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3.1 Security Deposit. At the time of execution of this Lease, Lessee shall deposit with <br />Lessor the sum of $900.00 to secure performance of Lessee's obligations under this Lease during the <br />initial term and renewal or extension periods, if any. If Lessee fails to pay rent or other sums when <br />due, the security deposit may, at Lessor's option be applied to such unpaid amounts. The security <br />deposit (or an accounting thereof) shall be returned to Lessee within thirty (30) days after surrender <br />of the Leased Premises by Lessee, less lawful deductions for damages and other sums due under this <br />Lease. <br />4.1. Term, Commencement, and Anniversary. The lease term shall be for Five (5) <br />Years commencing on July 1, 2010 and ending on May 31, 2015. If Lessor delays in delivering <br />possession until after the above stated date, the commencement date shall be delayed until delivery <br />of possession. The annual anniversary date of this Lease shall be the first day of the first full month <br />for which rent is paid. <br />4.2 Early Termination. The five year term of this Lease is contingent upon the <br />annual appropriation of funds by the San Marcos City Council based on funding from the <br />Texas Department of State Health Services for the purposes of this Lease. If the San <br />Marcos City Council fails to appropriate funds for such purposes in any fiscal year during <br />the term of this Lease, the Lease term will be adjusted to terminate concurrently with the <br />end of period for which funding has been appropriated. Notwithstanding any other <br />provision in this Lease to the contrary, termination of the Lease under this paragraph does <br />not constitute a default by Lessee under any provisions of this Lease and the penalties and <br />remedies for default outlined in this Lease are not applicable. Lessor further agrees that it <br />shall have no recourse against the Lessee for failure of the San Marcos City Council to <br />appropriate funds for the purposes of this Lease. Lessee agrees to give Lessor notice of any <br />non - appropriation of funds relating to this Lease within 15 days of notification by State. <br />5.1. Delivery of Possession and Acknowledgement of Commencement. Lessor shall <br />deliver keys and possession of Lessee's office space to Lessee on the Commencement Date stated in <br />Paragraph 4.1. Lessee will not be liable for rent until Lessor delivers possession of the Leased <br />Premises to Lessee. If Lessor is unable to deliver possession of the Leased Premises, after <br />commercially reasonable efforts to do so, on the above commencement date, neither Lessor nor its <br />agents shall be liable for any damages; and this Lease shall not terminate unless Lessor is unable to <br />deliver possession within five days after the commencement date, in which event, Lessee may elect <br />to terminate the Lease. Lessor shall provide Lessee with at least 45 days' notice of its anticipated <br />inability to deliver possession of the Leased Premises by the commencement date. <br />6.1. Quiet Possession and Access. If Lessee is current and in compliance with all of its <br />obligations under this Lease, Lessee shall be entitled to peaceful and quiet possession of Lessee's <br />office space, subject to all terms and conditions of this Lease. Lessor shall make diligent efforts to <br />have all other Lessees in the building comply with building rules and regulations. Otherwise, failure <br />of other lessees to comply with such rules and regulations shall not be considered a default by <br />Lessor. Lessee shall have access to the common parking areas at all times subject to any limitations <br />presently existing in the rules and regulations attached as Exhibit C. Lessor shall have access to the <br />Leased Premises at all times for reasonable business purposes. <br />6.2 "tion. <br />Lesso� <br />[Paragraph Deleted] <br />Lessee: V <br />W.I.C. Lease <br />