do so shall be a default under this Lease. Provided that Should Tenant has performed comply with all of its obligations hereunderthe covenants and conditions of this Lease, Landlord shall, within 60 days after the Security Deposit or any balance thereof shall be returned to Tenant at the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Leasethereof. The Security Deposit may shall not be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes deemed an advanced payment of Rent or measure of Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability damages for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed default hereunder by Laws applicable to the Security DepositTenant.

Security Deposit. Contemporaneously (a) Simultaneously with the execution and delivery of this Lease, Tenant shall pay deliver to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. Deposit in cash or immediately available funds. (b) The Security Deposit is security for the faithful performance and observance by Tenant of the terms and conditions of this Lease and is not an advance payment of Rent or a measure or limit of Landlord’s damages upon rent. If an Event of Default (occurs, Landlord may use, apply or retain all or any part of the Security Deposit to the extent required for payment of any Base Rent or any other sum as defined herein)to which Tenant is in default or for any sum which Landlord may expend or may be required to expend by reason of the occurrence of an Event of Default, including, but not limited to, any damage or deficiency accrued before or after summary proceedings or other re-entry by Landlord, including the costs of such proceeding or re-entry and further including, without limitation, reasonable attorneys’ fees. Landlord may, from time to time following If an Event of Default occurs, Landlord shall have the right to apply the Security Deposit, or any part thereof, as aforesaid, without additional notice and without prejudice to any other remedyremedy or remedies which Landlord may have, use all or a part Landlord may pursue any other such remedy or remedies in lieu of applying the Security Deposit to perform or any obligation Tenant fails to perform hereunderpart thereof. Following any such application of No interest shall be payable on the Security DepositDeposit and Landlord shall have the right to commingle the Security Deposit with other funds of Landlord. If Landlord applies the Security Deposit in whole or in part, Tenant shall immediately upon demand pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all In the event of its obligations a sale or other transfer of Landlord’s Property, or leasing of Landlord’s Property subject to Tenant’s tenancy hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of shall transfer the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and then remaining to the extent permitted by applicable Lawvendee or lessee, in which event Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay shall thereupon be released from all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant liability for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time return of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to Tenant; and Tenant shall look solely to the transferee and Landlord thereafter shall have no further liability new landlord for the return of the Security DepositDeposit then remaining. The rights and obligations holder of Landlord and any mortgage on Landlord’s Property shall not be responsible to Tenant under this Section 6 are subject for the Security Deposit or its application or return unless the Security Deposit shall actually have been received by such holder. Tenant shall not assign or encumber or attempt to any other requirements and conditions imposed by Laws applicable to assign or encumber the Security Deposit, and Landlord shall not be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

Security Deposit. Contemporaneously with If LICENSEE defaults under any of the execution terms or conditions of this LeaseAgreement more than two times during any twelve consecutive months during the term of this Agreement, Tenant LICENSEE agrees, that in addition to curing such event of default, it shall pay LICENSOR a security deposit equal to Landlord the $25,000 ("Security Deposit"), which shall will be held by Landlord to secure Tenant’s LICENSOR without interest as security for the full and faithful performance by LICENSEE of its LICENSEE's covenants and obligations under this Lease. The Security Deposit Agreement, it being expressly understood that such deposit is not an advance payment of Rent license fees or a measure or limit of Landlord’s LICENSOR's damages if LICENSEE defaults again. Following the payment of the Security Deposit, upon an Event the occurrence of Default (as defined herein). Landlord any event of default by LICENSEE, LICENSOR may, from time to time following an Event of Default and time, without prejudice to any other remedyremedy provided in this Agreement or by law, use all or a part of the Security Deposit to perform the extent necessary to make good any obligation Tenant fails arrearages of payment owed by LICENSEE to perform hereunderLICENSOR or any amount as to which LICENSEE is in default or for any other damage, injury, expense, or liability caused to LICENSOR by such event of default, regardless whether such damages or deficiency accrue before or after termination of this Agreement. Following any such application of the Security Deposit, Tenant shall LICENSEE agrees to pay to Landlord LICENSOR on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, amount and LICENSEE's failure to do so within 60 ten days after the expiration of the Term and Tenant’s surrender date of demand will be, at LICENSOR's election, a material default under this Agreement. If LICENSEE is not in default of this Agreement upon the termination of this Agreement, LICENSOR agrees to return any remaining balance of such Security Deposit to LICENSEE within thirty days of the Premises in compliance with date of the provisions termination of this Lease, return Agreement. LICENSOR's deduction of any amounts owed by LICENSEE to Tenant the portion of LICENSOR from the Security Deposit which was will in no event release LICENSEE from being in default under the terms of this Agreement. LICENSOR will not applied be required to satisfy Tenant’s obligationskeep this Security Deposit separate from its general funds. Notwithstanding LICENSEE agrees that it will not assign or encumber, or attempt to assign or encumber, the preceding sentence monies deposited under this Agreement as security, and that LICENSOR and its successors and assigns will not be bound by any such actual or attempted assignment or encumbrance. If LICENSEE cures the event of default that triggered the obligation to put up the extent permitted by applicable Law$25,000 Security Deposit and is not then in default, Landlord may retain that portion LICENSOR agrees to refund the $25,000 amount put as a Security Deposit within ten days of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration date of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositLICENSEE's request.

Security Deposit. Contemporaneously If so specified in the Basic Lease Information, Tenant shall deposit with Landlord the Security Deposit upon the execution of this Lease, Tenant shall pay to Landlord the Lease by Tenant. The Security Deposit, which Deposit shall be held by Landlord to secure Tenant’s as security for the performance by Tenant of all its obligations under this Lease. The Security Deposit is not an advance payment of If Tenant fails to pay any Rent due hereunder, or otherwise commits a measure or limit of Landlord’s damages upon an Event of Default default (as defined herein). Landlord may, from time to time following an Event of Default after applicable notice and without prejudice cure periods) with respect to any other remedyprovision of this Lease, use Landlord may use, apply or retain all or a part any portion of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following for the payment of any such application Rent or for the payment of any other amounts expended or incurred by Landlord by reason of Tenant's default, or to compensate Landlord for any loss or damage which Landlord may incur thereby (subject to the provisions of California Civil Code Section 1950.7(c) and any similar or successor statute providing that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant, or to clean the Premises). Exercise by Landlord of its rights hereunder shall not constitute a waiver of, or relieve Tenant from any liability for, any default. If Landlord so uses or applies all or any portion of the Security Deposit, Tenant shall pay to shall, within ten (10) days after demand by Landlord, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to its original full amount. Provided that If Tenant has performed performs all of its Tenant's obligations hereunder, Landlord shallthe Security Deposit, or so much thereof as has not theretofore been applied by Landlord, shall be returned, without interest, to Tenant (or, at Landlord's option, to the last assignee, if any, of Tenant's interest under this Lease) within 60 thirty (30) days after the later of (i) the date of expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to or (ii) vacation of the Premises by Tenant if the portion Premises has been left in the condition specified by this Lease. Landlord's receipt and retention of the Security Deposit which was shall not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence create any trust or fiduciary relationship between Landlord and to the extent permitted by applicable Law, Tenant and Landlord may retain that portion of need not keep the Security Deposit which Landlord reasonably estimates is necessary separate from its general accounts. Subject to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration Section 22.1, upon termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid original Landlord's (or any successor owner's) interest in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, howeverPremises, the portion of original Landlord (or such successor) shall be released from further liability with respect to the Security Deposit retained by Landlord pursuant to upon the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled original Landlord's (or such successor's) compliance with other fundsCalifornia Civil Code Section 1950.7(d), and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositor successor statute.

Security Deposit. Contemporaneously with Letter of Credit. BLC Holdings shall, upon the execution of this LeaseAgreement by BLC Holdings, Tenant shall pay either (i) cause to Landlord be deposited with PSLT-BLC Holdings cash in the amount of the Security Amount (the "Security Deposit"), which shall or (ii) cause to be held delivered to PSLT-BLC Holdings a letter of credit (the "Letter of Credit") issued in favor of PSLT-BLC Holdings in the amount of the Security Amount, as security for the performance and observance by Landlord to secure Tenant’s BLC Holdings of the terms, conditions and provisions of this Agreement and as security for the performance and the observance by each of its obligations under this Leasethe Brookdale Lessees of the terms, conditions and provisions of the Property Leases, including, without limitation, the surrender of possession of the Facilities by the Brookdale Lessees as provided in the Property Leases. The Security Deposit is not an advance payment Upon the occurrence and during the continuance of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord mayDefault, from time to time following an Event PSLT-BLC Holdings may draw upon the Letter of Default and without prejudice to Credit or apply any other remedy, use all or a part portion of the Security Deposit to perform the extent required for the payment of any obligation Tenant fails sum as to perform hereunderwhich BLC Holdings or the Brookdale Lessee(s) under the Property Lease(s) to which the applicable Event of Default relates is in default or for any sum which PSLT-BLC Holdings may have expended or may be required to expend by reason of the occurrence of such Event of Default, including any damages or deficiency accrued before or after summary proceedings or other re-entry by any Provident Lessor pursuant to any Property Lease. Following Subject to the provisions of Paragraph 10(b) hereof, if PSLT-BLC Holdings draws upon the Letter of Credit and applies or retains any portion or all of the sum received upon such application draw, or applies any portion of the Security Deposit, Tenant BLC Holdings shall pay to Landlord on demand the amount so applied in order forthwith take such action as is necessary to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration face amount of the Term and Tenant’s surrender Letter of Credit to the Premises in compliance with the provisions of this Lease, return Security Amount or pay any deficiency to Tenant the portion of PSLT-BLC Holdings such that the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and is at all times equal to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this LeaseAmount. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonheld in a segregated bank account and shall be invested in Permitted Investments. If Landlord transfers its interest in BLC Holdings or the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign party posting the Security Deposit in accordance with the terms and conditions set forth in Paragraph 33(d) below shall be responsible for payment of any federal, state or local income or other tax applicable to income earned from Permitted Investments. All interest accruing on the transferee and Landlord thereafter Security Deposit shall have no further liability be held by PSLT-BLC Holdings for the return account of BLC Holdings or such other party posting the Security Deposit. The rights , and obligations shall be distributed to BLC Holdings or such other party on the fifteenth (15th) day after the end of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositeach Lease Year.

Security Deposit. Contemporaneously Tenant shall deposit with the execution Landlord, upon delivery of an executed copy of this LeaseLease to Landlord, Tenant a security deposit (“Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in the Basic Lease Provisions, which Security Deposit shall pay be in the form of an unconditional and irrevocable letter of credit (“Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord (Landlord hereby approves the form of Letter of Credit attached hereto as a part hereof as Exhibit G), (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution on satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in the State of Maryland or the Commonwealth of Virginia, it being agreed that Silicon Valley Bank, N.A, is an approved financial institution for the purposes hereof. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall have the right to draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of LandlordLandlord^ damages in case of Tenant’s damages upon an Event default. Upon each occurrence of a Default (as defined hereinin Section 20). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of al! or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so that will restore the Security Deposit to the amount set forth in the Basic Lease Provisions. Tenant hereby waives the provisions of any Legal Requirement, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reason ably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other actual loss or damage (and not consequential or punitive damages) caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant- Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of its obligations this Lease), shah be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the (a) Tenant's Security Deposit, which shall be delivered by Tenant to Landlord, together with the first (1st) month's payment of Base Rent and Equipment Space Rent concurrently with Tenant's delivery to Landlord of this Lease as executed by Tenant, shall be held by Landlord to secure Tenant’s Landlord, without liability for interest, as security for the performance of its Tenant's obligations under this Lease. The Landlord shall not be required to keep the Security Deposit is not an advance payment of Rent or a measure or limit segregated from other funds of Landlord’s damages upon an Event . Tenant shall not assign or in any way encumber the Security Deposit. Upon the occurrence of Default any default by Tenant (as defined hereinbeyond the giving of acceptable notice and the passage of applicable grace periods). , Landlord mayshall have the right, from time to time following an Event of Default and without prejudice to any other remedy, to use all or a part of the Security Deposit Deposit, or portions thereof, to perform the extent necessary to pay any obligation Tenant fails to perform hereunderarrearages in Rent, and any other damage, injury or expense. Following any such application of all or any portion of the Security Deposit, Tenant shall pay to Landlord Landlord, on demand demand, the amount so applied in order to restore the Security Deposit to its original amountamount (or if the Security Deposit is a Letter of Credit, Tenant may either deliver cash, a replacement Letter of Credit, or an additional Letter of Credit). Provided that Tenant has performed all of its obligations is not in default hereunder, Landlord shall, will return any unapplied portion of the Security Deposit to Tenant within 60 thirty (30) days after following the later to occur of (i) the expiration of the Term Term, and (ii) Tenant’s surrender 's vacancy of the Premises and Building in compliance accordance with the provisions of this Lease, return to Tenant the portion of . (b) If the Security Deposit which was not applied is in the form of a Letter of Credit , the Letter of Credit shall (i) be in form and substance satisfactory to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and Landlord; (ii) name Landlord as its beneficiary; (iii) be drawn on an FDIC insured financial institution satisfactory to the extent permitted Landlord; (iv) expressly allow Landlord to draw upon it: (A) in the event that the Tenant is in default under the Lease by applicable Law, Landlord may retain that portion delivering to the issuer of the Security Deposit which Letter of Credit written notice that Landlord reasonably estimates is necessary entitled to pay all amounts payable by Tenant under draw thereunder pursuant to the terms of this Lease Lease; or (including all reconciliation amounts payable by Tenant for the year in which the Term expiresB) until such time after the if Tenant, within sixty (60) days prior to expiration of the Term Letter of Credit then held by Landlord, fails to provide Landlord with a replacement Letter of Credit meeting the requirements herein; (v) expressly state that Landlord it will be honored by the issuer without inquiry into the accuracy of any such notice or statement made by Landlord; (vi) expressly permit multiple or partial draws up to the stated amount of the Letter of Credit; (vii) expressly provide that it is actually able transferable to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant any successor of Landlord; and (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for viii) expire no earlier than sixty (60) days after the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, howeverExpiration Date (alternatively, the portion Letter of Credit [and any renewals or replacements thereof] may be for a term of not less than one (1) year; in such event Tenant agrees that it shall from time to time, as necessary, [whether as a result of a draw on the Security Deposit retained Letter of Credit by Landlord pursuant to the foregoing shall not exceed 50% terms hereof or as a result of the total expiration of the Letter of Credit then in effect], renew or replace the original and any subsequent Letter of Credit so that a Letter of Credit, in the amount required hereunder, is in effect until a date which is at least sixty (60) days after the Expiration Date. If Tenant fails to furnish such renewal or replacement at least thirty (30) days prior to the stated expiration date of the Letter of Credit then held by Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds thereof [and such proceeds need not be segregated] as a Security Deposit required pursuant to the terms of this Article 18). (c) Any renewal of or replacement for the original or any subsequent Letter of Credit shall meet the requirements for the original Letter of Credit as set forth above, except that such replacement or renewal shall be issued by this Leasea national bank satisfactory to Landlord at the time of the issuance thereof. The Landlord agrees that in the event of any event which would give Landlord the right to draw upon the Letter of Credit, Landlord shall only draw down such amount as Landlord reasonably believes to be necessary to cure or remedy any default on the part of Tenant and to reimburse Landlord for any costs, expenses or liability incurred in connection with such default; notwithstanding the foregoing, if the amount of any draw upon the Letter of Credit exceeds the amount necessary to reimburse Landlord for such costs, expenses or liability, any excess proceeds of any draw on the Letter of Credit shall be held by Landlord as a Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit pursuant to the transferee and Landlord thereafter shall have no further liability for the return provisions of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositArticle 18.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, upon delivery of an copy of this Lease to Landlord, a security deposit (the execution “Security Deposit”) for the performance all of Tenant’s obligations hereunder in the amount set forth in Section 1.1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, (v) redeemable by presentation of a sight draft in the state of Landlord’s choice, and (vi) transferable without fee or cost to Landlord. Landlord hereby approves Silicon Valley Bank as the issuer of the Letter of Credit. If Tenant not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Letter Credit shall be held by Landlord to secure as security for the performance of Tenant’s performance obligations under Lease. The Letter of Credit is not an advance rental deposit or a measure of Landlord’s damages case of Tenant’s default. Upon each occurrence of a Default (as defined in Section 16.1), Landlord may draw all or any part of the Letter of Credit to pay delinquent payments due under this Lease, future rent damages, and the cost of any damage, injury, expense or liability caused such Default, without prejudice to any other remedy provided herein or provided by law. Landlord’s right to use the Letter of Credit under this Section includes the right to use the Letter Credit to pay future rent damages following the termination of this Lease pursuant to Section below. Upon any use of all or any portion of the Letter of Credit, Tenant shall on demand a new Letter of Credit or amend the existing Letter of Credit to restore the Letter of Credit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now hereafter in force which provide that Landlord may claim from a security deposit only those reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the Default of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Letter of Credit shall be deemed to be applied first to the of Rent and other charges due Landlord for periods prior to the filing of such proceedings. The Letter of Credit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 90 days after the expiration or earlier termination of this Lease. Provided that no Default (as defined in Section 16.1) or event that with the passage of or the giving of notice, or both, would constitute a Default has occurred that remains uncured, amount of the Security Deposit shall be reduced to $862,274.00 effective as of the Rent Commencement Date, whereupon, within thirty (30) days following receipt of Tenant’s written request, any portion of the Security Deposit in excess of the respective reduced amounts shall, if held by Landlord in cash, be refunded to Tenant, without interest, or Landlord shall agree to an appropriate replacement or amendment of the Letter of Credit in order to effect such reduction. Notwithstanding the foregoing, if any uncured monetary Default exists as of such reduction date, such reduction will occur at the later of: (i) one year from the original reduction date; or (ii) such time as the Default shall have been cured. If any uncured material non-monetary Default exists of such reduction date, such reduction will occur at the later of: (i) six months from the original reduction date; or (ii) such time as the Default shall have been cured. If any event that with the passage of time, or the giving of notice, or both, would constitute a monetary Default or material non-monetary Default exists as of such reduction date, such reduction will occur at such time as the uncured default shall have been cured. If Landlord transfers its interest in the Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to Tenant, Landlord shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Default (as defined herein)Tenant’s default. Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of Landlord’s obligation respecting the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application is that of the Security Deposita debtor, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other fundstrustee, and no interest shall be paid accrue thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously Tenant shall deposit with the execution Landlord, upon delivery of an executed copy of this LeaseLease to Landlord, a security deposit (“Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in the Basic Lease Provisions, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (“Letter of Credit”): (i) in form and substance reasonably satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Tenant is then in Default (as defined in Section 20) and Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution reasonably satisfactory to Landlord, and (v) redeemable by presentation of a sight draft in Maryland. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Security Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Tenant’s Default. Upon each occurrence of a Default (as defined herein). that remains uncured, Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a any part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand demand, or provide a replacement Letter of Credit in, the amount so that will restore the Security Deposit to the amount set forth in the Basic Lease Provisions. Tenant hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied in order first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Upon any such use of all or any portion of the Security Deposit, Tenant shall, within 5 days after demand from Landlord, restore the Security Deposit to its original amount. Provided that If Tenant has shall fully perform every provision of this Lease to be performed by Tenant, the Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of its obligations this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this LeaseSection 6, then Landlord may assign the or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s Default. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the The Security Deposit, which Deposit shall be held by Landlord to secure Tenant’s as security for the performance of its Tenant's obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s 's damages upon an Event in case of Default (as defined herein)Tenant's default. Upon each occurrence of a Default, Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amount. Provided Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Landlord's obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but the balance remaining, if any, after Tenant's obligations under this Lease have been completely fulfilled shall be paid to Tenant. Landlord shall be released from any obligation with respect to the Security Deposit upon transfer of this Lease and the Premises to a person or entity assuming Landlord's obligations under this Section 6. Tenant has hereby waives the provisions of any law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. If Tenant shall fully perform every provision of this Lease to be performed all by Tenant, the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord's option, to the last assignee of its obligations Tenant's interest hereunder, Landlord shall, ) within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the The Security Deposit, which Deposit shall be held by Landlord to secure Tenant’s without obligation for interest thereon as security for the performance of its Tenant's obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s 's damages upon an Event in case of Tenant's default. Upon each occurrence of a Default (as defined hereinin Section 20). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a part of the Security Deposit to perform pay delinquent payments due under this Lease, future rent damages under Chapter 83, Florida Statutes, 2006, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following Landlord's right to use the Security Deposit under this Section 6 includes the right to use the Security Deposit to pay future rent damages following the termination of this Lease pursuant to Section 21(c) below. Upon any such application use of all or any portion of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amount. Provided Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. Landlord's obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. The Security Deposit shall be the property of Landlord, but shall be paid to Tenant has performed all when Tenant's obligations under this Lease have been completely fulfilled. Landlord shall be released from any obligation with respect to the Security Deposit upon transfer of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term this Lease and Tenant’s surrender of the Premises to a person or entity assuming Landlord's obligations under this Section 6. Tenant hereby waives the provisions of any law, now or hereafter in compliance with force, including, without limitation, Chapter 83, Florida Statutes, 2006, which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any officer, employee, agent or invitee of Tenant. The Security Deposit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), return shall be returned to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and (or, at Landlord's option, to the extent permitted by applicable Law, Landlord may retain that portion last assignee of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expiresTenant's interest hereunder) until such time within 90 days after the expiration or earlier termination of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s 's obligations under this Lease, then Landlord may assign the Section 6 or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to the such transferee and Landlord thereafter shall have no further liability for or the return of the Security Deposit. The rights and obligations of Deposit to Tenant, Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall have no further obligation with respect to the Security Deposit, and Tenant's right to the return of the Security Deposit shall apply solely against Landlord's transferee. The Security Deposit is not an advance rental deposit or a measure of Landlord's damages in case of Tenant's default. Landlord's obligation respecting the Security Deposit is that of a debtor, not a trustee, and no interest shall accrue thereon.

