Document:

exv10w1

EXHIBIT 10.1

FIRST AMENDMENT TO

COMMERCIAL LEASE

     THIS FIRST AMENDMENT TO COMMERCIAL LEASE (this “Amendment”), is effective as of the 19th day
of May, 2011, by and between 5901 Fourth LLC a Washington limited liability company successor in
interest to Gull Industries, Inc. a Washington corporation (“Landlord”) and Blue Nile, Inc. a
Delaware corporation (“Tenant”) and shall supplement and modify that certain COMMERCIAL LEASE
Agreement dated July 21, 2006 (the “Lease”).

RECITALS

     Whereas, Landlord and Tenant have entered into the Lease for the real property located at 5907
Fourth Avenue, South, Seattle, Washington; and

     Whereas, Landlord and Tenant desire to amend certain terms of the Lease;

     Now, therefore, in consideration of the mutual covenants and consideration acknowledged
herein, the parties agree as follows:

Section 1(g) Term of Lease and Possession. This section is amended as follows:

The lease shall terminate on October 31, 2014 (“Expiration Date”) unless otherwise terminated
in accordance with the terms hereof.

Section 1(h) Base Monthly Rent. The Base Monthly Rent as defined in the Lease is modified as
follows:

November 1, 2011 through October 31, 2014:    $17,038.84/month

Section 30. Option to Renew. The section is deleted in its entirety and the following is inserted
in lieu thereof:

Tenant is granted the right to extend the term of this Lease beyond the Expiration
Date for one (1) period of three (3) years (the “Extended Term”). Tenant may not
exercise this Extension Right if it is then in default beyond any applicable cure
period. Tenant must provide written notice thereof to Landlord no later than one
hundred and eighty (180) days prior to the Expiration Date. In the Extended Term all
terms and conditions of this Lease shall apply except that Base Monthly Rental shall
be based on the Fair Market Rent for the Premises.

As used herein, “Fair Market Rent” means an amount equal to the then prevailing rate for
similar space in a comparable building located within the Seattle metropolitan area during
the applicable Extended Term, but in no event less than the Base Monthly Rent to be paid to
Landlord in the last twelve (12) months of the Term. Tenant may, at any time during the last
lease year of the Term, request that the Landlord provide to Tenant within thirty (30) days
of such request its opinion of Fair Market Rent. After receiving Landlord’s determination of
Fair Market Rent, Tenant shall have the right any time during the period it may deliver
written notice to exercise the right to
extend the term to: (i) notify Landlord in writing that it is exercising its extension option
and that Tenant accepts Landlord’s determination of Fair Market Rent for the applicable
Extended Term;

 

or (ii) notify Landlord that Tenant disagrees with Landlord’s determination of
the Fair Market Rent and wishes to negotiate in good faith the amount of Fair Market Rent.
In the event that Landlord and Tenant are unable to agree upon the Fair Market Rent for the
Extended Term by the ninetieth (90th) day prior to the expiration date of the Term, then Fair
Market Rent shall be determined by appraisal as follows:

     (a) Either Landlord or Tenant may submit the matter to appraisal by notifying the other
party in writing. Within the (10) days after the date of such notice, the parties shall use
reasonable efforts to designate a licensed, M.A.I. appraiser having at least ten (10) years
experience appraising industrial rental property in the Seattle metropolitan area and who has
not been regularly employed or retained as a consultant, appraiser or agent of either party
during the last twelve (12) months, but if the parties are unable to agree upon a single
appraiser within such period, then Landlord and Tenant shall each shall promptly designate an
appraiser conforming to these qualifications; and

     (b) The two appraisers designated shall then immediately designate a third appraiser
similarly qualified. Within thirty (30) days of being chosen, the appraiser(s) shall
promptly conduct an independent rental study and narrative comparison of the Fair Market Rent
for each Lease Year of the applicable Extended Term. In the case of a single appraiser, the
appraiser shall deliver his or her opinion directly to the Landlord and Tenant. In the case
of three appraisers, as soon as the studies are complete, the appraisers shall meet and
attempt to reach agreement upon the Fair Market Rent for the Premises for the applicable
Extended Term. If the appraisers are unable to agree, and if each determination is not more
than ten percent (10%) higher or lower than one of the other determinations, the mathematical
average of the three rates so determined shall be the Fair Market Rent for the Premises.
Otherwise, the two rates closest in amount for the applicable Extended Term shall be
mathematically averaged and that average shall be the Fair Market Rent for the Premises. The
determination of Fair Market Rent shall in any event be determined no later than sixty (60)
days prior to the expiration date of the Term.

     (c) Each party shall pay the cost of its own appraiser and one-half the costs of the
third appraiser. The appraiser(s) decision shall be final and binding upon Landlord and
Tenant.

Section 31. Tenant Termination Right.

Tenant is granted a one-time right to terminate this Lease as of October 31, 2013 upon the
following terms and conditions: a) by providing written notice thereof to Landlord on or before
April 30, 2013 and b) Upon payment to Landlord of an amount equal to four months of Base Monthly
Rent (herein after the “Termination Fee”). The Termination Fee is due and payable prior to October
31, 2013. If Tenant fails to provide timely written notice and pay the Termination Fee in
accordance with these terms, the Lease shall continue in full force and effect through the
Expiration Date.

