EX-10.42
WAREHOUSE LEASE AGREEMENT
This Warehouse Lease Agreement ("Lease") is entered into on this
day of
March, by and between Nu Skin International, Inc. ("Lessee") having a place
of
business at 75 West
Center Street,
Provo, Utah 84061 and Aspen Investments,
Ltd., having a place
of business at 75 West Center Street, Provo, Utah 84601
("Lessor"). The Lessor
and Lessee are collectively hereinafter referred to as
the "Parties."
RECITALS
A. Lessor is the sole owner of the premises described below, having warehouse
space for lease in such premises.
B. Lessee is in the business of marketing and selling personal and health care
products and desires to lease warehouse and office space from
Lessor.
AGREEMENT
In consideration of the mutual covenants contained herein, the Parties
agree as follows:
1. Leased
Premises.
1.1
Lessor hereby leases to Lessee the premises ("Premises")
located
at 180 East 1325 South, Provo, Utah 84601, commonly known as
the
Nu Skin Warehouse.
1.2
The Premises shall be used as a warehouse and offices.
2.
Term.
2.1
The term ("Term") of this Lease shall be two (2) years and
shall
commence retroactively
on February 1, 1996
and shall terminate
on February 1, 1998 unless otherwise renewed.
2.2
Lessee shall surrender the Premises to Lessor immediately upon
termination of this Lease.
3. Rent.
3.1
Lessee shall pay to
Lessor as fixed
rent for the term of
this
Lease, the sum of Six
Hundred Seventy Five
Thousand and No/100
Dollars ($675,000.00)
per year payable at the rate of Fifty Six
Thousand Two Hundred Fifty Dollars ($56,250.00) per month due
on
the first day of each month.
3.2
Lessee acknowledges that the late payment by Lessee to Lessor
of
rent or other sums due under this Lease will cause Lessor to
incur costs not
contemplated by this Lease, the exact amount of
which would be extremely difficult and impractical to
ascertain.
In the event Lessee should fail to pay any installment of rent
or any other sum due under his Lease within 10 days after such
sum is due, Lessee
shall pay to Lessor,
as additional rent,
a
late charge equal to
10 percent (10 %) of each installment or
sum. Waiver of the
late charge with respect to any installment
or sum shall not be deemed to constitute a waiver with respect
to
any subsequent installment or sum so due.
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4. Triple Net
Lease. As provided
hereafter, Lessee is
responsible for the
payment of all taxes, utilities, insurance and maintenance incurred
with
respect to the use of the leased Premises, and hereby releases and
holds
Lessor harmless for the payment of the same.
5. Use.
5.1
Lessee shall use the
Premises solely for the main and
related
purposes of inventory
storage, shipping,
packaging and
office
space. Lessee
shall comply with all rules, regulations,
ordinances,
statutes, and
other lawful requirements of
governmental agencies, consistent with Lessee's use thereof.
5.2
Lessee shall not use or permit the Premises, or any part of the
building, to be used for any purposes other than those set
forth
in this Lease. Lessee
shall neither permit
on the Premises any
act, sale,
or storage that may be
prohibited
under standard
forms of fire
insurance policies,
or use the Premises
for any
such purpose. In addition, no use shall be made or permitted
to
be made that shall
result in hazardous waste, or improper,
unlawful, or
objectionable use,
including sale,
storage, or
preparation, of
food, alcoholic beverages, or materials
generating an odor on the Premises.
6.
Abandonment. Lessee shall not vacate or abandon the Premises at any
time
during the Term of this Lease. If Lessee does vacate or abandon the
Premises or is
dispossessed by
process of law, any
personal property
belonging to Lessee and left on the Premises shall be deemed abandoned
at the option of Lessor and shall become the property of
Lessor.
7. Taxes.
7.1
Lessee shall pay prior to delinquency all taxes, assessments,
charges, and fees
assessed against and levied upon the real
property as well as personal property including trade fixtures,
furnishings, equipment and all other personal property of
Lessee
contained in the Premises or elsewhere. 7.2 Lessee shall pay
the
total amount of an
increase in real
property taxes
resulting
from any and all
improvements of any kind whatsoever placed on
or in the Premises
for the benefit of or at the request of
Lessee regardless of whether said improvements were installed
of
construction either by Lessor or Lessee.
8.
Utilities.
8.1
Heat
and Air Conditioning - Lessee shall arrange for and pay all
heat and air conditioning needs throughout the year.
8.2
Electricity -
Lessee shall provide for its own electricity
needs.
8.3
Janitorial -
Lessee shall provide janitorial service and
maintain the Premises in a clean and orderly manner.
8.4
Water, Sewer,
and Garbage - Lessee
shall provide for hot and
cold water, sewer service and garbage service.
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8.5
Snow Removal - Lessee
shall ensure the removal of snow in
the
parking and walkway
areas during
applicable
seasons. Lessee
shall further keep walkways salted and free from snow buildup.
9.
Alterations, Modifications, and Repairs.
9.1
Lessee shall take good care of the Premises and shall not
alter,
repair, or change the
Premises, including,
but not limited to
addition of cables,
electrical wires, etc.
that may damage the
walls, without
the prior, express, and written consent of
Lessor.
9.2
All alterations,
improvements,
and changes that Lessee may
desire shall be done either by or under the direction of
Lessor,
but at the expense of
Lessee and shall
become the property
of
Lessor and remain on the Premises, except that at the option of
Lessor, Lessee shall,
at its expense, remove
from the Premises
all such alterations, improvements, and changes.
9.3
All
