850 E. TETON
INDUSTRIAL SUBLEASE
EFFECTIVE DATE: JANUARY 1, 1999
PARTIES AND ADDRESSES:
"AUTHORITY": TUCSON AIRPORT AUTHORITY, INC.,
an Arizona nonprofit corporation
7005 S. Plumer Avenue
Tucson, Arizona 85706
"TENANT": COMPLETE CONTROLS INC.
AN ARIZONA CORPORATION
850 E. TETON RD. SUITE 8
TUCSON, ARIZONA 85706
EXHIBITS: Exhibits lettered A and B are annexed to
this Sublease and incorporated herein by
this reference.
A. Authority has leased from the City of Tucson, a municipal corporation,
the airport known as Tucson International Airport located in Pima
County, State of Arizona (the "Airport").
B. Tenant desires to sublease from Authority a portion of the Airport and
to have certain rights, licenses, services and privileges in
connection with the Airport.
COVENANTS AND CONDITIONS
ARTICLE I - PREMISES
1.1 PREMISES
Authority does hereby demise and let unto Tenant, for its exclusive
use and occupancy, and Tenant does hereby lease from Authority, the
portion of the Airport that is illustrated on the attached Exhibit A,
of the Building (the "Building"), located at 850 E. TETON RD on the
Airport (the "Premises"), THE OUTSIDE FENCED AREA NORTH OF HANGAR ONE
AND APPROXIMATELY TWO THOUSAND SQUARE FEET ON THE EAST SIDE OF THE
BUILDING subject to all utility easements and rights of way that
encumber the Premises and subject to the terms hereof.
1.2 ACCESS
Tenant is granted the right of reasonable access to the Premises over
such other portions of the Airport and the Building as are necessary
to provide reasonable access to and from the Premises. Authority
reserves the right to designate the location of such access and to
change its location from time to time, as Authority deems reasonably
necessary and appropriate.
1.3 SECURITY
By signing this Sublease, Tenant is deemed to acknowledge and is
hereby advised that the Building houses a number of rental spaces and
diverse tenants. Tenant is responsible for securing Tenant's Premises,
and neither the Authority nor its agents or employees will be
responsible for any loss of or damage to Tenant's possessions while
stored on the Premises.
1.4 PARKING
Tenant shall be entitled to utilize the parking areas associated with
the Building in common with other Tenants. The Authority reserves the
right, but shall not be obligated, to assign specific parking spaces
to tenants.
1.5 ENTRY UPON PREMISES
Authority may enter upon the Premises subleased exclusively to Tenant
hereunder at any reasonable time, for any purpose necessary, incidental
to or connected with the exercise of its governmental functions, or to
inspect the Premises for compliance with all applicable laws and rules
and regulations or to prevent waste, loss or destruction. Authority
shall, in addition, have the right to enter upon the Premises and
perform any actions necessary or appropriate in connection with any
environmental investigation or remediation, including but not limited
to the trenching, drilling and installation, monitoring, repair,
replacement and operation of pipes, wells, and related equipment. The
rent due hereunder shall equitably abate with respect any portion of
the Premises rendered unusable as a result of the Authority's exercise
of its rights under this Section.
ARTICLE II - TERM
2.1 TERM
This Sublease shall be a month-to-month tenancy beginning on the
Effective Date hereof and continuing until terminated by either party
with thirty (30) days' written notice to the other.
ARTICLE III - RENT AND DEPOSITS
3.1 BASE RENT
Tenant covenants and agrees to pay Authority rent from the Effective
Date until the expiration of the term of this Sublease in an amount
equal to NINE HUNDRED DOLLARS AND NO CENTS ($900.00) per month ($500.00
for fenced yard, $400.00 for 2,000 sq. ft.) due and payable to
Authority in advance. Rent payments shall be delivered to Authority's
Property Manager who is currently Tucson Industrial Centers, Inc.,
located at 850 E. Teton, Suite 1, Tucson, AZ 85706, or such other
person as directed by Authority in writing.
3.2 COMMENCEMENT OF RENTAL OBLIGATION
The first monthly payment, prorated to reflect the partial month for
which it is paid, shall be due on the Effective Date hereof and
subsequent installments shall be due on the first day of each
succeeding calendar month thereafter during the term of this Sublease.
