STATE OF CALIFORNIA DEPARTMENT OF REHABILITATION

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Schedule "J-1" Extension Options 1. Grant of OBtion. Subject to all of the terms and conditions of this Schedule "J-1", In connection with Tenant's lease of the Premises, Tenant shall have two (2) options (each an "Extension Option") to extend the term of this Lease as to the entire Premises tun subject to this Lease, each for an additional term (each "Extension Term") of sixty (60) months, subject to and upon the terms and conditions contained in this Schedule J.I ". The Extension Term shall commence upon the day Immediately following the then scheduled Expiration Date, and shall be upon the same terms and conditions as ate provided for in this Lease, as then amended, except that: (a) If Tenant fails to timely exercise the Extension Option, the Extension Option (and any other rights to extend or renew the Tenn) shall lapse and Tenant shall have no further right to extend the Term of the Lease, (b) there shall be no further options to extend the Tenn pursuant to this Schedule J-I" or otherwise following the second (2"a) Extension Term, (a) Tenant shall not be entitled to any credit against Rent or any other rent concession or rent allowance or abatement of Rent, except as specifically provided In the definition of the FMRR, (d) the Base Rent for the Extension Term shall be as provided in Section 3 of this Schedule "J- 1J' end (e) the Base Year for the Extension Term shall be the calendar year in which the Extension Term commences. 2 Exercise. An Extension Option may be exercised only by Tenant giving written notice of exercise (an "Extension Notice") to Landlord on or before the date that is not more than twelve (12) and not less than nine (9) months prior to the then scheduled Expiration Date. If Tenant does not deliver an Extension Notice to Landlord within the time period set forth above ([line being of the essence), tun Tenant shall be deemed to have forever waived and relinquished the Extension Option, end any other options or rights to renew or extend the Term effective after the then Expiration Date shall terminate. 3 Annuai Base Rent. The Base Rent payable for the Premises during an Extension Tern) (the "Extension Term Base Rent") shall be equal to (a) the Rentable Area of the Premises then subject to this Lease, multiplied by (b) the FM RR of the Premises as of the first day (an "Adjustment Date") of such Extension Term, and shall be determined as follows. 3.1 If Tenant duly exercises the Extension Option, Landlord shall within thirty (30) days thereafter, deliver to Tenant a written notice (a "Market Rent Notice") of Landlord's determination of what Landlord then believes the FMRR (and Extension Term Base Rent) would be for the Premises during die Extension Temh. 3.2 Within ten (10) days after Tenant's receipt of a Market Rent Notice, Tenant shall deliver to Landlord written notice (a "Market Rent Response Notice") clecting either: (a) to accept the FMRR (and Extension Perm Base Rent) set forth in the Market Rent Notice, in which case the FMRR (and Extension Tenn Base Rent) shall be as set forth hm time Market Rent Notice, or (b) to reject Landlord's determination of the FMRR (and Extension Tenn Base Rent), in which case the FIvIRR (and Extension Term Base Rent) shall be determined in accordance with Schedule "J-3, 3.3 il'Tenant fails to deliver Tenant's Market Rent Response Notice within ten (10) days after its receipt of a Market Rent Notice (or fails in its Market Response Notice to expressly reject Landlord's determination of the FMRR (and Extension Term Base Rent) set forth in a Market Rent Notice), Tenant shall conclusively be deemed to have accepted Landlord's determination of the FMRR (and Extension Term Base Rent) set forth in the Market Rent Notice. 861 O'Chic Cenrur Pr—Qr nfSoom Aar Leave -2- rxhibir J