LEASE ADDENDUM
(Additional Space/Lease Extension)
This addendum is to the lease dated August 23, 1994, by and between The Xxxxxxx
Drug Company, "Landlord," and Pacific Trail, Inc. "Tenant." All terms and
conditions of this lease apply to the addition of 4,389 rentable square feet
located in the Northeast corner of floor one.
1. Additional Space:
Suite 100 (Northeast corner)
Outline of space Attached as Exhibit "A"
2. Size:
4,389 rentable square feet;
includes a 10% load factor
3. Term:
Five (5) Years
4. Lease Commencement:
October 1, 1998 (subject to the completion or substantial completion of
tenant improvements)
5. Lease Expiration:
September 30, 2003 (or 60 months after the Commencement Date)
6. Rental Rate Additional Space:
The rental rate shall be the fully serviced rate charged Tenant by Landlord
per Rentable Square Foot (RSF), as defined by the Building Owners and
Managers Association International.
Initial Term - The rental rate shall be as follows:
RATE ANNUAL RATE PER RSF
$ 7,040.69 $19.25
On each anniversary of the Lease Commencement Date ("The Adjustment Date"),
for the additional 4,389 rentable square feet, the Rent shall be adjusted
by multiplying the current Rent by a CPI Ratio, wherein the numerator is
the applicable "Current CPI Index" and the denominator is the "Base CPI
Index" provided, however, that the CPI Ratio shall not be less than one.
Adjustments (if any) shall be based upon increases (if any) in the index,
and shall not exceed 5% for any annual adjustment. The CPI index in
PUBLICATION THREE (3) MONTHS BEFORE THE COMMENCEMENT DATE SHALL BE THE
"BASE INDEX." THE CPI INDEX IN PUBLICATION THREE (3) MONTHS BEFORE EACH
ADJUSTMENT DATE SHALL BE THE "COMPARISON Index." The CPI index shall be the
Consumer Price Index for All Urban Consumers issued by the United States
Department of Labor, or the most similar index available should this index
no longer be published.
Lease Addendum - Pacific Trail
Page 2
July 6, 1998
7. Tenant Improvements - Additional Space:
Landlord shall provide "turnkey" improvements based on a mutually
acceptable space plan. Landlord shall make any necessary wall, window or
ceiling repairs required prior to Tenant's occupancy. In addition, Landlord
shall clean up any loose asbestos in the premises and if necessary, do any
other asbestos abatement work required by law, prior to Tenant's occupancy.
8. Tenant Improvements - Suite 200:
After April 1, 2000 and at Tenant's request, Landlord shall paint and
re-carpet suite 200 as required. Painting and carpet replacement (subject
to availability) shall commence within sixty (60) days of Tenant's request.
9. Space Planning:
Landlord's architect shall provide reasonable space planning at Landlord's
sole cost and expense.
10. Parking:
Parking shall be available at the rate of 2 stalls per l,000 square feet
leased (4,389 RSF = eight (8) spaces). The initial parking charge shall be
$75.00 per month for covered spaces and $65.00 per month for uncovered
parking spaces. The parking charge is subject to rate increases (pursuant
to current market rates) during the lease term.
Subject to availability, additional parking may be available on a
month-to-month basis. Month-to-month parking spaces may be rescinded by the
Landlord at any time during the lease term, by giving the Tenant thirty
(30) days notice prior to rescinding such month-to-month parking spaces. If
at the commencement of a lease the Tenant elects not to rent the eight (8)
parking spaces allotted to them, or if during the lease term any of the
eight (8) parking spaces are returned to the Landlord, reassignment of such
spaces will be subject to availability, and may be reassigned on a
month-to-month-basis. Landlord reserves the right to relocate parking
spaces during the lease term. If relocation becomes necessary, Landlord
will put forth effort to ensure that all newly assigned parking spaces will
be on the same parking level as the previously assigned parking spaces.
11. Lease Cancellation - Suite 712
Upon full execution of a Lease Addendum between the Lake Union Building LLC
and Pacific Trail, Inc., for 4,389 rentable square feet of suite 100, the
Lake Union Building LLC shall release Pacific Trail, Inc. from it's
Agreement executed March 2, 1998, for suite 712.
12. Suite 200 Lease Term Extension
The Landlord shall agree to extend the lease term of the Lease dated August
21, 1994, between The Xxxxxxx Drug Company, "Landlord" and Pacific Trail,
Inc., "Tenant." The extension term shall be three (3) years and six (6)
months, commencing April 1, 2000,
Lease Addendum - Pacific Trail
Page 3
July 6, 1998
ending September 30, 2003.
