DEVELOPMENT AGREEMENT ADDENDUM
REGARDING SPECIALTY SANDWICH PROGRAM
THIS DEVELOPMENT AGREEMENT ADDENDUM (THE "ADDENDUM") is entered into effective as of
the 3rd day of January, 1998 (the "Sandwich Program Effective Date"), by and between Starbucks Corporation
("Starbucks") and Host International, Inc. ("Licensee").
WHEREAS, Starbucks and Licensee are parties to that certain development agreement dated March 1994, as
amended (the "Development Agreement"), which includes as an exhibit a form of Starbucks System Licensing
Agreement (the "License Agreement"); and
WHEREAS, the parties now desire to amend the Development Agreement to reflect the parties' agreement and
understanding concerning a "Starbucks Specialty Sandwich Program" as discussed herein;
NOW THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, the
parties agree as follows:
1. APPROVAL OF THE SPECIALTY SANDWICH PROGRAM. Licensee has developed a specialty
sandwich program to be offered at certain designated Licensed Locations (the "Specialty Sandwich Program").
Starbucks hereby approves such Specialty Sandwich Program subject to the terms of this Addendum. Licensee
shall select the Licensed Locations where Licensee desires to implement the Starbucks Specialty Sandwich
Program, but Starbucks retains the right to approve the Licensed Locations which will offer the Specialty
Sandwich Program, and to approve the sandwich offerings of such Specialty Sandwich Program from time to
time, such approval not to be unreasonably withheld, conditioned or delayed.
2. ROYALTY TO STARBUCKS. Starbucks and Licensee hereby agree that the following shall apply to any
Licensed Location where Starbucks has authorized and Host has implemented the Specialty Sandwich Program:
a. PRIOR TO THE SANDWICH PROGRAM EFFECTIVE DATE (i.e., prior to 1/3/98, which is the first day
of Licensee's 1998 fiscal year), Licensee shall pay Starbucks the Royalty defined in Section 2.2 of the License
b. AS O