Common use of Security for Tenant's Performance Clause in Contracts

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 representing an amount equal to six and one-half (6 1/2) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 representing an amount equal to six Nine Hundred Thirty Thousand Seven Hundred Sixty-Nine and one-half No/100 Dollars (6 1/2$930,769.00) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10Tenant hereby waives the provisions of Section 1950.7(c) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount California Civil Code, and all other provisions of law, to the extent that such draw and provisions restrict Landlord's ability to claim from a security deposit sums other than those reasonably necessary to remedy defaults in the applicable Security Deposit drawn. In payment of rent, to repair damage caused by Tenant or to clean the event Leased Premises, it being agreed that Landlord elects may, in addition, claim those sums reasonably necessary to use the Security Deposit to cure a compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by any default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlordhereunder.

Security for Tenant's Performance. (a) Simultaneously with On the execution of this AgreementTransfer Date, Tenant shall deposit with Landlord the sum of Nine Hundred Fifty-four Thousand Seventy-nine and 38/100 Dollars ($358,000 representing an amount equal to six and one-half (6 1/2954,079.38) times the amount set forth on Exhibit A (the "Security Deposit"). All interest earned on the Security Deposit shall accrue for the benefit of Landlord and shall be paid to Landlord. Landlord shall not be required to maintain the Security Deposit separate from its general accounts and may commingle the Security Deposit with other funds the general accounts of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security DepositCHLP. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon . (c) Notwithstanding anything to the expiration contrary contained herein, if an Entity wholly-owned and controlled by CHLP, or sooner termination another Entity selected by CHLP which is an Approved Substitute (as defined in the Owner Agreement) (together, a "Qualified Entity"), has not become the tenant of the Leased Property, as provided in that certain Letter Agreement dated October 30, 2000 by and between CHLP and Marriott, either by assuming this Agreement or entering into a new lease for the Leased Property in replacement of this Agreement, any and entered into a management agreement for the operation of the Leased Property with Marriott or a Subsidiary or Affiliated Person as to Marriott ("Marriott-Manager"), on or before December 31, 2001, the then unapplied balance of the Security Deposit shall immediately be paid by Landlord by wire transfer to Tenant. Within ten (10) days after any draw upon If a Qualified Entity has become the tenant of the Leased Property and entered into a management agreement with a Marriott Manager as aforesaid on or before December 31, 2001, then the Security Deposit and/or the Collective Security Deposit, shall be delivered by Landlord to CHLP and Landlord shall notify Tenant cause CHLP to simultaneously enter into its written undertaking to pay the same to the Marriott Manager immediately upon the termination of the management agreement (less any amount that the Marriott Manager may be liable for as a result of such draw and its default under the applicable Security Deposit drawnmanagement agreement). In Tenant shall not look to any Hotel Mortgagee for the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application return of the Security Deposit so applied fully cures except to the same. Tenant shall have no obligation to replenish extent the Security Deposit after application is actually paid and delivered to such Hotel Mortgagee." (b) Section 9.3 of the Original Lease (captioned "General Provisions") shall be deleted in its entirety and, in lieu thereof, or portions thereof, by Landlord.the following shall be inserted:

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 728,650 representing an amount equal to six and one-half (6 1/2) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with On the execution of this AgreementTransfer Date, Tenant shall deposit with Landlord the sum of One Million One Hundred Three Thousand Six Hundred Ninety-five and 38/100 Dollars ($358,000 representing an amount equal to six and one-half (6 1/21,103,695.38) times the amount set forth on Exhibit A (the "Security Deposit"). All interest earned on the Security Deposit shall accrue for the benefit of Landlord and shall be paid to Landlord. Landlord shall not be required to maintain the Security Deposit separate from its general accounts and may commingle the Security Deposit with other funds the general accounts of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security DepositCHLP. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon . (c) Notwithstanding anything to the expiration contrary contained herein, if an Entity wholly-owned and controlled by CHLP, or sooner termination another Entity selected by CHLP which is an Approved Substitute (as defined in the Owner Agreement) (together, a "Qualified Entity"), has not become the tenant of the Leased Property, as provided in that certain Letter Agreement dated October 30, 2000 by and between CHLP and Marriott, either by assuming this Agreement or entering into a new lease for the Leased Property in replacement of this Agreement, any and entered into a management agreement for the operation of the Leased Property with Marriott or a Subsidiary or Affiliated Person as to Marriott ("Marriott-Manager"), on or before December 31, 2001, the then unapplied balance of the Security Deposit shall immediately be paid by Landlord by wire transfer to Tenant. Within ten (10) days after any draw upon If a Qualified Entity has become the tenant of the Leased Property and entered into a management agreement with a Marriott Manager as aforesaid on or before December 31, 2001, then the Security Deposit and/or the Collective Security Deposit, shall be delivered by Landlord to CHLP and Landlord shall notify Tenant cause CHLP to simultaneously enter into its written undertaking to pay the same to the Marriott Manager immediately upon the termination of the management agreement (less any amount that the Marriott Manager may be liable for as a result of such draw and its default under the applicable Security Deposit drawnmanagement agreement). In Tenant shall not look to any Hotel Mortgagee for the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application return of the Security Deposit so applied fully cures except to the same. Tenant shall have no obligation to replenish extent the Security Deposit after application is actually paid and delivered to such Hotel Mortgagee." (b) Section 9.3 of the Original Lease (captioned "General Provisions") shall be deleted in its entirety and, in lieu thereof, or portions thereof, by Landlord.the following shall be inserted:

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 representing an amount equal to six Five Hundred Seventy-eight Thousand Nine Hundred Fifty-three and one-half 84/100 Dollars (6 1/2$578,953.84) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 693,850 representing an amount equal to six and one-half (6 1/2) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of Three Million One Hundred Fifty Thousand and 00/100 Dollars ($358,000 representing an amount equal to six and one-half (6 1/23,150,000.00) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord Landlord, CHP or CHLP may commingle the Security Deposit with other funds of Landlord, CHP or CHLP. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit Deposit, and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within . (c) Notwithstanding anything to the contrary contained herein, commencing on the fifth (5th) anniversary of the Commencement Date, Landlord shall return by wire transfer to Tenant, within ten (10) days after any draw upon of Tenant's written request therefor, a portion of the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of in the amount of such draw One Million One Hundred Thousand and 00/100 Dollars ($1,100,000.00) (the applicable Security Deposit drawn. In "Refund"); provided, however, that in the event Landlord elects to use that the unapplied balance of the Security Deposit is less than the Refund, then the Refund shall be an amount equal to cure a default susceptible of cure by application any unapplied balance of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 452,500 representing an amount equal to six and one-half (6 1/2) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 representing an amount equal to six and one-half (6 1/2) four times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 representing an amount equal to six Four Hundred Eighteen Thousand Four Hundred Sixty-one and one-half 52/100 Dollars (6 1/2) $418,461.52), (i.e., four times the amount set forth on Exhibit A Minimum Rent) (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10Tenant hereby waives the provisions of Section 1950.7(c) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount California Civil Code, and all other provisions of law, to the extent that such draw and provisions restrict Landlord's ability to claim from a security deposit sums other than those reasonably necessary to remedy defaults in the applicable Security Deposit drawn. In payment of rent, to repair damage caused by Tenant or to clean the event Leased Property, it being agreed that Landlord elects may, in addition, claim those sums reasonably necessary to use the Security Deposit to cure a compensate Landlord for any other loss or damage, foreseeable or unforeseeable, caused by any default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlordhereunder.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 385,550 representing an amount equal to six and one-half (6 1/2) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously with the execution of this Agreement, Tenant shall deposit with Landlord the sum of $358,000 representing an amount equal to six Four Hundred Sixty-eight Thousand One Hundred Forty-one and one-half 52/100 Dollars (6 1/2$468,141.52) times the amount set forth on Exhibit A (the "Security Deposit"). Landlord may commingle the Security Deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant and any Affiliated Person of Tenant that is a tenant under the Other Leases to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use the Security Deposit to cure a default susceptible of cure by application of the Security Deposit, such default shall be deemed cured only if the application of the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by Landlord.

