EXHIBIT 10.56
THIRD AMENDMENT TO LEASE
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THIS THIRD AMENDMENT TO LEASE (this "Amendment") is entered into as of May 1,
1996 by and between Chawin Property, Inc. a California corporation ("Landlord"),
and YES! Entertainment, Inc., a California corporation ("Tenant").
RECITALS
A. Chawin Property, Inc. a California corporation, and Tenant entered
into that certain Lease dated March 1, 1993, and that certain First Amendment to
Lease dated October 1, 1993 and that certain Second Amendment to Lease dated May
1, 1995 whereby Tenant leased from Landlord that certain space commonly referred
to as Suite 375 and Suite 201, 3875 Hopyard Road, Hacienda West, located at the
Hacienda Business Park in the City of Pleasanton, California the "Original
Premises"). The Second Amendment to Lease terminated Suite 201.
B. Landlord and Tenant now desire to amend certain of the terms and
conditions set forth in the Original Lease and First and Second Amendments to
Lease. The Original Lease (and the amendments made herein) shall be hereinafter
referred to collectively as the "Lease". All initially capitalized terms not
otherwise defined herein shall have the meanings given to them in the Lease.
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises contained
herein, the parties hereby agree as follows:
1. EFFECTIVE DATE. The effective
date ("Effective Date") of this amendment shall be July 1, 1996.
2. PREMISES. Commencing on the Effective Date, the square footage
of the existing Premises, consisting of Suite 375 in the North Building located
at 3875 Hopyard Road, Pleasanton, California 94588 the ("Existing Premises"),
shall be expanded to include the additional space shown on Exhibit A hereto (the
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"Expansion Space") consisting of Four Thousand Seven Hundred and Ten rentable
square feet (4,710 rsf). Exhibit A to the Lease describing the Premises is
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amended, as of the Effective Date, by adding to it the Expansion Space shown on
Exhibit A hereto.
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3. TERM. The Term of this Third Amendment to Lease shall be
coterminous with the Original Lease which will expire November 18, 1998.
4. BASE RENT. Effective July 1, 1996, the monthly base rent, shall
be amended as set forth below:
Mo. Rate Monthly
Period Suite per RSF Base Rent Mo.
------ ----- ------- -------------
July 1, 1996 -- 375 $1.25 $21,668.75
March 18, 1997 345 $1.70 $ 8,007.00
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$29,675.75
March 19, 1997 -- 375 $1.40 $24,269.00
March 18, 1998 345 $1.70 $ 8,007.00
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$32,276.00
March 19, 1998 -- 375 $1.35 $23,402.25
November 18, 1998 345 $1.70 $ 8,007.00
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$31,409.25
5. OPERATING EXPENSE
Effective July 1, 1996 Paragraph 15 is hereby amended by
increasing the Tenant's percentage share of operating expense from 8.39% to
10.66%, an increase of 2.27%.
6. BASIC LEASE INFORMATION. The Basic Lease Information, as
amended, is attached hereto as Exhibit B.
7. TENANT IMPROVEMENTS. Landlord shall furnish and install within
the Premises building standard carpet and paint only. Except for said carpet and
paint, Premises shall be leased by Tenant in its "As is" condition.
8. TERMINATION. So long as Tenant is not in default under this
Lease, if Tenant desires to lease additional space in the Project, the size of
which is at least 10,000 rentable square fee, and Landlord has such space
available, and Landlord and Tenant mutually agree to certain terms and
conditions for said additional space, then Tenant shall have the right to
terminate this Third Amendment to Lease and enter into a new amendment for
additional available space in the Project.
Tenant shall have no right to terminate this Third Amendment unless and until a
new amendment is executed by Landlord and Tenant.
