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Exhibit 10.16
SUBLEASE
This Sublease ("Sublease") is dated as of the 18th day of December,
1995 ("Effective Date"), by and between GENICOM CORPORATION, a Delaware
corporation ("Sublandlord"), and ATLANTIC DESIGN COMPANY, INC., a New York
corporation ("Subtenant").
RECITALS:
A. 1016 Partnership, as landlord ("Landlord"), and Sublandlord,
as tenant, entered into that certain lease for approximately 52,500 (originally
37,500) rentable square feet of space ("the Premises") of the building located
on Xxx 0-X, XxXxxxx Xxxxxxxxx Xxxxxxxxxx Xxxxxxxx Unit 4 (the "Building"),
which lease was dated January 20, 1992 ("Prime Lease"). A true and correct
copy of the Prime Lease is attached hereto as Exhibit A and made a part hereof.
B. Landlord constructed the Building and Premises as required by
Article I of the Prime Lease. Sublandlord exercised its right under Article
II(1) of the Prime Lease to increase the size of the Premises from 37,500
square feet to 52,500 square feet.
C. Sublandlord desires to sublease to Subtenant all of the
Premises, and Subtenant desires to sublease the same from Sublandlord, upon the
terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, it is hereby agreed
by and between the parties hereto as follows:
D. Premises. Sublandlord hereby subleases to Subtenant, and
Subtenant hereby subleases from Sublandlord, the Premises upon the terms and
conditions set forth herein.
E. Term.
1. Term. The term of this Sublease shall be
approximately two (2) years, commencing as of the date hereof and expiring at
12:00 midnight at the end of the term of the Prime Lease (July 31, 1997).
2. Early Termination. In the event that the Services
Agreement of even date herewith among Sublandlord, Subtenant, and Xxxxx
Services Corporation ("Services Agreement") terminates and Sublandlord is
required to or elects to comply with the Reacquisition Conditions, as defined
in the Services Agreement, then this Sublease shall terminate on the date
agreed to by Sublandlord and Subtenant pursuant to the Services Agreement, but
no later than the expiration date specified in subsection (a) above or, if a
renewal term is then in progress, no later than the expiration date of such
renewal term.
3. Option to Renew. Provided that Subtenant is not in
default hereunder, Subtenant shall have the option to renew this Sublease for
additional terms consistent with Article XV of the Prime Lease by giving notice
to Sublandlord of its intention to exercise such option at least 120 days prior
to the expiration of the then current term of this Sublease. If Subtenant
gives Sublandlord such notice, Sublandlord shall exercise its option to renew
the Prime Lease pursuant to Article XV of the Prime Lease.
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F. Condition and Acceptance of Premises. At the commencement of
the Sublease term, Subtenant shall accept the Premises in their existing
condition and state of repair. Subtenant acknowledges that no representations,
statements or warranties, express or implied, have been made by or on behalf of
the Sublandlord in respect to their condition, or the use or occupation that
may be made thereof, except that Sublandlord represents that it has used the
Premises from the inception of the Prime Lease to the date hereof as a
warehouse and distribution center and Sublandlord has received no notice and
has no knowledge that its use of the Premises is not permitted under the Prime
Lease or any applicable law, regulation or ordinance.
G. Rent.
1. Basic Rent. Subtenant covenants and agrees to pay
Landlord rent for the Premises as provided in Article III, Article VI and
Article XV of the Prime Lease. The current rent is $189,450.67 annually,
$15,787.56 monthly.
2. Additional Charges. All Additional Charges under the
Prime Lease attributable to the Premises shall be passed through as additional
rent to Subtenant, who shall pay such charges to Landlord.
3. Payments. All rent payable pursuant to this Sublease
shall be payable to Landlord at the address set forth in Article III of the
Prime Lease.
H. Assumption of Obligations. To the fullest extent allowed by
law, Subtenant agrees to assume and perform, according to the terms of the
Prime Lease, all of the duties, covenants, agreements and obligations of
Sublandlord under the Prime Lease, as and when required by the Prime Lease,
with respect to the Premises. Subtenant further agrees to keep and obey,
according to the terms of the Prime Lease, all of the rules, restrictions,
conditions and provisions which pertain to the Premises, and are imposed by the
terms of the Prime Lease upon Sublandlord with respect to the Premises or upon
the use of the Premises. Subtenant agrees that it will take good care of the
Premises, and will commit no waste, and will not do, suffer, or permit to be
done any injury to the same. It is hereby understood and agreed that
Subtenant's rights to use, possess and enjoy the Premises are subject to the
terms, conditions, rules and regulations of the Prime Lease and the rights and
remedies of Landlord thereunder. Subtenant agrees to indemnify, defend and
protect Sublandlord against, and to hold Sublandlord harmless from, any
liability, damages, costs or expenses of any kind or nature, including court
costs and reasonable attorneys' fees, resulting from any failure by Subtenant
to perform, keep and obey the terms of this Sublease and the requirements of
the Prime Lease with respect to the Premises. Any failure by Subtenant to
perform, keep and obey the same shall be a default by Subtenant hereunder.
