STATE OF CALIFORNIA DEPARTMENT OF REHABILITATION

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Schedule "J-3", Tenant shall be given a credit against ROFO Rent next due hereunder equal to the amount of any overpayment. If Tenant fails, in the applicable Acceptance Notice, to expressly reject Landlord's determination of the FMRR (and ROFO Rent) set fortis In the applicable First Offer Notice, then Tenant shall conclusively be deemed to have accepted Landlord's determination of the FMRR (and ROFO Rent) for the applicable Leased First Right Space as sat forth in the applicable First Offer Notice, Notwithstanding anything to the contrary herein. Tenant shall pay Additional Rent with respect to any Leased First Right Space in the same manner as for the Initial Premises, including, without limitation, in accordance with the provisions of Section 4.2 of the Lease, and Tenant's Percentage Share shall be increased to lake into account the expansion of the Premises to include such Leased First Right Space, 3.4 Delivery and Condition of Lcased First RI"ht Space Delivery- Inim•overnjgnt. 3.4.1 Landlord shall endeavor to deliver the Leased First Right Space to Tenant on or before the applicable Offered Space Scheduled Commencement Date (as identified in the applicable First Offer Notice); provided, however, that if for any reason, Landlord is not in a position to so deliver such Leased First Right Space on such date, Landlord shall not be in breach under this Lease and otherwise shall have no liability to Tenant so long as Landlord uses commercially reasonable efforts to deliver such Leased First Right Space to Tenant as soon as reasonably possible thereafter. 3.4.2 Tenant shall accept any Leased First Right Space in its then existing "AS IS" condition and state of repair, and Landlord shall not be required to perform any work, supply any materials or incur any expense (including the granting of any allowance to Tenant with respect thereto) to prepare any Leased First Right Spam f'or Tenant's occupancy; provided, however, that: (a) Landlord shall cause the Leased First Right Space to .be demised prior to the date on which It is delivered to Tenant, and (b) to the extent (and only to the extent) determined in connection with determination of the FMRR for any Leased First Right Spam: (i) if such Leased First Right Spam has not, prior to the date the some is delivered to Tenant, previously been improved, Landlord shall grant to Tenant, a rent free construction period (with respect to the ROM Rent payable for such Leased First Right Space only) for die constriction of the initial Leasehold Improvements (if any) in such Leased First Right Space, and (H) Landlord may grant to Tenant an improvement allowance to be used for costs that are incurred in connection with die construction of the initial Leasehold Improvements (if any) in such Leased First Right Space, The construction of all Leasehold Improvements by Tenant in any Leased First Right Space shall comply with die provisions orArticlo 10 of die Lease 801 It" Cicic Ctur¢r Or—Ciq uf.Snnra.biu Leave -4- Exhibit ,I