Security Deposit. Contemporaneously 40.01. Tenant shall deposit with Landlord on the execution signing of this Lease, Tenant shall pay to Landlord Lease the Security Deposit, which shall be held as security for the faithful performance and observance by Landlord to secure Tenant’s Tenant of the terms, provisions and conditions of this Lease. Tenant agrees that in the event Tenant has defaulted in the performance of any of its obligations under this Lease. The Security Deposit is not an advance , including the payment of Rent any item of rental, and whether or not the transmittal of a measure Notice of default by Landlord is barred by applicable law, Landlord may use, apply or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to retain the whole or any other remedy, use all or a part of the Security Deposit Deposit, to perform the extent required for the payment of any obligation basic annual rent or additional rent as to which Tenant fails is in default, or for any sum that Landlord may expend or may be required to perform hereunderexpend by reason of the default (including any damages or deficiency accrued before or after summary proceedings or other re-entry by Landlord). Following If Landlord applies or retains any such application portion or all of the Security Deposit, Tenant shall pay to Landlord on demand forthwith restore the amount so applied in order to restore or retained by delivering additional cash so that, at all times, the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion amount of the Security Deposit which was not applied to satisfy Tenant’s obligationsshall be the amount set forth on the Reference Page. Notwithstanding the preceding sentence and to the extent permitted by applicable LawProvided there is no uncured default, Landlord may retain that portion any balance of the Security Deposit which held by Landlord reasonably estimates is necessary and not used, applied or retained by Landlord as above provided shall be returned to pay all amounts payable Tenant after the Expiration Date and after delivery of possession of the entire demised premises to Landlord in accordance with the terms of this Lease. Tenant shall not be entitled to any interest on the Security Deposit. 40.02. At Landlord’s sole option, Tenant shall give Landlord, upon its demand, a Letter(s) of Credit (as defined and further described in this Section). After Landlord’s receipt from Tenant of the Letter(s) of Credit, if so requested by Landlord, Landlord shall return to Tenant any cash Security Deposit then held by Landlord as security under this Lease Lease. “Letter of Credit” shall mean a clean irrevocable and unconditional standby letter of credit issued and drawn upon any commercial bank approved by Landlord having a net worth of at least One Billion U.S. Dollars and with offices for banking purposes in the continental United States of America (including all reconciliation amounts payable by “Issuing Bank”). Tenant shall cause each Letter of Credit to have a term of not less than one year, be in form and content satisfactory to Landlord, be for the year account of Landlord and be in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion amount of the Security Deposit retained set forth in the Reference Page. Landlord, at its sole option, may at any time require Tenant to deliver more than one (1) (as determined by Landlord pursuant to in its absolute discretion) Letter of Credit from different Issuing Banks, each having a net worth of at least One Billion U.S. Dollars and each meeting the foregoing other requirements set forth in this Article 40 that an Issuing Bank must satisfy. Landlord, in its sole judgment, shall not determine the dollar amount of each Letter of Credit, but in no event shall the combined Letters of Credit exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations Tenant shall cause the Letter(s) of Landlord and Tenant under this Section 6 are subject Credit to any other requirements and conditions imposed by Laws applicable to the Security Deposit.provide that:

Security Deposit. Contemporaneously Tenant has deposited with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s Deposit in the amount set forth above for the performance of its obligations each and every covenant and agreement to be performed by Tenant under this Lease. The Landlord shall have the right, but not the obligation, to apply the Security Deposit in whole or in part as payment of such amounts as are reasonably necessary to remedy Tenant's defaults in the payment of rent or in the performance of the covenants or agreements contained herein. Landlord's right to possession of the Property for non-payment of rent or any other reason shall not be affected by the fact that Landlord holds security. Tenant's liability is not an advance payment limited to the amount of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)the Security Deposit. Landlord may, from time to time following an Event shall give Tenant written notice of Default and without prejudice to any other remedy, use all or a part the application of the Security Deposit to perform or any obligation Tenant fails to perform hereunderpart thereof within thirty (30) days of said application. Following any such If the application is on account of maintenance, repairs or replacements necessitated by tenant, said notice shall include the estimated or actual cost of the Security Depositsame, attaching estimates or paid receipts. Upon receipt of said notice, Tenant shall at once pay to Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to its original amountin full. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions Upon termination of this Lease, return to Tenant full payment of all amounts due and performance of all Tenant's covenants and agreements (including surrender of the portion of Property in accordance with Paragraph 15), the Security Deposit which was not applied or any portion thereof remaining unapplied shall be returned to satisfy Tenant’s obligationsTenant in accordance with applicable law. Notwithstanding In the preceding sentence and to event of a sale, lease, or other transfer of the extent permitted by applicable LawBuilding, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may transfer or assign the said Security Deposit to the transferee and Landlord's grantee, lessee or assignee. Provided said grantee, lessee or assignee by written undertaking addressed to Landlord thereafter shall have no further liability assumes all Landlord's obligations hereunder, Tenant agrees to look to such grantee, lessee or assignee solely for the return of the said Security Deposit. The rights provisions hereof shall apply to each and obligations every sale, lease or other transfer of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositBuilding.

Security Deposit. Contemporaneously with On or before the execution Execution Date of this Lease, Tenant shall pay to deposit with Landlord the initial installment of the Security DepositDeposit as set forth in Section 2.2, which sum shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to secure Tenant’s performance be kept and performed by Tenant during the Term. Interest shall accrue on the Security Deposit for the benefit of its obligations under Tenant and shall be paid to Tenant to the extent that Tenant is entitled to the return of the Security Deposit as provided in this Lease. The Landlord shall not be required to maintain a separate account for the Security Deposit, but may intermingle it with other funds of Landlord; provided however, Landlord shall keep the Security Deposit is not an advance payment in a federally insured, interest-bearing account for the benefit of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)Tenant. Landlord may, from time to time following an Event of Default and without prejudice If Tenant Defaults with respect to any other remedyprovision of this Lease, use then without notice to Tenant, Landlord may (but shall not be required to), apply all or a any part of the Security Deposit to perform for the payment of any obligation Tenant fails to perform hereunderRent or any other sum in Default. Following If any such application portion of the Security DepositDeposit is so used or applied, then Tenant shall pay to Landlord on shall, upon demand the amount so applied in order to therefor, restore the Security Deposit to its original amount. Provided that Tenant So long as no default has performed all of its obligations hereunderoccurred and is continuing, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the unapplied portion of the Security Deposit which was not applied shall be returned to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and , or, at Landlord's option, to the extent permitted by applicable Lawlast assignee of Tenant's interest hereunder, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease within sixty (including all reconciliation amounts payable by Tenant for the year in which the Term expires60) until such time after days following the expiration of the Term that Landlord is actually able to reconcile Term. Tenant hereby irrevocably waives and confirm such amounts payable by relinquishes any and all rights, benefits, or protections, if any, Tenant now has, or in the future may have under this Lease have been paid in full by Tenant any provision of law which (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at a) establishes the time of such expiration); providedframe by which a landlord must refund a security deposit under a lease, however, the portion of the Security Deposit retained by Landlord pursuant or (b) provides that a landlord may claim from a security deposit only those sums reasonably necessary to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest remedy defaults in the Premises payment of rent, to repair damage caused by a tenant, or to clean the subject premises. Tenant acknowledges and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability agrees that (x) any statutory time frames for the return of a security deposit are superseded by the express period identified in this Section 5.4, and (y) rather than be so limited, Landlord may claim from the Security Deposit. The rights Deposit (i) any and obligations of Landlord and Tenant under all sums expressly identified in this Section 6 are subject 5.4, and (ii) any additional sums reasonably necessary to compensate Landlord for any and all losses or damages caused by Tenant's default of this Lease, including, but not limited to, all damages or rent due upon termination of this Lease. In the event of bankruptcy or other requirements and conditions imposed by Laws applicable debtor-creditor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the Security Depositpayment of Rent and other charges due Landlord for all periods prior to the filing of such proceedings.

Security Deposit. Contemporaneously with (a) Tenant shall deliver to Heritage Title Company of Austin, Inc. (“Escrow Agent”) upon execution and delivery of this Lease by Tenant the Security Deposit as security for the full and faithful performance of each of the terms hereof by Tenant. The Security Deposit shall be delivered to Landlord by the Escrow Agent upon Landlord’s achievement of the Delivery Date Milestone and delivery to the Escrow Agent and Tenant of the evidence of completion for such Milestone as set forth in Section 2.3 above. Landlord and Tenant shall execute a commercially reasonable escrow agreement regarding the escrow of the Security Deposit promptly after execution of this Lease, it being agreed that the Escrow Agent’s standard escrow agreement is commercially reasonable. Landlord shall be required to keep the Security Deposit separate from its general funds and Tenant shall pay be entitled to interest thereon. If an Event of Default occurs, Landlord may, but shall not be required to, use, apply or retain all or any part of the Security DepositDeposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which shall be held Landlord may spend or become obligated to spend by reason of such Event of Default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of such Event of Default, including, without limitation, costs and attorneys’ fees incurred by Landlord to secure recover possession of the Premises. If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand therefor, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and Tenant’s performance failure to do so shall constitute an Event of its obligations under this LeaseDefault. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default Default. (b) Except as defined herein). expressly set forth in this Lease, Tenant acknowledges that Landlord mayhas the right to transfer or mortgage its interest in the Building and in this Lease, from time and Tenant agrees that in the event of any such transfer or mortgage, Landlord shall have the right to time following an Event of Default and without prejudice to any other remedy, use all transfer or a part of assign the Security Deposit to perform any obligation Tenant fails to perform hereunderthe transferee or mortgagee. Following any Upon such application transfer or assignment of the Security Deposit, Landlord shall be deemed released by Tenant shall pay to Landlord on demand from all liability or obligation for the amount so applied in order to restore return of the Security Deposit and Tenant shall look solely to its original amountsuch transferee or mortgagee for the return of the Security Deposit. Provided that If Tenant has shall fully and faithfully perform every provision of this Lease to be performed all by it, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord’s option, to the last assignee of its obligations Tenant’s interest hereunder, Landlord shall, ) within 60 sixty (60) days after following the expiration of the Term and Tenant’s surrender of possession of the Premises to Landlord in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously Tenant shall deliver to Landlord at the time of execution of this Lease by Tenant the security deposit set forth in Section 1.16 as security for Tenant’s faithful performance of Tenant’s obligations hereunder. If Tenant fails to pay Base Rent or other charges due hereunder, or otherwise defaults with the execution respect to any provision of this Lease, Landlord may (but shall have no obligation to), after expiration of any applicable notice and opportunity to cure, use all or any portion of said deposit for the payment of any Base Rent or other charge due hereunder, to pay any other sum to which Landlord may become obligated by reason of Tenant’s default, or to compensate Landlord for any loss or damage which Landlord may suffer thereby. If Landlord so uses or applies all or any portion of said deposit, Tenant shall pay within ten (10) days after written demand therefor deposit cash with Landlord in an amount sufficient to restore said deposit to its full amount. Landlord the Security Depositshall not be required to keep said security deposit separate from its general accounts. If Tenant performs all of Tenant’s obligations hereunder, which said deposit, or so much thereof as shall not then have been applied by Landlord, shall be held by Landlord returned, without payment of interest or other amount for its use, to secure Tenant (or, at Landlord’s option, to the last assignee, if any, of Tenant’s performance interest hereunder) within thirty (30) days after the expiration of its obligations under this Leasethe term hereof, and after Tenant has vacated and delivered the Premises as required hereunder. The Security Deposit Landlord may retain an amount reasonably calculated to be sufficient to pay any final amount of Taxes or Operating Expenses for the Comparison Year in which the Term ends. No trust relationship is created herein between Landlord and Tenant with respect to said security deposit. Tenant acknowledges that the security deposit is not an advance payment of Rent any kind or a measure of or limit of on Landlord’s damages upon an Event in the event of Default (as defined herein)Tenant’s default. Any application of the security deposit by Landlord may, from time to time following an Event of Default and shall be without prejudice to any other right or remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes conveys Landlord’s obligations interest under this Lease, then the security deposit, or any part thereof not previously applied, shall be turned over by Landlord may assign to Landlord’s grantee, and, when so turned over, Tenant agrees to look solely to such grantee for proper application of the Security Deposit security deposit in accordance with the terms of this Section 5, and the return thereof in accordance herewith. The holder of a mortgage shall not be responsible to the transferee and Landlord thereafter shall have no further liability Tenant for the return or application of any such deposit, whether or not it succeeds to the Security Deposit. The rights and obligations position of Landlord and hereunder, unless such deposit shall have been received in hand by such holder. Tenant under hereby waives the provisions of any law which is inconsistent with this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit5.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall sha11 pay to Landlord upon the commencement of the Tenant Improvement construction the Security DepositDeposit specified in Paragraph 2 as security for the faithful performance by Tenant of all of the forms, which shall covenants, agreements and the conditions of this Lease to be held kept and performed by Landlord Tenant during the term hereof. If Tenant fails to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of pay Land1ord any rent, Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedyat Landlord's option, use may apply all or a part of the Security Deposit in satisfaction of Tenant's obligation to perform any obligation Tenant fails the extent of such application. In no event shall Landlord be required to perform hereunder. Following make any such application application. If Landlord elects to make such application, Landlord shall notify Tenant in writing of the Security Deposit, nature and amount thereof and Tenant shall pay thereupon be obligated to deposit with Landlord on demand the an amount so applied in order sufficient to restore return the Security Deposit to its original amountan amount equal to one hundred percent (100%) of the amount specified in Paragraph 2. Provided If Tenant fails to do so within five (5) days after Landlord has given such notice, Landlord at it's option may resort to any or all remedies available to it for nonpayment of Rent. Promptly following the termination of the term of this Lease, or, if Tenant has held over beyond such termination, promptly following the end of any period Tenant has so held over, provided Tenant has vacated the Premises and fully performed all obligations by Tenant to he performed hereunder, Landlord shall promptly return to Tenant the Security Deposit or such portion thereof then held by Landlord after all applications on account of Tenant's defaults; provided, however, any such return shall not be construed as an admission by Landlord that Tenant has performed all of its obligations hereunder. No holder of a Superior Interest (as defined in Paragraph 21), Landlord shall, within 60 days after the expiration nor any purchaser at any judicial or private foreclosure sale of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this LeaseReal Property or any portion thereof, return shall be responsible to Tenant the portion of the for such Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until unless such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter holder or purchaser shall have no further liability for actually received the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositsame.