I. Sublease and Assignment. Subtenant shall not assign this
Sublease or further sublease all or any portion of the Premises without the
prior written consent of Sublandlord and Landlord. Subtenant shall not pledge
its interest hereunder, or allow liens to be placed on such interest, or suffer
this Sublease or any portion thereof to be attached or taken upon execution.
If consent is once given by Sublandlord to the assignment of this Sublease or
sublease of the Premises or any interest therein, Sublandlord shall not be
barred from subsequently refusing to consent to any further assignment or
sublease. Any attempt to sell, assign or sublet without the consent of
Sublandlord and Landlord shall be deemed a default by Subtenant.
J. Default by Subtenant. If any rent reserved or other monetary
payment referred to herein, or any part thereof, whether the same be demanded
or not, shall remain unpaid for a period of ten (10) days from the date when
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due hereunder; or if any other term, condition or covenant of this Sublease,
express or implied on the part of Subtenant to be kept or performed, shall be
violated or neglected, and if Subtenant shall fail to cure the same within
twenty (20) days from the date of written notice from Sublandlord to Subtenant
specifying the violation; or if the Premises or Subtenant's interest therein
shall be taken on execution or other process of law; or in the event of
bankruptcy, receivership, insolvency, liquidation, dissolution or similar
proceedings with respect to Subtenant, or if Subtenant shall enter into a
general assignment for the benefit of creditors; or if Subtenant is in default
under the Services Agreement beyond any applicable cure period; or if any
default under the Prime Lease shall occur with respect to Subtenant or the
performance by Subtenant of any of its covenants and obligations under this
Sublease, then and in any of such cases, Subtenant shall be deemed in default,
and Sublandlord shall have the following rights and remedies against Subtenant
(in addition to all other rights and remedies provided by law or in equity):
(i) to terminate this Sublease, (ii) to cure or attempt to cure the default,
whereupon Subtenant shall upon demand reimburse Sublandlord for all costs thus
expended together with interest thereon at the prime rate as published in the
Wall Street Journal (the "Interest Rate") on the first date of such expenditure
by Sublandlord, (iii) to xxx for Subtenant's performance, whereupon Subtenant
shall upon demand reimburse Sublandlord for all costs thus expended together
with interest thereon at the Interest Rate on the first date of such
expenditure by Sublandlord, (iv) to exercise all remedies set forth in the
Prime Lease as if Sublandlord were the Landlord and Subtenant were the Tenant
thereunder, or (v) to reenter and take possession of the Premises, and to
remove any property therein, without liability for damage to, and without the
obligation to store such property, but may store same at Subtenant's expense.
8. Default by Sublandlord. If any covenant of this Sublease on
the part of Sublandlord to be kept or performed, shall be violated or
neglected, and if Sublandlord shall fail to cure the same within twenty (20)
days from the date of written notice from Subtenant to Sublandlord specifying
the violation; or if the Premises or Sublandlord's interest therein shall be
taken on execution or other process of law; or in the event of bankruptcy,
receivership, insolvency, liquidation, dissolution or similar proceedings with
respect to Sublandlord, or if Sublandlord shall enter into a general assignment
for the benefit of creditors; or if Sublandlord is in default under the
Services Agreement beyond any applicable cure period; then and in any of such
cases, Sublandlord shall be deemed in default, and Subtenant shall have the
following rights and remedies against Sublandlord (in addition to all other
rights and remedies provided by law or in equity): (i) to terminate this
Sublease, but only if the Services Agreement is also terminated, (ii) to cure
or attempt to cure the default, whereupon Sublandlord shall upon demand
reimburse Subtenant for all costs thus expended together with interest thereon
at the Interest Rate on the first date of such expenditure by Subtenant, or
(iii) to xxx for Sublandlord's performance, whereupon Sublandlord shall upon
demand reimburse Subtenant for all costs thus expended together with interest
thereon at the Interest Rate on the first date of such expenditure by
Subtenant.
9. Default by Landlord. If the Landlord defaults in the
performance of its obligations under the Prime Lease, Sublandlord shall, at the
written request and sole expense of Subtenant, seek to enforce its rights,
including, without limitation, through the institution of legal proceedings, if
necessary and specifically requested by Subtenant, to obtain such performance
from Landlord for the benefit of Subtenant.