IN WITNESS WHEREOF, the parties have executed this instrument as of the date first written
above.

	 	 	 	 	 	 	 	 	 

	LANDLORD:	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 
	5901 FOURTH LLC,	 	BLUE NILE, INC.	 	 
	a Washington limited liability company	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ William Low
 

	 	By
	 	/s/ Vijay Talwar
 

	 	 
	Its	 	 Sr. VP Real
Estate
Gull Industries, Inc.	 	Its	 	 CFO	 	 
	 

	 	Managing member of 5901 Fourth LLC
	 	By
	 	/s/ Dwight Gaston
 

	 	 
	 	 	  	 	Its	 	 Senior VPExhibit 10.1

Exhibit 10.1

AMENDMENT NO. 2

TO

FIRST POTOMAC REALTY TRUST

2009 EQUITY COMPENSATION PLAN

(Proposed amendment approved by the Board of Trustees on March 30, 2011)

WHEREAS, the First Potomac Realty Trust 2009 Equity Compensation Plan (the “2009 Plan”) was
approved by shareholders on May 21, 2009;

WHEREAS, Amendment No. 1 to the 2009 Plan was approved by shareholders on May 20, 2010;

WHEREAS, the Board believes that the availability of Stock Award incentives under the 2009
Plan is important to the Company’s ability to attract and retain highly qualified, experienced
employees, to implement the Company’s business plan and to further align employees’ interests with
those of the Company’s shareholders;

WHEREAS, the Board wishes to amend the 2009 Plan (the “Amendment No. 2”) in order to increase
the aggregate number of shares reserved for issuance in order to provide appropriate incentives to
present and future employees.

NOW, THEREFORE, the 2009 Plan is amended as follows:

1. Sections 5.02 of the 2009 Plan, as amended, is hereby deleted in its entirety and replaced
in its stead with the following new Section 5.02:

“5.02. Aggregate Limit

The maximum aggregate number of Common Shares that may be issued under this Plan pursuant to
the exercise of SARs and Options and the grant of Share Awards and Equity Awards and the settlement
of Performance Units is 7,400,000 shares. The maximum aggregate number of Common Shares that may be
issued under this Plan shall be subject to adjustment as provided in Article XII.

In determining the number of Common Shares that are available for grant under this Plan,
Common Shares covered by an award shall be counted as used as of the date of grant. After May 19,
2010, any Common Shares that are subject to awards of Options shall be counted against the limit
set forth in this Section 5.02 as one (1) Common Share for every one (1) Common Share subject to an
Award of Options. With respect to SARs, the number of Common Shares subject to an award of SARs
will be counted against the aggregate number of Common Shares available for issuance under the Plan
as one (1) Common Share for every one (1) Common Share subject to the Award of SARs regardless of
the number of Common Shares actually issued to settle the SAR upon exercise. Any Common Shares that
are subject to Awards other than Options or SARs shall be counted against the limit set forth in
this Section 5.02 as 3.44 Common Shares for every one (1) Common Share granted.

2. Except to the extent hereby amended and amended by Amendment No. 1, the 2009 Plan remains
unchanged and shall continue in full force and effect.

3. The effective date of this Amendment is May 19, 2011.”Exhibit 10.2

Exhibit 10.2

FIRST POTOMAC REALTY TRUST

RESTRICTED STOCK AGREEMENT

This RESTRICTED STOCK AGREEMENT, is entered into as of May 19, 2011 (the “Agreement”), by and
between, First Potomac Realty Trust, a Maryland real estate investment trust (the “Company”), and
_____ (the “Recipient”). Capitalized terms used but not otherwise defined in this
Agreement shall have the respective meanings set forth in the First Potomac Realty Trust 2009
Equity Compensation Plan (the “Plan”).

WHEREAS, on May 19, 2011 (the “Date of Grant”), the Compensation Committee (the “Committee”)
of the Board of Trustees (the “Board”) of the Company granted the Recipient a Restricted Stock
Award, pursuant to which the Recipient shall receive shares of the Company’s Class A Common Stock,
par value $.01 per share (“Common Stock”), pursuant to and subject to the terms and conditions of
the Plan.

NOW, THEREFORE, in consideration of the Recipient’s services to the Company and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

1. Number of Shares; Restrictions. The Company hereby grants the Recipient a
Restricted Stock Award (the “Stock Award”) of 3,385 shares of restricted Common Stock (the
“Restricted Shares”) pursuant to the terms of this Agreement and the provisions of the Plan. The
Restricted Shares may not be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of and shall be subject to a risk of forfeiture until the lapse of the Restricted Period,
as defined in Section 2 below.

2. Lapse of Restrictions; Restricted Period. Except as provided in Sections 3 and 5
below, the restrictions set forth in Section 1 above shall lapse and all of the Restricted Shares
shall become unrestricted and freely tradable on May 19, 2012, if Recipient is a member of the
board of trustees of the Company or any of its affiliates.