Security Deposit. Contemporaneously Tenant shall deposit with Landlord, upon delivery of an executed copy of this Lease to Landlord, a security deposit (the execution “Security Deposit”) for the performance of all of Tenant’s obligations hereunder in the amount set forth in Section 1.1 of this Lease, which Security Deposit shall be in the form of an unconditional and irrevocable letter of credit (the “Letter of Credit”): (i) in form and substance satisfactory to Landlord, (ii) naming Landlord as beneficiary, (iii) expressly allowing Landlord to draw upon it at any time from time to time by delivering to the issuer notice that Landlord is entitled to draw thereunder, (iv) issued by an FDIC-insured financial institution satisfactory to Landlord, (v) redeemable by presentation of a sight draft in the state of Landlord’s choice, and (vi) transferable without fee or cost to Landlord. If Tenant does not provide Landlord with a substitute Letter of Credit complying with all of the requirements hereof at least 10 days before the stated expiration date of any then current Letter of Credit, Landlord shall pay have the right to Landlord draw the full amount of the current Letter of Credit and hold the funds drawn in cash without obligation for interest thereon as the Security Deposit, which . The Letter of Credit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Letter of Credit is not an advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Upon each occurrence of a Default (as defined in Section 16.1), Landlord may draw all or any part of the Letter of Credit to pay delinquent payments due under this Lease, future rent damages, and the cost of any damage, injury, expense or liability caused by such Default, without prejudice to any other remedy provided herein or provided by law. Landlord’s right to use the Letter of Credit under this Section includes the right to use the Letter of Credit to pay future rent damages following the termination of this Lease pursuant to Section 16.2 below. Upon any use of all or any portion of the Letter of Credit, Tenant shall on demand deliver a new Letter of Credit or amend the existing Letter of Credit to restore the Letter of Credit to the amount set forth on Page 1 of this Lease. Tenant hereby waives the provisions of any law, now or hereafter in force which provide that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of Rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by the Default of Tenant. Upon bankruptcy or other debtor-creditor proceedings against Tenant, the Letter of Credit shall be deemed to be applied first to the payment of Rent and other charges due Landlord for periods prior to the filing of such proceedings. The Letter of Credit, or any balance thereof (i.e., after deducting therefrom all amounts to which Landlord is entitled under the provisions of this Lease), shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within 90 days after the expiration or earlier termination of this Lease. Provided that no Default (as defined in Section 16.1) has occurred or event that with the passage of time, or the giving of notice, or both, would constitute a Default has occurred that remains uncured, the amount of the Security Deposit shall be reduced to the following amounts: (i) $1,044,247.90 effective as of the Rent Commencement Date; (ii) $835,398.32 effective as of the first anniversary of the Rent Commencement Date; and (iii) $626,548.74 effective as of the second anniversary of the Rent Commencement Date. Within thirty (30) days following receipt of Tenant’s written request for the applicable reduction, any portion of the Security Deposit in excess of the respective reduced amounts shall, if held by Landlord in cash, be refunded to Tenant, without interest, or Landlord shall agree to an appropriate replacement or amendment of the Letter of Credit in order to effect the applicable reduction. If Landlord transfers its interest in the Project or this Lease, Landlord shall either (a) transfer any Security Deposit then held by Landlord to a person or entity assuming Landlord’s obligations under this Section, or (b) return to Tenant any Security Deposit then held by Landlord and remaining after the deductions permitted herein. Upon such transfer to such transferee or the return of the Security Deposit to Tenant, Landlord shall have no further obligation with respect to the Security Deposit, and Tenant’s right to the return of the Security Deposit shall apply solely against Landlord’s transferee. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon an Event in case of Default (as defined herein)Tenant’s default. Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of Landlord’s obligation respecting the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application is that of the Security Deposita debtor, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other fundstrustee, and no interest shall be paid accrue thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the The Security Deposit, which Deposit shall be held by Landlord to secure Tenant’s as security for the performance of its Tenant's obligations under this Lease. The Security Deposit is not an advance payment of Rent If Tenant fails to pay Rent, or a measure or limit of Landlord’s damages upon otherwise an Event of Default (as defined herein). occurs under this Lease, Landlord maymay use, from time to time following an Event of Default and without prejudice to any other remedy, use apply or retain all or a part any portion of the said Security Deposit for the payment of any amount already due Landlord, for Rents which will be due in the future, and/or to perform reimburse or compensate Landlord for any obligation Tenant fails to perform hereunderliability, expense, loss or damage which Landlord may suffer or incur by reason thereof. Following If Landlord uses or applies all or any such application portion of the Security Deposit, Tenant shall pay to within 10 days after written request therefor deposit monies with Landlord on demand the amount so applied in order sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Tenant shall, upon written request from Landlord, deposit additional monies with Landlord so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Permitted Use be amended to accommodate a material change in the business of Tenant or to accommodate a sublessee or assignee, Landlord shall have the right to increase the Security Deposit to its original amount. Provided the extent necessary, in Landlord's reasonable judgment, to account for any increased wear and tear that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Leasemay suffer as a result thereof. Landlord may use, return to Tenant the apply or retain all or any portion of the Security Deposit which was not applied (i) first, for Tenant's repair obligations, including without limitation, the obligation to satisfy Tenant’s obligations. Notwithstanding restore the preceding sentence and Premises to the extent permitted condition required under this Lease, (ii) second, to the payment of any rent or other sum in default or for the payment of any other sum to which Tenant may become obligated by applicable Lawreason of Tenant's default, and (iii) third, to compensate Landlord for any loss or damage which Landlord may suffer thereby. If a change in control of Tenant occurs during this Lease and following such change the financial condition of Tenant is, in Landlord's reasonable judgment, significantly reduced, Tenant shall deposit such additional monies with Landlord as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Landlord shall not be required to keep the Security Deposit separate from its general accounts. Within 90 days after the expiration or termination of this Lease, Landlord may retain shall return that portion of the Security Deposit which not used or applied by Landlord. Landlord reasonably estimates is necessary shall upon written request provide Tenant with an accounting showing how that portion of the Security Deposit that was not returned was applied. No part of the Security Deposit shall be considered to pay all amounts payable be held in trust, to bear interest or to be prepayment for any monies to be paid by Tenant under this Lease (including including, without limitation, Base Rent). Tenant hereby waives California Civil Code Section 1950.7, and all reconciliation amounts payable other provisions of law, now or hereafter in force, which may provide that Landlord can claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant for or to clean the year in which the Term expires) until such time after the expiration of the Term Premises, it being agreed that Landlord is actually able may, in addition, claim those sums reasonably necessary to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., compensate Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed loss or damage, foreseeable or unforeseeable, caused by Laws applicable to the Security Depositact or omission of Tenant or any officer, employee or agent of Tenant.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall Owner agrees to pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part Marina the amount of the Security Deposit specified above, to perform any obligation Tenant fails to perform secure the faithful performance of Owner's obligations hereunder. Following any In addition to all remedies that ▇▇▇▇▇▇ ▇▇▇ have under this Agreement, ▇▇▇▇▇▇ ▇▇▇ at its sole option and judgment apply such application amounts of said Security Deposit Fee as are reasonably necessary to: (a) remedy Owner's default in payment of the fees and other charges due hereunder; (b) repair damage to Marina property caused by Owner's or Owner's family, guests, agents or other invitees; (c) clean the berth/mooring/storage space; (d) pay attorneys' fees, litigation expenses and costs incurred in enforcing the Marina's rights and remedies relating to this Agreement; and/or (e) to satisfy any other of the Owner's obligations hereunder. In the event this Security DepositDeposit or any portion thereof is applied as provided herein, Tenant shall pay Owner agrees to Landlord on deposit with the Marina, within ten (10) days after written demand the from ▇▇▇▇▇▇, an amount so applied in order sufficient to restore the said Security Deposit to its original amountsum. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after If the expiration amount of the Term and Tenant’s surrender Security Deposit is increased during any term of the Premises in compliance with Agreement, Owner agrees to pay additional sums as will cause the provisions Security Deposit paid by him/her/it to equal the amount required by the Marina's then current "Rate Schedule." Failure to do so shall constitute a material breach of this LeaseAgreement. All Security Deposits are fully earned at the time of payment to Marina. Upon termination of this Agreement any remaining portion of said Security Deposit will be returned to Owner within 30 days following the date the Marina has regained possession of the berth/mooring/storage space and is able to determine the amount of any refund if any, return to Tenant the Owner. Unless the Marina expressly so approves in writing, Owner may not use any portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion as payment of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax last month's wharfage fees. ▇▇▇▇▇▇ from all applicable taxing authorities at shall have the time of such expiration); provided, however, the portion right to combine said Security Deposit with other funds of the Security Deposit retained by Landlord pursuant to the foregoing Marina. ▇▇▇▇▇▇ shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other fundsobligated to, and no shall not, pay interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to on the Security Deposit.

Security Deposit. Contemporaneously with On the execution of this LeaseEffective Date, Tenant shall deposit with Landlord the Security Deposit as set forth in Paragraph 16 of the Summary of Basic Lease Terms as security for the full and faithful performance by Tenant of all Tenant’s obligations hereunder. No interest shall be paid upon the Security Deposit nor shall Landlord be required to maintain the deposit in a segregated account. The Security Deposit shall not be construed as prepaid Rent. In the event that Tenant shall fail to cure a default under this Lease within the time allowed for cure, then Landlord may retain the Security Deposit, or a portion thereof, and apply it toward any damages sustained by Landlord, including but not limited to actual damages sustained by the Landlord by reason of the default of Tenant, including any past due Rent. Upon each such application, Tenant shall, on demand, pay to Landlord the Security Depositsum so applied, which shall be held added to the Security Deposit so that the same shall be restored to the amount first set forth above. In the event of bankruptcy or other debtor-creditor proceedings, either voluntarily or involuntarily instituted by or against Tenant, the Security Deposit shall be deemed to be applied in the following order: to actual damages caused by Tenant beyond ordinary wear and tear, obligations and other charges, including any damages sustained by Landlord, other than unpaid Rent, due to Landlord for all periods prior to the filing of such proceedings; to accrued and unpaid Rent prior to the filing of such proceeding, and thereafter to actual damages, obligations, other charges and damages sustained by Landlord and Rent due the Landlord for all periods subsequent to secure Tenant’s performance such filing. In the event of its obligations under this Lease. The Security Deposit is not an advance payment a sale of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). the Building, Landlord may, from time shall have the right to time following an Event of Default and without prejudice to any other remedy, use all or a part of transfer the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Depositbuyer, Tenant shall pay to Landlord on demand and, assuming the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed buyer assumes all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign Lease and with respect to the Security Deposit to the transferee and Deposit, Landlord thereafter shall have no further liability for the return of obligation regarding the Security Deposit. The rights and obligations of Landlord and If Tenant is not then in default under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to Lease, the Security DepositDeposit or any balance thereof shall be returned to Tenant within forty-five (45) days after expiration of the Lease Term or forty-five (45) days after the final day Tenant occupies the Leased Premises.

Security Deposit. Contemporaneously with the execution and delivery of this Lease by Tenant, Tenant shall deliver to Landlord an unconditional, irrevocable and renewable standby letter of credit (the “Letter of Credit”) naming Landlord as beneficiary, in favor of Landlord and in the form attached hereto as Appendix 5, or other form reasonably acceptable to Landlord. The Letter of Credit shall be issued by a bank reasonably satisfactory to Landlord with a branch located in California in the principal amount of $179,697.00 (hereinafter, the “Stated Amount”). The form and content of the Letter of Credit shall conform to International Standby Practices 1998 International Chamber of Commerce Publication No. 590. The Letter of Credit shall state that an authorized officer or other representative of Landlord may make demand on Landlord’s behalf for the Stated Amount, or any portion thereof, upon certifying that such sum is due and owing to Landlord under this Lease, Tenant and that the issuing bank must immediately honor such demand, without qualification or satisfaction of any conditions, except the proper identification of the party making such demand. In addition, the Letter of Credit shall pay indicate that it is freely transferable in its entirety by Landlord as beneficiary to any person or entity to whom Landlord’s leasehold interest in the Building is transferred by Landlord, and that upon receiving written notice of transfer certifying that Landlord’s leasehold interest in the Building has been transferred to such transferee, and upon presentation to the issuing bank of the original Letter of Credit together with Landlord’s payment of the issuing bank’s fee required for transfer of the Letter of Credit from Landlord to such transferee, the Security Depositissuer or confirming bank will reissue the Letter of Credit naming such transferee as the beneficiary. The Letter of Credit may be re-issued or renewed provided that except as provided herein, which the Letter of Credit amount shall not be reduced below the Stated Amount at any time during the Term of the Lease. Each renewal or replacement Letter of Credit shall be held by Landlord in substantially the same form as the original Letter of Credit or such form as is otherwise reasonably acceptable to secure Tenant’s performance of its obligations under this LeaseLandlord. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of In the Security Deposit to perform any obligation event that Tenant fails to perform hereunder. Following any such application renew or re-issue the Letter of the Security Deposit, Tenant shall pay Credit at least twenty (20) days prior to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender then existing Letter of Credit, Landlord shall be entitled to make demand for the Stated Amount of said Letter of Credit and, thereafter, to hold such funds as a cash security deposit in accordance with Section 2.6.5 of the Premises Lease. Once deposited with Landlord, the Letter of Credit (or a replacement thereof reasonably acceptable to Landlord) shall remain in compliance with effect for a period of at least sixty (60) days following the provisions of this LeaseTerm Expiration. Upon any Default by Tenant beyond the applicable cure period, return to Tenant the Landlord may (but shall not be required to) draw upon all or any portion of the Security Deposit Stated Amount of the Letter of Credit, and Landlord may then hold such proceeds as a cash security deposit and/or use, apply or retain all or any part of the proceeds for the payment of any sum which was not applied is in default, or for the payment of any other amount which Landlord may spend or become obligated to satisfy spend by reason of Tenant’s obligations. Notwithstanding the preceding sentence and default or to the extent permitted by applicable Law, compensate Landlord for any loss or damage which Landlord may retain that suffer by reason of Tenant’s default. If any portion of the Security Deposit which Landlord reasonably estimates Letter of Credit proceeds is necessary so used or applied, Tenant shall, within ten (10) days after demand therefor, post an additional Letter of Credit in an amount to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for cause the year in which the Term expires) until such time after the expiration aggregate amount of the Term that unused proceeds and such new Letter of Credit to equal the Stated Amount required in this Section 2.6. Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% be required to keep any proceeds from the Letter of the total Security Deposit required by this LeaseCredit separate from its general funds. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Should Landlord transfers transfer its interest in the Premises during the Lease Term Landlord shall deposit with the purchaser thereof the Letter of Credit and all proceeds of the transferee assumes LandlordLetter of Credit required under this Lease to be held by Landlord immediately prior to such transfer, thereupon Landlord shall be discharged from any further liability with respect to the Letter of Credit and said proceeds. Any remaining proceeds of the Letter of Credit held by Landlord after expiration of the Lease Term, after any deductions described in this Section 2.6.1, shall be returned to Tenant or, if there has been an assignment of the Lease, to the last assignee of Tenant’s interest hereunder, after all of Tenant’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositbeen fulfilled.

Security Deposit. Contemporaneously To the extent that the unapplied amount of the security deposit held by Existing Landlord under the Existing Lease (such amount, the “Original Security Deposit”) is less than the amount of the Security Deposit specified in the Basic Provisions, on the Commencement Date, Tenant shall deposit with Landlord the difference between such amount of the Security Deposit and the Original Security Deposit, which, when combined with the execution Original Security Deposit shall be the Security Deposit for the performance by Tenant of its obligation under this Lease. Tenant agrees that if Tenant defaults in its performance of this Lease, or in the payment of any sums owing to Landlord, or in the payment of any other sums required from Tenant under the provisions of this Lease, then Landlord may, but shall pay to Landlord not be obligated to, use the Security Deposit, which shall be held or any portion thereof, to cure such default or to compensate Landlord for any damage, including Rent that is unpaid either before or after the termination of this Lease, late charges and costs of enforcement, and any other damages suffered by Landlord before or after the termination of this Lease which Landlord is entitled to secure Tenant’s performance recover pursuant to the terms of its obligations under this Lease, and which are sustained by Landlord resulting from Tenant's default or nonpayment. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). If Landlord may, from time to time following an Event of Default and without prejudice to does so apply any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application portion of the Security Deposit, Tenant shall immediately pay to Landlord on demand the amount so applied in order sufficient cash to restore the Security Deposit to its original amountthe amount of the then current Minimum Monthly Rent. Provided that If Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after is not in default at the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or termination of this Lease, Landlord shall return to Tenant the unexpended portion of the Security Deposit which was not applied to satisfy Tenant’s obligationsTenant within sixty (60) days following expiration or termination of this Lease, without interest. Notwithstanding the preceding sentence and Landlord's obligations with respect to the Security Deposit shall be those of debtor, and not of a trustee, and Landlord shall be entitled to commingle the Security Deposit with the general funds of Landlord. With the understanding that it is the parties’ intent that the terms of this Lease control their obligations regarding the Security Deposit, to the maximum extent permitted by applicable Lawlaw (it being the specific intent of the parties that, to the extent applicable law permits Landlord may retain that portion of to reserve greater rights with respect to the Security Deposit which under the terms of this Lease than would otherwise be available under applicable law, Landlord be allowed to reserve such greater rights), Tenant hereby waives (a) any and all terms of applicable law, including, without limitation, California Civil Code Section 1950.7, applicable to security deposits in the commercial context to the extent inconsistent with the terms of this Lease, including, without limitation, any laws that provide that Landlord may claim from a security deposit only those sums reasonably estimates is necessary to pay all amounts payable remedy defaults in the payment of rent, to repair damage caused by Tenant under or to clean the Premises (“Security Deposit Laws”), and (b) to the extent inconsistent with the terms of this Lease (including Lease, any and all reconciliation amounts payable by Tenant for rights, duties and obligations either Party may now or, in the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able future, will have under, relating to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ or arising from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositLaws.