3.3 LATE FEES
If any rent or any other sum due from the Tenant shall not be received
within FIVE (5) DAYS after such amount shall be due, Tenant shall pay a
late fee equal to TEN PERCENT (10%) of such overdue amount. Acceptance
of such late fees shall in no event constitute a waiver of Tenant's
default with respect to such overdue amount nor prevent Authority from
exercising any of the other right and remedies granted hereunder.
3.4 SECURITY DEPOSIT
Simultaneously with the entry into this Sublease by the parties
hereto, the Tenant shall deposit with Authority $0.00, which shall be
retained by Authority as security for the Tenant's payment of the Rent
and performance of all of its other obligations under the provisions
of this Lease, and shall not be deemed to represent payment of any
rent. On the occurrence of an Event of Default (as defined in Section
XI.1 hereinbelow), Authority shall be entitled, at its sole
discretion, (a) to apply any or all of such sum in payment of (i) any
Rent due and unpaid, (ii) any expense incurred by Authority in curing
any such default, and/or (iii) any damages incurred by Authority by
reason of such default (including, by way of example rather than by
limitation, reasonable attorney's fees), in which event the Tenant
shall, immediately on its receipt of a written demand there for from
Authority, pay to Authority a sum equaling the amount so applied, so
as to restore the security deposit to its original amount; and /or (b)
at Authority's election, to retain any or all of such sum not
otherwise applied pursuant to the provisions of clause (a) of this
sentence in liquidation of any or all damages suffered by Authority by
reason of such default. On the termination of this Sublease, any of
such sum which is not so applied or retained shall be returned to
Tenant. Such sum shall not bear interest while being held by
ARTICLE IV - USE OF PREMISES
4.1 PURPOSES
The Premises shall not, without prior written consent of Authority, be
used for any purpose other than or in addition to that set forth on
Exhibit B attached hereto.
4.2 INDEMNITY
Tenant agrees to fully indemnify and save and hold harmless Authority
and the City of Tucson from and against all claims, fines, damages,
penalties, actions and all expenses, including reasonable attorneys'
fees incidental to the investigation and defense thereof, related to
or arising out of the fault or negligence of or violation of law by
Tenant, its agents, employees or subtenants in the use, occupancy, or
maintenance of the Premises by any of them.
4.3 DANGEROUS CONDITIONS
Tenant agrees to exercise reasonable care when using the Premises and
all improvements thereon to discover and promptly remedy any
conditions that may pose an unreasonable risk of harm to members of
the general public or that may constitute a violation of law. If an
unsafe, defective or dangerous condition, or violation of the law is
discovered, Tenant warrants that no one other than Tenant and
Authority employees, agents and representatives will be admitted to
the Premises and no property belonging to any party other than Tenant
and Authority will be transported to, collected at or stored upon the
Premises until the
unsafe, defective or dangerous condition, or violation of law is
4.4 ALTERATIONS
Tenant shall not construct or substantially alter or modify any
buildings, structures, or other improvements on the Premises without
the Authority's prior written approval of its plans and
specifications, which approval may be withheld in the Authority's sole
discretion. Without limiting the generality of the above consent
requirement, no alterations may be made that are of such an extent or
nature that they would subject the Premises or the Building or any
part thereof to current building codes as they pertain to electrical,
building, safety or fire (except to the extent that the Premises or
Building are already subject to such codes) or would conflict with any
restrictions on the alteration of the Building that might exist as a
result of any registration or eligibility for registration on any
historic register.
4.5 UTILITIES
A. Tenant's Responsibilities:
Tenant shall pay for all utility services supplied to it or
its subtenants on the Airport.
B. Authority's Rights and Responsibilities:
Notwithstanding the execution of this Sublease, Authority
retains the right to the continued use of such utility lines
and services as are presently on the Premises and the right
to repair the same when necessary. Authority shall conduct
such repairs in such manner and at such times as to not
unreasonably interfere with Tenant's operations.
4.6 MAINTENANCE AND REPAIR
A. Tenant:
(1) Tenant shall, at no expense to Authority, maintain
the Premises in a neat, clean, safe condition and in
a manner that is compatible with the rest of the
Building, and in compliance with all applicable laws,
rules, regulations and orders.
(2) General combustible storage shall not exceed 12 feet
in height.
(3) Aisle separation shall be between 4 feet to 8 feet
wide. (Width to be determined by Fire Department and
classification of commodities being stored).