Security for Tenant's Performance. (a) Simultaneously Tenant shall keep on deposit with Landlord at all times during the execution term of this AgreementLease, the sum of Four Thousand Seventeen and 87/100 Dollars ($4,017.87), as security for the payment by Tenant of the rent and any other sums due under this Lease and for the faithful performance of all the terms, conditions and covenants of this Lease. See Addendum regarding Security Deposit. If at any time during the term of this Lease, Tenant shall be in default in the performance of any provision of this Lease, Landlord may but shall not be required to use any such deposit, or so much thereof as Landlord deems necessary or proper, in payment of any Rent or any other sums due under this Lease which are in default, in reimbursement of any expense incurred by Landlord and in payment of the damages of whatsoever kind, nature or description incurred by Landlord by reason of Tenant's default, or at the option of Landlord, the same may be retained by Landlord as liquidated damages. In such event, Tenant shall, on written demand of Landlord forthwith remit to Landlord a sufficient amount in cash to restore such deposit with Landlord to its original amount. In the sum event such deposit has not been utilized as aforesaid, such deposit, or as much thereof as has not been utilized for such purposes, shall be refunded to Tenant, without interest upon full performance of $358,000 representing an amount equal all of the obligations under this Lease to six and one-half (6 1/2) times the amount set forth on Exhibit A (the "Security Deposit")be performed by Tenant. Landlord may shall have the right to commingle the Security Deposit such deposit with other funds of Landlord. All interest, if any, earned on the Security Deposit shall be the sole property of Landlord and shall not be part of the Security Deposit. (b) Tenant acknowledges that the security deposits with respect to the Collective Leased Properties (collectively, the "Collective Security Deposit") constitute security for the faithful observance and performance by Tenant of all the terms, covenants and conditions of this Agreement and the Other Leases by Tenant to be observed and performed. If any Event of Default shall occur and be continuing under this Agreement, Landlord may, at its option (and with no obligation to do so) and without prejudice to any other remedy which Landlord may have on account thereof, appropriate and apply, first, the amount of the Security Deposit and, second, the amount of such Collective Security Deposit as may be necessary to compensate Landlord toward the payment of the Rent or other sums due Landlord under this Agreement as a result of such breach by Tenant, and any such appropriation and application of the Collective Security Deposit shall be ratable according to the respective amounts of such Collective Security Deposit. Additionally, Landlord may, if any Event of Default shall occur and be continuing under any of the Other Leases, appropriate and apply the Security Deposit (ratably with all other Collective Security Deposits other than the security deposit under the Other Lease that is in default) after first applying the security deposit under the Other Lease that is in default. It is understood and agreed that neither the Security Deposit nor the Collective Security Deposit is to be considered as prepaid rent, nor shall damages be limited to the amount of the Collective Security Deposit. Upon the expiration or sooner termination of this Agreement, any unapplied balance of the Security Deposit shall be paid by wire transfer to Tenant. Within ten (10) days after any draw upon the Security Deposit and/or the Collective Security Deposit, Landlord shall notify Tenant of the amount of such draw and the applicable Security Deposit drawn. In the event Landlord elects to use deliver the Security Deposit to cure a default susceptible the purchaser of cure by application Landlord's interest in the Demised Premises in the event such interest be sold, and thereupon, Landlord and the owner of record shall be discharged from further liability with respect to such deposit. Notwithstanding the above provisions of this paragraph, if claims of Landlord exceed the Security Deposit, Tenant shall remain liable for the balance of such default claims and Landlord shall be deemed cured only if the application of not deliver the Security Deposit so applied fully cures the same. Tenant shall have no obligation to replenish the Security Deposit after application thereof, or portions thereof, by LandlordTenant.