Security Deposit. Contemporaneously Tenant shall deposit concurrently with the Tenant’s execution of this Lease, with Landlord the amount set forth in Article 1 as the Security Deposit as security for the performance by Tenant shall pay of the terms of this Lease to be performed by Tenant, and not as prepayment of rent. Tenant hereby grants to Landlord a security interest in the Security Deposit, which shall be held including but not limited to replenishments thereof. Landlord may apply such portion or portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to remedy any default beyond applicable periods of notice and grace by Tenant in the payment of Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant under this Lease; (ii) to repair damage to the Leased Premises, the Building or the Common Areas caused or permitted to occur by Tenant and not repaired or restored by Tenant within the applicable notice and grace period; (iii) to clean and restore and repair the Leased Premises, the Building or the Common Areas following their surrender to Landlord if not surrendered in the condition required pursuant to secure the provisions of Article 2, (iv) to remedy any other default of Tenant beyond applicable notice and grace periods including, without limitation, paying in full on Tenant’s performance behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant’s request to the Leased Premises, and (v) to cover any other reasonable out of pocket expense, loss or damage which Landlord may at any time suffer due to Tenant’s default of its obligations under this LeaseLease beyond applicable periods of notice and grace. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord mayIn this regard, from time Tenant hereby waives any restriction on the uses to time following an Event of Default and without prejudice to any other remedy, use all or a part of which the Security Deposit to perform may be applied as contained in any obligation Tenant fails to perform hereunderLaws. Following any such application of In the event the Security DepositDeposit or any portion thereof is so used, Tenant shall pay to Landlord on demand the Landlord, promptly upon demand, an amount so applied in order cash sufficient to restore the Security Deposit to its the full original amountsum. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion shall not be deemed a trustee of the Security Deposit which was not applied to satisfy Tenant’s obligationsDeposit. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of use the Security Deposit which Landlord reasonably estimates is necessary in Landlord’s ordinary business and shall not be required to pay all amounts payable by segregate it from Landlord’s general accounts. Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able shall not be entitled to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of any interest on the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonDeposit. If Landlord transfers its interest in the Premises and Building, the transferee assumes Landlord’s obligations under this LeaseProperty, then or the Project during the Lease Term, Landlord may assign shall pay or transfer the Security Deposit to any subsequent owner in conformity with Laws, in which event the transferee and Landlord thereafter transferring landlord shall have no further be released from all liability for the return of the Security Deposit. The rights and obligations of Tenant specifically grants to Landlord (and Tenant under this Section 6 are subject hereby waives the provisions of Texas Property Code Sections 93.005-93.011 to the contrary) a period of sixty (60) days following a surrender of the Leased Premises by Tenant to Landlord within which to inspect the Leased Premises, make required restorations and repairs, receive and verify workmen’s ▇▇▇▇▇▇▇▇ therefor, cure any other requirements defaults, deduct any damages, and conditions imposed by Laws applicable prepare a final accounting with respect to the Security Deposit.. In no event shall the Security Deposit or any portion thereof, be considered prepaid rent. Notwithstanding the foregoing, Tenant may deliver to Landlord a clean, unconditional, irrevocable, transferable, fully cash-collateralized letter of credit in lieu of cash for the Security Deposit (the “Letter of Credit”) in form and issued by a financial institution (“Issuer”) reasonably satisfactory to Landlord in its sole discretion, substantially in the form attached as Exhibit D. Landlord hereby approves Silicon Valley Bank as Issuer. Tenant hereby waives any right to protest the Issuer’s honoring of the Letter of Credit. The Letter of Credit shall permit partial draws, and provide that draws thereunder will be honored upon presentation by Landlord. The Letter of Credit shall have an expiration period of one (1) year but shall automatically renew by its terms unless affirmatively cancelled by either Issuer or Tenant, in which

Security Deposit. Contemporaneously with The total security deposit at the time of execution of this LeaseLease Contract for all residents in the apartment is $2,400.00 , Tenant shall pay due on or before the date this Lease Contract is signed. We will hold the security deposit for the term of the tenancy and, upon termination of the tenancy, reserve the right to Landlord use the security deposit, or portions thereof, to cover any charges related to your, performance of this Lease Contract, including, but not limited to, cleaning, repair of damages, unpaid rent, late fees, and returned check fees. The primary purpose of the Security Deposit, which shall be held by Landlord Deposit is to secure Tenant’s the full performance of its obligations under this LeaseLease by Resident and such Security Deposit to pay Rent and that he or she is required to pay Rent for the full term of the lease. The Security Deposit shall be forfeited in the event Resident has breached lease and Resident has either voluntarily or through legal process, terminated occupancy as a result of such breach. It is not an agreed that there are certain costs, effort, and inconvenience imposed on Management by a Residents early departure from occupying a leased premises which may be difficult to anticipate in advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days establish after the expiration of the Term and Tenant’s surrender of the Premises fact does not prevent Management from claiming damages in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return excess of the Security Deposit. The rights Lessor shall be the sole judge as to whether the Premises are in good order and obligations repair, and Lessor shall have 60 DAYS following the expiration of Landlord the term of the this Lease within which to account for and Tenant under this Section 6 are subject to any other requirements return such Security Deposit, or portions thereof, if any. Residence agrees that ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ shall be the spokesperson for Resident, shall be responsible for the accounting and conditions imposed by Laws applicable to disbursement of the Security DepositDeposit and shall be authorized to act on behalf of and to bind all persons or occupants concerning all matters related to this Lease and Premises. If a forwarding address is not provided upon move-out in order for Lessor to mail an applied refund amount, then Lessor shall retain the fund for Resident. For pick up contact DTG Enterprises, Inc with mailing address.

Security Deposit. Contemporaneously Concurrently with the execution and delivery of this Lease by Tenant, Tenant shall deposit with Landlord a sum equal to Seventy-Five Thousand Two Hundred Eight Dollars ($75,208.00) as a security deposit (the “Security Deposit”). 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. If Tenant performs and observes all of the terms, conditions and covenants of this Lease which are required to be performed and observed by it, Landlord shall return the Security Deposit, or balance thereof then held by Landlord, to Tenant after the Expiration Date or after Tenant surrenders possession of the Premises, whichever is later. In the event of a default by Tenant in the payment of rent or the performance or observance of any of the other terms, conditions or covenants of this Lease, Tenant shall pay to Landlord the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). then Landlord may, from time to time following an Event of Default at its option and without prejudice to any other remedynotice, use apply all or a any part of the Security Deposit in payment of such rent or to perform cure any obligation other such default; and if Landlord does so, Tenant fails to perform hereunder. Following any such application shall, upon request, deposit with Landlord the amount so applied so that Landlord will have on hand at all times throughout the Term of this Lease the full amount of the Security Deposit. Landlord shall not be required to hold the Security Deposit as a separate account, Tenant but may commingle it with Landlord’s other funds. The use, application or retention of the Security Deposit or any portion thereof by Landlord shall pay 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 on demand may otherwise be entitled. In the amount so applied in order event of a sale or any other transfer of the Building, Landlord shall have the right to restore transfer the Security Deposit to its original amountpurchaser and Landlord shall thereupon be released by Tenant from all responsibility for the return of such deposit; and Tenant agrees to look solely to such purchaser for the return of such deposit. Provided that Tenant has performed all In the event of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions an assignment of this Lease, return to Tenant the portion of the Security Deposit which was not applied shall be deemed to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained be held by Landlord pursuant to as a deposit made by the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other fundsassignee, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability responsibility for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable such deposit to the Security Depositassignor.

Security Deposit. Contemporaneously 5.1 Tenant shall deposit the Security Deposit with Landlord upon the execution of this Lease, Tenant shall pay to Landlord the Security Deposit, which . Said sum shall be held by Landlord as security for the faithful performance by Tenant of all the terms, covenants and conditions of this Lease to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is be kept and performed by Tenant and not as an advance payment of Rent rental deposit or as a measure or limit of Landlord’s damages upon an Event damage in case of Default (as defined herein)Tenant’s default. Landlord may, from time to time following an Event of Default and without prejudice If Tenant defaults with respect to any other remedyprovision of this Lease (after the expiration of any applicable grace or cure period), Landlord may use all or a any part of the 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 perform spend by reason of Tenant’s default, or to compensate Landlord for any obligation Tenant fails to perform hereunderother loss or damage which Landlord may suffer by reason of Tenant’s default. Following If any such application of the Security Depositportion is so used, Tenant shall pay to within thirty (30) days after written demand therefor, deposit with Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to its original amountamount and Tenant’s failure to do so shall be a material breach of this Lease. Provided that Except to such extent, if any, as shall be required by law, Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant has shall not be entitled to interest on such deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant within thirty (30) days after termination of this Lease. 5.2 The required Security Deposit shall be in the form of an Irrevocable Standby Letter of Credit in favor of Landlord (the “letter of credit”) in the amount set forth on the Reference Pages. Under any circumstance under which Landlord is entitled the use of all or a part of the Security Deposit, then, Landlord, in addition to all other rights and remedies provided under the Lease, shall have the right to a partial draw upon the letter of credit in the amount to which Landlord is entitled. The following terms and conditions shall govern the letter of credit: 5.2.1 Upon expiration of the Term, the letter of credit shall be returned to Tenant when Tenant is entitled to return of its Security Deposit. 5.2.2 The letter of credit shall be in favor of Landlord, shall be issued by a commercial bank reasonably acceptable to Landlord having a Standard & Poors rating of “A” or better, shall comply with all of the terms and conditions of this Section 5.2 and shall otherwise be in form reasonably acceptable to Landlord. Landlord acknowledges and confirms that Silicon Valley Bank shall be an acceptable commercial bank to issue such letter of credit. The initial letter of credit shall have an expiration date not earlier than fifteen (15) months after the Commencement Date. A draft of the form of letter of credit must be submitted to Landlord for its obligations hereunderapproval prior to issuance. 5.2.3 The letter of credit or any replacement letter of credit shall be irrevocable for the term thereof and shall automatically renew on a year to year basis until a period ending not earlier than one (1) month after the Termination Date (“End Date”) without any action whatsoever on the part of Landlord; provided that the issuing bank shall have the right not to renew the letter of credit by giving written notice to Landlord not less than sixty (60) days prior to the expiration of the then current term of the letter of credit that it does not intend to renew the letter of credit. Tenant understands that the election by the issuing bank not to renew the letter of credit shall not, in any event, diminish the obligation of Tenant to maintain such an irrevocable letter of credit in favor of Landlord through such date. 5.2.4 Landlord, or its then managing agent, shall have the right from time to time to make one or more draws on the letter of credit at any time that an Event of Default has occurred. Funds may be drawn down on the letter of credit upon presentation to the issuing or corresponding bank of Landlord’s (or Landlord’s then managing agent’s) certificate stating as follows: “Beneficiary is entitled to draw on this credit pursuant to that certain Lease dated for reference August 25, 2006 between GATEWAY SHERWOOD, INC., a California corporation, as Landlord and BIGBAND NETWORKS, INC., a Delaware corporation, as Tenant, as amended from time to time.” It is understood that if Landlord or its managing agent be a corporation, partnership or other entity, then such statement shall be signed by an officer (if a corporation), a general partner (if a partnership), or any authorized party (if another entity). 5.2.5 Tenant acknowledges and agrees (and the letter of credit shall so state) that the letter of credit shall be honored by the issuing bank without inquiry as to the truth of the statements set forth in such draw request and regardless of whether the Tenant disputes the content of such statement. 5.2.6 In the event of a transfer of Landlord’s interest in the Premises, Landlord shall have the right to transfer the letter of credit to the transferee and thereupon the Landlord shall, within 60 without any further agreement between the parties, be released by Tenant from all liability therefor, and it is agreed that the provisions hereof shall apply to every transfer or assignment of said letter of credit to a new landlord; and Landlord shall pay all fees to the issuer necessary to effect and evidence such transfer. 5.2.7 Without limiting the generality of the foregoing, if the letter of credit expires earlier than the End Date, or the issuing bank notifies Landlord that it will not renew the letter of credit, Landlord shall accept a renewal thereof or substitute letter credit (such renewal or substitute letter of credit to be in effect not later than thirty (30) days prior to the expiration of the expiring letter of credit), irrevocable and automatically renewable as above provided to the End Date upon the same terms as the expiring letter of credit or upon such other terms as may be reasonably acceptable to Landlord. However, if (i) the letter of credit is not timely renewed, or (ii) a substitute letter of credit, complying with all of the terms and conditions of this Section is not timely received, then Landlord may present the expiring letter of credit to the issuing bank, and the entire sum so obtained shall be paid to Landlord, to be held by Landlord until Tenant would otherwise be entitled to the return of the letter of credit, and to be retained by Landlord if an Event of Default occurs. 5.2.8 As of the expiration of the twenty-fourth (24lh) full calendar month and also upon the expiration of the thirty-sixth (36th) full calendar month of the Term, provided that Tenant is not then in default (after the expiration of any applicable grace or cure period), and that prior thereto there has occurred no monetary Event of Default, Landlord shall permit the Term and Tenant’s surrender amount of the Premises in compliance with the provisions letter of this Lease, return credit to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted be reduced by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit$129,159.35.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security DepositDeposit (as defined in the Basic Lease Information), which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined hereinin Section 17). Landlord may, at Landlord’s discretion, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to put the Premises in the condition required under this Lease and to perform any obligation Tenant fails to perform hereunderhereunder or in connection with Landlord’s remedies under this Lease. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunderSubject to the requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Leasetime required by applicable Law, return to Tenant the portion of the Security Deposit which was not applied to satisfy remaining after deducting all damages, charges and other amounts permitted by Law. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach of this Lease by Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted Unless required otherwise by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this LeasePremises, then Landlord may assign the Security Deposit to the transferee and, upon such transfer (and the delivery to Tenant of an acknowledgment of the transferee’s responsibility for the Security Deposit if required by Law), Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights Security Deposit shall be in the form of an irrevocable, unconditional letter of credit (the “Letter of Credit”). The Letter of Credit shall be addressed to Landlord, issued in a form and obligations substance similar to that attached hereto as Exhibit G and by a financial institution approved by Landlord, in Landlord’s sole discretion, shall be freely transferable without fee, and having an expiration date falling no sooner than ten (10) years and thirty (30) days after the Commencement Date. Tenant agrees that upon any default by Tenant under the terms and provisions of this Lease, Landlord shall have the right to receive payment under any Letter of Credit of the entire amount of such Letter of Credit at such time, and any such amounts received by Landlord shall be held by Landlord and Tenant applied in accordance with this Lease in the same manner as for a cash Security Deposit. Provided no Event of Default shall have occurred under this Section 6 are subject Lease, the amount of the Security Deposit shall be reduced by $11,600.00 as of the second (2nd) anniversary of the Commencement Date, and by$54,800.00 as of each subsequent anniversary of the Commencement; provided, however, that in no event shall the Security Deposit be reduced to an amount less than $127,794.00. Prior to any other requirements and conditions imposed by Laws applicable such reduction, Tenant shall be required to have furnished to Landlord a replacement Letter of Credit in the reduced amount of such Security Deposit.

Security Deposit. Contemporaneously with The Security Deposit shall be delivered to Landlord upon the execution of this Lease, Lease by Tenant shall pay to Landlord the Security Deposit, which and shall be held by Landlord (without liability for interest, except to secure the extent required by Law) as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of LandlordTenant’s damages upon an Event of Default (as defined herein)liability for damages. Landlord may, from time to time following while an Event event of Default and default remains uncured, without prejudice to any other remedy, use all or a part portion of the Security Deposit to perform satisfy past due Rent, cure any obligation uncured default by Tenant, or repay Landlord for damages and charges for which Tenant fails to perform hereunderis legally liable under this Lease or resulting from Tenant’s breach of this Lease. Following any such application of If Landlord uses the Security Deposit, Tenant shall pay to Landlord on within ten (10) days after written demand the amount so applied in order to restore the Security Deposit to its original amountamount and such use by Landlord of the Security Deposit shall not constitute a cure of the existing event of default until such time as the entire amount owing to Landlord is paid in full and the Security Deposit is fully restored. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, shall return to Tenant the any unapplied portion of the Security Deposit which was not applied to satisfy Tenant within 30 days after the later to occur of: (A) the date Tenant surrenders possession of the Premises to Landlord in accordance with this Lease; or (B) the Expiration Date. Tenant does hereby authorize Landlord to withhold from the Security Deposit all amounts allowed by Law and the amount reasonably anticipated by Landlord to be owed by Tenant as a result of an underpayment of Tenant’s obligationsPro Rata Share of any Excess Operating Expenses for the final year of the Term. Notwithstanding To the preceding sentence and to the fullest extent permitted by applicable Law, Landlord may retain Tenant agrees that portion the provisions of the Security Deposit which Landlord reasonably estimates is necessary to pay this Article 6 shall supersede and replace all amounts payable by statutory rights of Tenant under this Lease (including all reconciliation amounts payable by Tenant for applicable Law regarding the year in which the Term expires) until such time after the expiration retention, application or return of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonsecurity deposits. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this LeasePremises, then Landlord may shall assign the Security Deposit to the transferee and, following the assignment and the delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit if required by Law, Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject shall not be required to any other requirements and conditions imposed by Laws applicable to keep the Security DepositDeposit separate from its other accounts.