Tenant's rights under this Paragraph 8 are personal to Tenant and shall not be
assigned, transferred or conveyed to any other person (voluntarily,
involuntarily, by operation of law or otherwise,) including any assignee or
sublessee permitted under Paragraph 27 of the Lease. If Tenant assigns,
subleases, or otherwise transfers all or any portion of the Premises or this
Lease, all of Tenant's rights under this Paragraph 8 shall immediately
terminate. All of Tenant's rights under this Paragraph shall also terminate upon
the expiration or sooner termination of this Lease.
9. LIMITATION ON AMENDMENT. Except as modified by this
Amendment, all of the terms and provisions of the Lease shall remain in full
force and effect.
IN WITNESS WHEREOF, the parties hereto have entered into this
Amendment, in one or more counterparts, effective as of the Effective Date.
"LANDLORD"
CHAWIN PROPERTY, INC.
a California corporation
BY: /s/ ^^^^
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ITS: Vice President
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DATE: 6/18/96
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BY: /s/ ^^^^
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ITS: Treasurer
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DATE: 6/25/96
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"TENANT"
YES! ENTERTAINMENT, INC.
a California Corporation
BY: /s/ Sol Kershner
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ITS: Chief Financial Officer
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DATE: 6/13/96
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EXHIBIT A
HACIENDA WEST
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THIRD FLOOR
[DIAGRAM OF BUILDING B-1 AND BUILDING B-2 OF HOPYARD ROAD FACILITY]
EXHIBIT B
Page 1 of 3
SECOND AMENDMENT TO LEASE
BASIC LEASE INFORMATION
A. PARTIES
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1. Landlord CHAWIN PROPERTY, INC.,
a California corporation
2. Tenant YES! ENTERTAINMENT, INC.,
a California corporation
B. EFFECTIVE DATE July 1, 1996
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C. BASIC LEASE PROVISIONS
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1. Premises: Hacienda West
a. Building: North
b. Address: 3875 Hopyard Road
Pleasanton, California 94588
c. Suite: 375 and Expansion Space 345
d. Floor: Third
e. Total Building
rentable area: One Hundred Eight Thousand
Three Hundred Eighty-One
(108,381) rentable square feet
f. Total Adjacent
Building
rentable area: Ninety-Eight Thousand Seven
Hundred Sixty-Five (98,765)
rentable square feet
g. Total Project
rentable area: Two Hundred Seven Thousand One
Hundred Forty-Six (207,146)
rentable square feet
EXHIBIT B
Page 2 of 3
2. Rentable Area:
Suite 375: Seventeen Thousand Three Hundred
Thirty-Five (17,335) rentable
square feet
Suite 345 Four Thousand Seven Hundred Ten
(4,710) rentable square feet
3. Expiration of Term: November 18, 1998
4. Estimated
Commencement Date: July 1, 1996
5. Tenant's Property
Percentage:
Suite 375: Eight and Thirty Nine Hundredths
Percent (8.39%)
Suite 345: Two and Twenty Seven Hundredths
Percent (2.27%)
6. Base Rent
for Entire Premises:
Monthly
Period Suite Base Rent Mo.
------ ----- -------------
July 1, 1996 -- 375 $21,668.75
March 18, 1997 345 $ 8,007.00
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$29,675.75
March 19, 1997 -- 375 $24,269.00
March 18, 1998 345 $ 8,007.00
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$32,276.00
March 19, 1998 -- 375 $23,402.25
November 18, 1998 345 $ 8,007.00
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$31,409.25
EXHIBIT B
Page 3 of 3
7. Security Deposit: $21,301.20 Rolled over from
Original Lease
8. Operating Expense
Base Year: 1993 Original Space (Suite 375)
1996 Expansion Space (Suite 345)
9. Broker(s): Colliers Parrish International
10. Address for Notices:
Landlord: Chawin Property, Inc.
c/o C.M. Capital Corporation
525 University Ave., Suite 1500
Palo Alto, California 94301
with a copy to:
Property Manager Office
3875 Hopyard Road, Suite 175
Pleasanton, California 94588
Tenant: YES! Entertainment, Inc.
3875 Hopyard Road, Suite 375
Pleasanton, CA 94588