(4) Must have stable storage piles (No leaning stacks).
B. Authority:
Subject to Section 5.9 the Authority shall be responsible for
all structural repairs in the Premises and the Building
unless necessitated by any negligence or willful misconduct
of Tenant or Tenant's subtenants, employees, agents, invitees
or guests.
ARTICLE V - INSURANCE AND CASUALTY
5.1 INSURANCE REQUIRED
Tenant shall obtain and maintain in full force, with a company or
companies authorized to transact the business of insurance in the
State of Arizona and of sound and adequate financial responsibility,
selected by Tenant and acceptable to Authority, comprehensive
insurance policy (either as part of any other policy or policies
carried by Tenant, or separately) providing for the protection of the
Authority and the City of Tucson and officers, directors, agents and
employees of either of them, against:
(1) general liability, including all direct or
contingent loss or liability for damages for bodily
injury, personal injury, death or damage to
property, including loss of use thereof, occurring
on or in any way related to the Premises or
occasioned by reason of occupancy by and the
operations of Tenant upon, in and around the
Premises, with limits of $1,000,000 per occurrence
for personal injury or death or damage to property,
with coverage at least as broad as that provided by
INSURANCE SERVICES OFFICE COMMERCIAL GENERAL
LIABILITY COVERAGE form CG0001 (Occurrence Form),
and such policy or policies shall cover all of
Tenant's operations on the entire Premises,
including but not limited to any elevators and
escalators therein and any sidewalks, streets or
other public ways adjoining the Premises; and
(2) automobile liability covering owned, non-owned,
leased and hired vehicles with combined single
limits of no less than $250,000 per occurrence.
5.2 DEDUCTIBLE
The deductible for any policy required hereunder shall not exceed
$1,000.
5.3 MODIFICATION OF REQUIREMENTS
Authority may adjust or increase liability insurance amounts and
requirements as Authority deems reasonably necessary, or as may be
required because of changes in the insurance requirements imposed by
Authority's insurer or by applicable law. Tenant shall comply with
such adjustments or increases within such reasonable time period as is
requested by Authority.
5.4 CERTIFICATES
Upon or prior to the commencement of the term of this Sublease and at
least annually thereafter Tenant shall furnish to Authority
certificates of insurance showing the amount and type of the insurance
then in effect that is required to be procured and maintained by it
hereunder and stating the date and term of the policies evidencing
such insurance. Tenant shall, upon request, supply Authority with
certified copies of all applicable insurance policies, riders,
endorsements and declaration pages. Certificates evidencing any
renewal, replacement or extension of any or all of the insurance
required hereunder, or of renewals, replacements or extensions of such
renewals, replacements or extensions, shall be delivered by Tenant to
Authority not less than thirty (30) days prior to the expiration of
any policy of insurance renewed, replaced or extended by the insurance
represented by any such certificate. Each policy of insurance required
hereunder shall provide for not less than thirty (30) days notice to
Authority and Tenant before such policy may be canceled.
5.5 ADDITIONAL INSURANCE
The provisions of this Sublease as to insurance required to be
procured and maintained shall not limit or prohibit, or be construed
as limiting or prohibiting, Authority or Tenant from obtaining any
other or greater insurance with respect to the Premises or
improvements thereon or the use and occupancy thereof that either or
both of them may wish to carry, but in the event Authority or Tenant,
as the case may be, shall procure or maintain any such insurance not
required by this Sublease, the cost thereof shall be at the expense of
the party procuring or maintaining the same.
5.6 ADDITIONAL INSUREDS
All insurance required by this Article shall be procured and
maintained in the name of Tenant and shall add Authority and the City
of Tucson as additional insureds as their interests appear.
5.7 WAIVER OF SUBROGATION
Each party hereto waives all claims for recovery from the other party
for any loss or damage to any of its property on the Premises insured
under valid and collectible insurance policies to the extent of any
recovery collected from such policies. The parties agree that all
material insurance policies shall be endorsed with a clause which
waives subrogation against the other party.
5.8 INSURANCE BY AUTHORITY
Authority may, upon written notice to Tenant, in the event that Tenant
fails to timely provide proof of insurance as required by Section 5.4
above, procure and maintain any or all of the insurance required of
Tenant under this Article. In such event, all costs of such insurance
procured and maintained by Authority on behalf of Tenant shall be the
responsibility of
Tenant and shall be fully reimbursed to Authority within ten (10)
business days after Authority advises Tenant of the cost thereof.