Security Deposit. Contemporaneously At the time of signing this Lease Tenant shall deposit with Landlord the execution sum set forth in Item (l) of Basic Terms, to be retained by Landlord as a Security Deposit for the faithful performance and observance by Tenant of the covenants, agreements and conditions of this Lease, . Tenant shall pay grants to Landlord a security interest in the Security Deposit, which shall be held by Landlord Deposit to secure Tenant’s performance the payment of its obligations all Rent owing under this Lease. The Security Deposit is not an advance payment This Lease shall constitute a security agreement between Landlord and Tenant for the purpose of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)creating such security interest. Upon request by Landlord may, from time to time following an Event of Default and without prejudice to at any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposittime, Tenant shall pay execute and deliver to Landlord on demand UCC Financing Statements to further evidence and perfect the amount so applied in order to restore the Security Deposit to its original amountsecurity interest herein granted. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence If and to the extent permitted by applicable Lawlaw, Tenant shall not be entitled to any interest whatever on the Security Deposit. Landlord may use, apply or retain that portion the whole or any part of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee extent required for the payment of any Rent payable hereunder as to which Tenant is in default or to the extent required for the reimbursement to Landlord of any sum which Landlord may expend or may be required to expend by reason of Tenant’s default with respect to any of the covenants, agreements or conditions of this Lease. Upon notice by Landlord of Landlord’s application of all or any portion of the security deposit as aforesaid, Tenant shall replenish the security deposit in full by promptly paying to Landlord the amount so applied. Notwithstanding anything in this Lease to the contrary, provided that Tenant has not at any time been in default under the Lease, Landlord and Tenant hereby agree that, starting on the first day of the month commencing immediately following the first anniversary of the Commencement Date, Landlord thereafter shall apply the Security Deposit against payment of monthly Rent owing by the Tenant under this Lease, until the Security Deposit is reduced to the final month’s Rent under the Lease Term, at which time Tenant will resume payment of monthly Rent in accordance with the terms of this Lease (including any residual Rent owing for the month in which the Security Deposit is reduced to the last month’s Rent), and Tenant will have no obligation to replenish the Security Deposit for Rent paid by reduction of the Security Deposit pursuant to this sentence. If Tenant shall fully and faithfully comply with all of the covenants, agreements and conditions of this Lease, the balance of the Security Deposit shall be returned to Tenant after the Expiration Date and surrender of the Premises to Landlord. If the Premises are sold to a bona fide purchaser, Landlord shall have no further the obligation to transfer the Security Deposit to such purchaser, by which transfer Landlord shall be released from all liability for the return of the Security Deposit. The rights and obligations of Landlord thereof, and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable shall look solely to the Security Depositnew landlord for the return thereof.

Security Deposit. Contemporaneously Tenant has deposited or shall deposit concurrently with the Tenant’s execution of this Lease, with Landlord the amount set forth in Article 1 as the “Security Deposit” as security for the performance by Tenant shall pay of the terms of this Lease to be performed by Tenant, and not as prepayment of rent. Tenant hereby grants to Landlord a security interest in the Security Deposit, which shall be held by Landlord including but not limited to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)replenishments thereof. Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all may apply such portion or a part portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to perform remedy any default by Tenant in the payment of Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant fails under this Lease; (ii) to perform hereunderrepair damage to the Leased Premises, the Building or the Outside Areas caused or permitted to occur by Tenant; (iii) to clean and restore and repair the Leased Premises, the Building or the Outside Areas following their surrender to Landlord if not surrendered in the condition required pursuant to the provisions of Article 2, and (iv) to remedy any other default of Tenant to the extent permitted by Law including, without limitation, paying in full on Tenant’s behalf any sums claimed by materialmen or contractors of Tenant to be owing to them by Tenant for work done or improvements made at Tenant’s request to the Leased Premises. Following In this regard, Tenant hereby waives any such application restriction on the uses to which the Security Deposit may be applied as contained in Section 1950.7(c) of the California Civil Code and/or any successor statute. In the event the Security DepositDeposit or any portion thereof is so used, Tenant shall pay to Landlord on demand the Landlord, promptly upon demand, an amount so applied in order cash sufficient to restore the Security Deposit to its the full original amountsum. Provided that Landlord shall not be deemed a trustee of the Security Deposit. Landlord may use the Security Deposit in Landlord’s ordinary business and shall not be required to segregate it from Landlord’s general accounts. Tenant has performed all of its obligations hereundershall not be entitled to any interest on the Security Deposit. If Landlord transfers the Building or the Property during the Lease Term, Landlord shall, within 60 days after may pay the expiration of the Term and Tenant’s surrender of the Premises Security Deposit to any subsequent owner in compliance conformity with the provisions of this Lease, return to Tenant the portion Section 1950.7 of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable LawCalifornia Civil Code and/or any successor statute, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which event the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ transferring landlord shall be released from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Tenant specifically grants to Landlord (and Tenant under this hereby waives the provisions of California Civil Code Section 6 are subject 1950.7 to any other requirements the contrary) a period of ninety days following a surrender of the Leased Premises by Tenant to Landlord within which to inspect the Leased Premises, make required restorations and conditions imposed by Laws applicable repairs, receive and verify workmen’s ▇▇▇▇▇▇▇▇ therefor, and prepare a final accounting with respect to the Security Deposit. In no event shall the Security Deposit or any portion thereof, be considered prepaid rent.

Security Deposit. Contemporaneously with the Upon execution of this LeaseSecond Amendment, Tenant shall pay to deposit with Landlord a Security Deposit in the Security Deposit, which shall be held by Landlord to secure Tenant’s performance amount of its obligations under this Lease$33,615.40. The Security Deposit is not an advance payment shall secure Tenant’s obligations under this Lease to pay rent and other monetary amounts, to maintain the Premises and repair damages thereto, to surrender the Premises to Landlord in clean and sanitary condition and repair upon termination of Rent or a measure or limit this Lease as required pursuant to Article 18.15 of the Lease and to discharge Tenant’s other obligations hereunder. Landlord may use and commingle the Security Deposit with other funds of Landlord. If Tenant fails to perform Tenant’s damages upon an Event of Default (as defined herein). obligations hereunder, Landlord may, from time but without any obligation to time following an Event of Default and without prejudice to any other remedydo so, use apply all or a part any portion of the Security Deposit towards fulfillment of Tenant’s unperformed obligations after giving notice to perform Tenant of Landlord’s intentions, the reason for such application, and documentation or other evidence supporting Landlord’s decision. If Landlord does so apply any obligation Tenant fails to perform hereunder. Following any such application portion of the Security Deposit, Tenant Tenant, shall immediately pay to Landlord on demand the a sufficient amount so applied in order cash to restore the Security Deposit to its the full original amount. Provided In the event that Landlord shall expend the same in order to cure Tenant’s default hereunder, Tenant’s failure to forthwith remit to Landlord a sufficient amount in cash to restore the Security Deposit to the original sum deposited within five (5) days after Tenant’s receipt of notice from Landlord that such amounts have been so expended shall constitute an Event of Default. The Security Deposit shall be held by Landlord without liability for interest. Upon termination of this Lease, if Tenant has then performed all of its Tenant’s obligations hereunder, Landlord shall, shall return the Security Deposit to Tenant within 60 days after the expiration of the Term and Tenant15 business days. If Landlord sells or otherwise transfers Landlord’s surrender of the Premises in compliance with the provisions of rights or interest under this Lease, return to Tenant the portion of Landlord may deliver the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Lawtransferee, whereupon Landlord may retain that portion shall be released from any further liability to Tenant with respect to the Security Deposit. The Letter of Credit delivered to Landlord in accordance with Section 4.05 of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable Lease shall, upon payment by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may Section 6, be commingled with other funds, released and no interest shall be paid thereon. If Landlord transfers its interest delivered to Tenant by Landlord; provided Tenant is not in default under the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to Lease beyond any other requirements and conditions imposed by Laws applicable to the Security Depositcure period.

Security Deposit. Contemporaneously with the Upon execution of this Lease, Tenant shall deposit a security deposit ("SECURITY DEPOSIT") in the amount set forth in Paragraph 1. with Landlord. If Tenant is in default, Landlord can use the Security Deposit or any portion of it to cure the default or to compensate Landlord for any damages sustained by Landlord resulting from Tenant's default. Upon demand, Tenant shall immediately pay to Landlord a sum equal to the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part portion of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to expended or applied by Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant full amount including any interest which would have been earned on the portion of the Security Deposit which was not expended or applied by the Landlord, from the date of such expense or application. In no event will Tenant have the right to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion apply any part of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant any Rent due under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest Tenant is not in default at the Premises and the transferee assumes Landlord’s obligations under expiration or termination of this Lease, then Landlord may assign shall return the Security Deposit to Tenant. Landlord's obligations with respect to the transferee Security Deposit are those of a debtor and not a trustee, and Landlord thereafter can commingle the Security Deposit with Landlord's general funds. Landlord shall have no further liability for the return of not be required to pay Tenant interest on the Security Deposit. The rights Landlord shall be entitled to immediately endorse and obligations cash Tenant's Security Deposit; however, such endorsement and cashing shall not constitute Landlord's acceptance of this Lease. In the event Landlord and Tenant under does not accept this Section 6 are subject to any other requirements and conditions imposed by Laws applicable Lease, Landlord shall return said Security Deposit. Subject to the provisions of Paragraph 30. below, each time the Base Rent is increased, Tenant shall deposit additional funds with Landlord sufficient to increase the Security DepositDeposit to an amount which bears the same relationship to the Base Rent as the initial Security Deposit bore to the initial Base Rent.

Security Deposit. Contemporaneously with the execution of this Lease, If Tenant shall pay to Landlord the a Security Deposit, which or if any amount tendered by Tenant to Landlord shall become a Security Deposit pursuant to the terms of this Lease, such Security Deposit shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 30 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 31 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.. LANDLORD AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY THAT THE PREMISES ARE SUITABLE FOR TENANT’S INTENDED COMMERCIAL PURPOSE. This Lease is executed on the respective dates set forth below, but for reference purposes, this Lease shall be dated as of the date first above written. If the execution date is left blank, this Lease shall be deemed executed as of the date first written above. LANDLORD: BMC SOFTWARE TEXAS, L.P., a Texas limited partnership By: BMC Software Texas, Inc., a Texas corporation, its general partner By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇ Title: Vice President Execution Date: August 18, 2005 TENANT: OMEGA PROTEIN CORPORATION, a Nevada corporation By: /s/ ▇▇▇▇ ▇. Held Name : ▇▇▇▇ ▇. Held Title: Executive Vice President Execution Date: August 18, 2005

Security Deposit. Contemporaneously 9.1. Tenant has deposited with the execution of this Lease, Tenant shall pay to Landlord the sum set forth in Section 2.1.8 (together with all interest earned thereon, the "Security Deposit") in cash, which Security Deposit shall be held by Landlord as security for the performance by Tenant of all of the terms, covenants, and conditions of this Lease to secure Tenant’s performance be kept and performed by Tenant during the Term. If a Default occurs with respect to any provision of its obligations under this Lease. The Security Deposit is , including, but not an advance limited to, any provision relating to the payment of Rent Rent, Landlord may (but shall not be required to) use, apply or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use retain all or a any part of the Security Deposit for the payment of any Rent or any other sum in Default, or to perform compensate Landlord for any obligation Tenant fails to perform hereunderother loss or damage which Landlord may suffer by reason of Tenant's Default. Following If any such application portion of the Security DepositDeposit is so used or applied, Tenant shall pay to shall, upon demand therefor, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender 's failure to do so shall be a material breach of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonheld in an interest bearing account separate from Landlord's general fund. 9.2. If 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 transfers its for all periods prior to the filing of such proceedings. 9.3. Landlord shall deliver the Security Deposit, or any balance thereof following application of any portion of the Security Deposit pursuant to the provisions of Section 9.1, to any purchaser of Landlord's interest in the Premises Demised Premises, and, upon such purchaser's written confirmation of receipt of the Security Deposit and the transferee assumes assumption of Landlord’s 's obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no be discharged from any further liability for the return of with respect to the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject This provision shall also apply to any other requirements and conditions imposed subsequent transfers. 9.4. If Tenant shall fully perform every provision of this Lease to be performed by Laws applicable to Tenant, the Security Deposit, or any balance thereof following application of any portion of the Security Deposit pursuant to the provisions of Section 9.1, 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.

Security Deposit. Contemporaneously 9.1. Tenant has deposited with Landlord (in cash or the execution Letter of this LeaseCredit, Tenant shall pay to Landlord as defined in Section 43.14 hereof) the sum set forth in Section 2.1.8 (the "Security Deposit, ") which Security Deposit shall be held by Landlord as security for the performance by Tenant of all of the terms, covenants, and conditions of this Lease to secure Tenant’s performance be kept and performed by Tenant during the Term. If Tenant defaults with respect to any provision of its obligations under this Lease. The Security Deposit is , including, but not an advance limited to, any provision relating to the payment of Rent Rent, Landlord may (but shall not be required to) use, apply or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use retain all or a any part of the Security Deposit for the payment of any Rent or any other sum in default, or to perform compensate Landlord for any obligation Tenant fails to perform hereunderother loss or damage which Landlord may suffer by reason of Tenant's default. Following If any such application portion of the Security DepositDeposit is so used or applied, Tenant shall pay to shall, upon demand therefor, deposit cash with Landlord on demand the in an amount so applied in order 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. Provided Landlord shall keep any cash constituting the Security Deposit separate from its general fund in an interest-bearing account. Tenant shall be entitled to any interest on the Security Deposit (to be credited to and added to the Security Deposit) at the rate as may be actually earned thereon by Landlord from time to time. Tenant shall provide Landlord or its designee with such information and instruments (including, without limitation, Tenant's taxpayer identification number) as Landlord may reasonably require in order to maintain the Security Deposit in an interest-bearing account. 9.2. In the event that upon Landlord's review of the Hazardous Materials List (as defined in Section 40.1.1 hereof) Landlord or any of Landlord's insurers or lenders reasonably determines that Tenant's use of Hazardous Materials at the Demised Premises increases the risk of damage to or contamination of the Demised Premises, the Building or the Land, then upon Tenant's receipt of written notice of such determination from the Landlord, Tenant has shall deposit an additional amount with the Landlord as Landlord may reasonably determine, which amount shall be added to and treated as part of the Security Deposit. 9.3. So long as no default exists or is continuing, on the first day of the first full calendar month which is forty-eight (48) months after the Term Commencement Date, the Security Deposit shall be reduced to any amount equal to the quotient of (a) the Basic Annual Rent then in effect divided by (b) 12. 9.4. 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. 9.5. Landlord may deliver the Security Deposit to any purchaser of Landlord's interest in the Demised Premises and thereupon Landlord shall be discharged from any further liability with respect to the Security Deposit. This provision shall also apply to any subsequent transfers. 9.6. If Tenant shall fully perform every provision of this Lease to be performed all by Tenant, the Security Deposit, or any balance thereof, shall be returned to Tenant (or, at Landlord's option, to the last assignee of its obligations Tenant's interest hereunder, Landlord shall, ) within 60 forty-five (45) days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously with Tenant shall upon the execution hereof deposit with Landlord ($ ) as security (the “Security Deposit”) for the faithful performance of the conditions, covenants and terms of this Lease. Said Security Deposit may be applied by the Landlord in the event the Tenant fails to make a Rent or Additional Rent payment as called for herein above, but such application shall not excuse the Tenant shall pay to from the balance of any Rent or Additional Rent due. Landlord may also apply the Security DepositDeposit to reimburse itself for any cost or expense incurred as a result of the Tenant’s failure to maintain, which repair or keep the Leased Premises in the condition that is required under this Lease or Tenant’s breach of any condition or covenant under this Lease. Tenant agrees to replace the Security Deposit immediately upon notice that the Landlord has applied it for any of the reasons stated herein. Failure of the Tenant to replace the Security Deposit with the Landlord within thirty (30) days shall be held by Landlord to secure Tenant’s performance of its obligations considered a Default under this Lease. The Security Deposit is not an advance payment shall be returned to Tenant, with interest if required by law, at the end of Rent the Lease Term after deducting all expenses, if any, caused by the breach of any condition or a measure covenant of this Lease or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default any sums due and without prejudice to unpaid by Tenant and any other remedyexpenses the Landlord may apply Security Deposit, use all as allowed by law. If the Landlord sells or a part of leases the Building, Landlord may transfer the Security Deposit to perform any obligation Purchaser or Lessor, in which event the Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and will look only to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability Purchaser or Lessor for the return of the Security Deposit. The rights , and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositinterest if applicable.

Security Deposit. Contemporaneously 11.1 Except where otherwise provided in writing, the Agent shall hold the deposit in accordance with the execution of this Lease, Housing Act 2004 and the Tenant shall pay to Landlord the Security Deposit, which Fees Act 2019. Such deposit shall be held by Landlord to secure Tenant’s performance the equivalent of its obligations under this Leasefive or six weeks rent. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part Agent will within thirty days of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application signing of the Security Deposit, Tenant Tenancy Agreement (or such other period as shall pay be prescribed by legislation) subscribe to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration one of the Term designated Tenancy Deposit Schemes and Tenant’s surrender within such period shall provide to the Landlord and to the Landlord's tenant full details of the Premises scheme including such other information as may be reasonably required. 11.2 After the termination of the Tenancy the Landlord shall use his best endeavors to agree with his tenant what deductions should be made from the deposit and will in compliance any event within ten days of the termination of the Tenancy notify the Agent of what sums/issues remain in dispute. 11.3 The Agent will, as soon as reasonably practicable after such notification, refer the dispute to the Administrator of the Tenancy Deposit Scheme subscribe to who will then determine matters in accordance with the provisions of this Lease, return that scheme. The Landlord agrees to Tenant provide such co-operation as is reasonably required to assist in such a referral and the portion termination of any dispute. This obligation does not in any way limit the Landlord’s right to make an application to the County Court where appropriate. 11.4 Except with the consent of the Security Landlord’s tenant or where there has been a determination made by the relevant Tenancy Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted Scheme or by applicable a Court of Law, the Landlord may retain accepts that portion notwithstanding the terms of his Tenancy Agreement, no deductions will be made from the Security Deposit which Landlord reasonably estimates is necessary deposit and that he will not be entitled to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax claim interest thereon. 11.5 Westwood ▇▇▇▇▇ Lettings LTD is a member of the Deposit Protection Service which is administered by: The Deposit Protection Service The Pavilions Bridgwater Road Bristol BS99 6AA +▇▇ (▇)▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ 1. If there is no dispute, Westwood ▇▇▇▇▇ Lettings LTD will keep any amounts as deductions where expenditure has been incurred on behalf of the landlord or repay the whole or the balance of the deposit according to the conditions of the tenancy agreement with the landlord and the tenant. Payment of the deposit will be made within 10 days of written agreement by the landlord and the tenant. 2. If following notification of a dispute to Westwood ▇▇▇▇▇ Lettings LTD and reasonable attempts have been made in that time to resolve any differences of opinion, there remains an unresolved dispute between the landlord and the tenant over the allocation of the deposit, it may be submitted to DPS for adjudication. All parties agree to co-operate with an adjudication. Either party may decide to take the dispute to the small claims court rather thanDPS. 3. The statutory rights of either the landlord or tenant to take legal action against the other party are not affected. 4. It is not compulsory for the parties to refer a dispute to DPS for adjudication. The parties may seek a decision from all applicable taxing authorities at the time Court. However, this process may take longer and will incur costs. If the parties do agree that DPS may resolve the dispute, then they have to abide by that decision. 5. The Agent must co-operate with DPSin the adjudication of such expiration); provided, howeverthe dispute and follow any recommendations of the DPS. 6. Where there are rent arrears, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest deposit will in the Premises first instance be used to clear these and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositbalance will go towards dilapidations.