3. Change of Control. The provisions of the Plan applicable to a Change of Control
shall apply to the Restricted Stock, and in the event of a Change of Control, the Committee may
take such actions as it deems appropriate pursuant to the Plan. Notwithstanding the preceding
sentence, if a Change of Control occurs, all of the Restricted Stock shall become immediately
unrestricted and freely transferable by the Recipient on the date of the Change of Control.

4. Rights of Stockholder. From and after the Date of Grant and for so long as the
Restricted Stock is held by or for the benefit of the Recipient, the Recipient shall have all the
rights of a stockholder of the Company with respect to the Restricted Stock, including but not
limited to the right to receive dividends and the right to vote such Restricted Stock. Dividends
paid on Restricted Stock shall be paid at the dividend payment date for the Common Stock in cash or
shares of Common Stock. Stock distributed in connection with a Common Stock split or Common Stock
dividend shall be subject to restrictions and a risk of forfeiture to the same extent as the
Restricted Stock with respect to which such Common Stock has been distributed.

5. Termination of Membership on Board of Trustees. In the event that Recipient ceases
to be a member of the Board of Trustees of the Company (the “Board”) for any reason prior to the
lapse of the Restricted Period, then the Restricted Stock and any accrued but unpaid dividends that
are at that time subject to restrictions set forth herein shall be forfeited to the Company without
payment of any

 

 

 

consideration by the Company, and neither the Recipient nor any of his or her successors, heirs,
assigns, or personal representatives shall thereafter have any further rights or interests in such
shares of Restricted Stock or certificates. Notwithstanding the preceding, the restrictions set
forth in Section 1 above shall lapse and the Restricted Stock shall not be forfeited on the date
Recipient ceases to be a member of the Board due to Recipient’s death, disability, required
retirement or non-reelection to the Board.

6. Miscellaneous.

(a) Entire Agreement. This Agreement and the Plan contain the entire understanding
and agreement of the Company and the Recipient concerning the subject matter hereof, and
supersede all earlier negotiations and understandings, written or oral, between the parties with
respect thereto.

(b) Conflicting Provisions. This Agreement is made under and subject to the
provisions of the Plan, and all of the provisions of the Plan are hereby incorporated by reference
into this Agreement. In the event of any conflict between the provisions of this Agreement and the
provisions of the Plan, the provisions of the Plan shall govern. By signing this Agreement, the
Recipient confirms that he or she has received a copy of the Plan and has had an opportunity to
review the contents thereof.

(c) No Guarantee of Continued Membership on Board. The Recipient acknowledges and
agrees that nothing herein shall be deemed to create any implication concerning the adequacy of
the Recipient’s services to the Company or any of its subsidiaries or shall be construed as an
agreement by the Company or any of its subsidiaries, express or implied with respect to
Recipient’s continued membership on the Board.

(d) Assignment and Transfer. Except as the Committee may otherwise permit pursuant to
the Plan, the rights and interests of the Recipient under this Agreement may not be sold, assigned,
encumbered, pledged, or otherwise transferred except in the event of the death of the Recipient, by
will or by the laws of descent and distribution. In the event of any attempt by the Recipient to
sell, assign, encumber, pledge or otherwise transfer its rights and interests hereunder, except as
provided in this Agreement, or in the event of the levy or any attachment, execution or similar
process upon the rights or interests hereby conferred, the Company may terminate the Restricted
Shares by notice to the Recipient, and the Restricted Stock and all rights hereunder shall
thereupon become null and void. The rights and protections of the Company hereunder shall extend
to any successors or assigns of the Company. This Agreement may be assigned by the Company without
the Recipient’s consent.

(e) Captions. The captions and section numbers appearing in this Agreement are
inserted only as a matter of convenience. They do not define, limit, construe or describe the
scope or intent of the provisions of this Agreement.

(f) Counterparts. This Agreement may be executed in counterparts, each of which
when signed by the Company or the Recipient will be deemed an original and all of which together
will be deemed the same agreement.

(g) Notices. Any notice to the Company provided for in this Agreement shall be
addressed to the Company in care of the General Counsel at the headquarters of the Company, and
any notice to the Recipient shall be addressed to the Recipient at his current home address shown
on the records of the Company, or such other address as the Recipient may designate to the Company
in writing pursuant to the procedures of this Section 6(g). Any notice shall be given by personal
delivery, by first class U.S. Mail, or by facsimile.

 

 

 

(h) Amendments. Subject to the provisions of the Plan, this Agreement may be amended
or modified at any time by an instrument in writing signed by the parties hereto.

(i) Governing Law. This Agreement and the rights of all persons claiming hereunder
will be construed and determined in accordance with the laws of the State of Maryland without
giving effect to the choice of law principles thereof.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

FIRST POTOMAC REALTY TRUST

Attest:

	 	 	 	 	 

	 

	 	 
	By:	 
	 

	 	 	 
	 

	 	 
	            Joel F. Bonder
	 

	 	 
	            Executive Vice President
	 

	 	 	            and General Counsel
	 

	 	 
	

RECIPIENT

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