13. Rental Rate Suite 200 and Northwest corner of floor one - Extension Period
The rental rate shall be the fully serviced rate charged Tenant by Landlord
per Rentable Square Foot (RSF), as defined by the Building Owners and
Managers Association International
The rental rate effective April 1, 2000 shall be as follows:
$ 32,930.63 per month $ 22.50 per RSF
On each anniversary of the Lease Commencement Date ("The Adjustment Date"),
for the initial 17,563 rentable square feet, the Rent shall be adjusted by
multiplying the current Rent by a CPI Ratio, wherein the numerator is the
applicable "Current CPI Index" and the denominator is the "Base CPI Index"
provided, however, that the CPI Ratio shall not be less then one.
Adjustments (if any) shall be based upon increases (if any) in the index,
and shall not exceed 5% for any annual adjustment. The CPI index in
publication three (3) months before the Commencement Date of the Extension
Period (January 2000) shall be the "Base Index." The CPI index in
publication three (3) months before each Adjustment Date shall be the
"Comparison Index." The CPI index shall be the Consumer Price Index for All
Urban Consumers issued by the United States Department of Labor, or the
most similar index available should this index no longer be published.
14. Asbestos:
The following building materials were found to be asbestos-containing
throughout The Lake Union Building:
Spray-applies fireproofing and overspray: located above the suspended
ceilings and throughout the building and in the parking structure (15-25%
chrysotile asbestos, friable and in good condition, debris exist on
suspended ceiling throughout).
Hard pipe fitting insulation on fiberglass insulated pipes: located above
ceiling, behind wall, and in fan rooms: friable and in good condition.
Tenant acknowledges receipt of "Asbestos Notification" delivered May 8,
1998. Tenant understands the responsibilities of building tenants regarding
performing work in their leased premises.
Through September 30, 2003, Landlord shall pay up to $5,000.00 pet year for
any spot abatement, pre-cleaning, air monitoring or other asbestos related
work required due to Tenant's need for work above the ceiling, or Tenant's
need for work that involves entering or demolition of walls within the
leased premises.
The $5,000.00 limit per year applies to all space occupied by Tenant and
does not include any work required by the Landlord to comply with any law,
statute, ordinance, or governmental rule, regulation or requirement.
Lease Addendum - Pacific Trail
Page 4
July 6, 1998
Any asbestos spot abatement, pre-cleaning, air monitoring or other asbestos
related work required, as part of the Landlord's work in preparing the
additional space shall not be included in the $5,000.00 limit stated above.
15. Option To Lease Southeast corner of floor one (balance of suite 100):
Landlord shall provide Tenant a "Right Of First Opportunity," for the
Southeast corner of floor one. The "Right Of First Opportunity" shall be
exercised by written notice to Landlord within ten (10) business days of
Tenant's receipt of notice from Landlord that the space is available. If
tenant fails to deliver written notice to Landlord within ten (10) business
days of receipt of notice from Landlord, such "Right Of First Opportunity"
shall lapse, and there shall be no further "Right Of First Opportunity."
In the event of any conflict between the terms of this Addendum and the Lease,
the terms of this Addendum shall prevail.
LANDLORD TENANT
Lake Union Building LLC Pacific Trail, Inc.
BY: BY:
-------------------------- -----------------------------
ITS: ITS:
------------------------- ----------------------------
DATE: DATE:
------------------------ ---------------------------
Lease Addendum- Pacific Trail
Page 5
June 30,1998
ACKNOWLEDGMENT OF LANDLORD
STATE OF WASHINGTON )
) SS.
COUNTY OF KING )
On this ______________________ day of ________________________________ ,19
________ , before the undersigned, a Notary Public in and for the State of
Washington, personally appeared _____________________________ and
_______________________ to me known to be the ______________________________ and
__________________________ of the corporation that executed the within and
foregoing Lease Addendum, and acknowledged the said instrument to be the free
and voluntary act and deed of said corporation, for the uses and purposes
therein mentioned, and on oath stated that they were authorized to execute said
instrument and that the seal affixed is the corporate seal of said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.
----------------------------------------
NOTARY PUBLIC in and for the State of
Washington, residing at ________________
Lease Addendum - Pacific Trail
Page 6
June 30, 1998
ACKNOWLEDGMENT OF TENANT
(Corporate)
STATE OF _______________ )
) SS.
COUNTY OF ______________ )
On this _________________ day of __________________ ,19 _______ , before
the undersigned, a Notary Public in and for the State of________________ ,
personally appeared __________________________________ and
____________________________ to me known to be the ____________
_____________________ and ______________________________ of the corporation that
executed the within and foregoing Lease Addendum, and acknowledged the said
instrument to be the free and voluntary act and deed of said corporation, for
the uses and purposes therein mentioned, and on oath stated that they were
authorized to execute said instrument and that the seal affixed is the corporate
seal of said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.
----------------------------------------
NOTARY PUBLIC in and for the State of
____________________________________,
residing at____________
[GRAPHIC OMITTED]
THE LAKE UNION BUILDING - FIRST FLOOR PLAN
0000 XXXXXXXX XXXXXX XXXXX