Security Deposit. Contemporaneously with (a) Landlord waives the execution security deposit required of this LeaseTenant as security for faithful performance and observance by Tenant of all terms, Tenant shall pay to covenants, conditions and provisions hereof. Landlord the Security Depositmay, which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or however require a measure or limit of Landlord’s damages security deposit upon an Event of Default by Tenant. If so required, the security deposit (as defined hereinthe “Security Deposit”) shall be thirty-four thousand dollars and 00/100 ($34,000.00)), and shall be payable by Tenant to Landlord not later than five (5) business days after Tenant receives Landlord’s written notice that Landlord is requiring the Security Deposit. Landlord may, from At no time to time following shall the Security Deposit be deemed an advance payment of Rent. (b) Upon any Event of Default and without prejudice Default, including, but not limited to, any failure by Tenant to make payment of Rental or any other remedycharge payable by Tenant as and when due, use all Landlord may use, apply or a retain the whole or any part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following the extent reasonably required for payment of any such application Rental or other charge as to which Tenant is in default, or any sum which Landlord may be required to expend by reason of Tenant’s default in respect of any term, condition, covenant or provision hereof. If any portion of the Security DepositDeposit is so expended or applied by Landlord, Landlord may require Tenant shall to promptly pay to Landlord on demand the an amount so applied in order sufficient to restore the Security Deposit to its the original amountamount thereof. Provided that If Tenant has performed all of its obligations hereunderfully and faithfully complies with the terms, Landlord shallcovenants, conditions and provisions hereof, the Security Deposit, or so much thereof as to which Tenant may be entitled, shall be returned to Tenant within 60 thirty (30) days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions Expiration Date (or sooner termination of this Lease, return to Tenant the portion ) and delivery of exclusive possession of the Security Deposit which was not applied Leased Premises to satisfy Tenant’s obligationsLandlord in the condition required herein. Notwithstanding In the preceding sentence and to event of a sale or master lease of the extent permitted by applicable LawBuilding, Landlord may retain that portion of shall have the Security Deposit which Landlord reasonably estimates is necessary right to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign transfer the Security Deposit to the transferee purchaser or lessee, and Landlord thereafter shall have no further thereupon be released by Tenant from all responsibility or liability for the return of the Security Deposit. The rights and obligations Deposit so long as such purchaser or lessee shall agree to all requirements of Landlord concerning the Security Deposit, and Tenant under this Section 6 are subject shall look to any other requirements and conditions imposed by Laws applicable to such purchaser or lessee for return of the Security Deposit.

Security Deposit. Contemporaneously (a) Tenant has deposited with the execution of this Lease, Tenant shall pay to Landlord the Security Deposit, the receipt of which (if by check subject to collection) is hereby acknowledged. The Security Deposit shall be held by Landlord to secure Tenant’s Landlord, in an interest bearing account, as security for full performance due of its obligations Tenant under this Lease. The Upon expiration of the Term and written request therefor, the Security Deposit is not an advance payment of Rent shall be returned to Tenant with interest, unless Landlord has reasonable cause to withhold all or a measure portion thereof. (b) If any Rent shall be overdue and unpaid, or limit should Landlord have made payments on behalf of Landlord’s damages upon an Event Tenant, or should Tenant fail to perform any of Default (as defined herein). the covenants or agreements of this Lease, then Landlord may, from time to time following an Event of Default and without prejudice to any other remedyremedy which Landlord may have, use apply all or a part portion of the Security Deposit toward the payment of Rent, or toward any loss, damage or expense sustained by Landlord resulting therefrom. In such event Tenant shall forthwith restore the Security Deposit to perform the original sum. (c) In the event bankruptcy, insolvency, reorganization or other creditor-debtor proceedings shall be instituted by or against Tenant, its successors or assigns, or any obligation guarantor of Tenant fails hereunder, the Security Deposit shall be deemed to perform hereunderbe applied first to the payment of Rent due to Landlord for all periods prior to the institution of such proceedings. Following any such application The balance of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunderif any, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit be retained by Landlord pursuant to in partial liquidation of Landlord's damages. (d) In the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its event that Landlord's interest in the Premises is sold, transferred or assigned, the party acquiring the Premises shall assume Landlord's rights and the transferee assumes Landlord’s obligations under this Lease, then Lease and Landlord may assign shall deliver the Security Deposit to the transferee acquirer of such interest. Thereupon, Landlord shall be discharged and Landlord thereafter shall have no released from all further liability with respect to the Security Deposit and Tenant agrees to look solely to the new landlord for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject This provision shall also apply to any other requirements and conditions imposed by Laws applicable subsequent transferees. No holder of a mortgage or deed of trust or lessor under a ground or underlying lease to which this Lease is or may be superior or subordinate shall be held responsible in connection with the Security Deposit, unless it has received the Security Deposit.

Security Deposit. Contemporaneously with Upon the execution of this Lease, Tenant shall pay agrees to deposit with Landlord the Security Deposit, which shall to be held by Landlord to secure Tenant’s as security for the faithful performance of its obligations all the terms and conditions of this Lease. Should the Tenant breach any of the terms and conditions of this Lease which continues beyond any applicable cure period and required notice, Landlord shall have the right, at any time and from time to time, to apply the Security Deposit or any part thereof, for the purpose of curing any such Event of Default or for the purpose of reimbursing Landlord for any damage or costs occasioned by such Event of Default, but the right of Landlord to apply the Security Deposit shall not affect any other remedies available to Landlord under this Lease or under applicable law. If the Security Deposit, or any part thereof, is so applied by Landlord, Tenant shall within ten (10) business days after demand, deposit additional funds with Landlord to restore the Security Deposit, and failure to do so shall constitute a default under this Lease. The Security Deposit is not an advance payment If the Tenant shall have faithfully complied with all the terms and conditions of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord maythis Lease, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit (without interest) shall be refunded to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 thirty (30) days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or sooner determination of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, that Tenant first shall have vacated the portion of the Security Deposit retained by Landlord pursuant Leased Space and surrendered possession thereof to the foregoing Landlord by delivery of keys, in accordance with the Lease provisions and shall not exceed 50% have returned the Leased Space to Landlord in good order and repair. Nothing herein contained shall require Landlord to hold the sums so deposited as a trust fund, nor establish any relationship other than that of the total Security Deposit required by this Lease. The Security Deposit may be commingled debtor and creditor with other funds, and no interest shall be paid thereonrespect to said funds so deposited. If Landlord transfers shall assign or otherwise transfer its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign shall have the right to transfer the Security Deposit to the assignee or other transferee of such interest (with like right of transfer to any subsequent assignee or other transferee) and upon such transfer, Landlord thereafter shall have no further be released and relieved from all liability for and/or responsibility with respect to this Security Deposit and/or the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositor application thereof.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall hereby agrees to pay to Landlord a security deposit of seven thousand dollars ($7,000), which is equal to the estimated first month’s Base Rental, on the day this Lease is executed by Tenant (the “Security Deposit, which shall be held by Landlord to secure Tenant’s performance ”). Upon the occurrence of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an any Event of Default (as defined herein). by Tenant, Landlord may, from time to time following an Event of Default and time, without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee extent necessary to make good any arrears of Base Rental or Additional Rental or any other payment obligation hereunder, including, but not limited to, the cost of any damage, injury, expense, or liability caused by any Event of Default by Tenant hereunder. Any remaining balance of the Security Deposit shall be returned by Landlord to Tenant within a reasonable period of time after the termination or expiration of this Lease and the satisfaction of Tenant’s obligations hereunder. The Security Deposit shall not be considered an advance payment of rental or a measure of Landlord’s damages in case of default by Tenant. Tenant shall not be entitled to receive and shall not receive any interest on the Security Deposit, and Landlord thereafter may commingle the same with other monies of Landlord. In the event Landlord applies the Security Deposit or any portion thereof to the payment of any sum described above and this Lease is not terminated, Tenant shall immediately deposit with Landlord an amount of money equal to the amount so applied, and such amount shall be deemed to be part of the Security Deposit. In the event of a sale or transfer of Landlord’s interest in the Premises, Landlord shall have no further the right to transfer the Security Deposit to the purchaser or lessor, as the case may be, and upon any such transfer and acknowledgement of receipt of Security Deposit by such transferee, Landlord shall be relieved of all liability to Tenant for the return of the Security Deposit. The rights and obligations of Landlord , and Tenant under this Section 6 are subject shall look solely to any other requirements and conditions imposed by Laws applicable to the new owner or lessor for the return of the Security Deposit.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the The Security Deposit, which Deposit shall be held by Landlord to secure without liability for interest (except as required by law) and as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is shall not be considered an advance payment of Rent or a measure or limit of LandlordTenant’s damages upon an Event of Default (as defined herein)liability for damages. Landlord may, from time to time following an Event of Default and time, without prejudice to any other remedy, use all or a part portion of the Security Deposit to perform make good any arrearage of Rent, to repair damages to the Premises, to clean the Premises upon termination of this Lease or otherwise to satisfy any other covenant or obligation of Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that If Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after is not in default at the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions termination of this Lease, return after Tenant surrenders the Premises to Landlord in accordance with this Lease and all amounts due Landlord from Tenant are finally determined and paid by Tenant or through application of the portion Security Deposit, the balance of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until remaining after any such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest application shall be paid thereonreturned to Tenant. If Landlord transfers its interest in the Premises and during the transferee assumes Landlord’s obligations under this LeaseLease Term, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of such Security Deposit. Tenant agrees to look solely to such transferee or assignee for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under its successors and assigns shall not be bound by any actual or attempted assignment or encumbrance of the Security Deposit by Tenant, provided, however, if Tenant’s interest in this Section 6 are subject Lease has been assigned, Landlord shall, provided that Landlord has been furnished with a fully executed copy of the agreement assigning such Security Deposit, return the Security Deposit to such assignee in accordance with the terms and conditions hereof. If Landlord returns the Security Deposit to Tenant’s assignee as aforesaid, Landlord will have no further obligation to any other requirements and conditions imposed by Laws applicable party with respect thereto. Landlord shall not be required to keep the Security DepositDeposit separate from its other accounts.

Security Deposit. Contemporaneously Concurrently with the its execution and delivery of this Lease, Tenant shall pay to Landlord the amount identified as the Security Deposit in the Basic Lease Provisions (hereinafter referred to as “Security Deposit”) as evidence of good faith on the part of Tenant in the fulfillment of the terms of this Lease, which shall be held by the Landlord during the Term of this Lease, or any renewal thereof. Under no circumstances will Tenant be entitled to secure any interest on the Security Deposit. The Security Deposit may be applied by Landlord, at its sole discretion, to any amount owing to the payment of any Rent or any other sum which Tenant has failed to timely pay in accordance with the provisions of this Lease, or for the payment of any amount that Landlord may incur by reason of Tenant’s performance default, or to compensate Landlord for any other loss or damage Landlord may suffer by reason of its obligations Tenant’s default. If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to the amount of the Security Deposit specified in the Basic Lease Provisions as may be reduced pursuant to the following terms of this Section, and Tenant’s failure to do so shall be an event of default under this Lease. The Security Deposit is not an advance payment of Rent use or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part application of the Security Deposit or any portion thereof by Landlord shall not (i) prevent Landlord from exercising any other right or remedy provided by this Lease, it being intended that Landlord shall not first be required to perform proceed against the Security Deposit, or (ii) operate as a limitation on any obligation recovery to which Landlord may otherwise be entitled. If there are no payments to be made from the Security Deposit as set out in this Section, or if there is any balance of the Security Deposit remaining after all payments have been made, the Security Deposit, or such balance thereof remaining, will be refunded to Tenant fails within thirty (30) days after fulfillment by Tenant of all obligations hereunder (including payment of the balance of any year-end reconciliation). In no event shall Tenant be entitled to perform apply the Security Deposit to any Rent due hereunder. Following In the event of an act of bankruptcy by or insolvency of Tenant, or the appointment of a receiver for Tenant or a general assignment for the benefit of Tenant’s creditors, then the Security Deposit shall be deemed immediately assigned to Landlord. The right to retain the Security Deposit shall be in addition and not alternative to Landlord’s other remedies under this Lease or as may be provided by law and shall not be affected by summary proceedings or other proceedings to recover possession of the Premises. Upon sale or conveyance of the Building, Landlord may transfer or assign the Security Deposit to any new owner of the Premises, and upon such application transfer all liability of Landlord for the Security Deposit shall terminate. Landlord shall be entitled to commingle the Security Deposit with its other funds. Notwithstanding anything herein to the contrary, provided Tenant is not in default under this Lease beyond the expiration of any applicable cure period as of the effective date of the reduction of the Security Deposit or as of the date Landlord is required to return such portion of the Security Deposit, Tenant shall pay have the right to Landlord on demand reduce the amount so applied in order to restore of the Security Deposit by *** and *** ($***) effective as of the first day of the thirteenth (13th) full calendar month of the Term. If Tenant is entitled to its original amounta reduction in the Security Deposit, Tenant shall provide Landlord with notice stating that the Security Deposit is required to be reduced as provided above (the “Reduction Notice”). Provided that If Tenant has performed all of its obligations hereunderprovides Landlord with a Reduction Notice, Landlord shall, within 60 days after shall refund the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the applicable portion of the Security Deposit to Tenant within thirty (30) days after the later to occur of (A) Landlord’s receipt of the Reduction Notice, or (B) the date upon which was not applied Tenant is entitled to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of a reduction in the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Depositas provided above.

Security Deposit. Contemporaneously with On the execution Effective Date of this Lease, Tenant shall pay to Landlord the Security Deposit, sum of $2,595.00 which shall be held by Landlord to secure Tenant’s performance represents the amount of its obligations one (1) month of Rent under this Lease. The , as security for the full, faithful, and timely performance of each and every provision of this Lease to be performed by ▇▇▇▇▇▇, including, but not limited to, its obligation to pay Rent (the “Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined hereinDeposit”). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation If Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall does not pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid Rent in full by the date such payment is due or if Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share violates any other part of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the use or apply part or all of this Security Deposit to the transferee unpaid Rent or any part thereof or to any other costs or payments outstanding that result from Tenant's violations under this Lease. At the termination of the lease term, Tenant must return the occupied Premises to Landlord in the state in which they were received. Tenant may be allocated the cost of any necessary repairs or cleaning performed by Landlord or third-party contractors in order to return the Premises to the pre-leased state. At any point during the term of this Lease, if the Security Deposit is not sufficient to cover all damages or costs incurred by Landlord, Tenant shall pay any and Landlord thereafter shall have no further liability for all such costs that exceed the return amount of the Security DepositDeposit within five (5) days of receipt of written demand from Landlord. The rights and obligations Furthermore, in the event that all or a portion of Landlord and the Security Deposit must be used, Tenant shall fund the Security Deposit such that the total amount is equal to the total amount initially required under this Section 6 are subject Section. Before the termination date of the lease term, Tenant will have the opportunity to request an end-of-term walk-through inspection with property management to assess any other requirements and conditions imposed by Laws applicable damages to the Security Depositpremises. If Tenant chooses not to participate in the walk-through inspection, they shall be deemed to have accepted the condition of the premises and agree to accept any deposit return amount determined by Landlord, provided it is deemed reasonable in accordance with applicable laws.