10. Notices. Any notice or communication required or permitted to
be given or served by either party here to upon the other shall be deemed given
or served in accordance with the provisions of this Sublease when mailed in a
sealed wrapper by United States registered or certified mail, return receipt
requested, or delivered to a nationally recognized overnight courier, postage
prepaid, properly addressed as follows:
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If to Sublandlord: Genicom Corporation
00000 Xxxxxxxxxx Xxxxxx Xxxxx
Xxxxx 000, Xxxxxxxxxx
Xxxxxxxxx, Xxxxxxxx 00000-0000
Attention: President
With a copy to: McGuire, Woods, Battle & Xxxxxx, L.L.P.
One Xxxxx Center
000 Xxxx Xxxx Xxxxxx
Xxxxxxxx, XX 00000-0000
Attention: Xxxx Xxxxx Sellers, Esquire
If to Subtenant: Atlantic Design Company, Inc.
0000 Xxxxxxxxx Xxxxxxxxx
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
Attention: President
With a copy to: Xxxxx Services Corporation
Xxx Xxxxxxxxxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: General Counsel
Each mailed notice or communication shall be deemed to have been given to, or
served upon, the party to which addressed on the date the same is deposited in
the United States registered or certified mail, postage prepaid, or delivered
for overnight delivery to such courier, properly addressed in the manner above
provided. Any party hereto may change its address for the service of notice
hereunder by serving written notice hereunder upon the other party hereto, in
the manner specified above, at least ten (10) days prior to the effective date
of such change.
11. Surrender of Premises. Upon the expiration of the term of
this Sublease, or upon any earlier termination of this Sublease, Subtenant
shall quit and surrender possession of the Premises to Sublandlord in as good
order and condition as the same are now or hereafter may be improved by
Landlord or Subtenant, reasonable wear and tear and repairs which are
Landlord's obligation excepted, and shall, without expense to Sublandlord,
remove or cause to be removed from the Premises all debris and rubbish, all
furniture, equipment, business and trade fixtures, free-standing cabinet work,
movable partitioning and other articles of personal property owned by Subtenant
or installed or placed by Subtenant at its expense in the Premises, and all
similar articles of any other persons claiming under Subtenant, and Subtenant
shall repair all damage to the Premises resulting from such removal. Upon the
expiration of this Sublease, or if Sublandlord or Landlord re-enters or
re-takes possession of the Premises prior to the normal expiration of this
Sublease, Sublandlord or Landlord shall have the right, but not the obligation,
to remove from the Premises all personal property located therein belonging to
Subtenant, and either party may discard such debris, rubbish and personal
property or place such personal property in storage in a public warehouse, all
at the expense and risk of Subtenant.
12. Termination of Prime Lease. It is understood and agreed by
and between the parties hereto that the existence of this Sublease is dependent
and conditioned upon the continued existence of the Prime Lease and this
Sublease shall automatically terminate on the termination, cancellation or
expiration of the Prime Lease.
13. Relationship of Parties. This Sublease does not and shall not
create the relationship of principal and agent, or of partnership, or of joint
venture, or of any other association between Sublandlord and Subtenant, except
that of sublandlord and subtenant.
14. Severability. In the event any part of this Sublease is held
to be unenforceable or invalid, for any reason, the balance of this Sublease
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shall not be affected and shall remain in full force and effect during the term
of this Sublease.
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IN WITNESS WHEREOF, the parties hereto have caused this Sublease to be
executed as of the day and year first above written.
WITNESS/ATTEST: SUBLANDLORD:
Genicom Corporation, a Delaware
\s\X.X. XxXxxxx corporation
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Name:X.X. XxXxxxx
By: \s\ X. X . Xxxx [SEAL]
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Name: X.X. Xxxx
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Title: Senior Vice President
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WITNESS/ATTEST: SUBLANDLORD:
\s\ Xxxx X. Xxxxxxx
------------------- Atlantic Design Company, Inc.
Name: Xxxx X. Xxxxxxx a New York corporation
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By: \s\Xxxx Xxxxxx
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Name: Xxxx Xxxxxx
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Title: Vice President
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LANDLORD JOINS IN THIS SUBLEASE FOR THE PURPOSE OF CONSENTING TO THE TERMS AND
CONDITIONS HEREOF:
WITNESS/ATTEST: LANDLORD:
\s\ Xxxxx X. Xxxxx 1016 Partnership, a Texas partnership
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Name: Xxxxx X. Xxxxx
-------------- By: \s\ Xxxxxx X. Xxxxx
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Name: Xxxxxx X. Xxxxx
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Title: Partner
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