5.9 CASUALTY TO PREMISES
Authority may, but shall not be required to, maintain insurance
against loss or damage to the Building and the Premises, but shall
have no obligation to repair the Building or the Premises in the event
of casualty or damage thereto. In the event that any such casualty
renders the Premises unsafe or untenantable, this Sublease shall
terminate immediately.
ARTICLE VI - TAXES
6.1 TENANT'S RESPONSIBILITY
Tenant shall pay before delinquency any and all taxes levied or
assessed against the Premises, any levied or assessed against or by
reason of personal property located in, on or about the Premises, any
levied or assessed because of Tenant's right to possession of the
Premises and improvements thereon, all applicable taxes levied or
assessed by any government body as the result of Tenant's operations
and all taxes which may be levied or assessed as the result of rentals
payable under this Sublease. All such taxes and assessments for
partial years shall be apportioned and adjusted on a time basis.
6.2 PROTEST
Tenant shall have the right at its own cost and expense to contest the
amount or validity of any such tax or assessment and to bring or
defend any actions involving the amount or validity of any such tax or
assessment in its own name or in the name of Authority; provided that,
if unsuccessful, Tenant shall pay and discharge any such tax or
assessment so contested, together with any penalties, fines, interest,
costs and expenses, including reasonable attorneys' fees, that may
result from any such action by Tenant.
ARTICLE VII - RULES, REGULATIONS AND LAWS
7.1 COMPLIANCE WITH ALL APPLICABLE LAWS
Tenant and all persons operating under the rights granted hereby shall
observe and obey all reasonable and lawful rules and regulations with
respect to the use of the Airport which have been or may in the future
be adopted by Authority and shall further abide by all applicable
laws, statutes, ordinances, rules, orders, and regulations of all
governing bodies which are now in effect or which may hereafter be put
into effect.
7.2 NON-DISCRIMINATION
A. NON-DISCRIMINATION COVENANTS
(1) The Tenant for himself, his heirs, personal
representatives, subtenants, successors in interest,
and assigns, as a part of the consideration hereof,
does hereby covenant and agree, as a covenant
running with the land, that in the event
improvements are constructed, maintained, or
otherwise operated on the Premises for a purpose for
which a Department of Transportation ("DOT") program
or activity is extended or for another purpose
involving the provision of similar services or
benefits, Tenant shall maintain and operate such
improvements and services in compliance with all
other requirements imposed pursuant to Title 49,
Code of Federal Regulations, DOT, Subtitle A, Office
of the Secretary, Part 21, Nondiscrimination in
Federally-Assisted Programs of the Department of
Transportation-Effectuation of Title VI of the Civil
Rights Act of 1964, and as said Regulations may be
(2) The Tenant for himself, his personal
representatives, successors in interest, and
assigns, as a part of the consideration hereof, does
hereby covenant and agree, as a covenant running
with the land that: (1) no person on the grounds of
race, color, or national origin shall be excluded
from participation in, denied the benefits of, or be
otherwise subjected to discrimination in the use of
said improvements, (2) that in the construction of
any improvements on, over, or under such land and
the furnishing of services thereon, no person on the
grounds of race, color, or national origin shall be
excluded from participation in, denied the benefits
of, or otherwise be subject to discrimination, (3)
that Tenant shall use the Premises in compliance
with all other requirements imposed by or pursuant
to Title 49, Code of Federal Regulations, Department
of Transportation, Subtitle A, Office of the
Secretary, Part 21, Non-discrimination in
Federally-Assisted Programs of the Department of
Transportation-Effectuation of Title VI of the Civil
Rights Act of 1964, and as said Regulations may be
(3) Tenant shall furnish its accommodations and/or
services on a fair, equal and not unjustly
discriminatory basis to all users thereof and it
shall charge fair, reasonable and not unjustly
discriminatory prices for each unit or service,
PROVIDED THAT Tenant may be allowed to make
reasonable and nondiscriminatory discounts, rebates
or other similar type of price reductions to volume
(4) Tenant assures that it will undertake an affirmative
action program as required by 14 CFR Part 152,
Subpart E, to insure that no person shall on the
grounds of race, creed, color, national origin, or
sex be excluded from participating in any ...
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