Security Deposit. Contemporaneously During the Original Term, Subtenant shall maintain a Security Deposit, herein so-called, with Sublandlord in the amount of the LOC Amount (hereinafter defined). No Security Deposit shall be required during the Extension Term. Upon the execution of this LeaseSublease, Tenant shall pay to Landlord and as the Security Deposit, which shall be held by Landlord to secure Tenant’s performance of its obligations Deposit under this LeaseSublease, Subtenant shall deliver to Sublandlord an executed original irrevocable standby letter of credit (“LOC”) in the LOC Amount, in favor of Sublandlord. The Security Deposit is not an advance payment initial LOC shall have a term commencing no later than January 1, 2005 and expiring no earlier than December 31, 2005 (subject to the LOC extension requirement hereinafter specified). The LOC may be drawn upon and used upon each occurrence of Rent or a measure or limit of Landlord’s damages upon an any Event of Default (as defined herein)in Section 14 of this Sublease) which remains uncured after applicable notice and cure periods. Landlord maySublandlord may use all or part of the LOC to pay past due Basic Rent, from time Additional Payments or other payments due Sublandlord under this Sublease, or to time following an Event cure any other defaults of Default and Subtenant under this Sublease without prejudice to any other remedy, use all remedy provided by law or herein. The LOC shall be issued in a part form and by a national banking association or other financial institution acceptable to Sublandlord. With respect to any Event of Default occurring during the Original Term of the Security Deposit Sublease and which remains uncured following applicable notice and cure periods, Sublandlord shall have the right to perform any obligation Tenant fails to perform hereunder. Following any such application of proceed against the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities total LOC Amount at the time sole discretion of such expiration)Sublandlord regarding items and the amounts to be drawn upon relating to any Event of Default by Subtenant; provided, however, that any drawn amounts not properly applied by Sublandlord in accordance with this Section 3.5 shall be promptly paid by Sublandlord to Subtenant, or at Subtenant’s option deposited and maintained by Sublandlord in a separate bank account in the financial institution which issued the LOC on account of Subtenant’s Security Deposit obligations hereunder. Interest shall be paid on any portion of the Security Deposit retained by Landlord LOC converted to cash pursuant to the foregoing shall not exceed 50% provisions hereof. In the event of the total sale of the Leased Premises, Sublandlord shall transfer the Security Deposit required Deposit, both the LOC and any cash proceeds thereof, to the vendee, provided such vendee agrees in a writing delivered to Subtenant to accept and hold the same in compliance with the terms hereof. Sublandlord shall return the LOC and any amount held in cash by Sublandlord as part of the security deposit promptly upon the expiration of the Original Term; provided, Subtenant is not in default under this LeaseSublease. The Security Deposit “LOC Amount” shall be (i) for Sublease Years 1 through and including Sublease Year 7, an amount equal to Two Million Six Hundred Sixty-Five Thousand Nine Hundred Sixty-Six Dollars ($2,665,966.00) and (ii) for Sublease Years 8 through the expiration of the Original Term, an amount equal to One Million Three Hundred Thirty-Two Thousand Nine Hundred Eighty-Three Dollars ($1,332,983.00); provided Subtenant remains in continuous compliance with the financial covenants contained in paragraphs 1, 10 through 13 of the Compliance Certificate attached as Exhibit A to the Seventh Amendment to Second Amended and Restated Credit Agreement dated May 23, 2002 by and between Horizon Health Corporation and its subsidiaries and ▇.▇. ▇▇▇▇▇▇ ▇▇▇▇▇ Bank and certain other financial institutions as lenders, as the same may be commingled amended from time to time, or any comparable financial covenants that may be contained in a credit facility that replaces such credit facility or such other financial covenants as Subtenant and Sublandlord may agree upon (“Financial Covenants”); and, in the event at any time after the commencement of Sublease Year 8 Subtenant is not in compliance with other fundsthe Financial Covenants for two consecutive fiscal quarters, then the LOC Amount will be restored to the LOC Amount required pursuant to clause (i) immediately preceding until Subtenant has achieved four consecutive quarters of compliance with the Financial Covenants. Failure to so restore the LOC Amount shall constitute an Event of Default. The LOC shall contain the following terms and no interest conditions: (a) The LOC shall be paid thereon. If Landlord transfers extended without further amendment from year to year unless, at least 30 days prior to its interest then current expiration date, the issuing bank notifies Sublandlord, in writing, that the issuing bank intends not to renew the LOC. (i) In the event the LOC is not extended at least 30 days prior to its then stated expiration date and the Original Term of the Sublease has not expired or will not expire prior to the expiration date of the then LOC, then (unless Subtenant has, prior to drafting by Sublandlord, deposited with Sublandlord a substitute LOC in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return amount of the Security Deposit. The rights and obligations ) such event shall constitute an Event of Landlord and Tenant Default under this Section 6 are Sublease and Sublandlord shall be allowed to draft upon the issuing bank to draw the full amount of the LOC, subject to any other requirements the terms and conditions imposed by Laws applicable provisions hereinabove set forth. (ii) The LOC shall be subject to the Security Deposit“Uniform Customs and Practices for Documentary Credits (1993 Revision), International Chamber of Commerce Publication No. 500. (iii) The amount of the LOC shall be payable at sight to Sublandlord within ten (10) business days of presentation of the sight draft, in whole or partial drawings; upon presentation to the issuer of the following documents: (x) Sublandlord’s written demand for payment making reference to the date and number of the LOC; (y) Sublandlord’s signed certificate that the amount drawn is required to satisfy an Event of Default which has remained uncured beyond applicable notice and grace periods, as set forth in the Sublease, or that Subtenant has failed to deposit cash or a substitute LOC as required under paragraph (ii) above; and (z) The original LOC for endorsement of the amount paid and if the draft is for the full amount the LOC is to be surrendered to the issuer. Sublandlord shall have the right to assign and transfer its right and interests in the LOC only to a purchaser of the Leased Premises; provided such purchaser issues a written receipt therefor delivered to Subtenant.

Security Deposit. Contemporaneously with the As a condition to Sublandlord’s execution of this LeaseSublease, Tenant Subtenant shall pay deliver to Landlord Sublandlord a $1,000,000 letter of credit (the “Security Deposit, which ”) that is issued by a national banking association and is in form and substance reasonably satisfactory to Sublandlord. The letter of credit shall be held by Landlord to secure Tenantvalid during the Term of the Sublease and for a period of sixty (60) days following the later of expiration of the Term or Subtenant’s performance vacation of its obligations under this Leasethe Subleased Premises. The Security Deposit is not an advance payment Upon the occurrence of Rent or a measure or limit of Landlord’s damages upon an any Event of Default (as defined herein). Landlord mayby Subtenant, from time to time following an Event of Default and Sublandlord shall have the right, without prejudice to any other remedy, use all and without notice to or pre-approval of Subtenant, to submit a part sight draft to the bank that issued the letter of credit representing the Security Deposit, in an amount equal to a sum necessary to pay any arrearages in Rent, and any other damage, injury or expense, provided that such sight draft must be accompanied by a statement from an officer of the Sublandlord setting forth under penalty of perjury that an Event of Default of Subtenant has occurred, and that the amount requested is the amount reasonably believed necessary to cure such Event of Default. If any portion of the Security Deposit is so used or applied, then Subtenant shall deliver to perform any obligation Tenant fails Sublandlord a replacement letter of credit in the amount of $1,000,000 that is issued by a national banking association and is in form and substance reasonably satisfactory to perform hereunderSublandlord and Sublandlord shall return the original letter of credit to Subtenant on receipt of the replacement letter of credit. Following any such application of In no event shall Sublandlord be required to apply the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore . Subtenant may not apply the Security Deposit to its the payment of Rent or the performance of other obligations. The Security Deposit will not be deemed a limitation on Sublandlord’s damages or a payment of liquidated damages. The original amount. Provided that Tenant has performed all letter of its obligations hereunder, Landlord shall, credit will be returned to Subtenant (minus such amounts as are reasonably necessary to cure any then existing Event of Default by Subtenant) within 60 30 days after the later of the expiration of the Term or Subtenant’s vacation and Tenant’s surrender of the Subleased Premises in compliance with the provisions of this Lease, return to Tenant condition required under the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord Sublandlord transfers its interest in the Premises and Sublease during the transferee assumes Landlord’s obligations under this LeaseTerm, then Landlord may Sublandlord shall assign the Security Deposit to the transferee (and Landlord Subtenant shall execute such documents as may be necessary to effect such transfer), and thereafter Sublandlord shall have no further liability to Subtenant for the return of the Security Deposit. The rights and obligations Subtenant shall pay all fees charged by the bank issuing the letter of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to credit representing the Security Deposit.

Security Deposit. Contemporaneously RESIDENT shall deposit   DOLLARS ($ ) with OWNER as security for the execution full and faithful performance by RESIDENT of every provision, cove­nant, and condition of this Lease. OWNER shall deposit such security in an in­sured depository in an interest bearing account separate from the accounts of OWNER. Such security deposit shall accrue interest in accordance with state law. In the event that RESIDENT defaults with re­spect to any of such provisions, covenants, or conditions, including, but not limited to, payment of rent and other charges, OWNER may use, apply, or retain all or any part of such security deposited, plus any accrued interest required by law, for the payment of any accrued rent and other charges in default (including late charges specified in Paragraph 4), for any sums due or to become due under Paragraph l(g), for any damages or costs for which RESIDENT is liable or responsible under this Lease, or for any other sum which OWNER may expend or be required to expend by reason of any default by RESIDENT. Upon the termination of this Lease, Tenant shall pay to Landlord such security deposit, plus any accrued interest required by law, and less all or any portion used, applied or retained by OWNER in accordance with the Security Depositforego­ing sen­tence, which shall be held by Landlord returned to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default RESIDENT within thirty (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 30) days after the expiration termina­tion of the Term tenancy and Tenant’s surrender delivery of the Premises in compliance with the provisions of this Lease, return possession. (In order to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability considered for the return of the Security Depositsecurity deposit, RESIDENT shall provide OWNER with his forwarding address or arrange to pick up all or any portion of the security deposit due RESIDENT.) OWNER shall also, within such thirty (30) days after termination of tenancy and delivery of possession, give to RESIDENT written notice itemizing the security deposit, any accrued inter­est thereon, any unpaid rent, damages to the Apartment or Premises, es­timated costs for repair, other amounts to which the security deposit is to be applied, and any amount due RESI­DENT, together with a statement of RESIDENT’ rights under state and local law. OWNER shall notify RESIDENT in writing of any deduction made from RESIDENT’s security deposit during the course of RESIDENT’s tenancy. Such notification shall be given within thirty days of the date of determination of the deduction and shall itemize the reasons for the deduction in the same manner as provided above. Such notification shall not be required for deductions made less than thirty days prior to the termination of this Lease. If the portion of the Premises on which the Apartment is located is sold by OWNER during the term of this Lease or any continuation of such term, RESIDENT consents to the transfer of such security de­posit­ed by RESIDENT, plus any accrued interest required by law, to the purchaser thereof. If OWNER and the Authority consent in writing to an assignment or sublease of the Apartment by RESIDENT during the term of this Lease or any continuation of such term, RESIDENT consents to the transfer of such security deposited by RESIDENT, plus any accrued interest required by law, to the credit of the assignee or sublessee, such security to be held by OWNER until the termination or the expira­tion of the term of this Lease. The rights and obligations provisions of Landlord and Tenant this Paragraph 9 shall not be deemed to preclude OWNER or RESIDENT from recovering other damages to which either may be entitled under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositLease Agree­ment or state law.

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the The Security Deposit, which Deposit shall be held by Landlord to secure as security for the performance of Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent rental deposit or a measure or limit of Landlord’s damages upon in case of Tenant’s default. Upon each occurrence of an Event of Default (as defined hereinhereinafter defined). , Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, may use all or a part of the Security Deposit to perform pay delinquent payments due under this Lease, and the cost of any obligation Tenant fails damage, injury, expense or liability caused by such Event of Default, without prejudice to perform hereunderany other remedy provided herein or provided by law. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to that will restore the Security Deposit to its original amount. Provided Any such restoration payment which is not paid within ten days after Landlord’s written demand therefor shall bear interest from the date of such written demand until paid at the lesser of fifteen percent or the maximum lawful rate of interest. The parties agree that such interest represents a fair and reasonable estimate of the costs that Landlord will incur by reason of such late payment by Tenant. The provision for such interest shall be in addition to all of Landlord’s other rights and remedies hereunder or at law and shall not be construed as a penalty. Landlord’s obligation respecting the Security Deposit is that of a debtor, not a trustee; no interest shall accrue thereon. If Tenant has performed shall perform all of its obligations hereunder, under this Lease and return the Premises to Landlord shall, within 60 days after at the expiration end of the Lease Term and Tenant’s in the condition required upon surrender of pursuant to the Premises in compliance with the provisions terms of this Lease, Landlord shall return to Tenant the portion all of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence remaining after deducting all damages, charges and to the extent other amounts permitted by applicable Law, Landlord may retain that portion law to Tenant within thirty (30) days after the end of the Security Deposit which Lease Term. Landlord and Tenant agree that such deductions shall include all damages and losses that Landlord has suffered or that Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under that it will suffer as a result of any breach of this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may shall assign the Security Deposit to the transferee and, upon such transfer and the delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit as provided by law, Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.

Security Deposit. Contemporaneously RESIDENT shall deposit   DOLLARS ($ ) with OWNER as security for the execution full and faithful performance by RESIDENT of every provision, cove­nant, and condition of this Lease. OWNER shall deposit such security in an in­sured depository in an interest bearing account separate from the accounts of OWNER. Such security deposit shall accrue interest in accordance with state law. In the event that RESIDENT defaults with re­spect to any of such provisions, covenants, or conditions, including, but not limited to, payment of rent and other charges, OWNER may use, apply, or retain all or any part of such security deposited, plus any accrued interest required by law, for the payment of any accrued rent and other charges in default (including late charges specified in Paragraph 4), for any sums due or to become due under Paragraph l(g), for any damages or costs for which RESIDENT is liable or responsible under this Lease, or for any other sum which OWNER may expend or be required to expend by reason of any default by RESIDENT. Upon the termination of this Lease, Tenant shall pay to Landlord such security deposit, plus any accrued interest required by law, and less all or any portion used, applied or retained by OWNER in accordance with the Security Depositforego­ing sen­tence, which shall be held by Landlord returned to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default RESIDENT within thirty (as defined herein). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 30) days after the expiration termina­tion of the Term tenancy and Tenant’s surrender delivery of the Premises in compliance with the provisions of this Lease, return possession. (In order to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability considered for the return of the Security Depositsecurity deposit, RESIDENT shall provide OWNER with his forwarding address or arrange to pick up all or any portion of the security deposit due RESIDENT.) OWNER shall also, within thirty (30) days after termination of tenancy and delivery of possession, give to RESIDENT written notice itemizing the security deposit, any accrued inter­est thereon, any unpaid rent, damages to the Apartment or Premises, es­timated costs for repair, other amounts to which the security deposit is to be applied, and any amount due RESI­DENT, together with a statement of RESIDENT’ rights under state and local law. OWNER shall notify RESIDENT in writing of any deduction made from RESIDENT’s security deposit during the course of RESIDENT’s tenancy. Such notification shall be given within thirty days of the date of determination of the deduction and shall itemize the reasons for the deduction in the same manner as provided above. Such notification shall not be required for deductions made less than thirty days prior to the termination of this Lease. If the portion of the Premises on which the Apartment is located is sold by OWNER during the term of this Lease or any continuation of such term, RESIDENT consents to the transfer of such security de­posit­ed by RESIDENT, plus any accrued interest required by law, to the purchaser thereof. If OWNER and the Authority consent in writing to an assignment or sublease of the Apartment by RESIDENT during the term of this Lease or any continuation of such term, RESIDENT consents to the transfer of such security deposited by RESIDENT, plus any accrued interest required by law, to the credit of the assignee or sublessee, such security to be held by OWNER until the termination or the expira­tion of the term of this Lease. The rights and obligations provisions of Landlord and Tenant this Paragraph 9 shall not be deemed to preclude OWNER or RESIDENT from recovering other damages to which either may be entitled under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositLease Agree­ment or state law.

Security Deposit. Contemporaneously with Within eleven (11) business days after the execution of this Lease, Tenant shall pay execute and deliver to Landlord a Pledge Agreement in substantially the form attached hereto as Exhibit F-1, an Account Control Agreement in substantially the form attached hereto as Exhibit F-2 and an Account Management Agreement in the form of Exhibit F-3 (or such other forms as are reasonably acceptable to the parties thereto) granting Landlord a first position security interest in an account (the "Pledge Account") containing securities meeting the critical specified therein and/or cash in the total amount specified in Section 1 as a Security Deposit, which shall Deposit as such amount may be held by Landlord reduced pursuant to secure Tenant’s performance the following paragraph. Upon written notice of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon intention to do so after an Event of Default has occurred, Landlord shall be permitted to immediately direct the sale of bonds or other assets in the Pledge Account and the disbursal of the proceeds thereof (not to exceed the amount required to cure the Event of Default) for application by Landlord on the same terms and conditions as defined herein)Landlord would be permitted to apply a cash security deposit. Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use may apply all or a part of the Security Deposit to perform any obligation unpaid rent from Tenant fails or to perform hereundercure any other defaults of Tenant. Following If Landlord uses any such application part of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit or the Pledge Account to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration amount required under the preceding paragraph as of the Term and Tenant’s surrender date of the Premises in compliance with the provisions of this Lease, return to Tenant the portion Landlord's application of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Lawor any part thereof, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time within 10 days after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereonLandlord's written request. If Landlord transfers its interest in the Premises and the transferee assumes Premises, Tenant shall cooperate with Landlord (at Landlord’s obligations under this Lease, then Landlord may 's expense) to assign the Security Deposit Landlord's interest in the Pledge Account to the transferee and its successor in interest, whereupon Landlord thereafter shall have no further be automatically released from any liability for the return of the Security Deposit. The rights and If this Lease is terminated prior to the end of the Initial Term or the Renewal Option Term (if exercised), any Rent paid for any period beyond the termination date will be considered an additional Security Deposit. If, at the end of the Lease Term, Tenant has fully complied with all obligations of Landlord and Tenant under this Section 6 Lease, then the remaining Security Deposit shall be returned to Tenant within thirty (30) days after the final inspection of the Premises, after Landlord has verified that Tenant has fully vacated the Premises, removed all of its property and surrendered the Premises in the condition required by this Lease; provided that Landlord may hold back a portion of the Security Deposit until final determination of Tenant's share of costs such as insurance and taxes, whereupon any final adjustment shall be made and any remaining Security Deposit shall be returned to Tenant. As with all other defaults, if the Premises are subject not surrendered in the condition required, Landlord may perform the work necessary to any other requirements put them in that condition and conditions imposed by Laws applicable deduct the cost from the Security Deposit. Landlord's obligations with respect to the Security DepositDeposit are those of a secured creditor and not of a trustee. The amount of the Security Deposit and/or securities in the Pledge Account may be reduced through two mechanisms, provided that the total Security Deposit shall not in any circumstances fall below [*] Dollars ($[*]): (a) If Tenant engages in a public stock offering, and achieves and maintains a capitalized value of [*] ($[*]) there shall be a reduction of the Security Deposit (a "Capitalized Value Reduction") to [*] Dollars ($[*]) (if for any reason the Security is already below that level, there shall be no reduction), provided (i) if the capitalized value thereafter reduces below $[*], the Capitalized Value Reduction shall be reversed and the amount of the Pledge Account restored to the full amount required but for the Capitalized Value Reduction, and (ii) thereafter the Capitalized Value Reduction shall be reinstituted if Tenant reaches a capitalized value of [*] Dollars ($[*]) and (iii) reversed again if the capitalized value thereafter reduces below $[*] (and so on from that point with trigger points of $[*] and $[*] respectively). (b) In addition to and independent of the Capitalized Value Reduction, the Security Deposit and/or bonds in the Pledge Account shall be reduced by [*] Dollars ($[*]) per year commencing on the fourth anniversary of the Commencement Date Tenant if and only if Tenant has not at any time been in default after notice and expiration of any applicable cure period under this Lease.

