Subsequent Events

Commercial Lease

On May 05, 2014 (the "Effective Date"), Blue Nile, Inc. (the “Company”), entered into the Third Amendment (the “Amendment”) to the Commercial Lease Agreement dated July 21, 2006 (the “Lease”) for its fulfillment center with 5901 Fourth LLC, successor in interest to Gull Industries, Inc. Pursuant to the terms of the Amendment, the Lease termination date is October 31, 2019 (the "Expiration Date"). The Company has the right to extend the term of the Lease beyond the Expiration Date for two periods of three years each in which periods the monthly rent will be based on "Fair Market Rent", as defined in the Amendment.

From the Effective Date through October 31, 2014, base monthly rent of approximately $17,039 will continue to be payable. From November 1, 2014 through the Expiration Date, base monthly rent payments will be as follows:


•	November 1, 2014 through October 31, 2016 will be approximately $17,588;


•	November 1, 2016 through October 31, 2017 will be approximately $17,863; and


•	November 1, 2017 through October 31, 2019 will be approximately $18,138.