Security Deposit. Contemporaneously with In addition to the execution of this LeaseRental Fee, Tenant shall Agreement Holder agrees to pay to Landlord the Association a Security Deposit in the amount of one hundred and fifty dollars ($150.00). Refund of the Security Deposit, which Deposit or any portion thereof shall be held by Landlord made within ten (10) business days following the date of reserved use, provided the Barn Pavilion, premises, facilities, and equipment are left in satisfactory condition and no Association rules or city ordinance have been violated. The refund of the Security Deposit will be made payable to secure Tenantthe first person’s performance name appearing on the Agreement. The Association, pending the post use inspection will hold the Security Deposit subject to: The Security Deposit shall be refunded after the event only if the Barn Pavilion, premises, furniture, appliances, fixtures and appurtenances are found, upon post-use inspection, to be in the same condition as at the commencement of its obligations under this Leasethe Rental Period as listed on the pre-use inspection, ordinary wear and tear expected. The Security Deposit is shall not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord maybe considered liquidated damages, from time to time following an Event of Default and without prejudice to the Agreement Holder hereby agrees that he/she shall be responsible for any other remedy, use and all or a part damage in excess of the Security Deposit to perform any obligation Tenant fails to perform hereunder. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights Association reserves the right, in its sole judgment, to deduct from the Security Deposit any amount necessary, as determined by the Association’s Managing Agent, to cover (a) all costs of cleanup if warranted (e.g., if the Barn Pavilion is not returned to the same condition as at the commencement of the Rental Period); and obligations (b) the costs of Landlord repairs or replacement of any property damaged during the use of the Barn Pavilion. If the Security Deposit does not fully cover these costs, the Agreement Holder shall be billed for and Tenant under this Section 6 agrees to promptly pay the difference and future use of any of the Association’s facilities shall be denied until these costs are subject paid. Any Agreement Holder using the Barn Pavilion shall be responsible for any and all damages that occur due to their use of the Barn Pavilion. The billed costs will be considered a special assessment and if not paid could result in a lien being initiated against the Agreement Holder’s property. Agreement Holder herein agrees to the deduction of whatever expenses are required to restore the facilities to the same condition as when Agreement Holder entered the facilities, including but not limited to any other requirements needed surface cleaning, ordinary wear and conditions imposed by Laws applicable tear expected. Agreement Holder will remove from the Barn Pavilion all materials that are not the property of Association after the Rental Period. Association shall be authorized to remove at the Security Depositexpense of Agreement Holder all materials remaining. Agreement Holder shall be responsible for the payment of storage costs of such materials, and Agreement Holder agrees that Association shall in no way be responsible for loss, damage or claims against the Association for material so removed or stored. Agreement Holder agrees that Association shall have a first lien on such material for payment of all costs accrued for the removal and storage. The clean-up must be completed within 30 minutes after the conclusion of the Rental Period.

Security Deposit. Contemporaneously with As a material part of the execution of consideration for this Lease, Tenant shall pay to deposit with Landlord upon execution thereof, the Security Deposit, which Deposit specified in the Basic Lease Information and Definitions. The Security Deposit shall be held by Landlord as security for the faithful performance by Tenant of all of the terms, covenants and conditions of this Lease to secure Tenant’s performance be kept and performed by Tenant during the entirety of its obligations under the Lease Term. If Tenant defaults with respect to any provision of this Lease. The Security Deposit is , including, but not an advance limited to, the provisions relating to the payment of Rent or a measure or limit Rent, and such default continues after expiration of Landlord’s damages upon an Event of Default (as defined herein). all applicable cure periods, Landlord may, from time but shall not be required to time following an Event of Default and without prejudice to any other remedyuse, use apply, or retain all or a any part of the Security Deposit (a) for the payment of any Rent or any other sum in default, (b) for the payment of any other amount which Landlord may spend or become obligated to perform spend by reason of Tenant’s default, and/or (c) to compensate Landlord for any obligation Tenant fails to perform hereunderloss or damage which Landlord may suffer by reason of Tenant’s default. Following If any such application portion of the Security DepositDeposit is so used or applied, Tenant shall pay to shall, within ten (10) days after demand therefor, deposit cash with Landlord on demand the in an amount so applied in order sufficient to restore the Security Deposit to its original amount. Provided The failure on the part of Tenant to so restore the Security Deposit shall be a material default under the terms of this Lease. Tenant understands that Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant has shall not be entitled to interest on such Security Deposit. If Tenant shall fully and faithfully perform every provision of this Lease to be performed all by it, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Tenant’s option, to the last assignee of its obligations Tenant’s interests hereunder, Landlord shall, ) within 60 ten (10) days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligationsLease Term. Notwithstanding the preceding sentence and to the extent permitted by applicable Lawforegoing, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after as any amount due or obligation owing from Tenant in accordance with the expiration terms of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have has been determined and paid in full by Tenant (e.g.or fulfilled, as applicable. Should Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers sell its interest in the Premises and Building during the transferee assumes Landlord’s obligations under this LeaseLease Term, then and if Landlord may assign deposits with such purchaser the unappropriated Security Deposit to the transferee and Deposit, Landlord thereafter shall have no thereupon be discharged from any further liability for the return of with respect to this Lease and the Security Deposit. The rights If, during any extension or renewal of the Lease Term, Monthly Basic Rent is increased, the amount of the Security Deposit required to be maintained by Tenant shall also be increased so as to maintain, at all times and obligations from time to time, the same ratio to Monthly Basic Rent as applicable on the Commencement Date. Tenant hereby waives the provisions of Section 1950.7 of the California Civil Code and all other provisions of law, now or hereafter in effect, which provide that Landlord and may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant under or to clean the Premises; Landlord may, in addition, claim those sums specified in this Section 6 are subject Article 7 and/or those sums reasonably necessary to compensate Landlord for any other requirements and conditions imposed loss or damage, caused by Laws applicable to the Security Depositacts or omissions of Tenant or any officer, employee, agent, contractor or invitee of Tenant.

Security Deposit. Contemporaneously with the Upon Tenant's execution of this Lease, Tenant shall pay to Landlord deposit with Landlord, cash in the amount of the Security DepositDeposit (if any) set forth in the Principal Lease Provisions, which shall be held by Landlord to secure the performance by Tenant of its obligations under this Lease, including without limitation Tenant’s 's obligations (i) to pay Basic Monthly Rent and Additional Rent (as defined below), (ii) to repair damages to the Premises and/or the Project caused by Tenant or Tenant's agents, employees, contractors, licensees, and invitees (collectively, "Tenant's Invitees"), (iii) to surrender the Premises in the condition required by Paragraph 24, below, and (iv) to remedy any other defaults by Tenant in the performance of any of its obligations under this Lease. The Security Deposit is not an advance payment Upon the first day of Rent or a measure or limit of Landlord’s damages upon an Event of Default the Extension Term (as defined hereinif Tenant exercises its Option to Extend). Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of Tenant shall increase the Security Deposit to perform any obligation Tenant fails an amount equal to perform hereunder. Following any such application the Basic Monthly Rent during the final year of the Security DepositLease. If Tenant commits any default under this Lease beyond any applicable notice and cure periods, Tenant shall pay to Landlord on demand the amount so applied in order to restore may, at its election, use the Security Deposit to its original amountcure such default, and to compensate Landlord for all damage actually suffered by Landlord which are directly attributable to such default, including, without limitation, reasonable attorneys' fees and costs incurred by Landlord. Provided that Upon demand by Landlord, Tenant has performed all of its obligations hereunder, shall promptly pay to Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return a sum equal to Tenant the any portion of the Security Deposit which was not applied so used by Landlord, in order to satisfy Tenant’s obligationsmaintain the Security Deposit in the amount set forth in the Principal Lease Provisions. Notwithstanding Following the preceding sentence Expiration Date, and to within the extent permitted earlier of 30 days or the time frame otherwise required by applicable Lawlaw, Landlord may retain that shall deliver to Tenant, at Tenant's last known address, any portion of the Security Deposit which not used by Landlord, as provided in this Paragraph. Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of may commingle the Security Deposit retained by with Landlord's other funds and Landlord pursuant to the foregoing shall will not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no pay interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the on such Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security DepositTenant.

Security Deposit. Contemporaneously (a) In the event that a Person other than Buyer wishes to submit a competing bid to purchase one or more of the Vessels for cash at the Auction pursuant to the Bidding Procedures Order, such Person (a "Competing Bidder") shall execute the Security Deposit Escrow Agreement with Seller and shall pay a deposit (the "Security Deposit") equal to 10% Purchase Price allocated to each Vessel bid upon by such Person by wire transfer to an escrow account in the U.S. to be established with the execution of this Lease, Tenant shall pay Security Deposit Escrow Agent and held pursuant to Landlord the Security Deposit, which Bidding Procedures Order. The Competing Bidder shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein). Landlord may, from time to time following an Event of Default responsible for all costs and without prejudice to any other remedy, use all or a part fees of the Security Deposit Escrow Agent. Buyer shall not be required to perform any obligation Tenant fails to perform hereunder. Following any such application of the execute a Security Deposit Escrow Agreement or place a Security Deposit, Tenant shall pay to Landlord on demand . (b) Upon the amount so applied in order to restore termination of this Agreement for any reason other than a breach by the Security Deposit to its original amount. Provided that Tenant has performed all Competing Bidder of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest Competing Bidder shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit entitled to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights Deposit plus any interest earned thereon pursuant to the terms of the Security Deposit Escrow Agreement, and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable the Parties shall provide joint written instructions to the Security DepositDeposit Escrow Agent to such effect. (c) In the event of a termination of the Agreement due to a breach by a Competing Bidder of said Competing Bidder's obligations under this Agreement, the Competing Bidder shall forfeit its Security Deposit (plus any interest earned thereon). The forfeited Security Deposit shall be considered as a portion of the sale proceeds with respect to one or more of the Vessels (as applicable) and shall be distributed as follows: [One of the following alternatives, as approved by the Court: Alternative A: to the Seller. Alternative B: to satisfy the Allowed Secured Claims, if any, and GE Capital Security Interests pertaining to each Vessel, with the balance, if any, distributed to the Seller. (d) If a Closing occurs with a Competing Bidder, then at the Closing, the Seller and the Competing Bidder shall provide joint written instructions to the Security Deposit Escrow Agent to release the Security Deposit and Seller shall credit the Security Deposit plus any accrued interest thereon against the Purchase Price paid at Closing.

Security Deposit. Contemporaneously (a) Tenant shall deposit concurrently with the Tenant’s execution of this Lease, with Landlord the amount set forth in Article 1 as the “Security Deposit” as security for the performance by Tenant of the terms of this Lease to be performed by Tenant, and not as prepayment of rent. Tenant shall pay have the right to provide a letter of credit in lieu of cash as provided in Paragraph 3.7(c) below. Tenant hereby grants to Landlord a security interest in the Security Deposit, which shall be held by Landlord including but not limited to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined herein)replenishments thereof. Landlord may, from time to time following an Event of Default and without prejudice to any other remedy, use all may apply such portion or a part portions of the Security Deposit as are reasonably necessary for the following purposes: (i) to perform remedy any default by Tenant beyond any notice or cure period expressly provided for in this Lease, in the payment of Base Monthly Rent or Additional Rent or a late charge or interest on defaulted rent, or any other monetary payment obligation of Tenant fails under this Lease; (ii) to perform hereunder. Following repair damage to the Leased Premises, the Building or the Common Areas caused or permitted to occur by Tenant and not cured within any such application of applicable notice or cure period expressly provided for in this Lease; (iii) to clean and restore and repair the Security DepositLeased Premises, Tenant shall pay the Building or the Common Areas following their surrender to Landlord on demand if not surrendered in the amount so applied in order condition required pursuant to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall, within 60 days after the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions of Article 2, (iv) to remedy any other default of Tenant beyond any notice or cure period expressly provided for in this Lease, return to Tenant the portion of the Security Deposit which was not applied to satisfy including, without limitation, paying in full on Tenant’s obligations. Notwithstanding the preceding sentence and behalf any sums claimed by materialmen or contractors of Tenant to the extent permitted by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary be owing to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable them by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid work done or improvements made at Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant request to the foregoing shall not exceed 50% of the total Security Deposit required by Leased Premises, and (v) to cover any other expense, loss or damage which Landlord may at any time suffer due to Tenant’s default beyond any notice or cure period expressly provided for in this Lease. The Security Deposit may be commingled with other fundsIn this regard, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this Lease, then Landlord may assign the Security Deposit to the transferee and Landlord thereafter shall have no further liability for the return of the Security Deposit. The rights and obligations of Landlord and Tenant under this Section 6 are subject to any other requirements and conditions imposed by Laws applicable to the Security Deposit.hereby waives any

Security Deposit. Contemporaneously with the execution of this Lease, Tenant shall pay to Landlord the Security DepositDeposit (as defined in the Basic Lease Information), which shall be held by Landlord to secure Tenant’s performance of its obligations under this Lease. The Security Deposit is not an advance payment of Rent or a measure or limit of Landlord’s damages upon an Event of Default (as defined hereinin Section 17). Landlord maymay at Landlord’s discretion, from time to time following an Event of Default and without prejudice to any other remedy, use all or a part of the Security Deposit to perform any obligation Tenant fails to perform hereunderhereunder or in connection with Landlord’s remedies under this Lease. Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original amount. Provided that Tenant has performed all of its obligations hereunderSubject to the requirements of, and conditions imposed by, Laws applicable to security deposits under commercial leases, Landlord shall, within 60 the time required by applicable Law (but in any event within thirty (30) days after following the expiration of the Term and Tenant’s surrender of the Premises in compliance with the provisions or earlier termination of this Lease), return to Tenant the portion of the Security Deposit which was not applied to satisfy remaining after deducting all damages, charges and other amounts permitted by Law. Landlord and Tenant agree that such deductions shall include, without limitation, all damages and losses that Landlord has suffered or that Landlord reasonably estimates that it will suffer as a result of any breach of this Lease by Tenant’s obligations. Notwithstanding the preceding sentence and to the extent permitted Unless required otherwise by applicable Law, Landlord may retain that portion of the Security Deposit which Landlord reasonably estimates is necessary to pay all amounts payable by Tenant under this Lease (including all reconciliation amounts payable by Tenant for the year in which the Term expires) until such time after the expiration of the Term that Landlord is actually able to reconcile and confirm such amounts payable by Tenant under this Lease have been paid in full by Tenant (e.g., Landlord cannot reconcile and confirm Tenant has paid Tenant’s Proportionate Share of Taxes for the calendar year in which the Term expires if Landlord has not received a Tax ▇▇▇▇ from all applicable taxing authorities at the time of such expiration); provided, however, the portion of the Security Deposit retained by Landlord pursuant to the foregoing shall not exceed 50% of the total Security Deposit required by this Lease. The Security Deposit may be commingled with other funds, and no interest shall be paid thereon. If Landlord transfers its interest in the Premises and the transferee assumes Landlord’s obligations under this LeasePremises, then Landlord may shall assign the Security Deposit to the transferee and, upon such transfer (and the delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit), Landlord thereafter shall have no further liability for the return of the Security Deposit. In lieu of a cash Security Deposit, Tenant may deliver to Landlord within ten (10) days after the date of execution of the Lease an irrevocable, unconditional letter of credit in the amount of $91,960.55 (the “Letter of Credit”). The rights Letter of Credit shall be addressed to Landlord, issued in a form and obligations substance similar to that attached hereto as Exhibit M and by a national financial institution approved by Landlord, in Landlord’s reasonable discretion, shall be freely transferable without fee payable by the beneficiary thereof, shall permit partial draws, shall have a one-year term with automatic one-year renewals and an expiration date falling no sooner than thirty (30) days after OFFICE LEASE AGREEMENT CentrePort/Radiant Systems, Inc. 3 the expiration of the Lease Term. In the event Tenant fails to renew the Letter of Credit as required hereunder, Landlord shall have the right to draw down the entire amount of such Letter of Credit and hold such amount as the Security Deposit hereunder. Tenant agrees that upon any occurrence of any other Event of Default by Tenant under the terms and provisions of this Lease, Landlord shall have the right to receive payment under any Letter of Credit of such portion of the Letter of Credit as Landlord reasonably estimates is necessary to effectuate a cure of the subject Event of Default. Any such amounts received by Landlord shall be held by Landlord and Tenant under applied in accordance with this Section 6 are Lease in the same manner as a Security Deposit. Landlord shall at all times during the Term, hold a letter of credit in the amounts described above. Notwithstanding the foregoing, subject to any other requirements and conditions imposed by Laws applicable to the Conditions (defined below), if Tenant waives its Termination Option set forth in Exhibit K, then at the expiration of the ninetieth (90th) month of the Lease Term (the “Release Date”) Landlord shall return one-half of the Security DepositDeposit to Tenant (or Tenant may reduce the amount of the Letter of Credit to $46,000.00, if the Security Deposit is held in the form of a Letter of Credit). Such return or reduction is conditioned upon the following: (i) not more than one (1) written notice of Tenant’s failure to pay any monetary amounts under the Lease when due shall have been sent by Landlord in any twenty-four (24) month period of the Lease Term; and (ii) on the Release Date Tenant shall not be in default under the Lease (collectively, the “Conditions”).