Document:

10.9 Trademark Agree (Malaysia)

TRADEMARK LICENSING AGREEMENT

BETWEEN

NU SKIN INTERNATIONAL, INC.

(Company No. 880564-0142)

AND

NU SKIN (MALAYSIA) SDN. BHD.

(Company No. 402787-V)

THIS TRADEMARK LICENSING AGREEMENT
(hereinafter, this “Agreement”) is entered into this 20th day of June
2002 to be effective as of September 28, 2001, between NU SKIN INTERNATIONAL,
INC. (Company No. 880564-0142), a company organized under the laws of the
State of Utah, United States of America and and having its principal place of
business at 75, West Center Street, Provo, Utah 84601, United States of America
(“NSI”), and NU SKIN (MALAYSIA) SDN. BHD. (Company No.
402787-V), a company incorporated in Malaysia and having its registered office
at 6th Floor, Menara Boustead, 69 Jalan Raja Chulan, 50200 Kuala
Lumpur, Malaysia and a place of business at Office Lot 04-01, Level 4, PNB Darby
Park Retail, No. 10, Jalan Binjai, 50450 Kuala Lumpur, Malaysia
(“NSMY”). Hereinafter, NSI and NSMY shall collectively be referred to
as the “Parties” and each shall be individually referred to as
“Party.” 

RECITALS

WHEREAS, NSI develops and markets various
products for distribution in worldwide markets through a network of independent
distributors; 

WHEREAS, NSMY desires to continue to use in
its corporate name, the NSI trademark “Nu Skin,” and to affix other
trademarks, service marks and trade names of NSI to products and services and to
use such marks and names in advertising and promotional activities and thereby
derive benefit from the goodwill, value and reputation such marks and names will
lend when used to identify NSMY and such products and other materials; and 

WHEREAS, the Parties desire to enter into this
Agreement as set forth herein. 

AGREEMENT

NOW THEREFORE, in consideration of the
premises, the mutual promises, covenants, and warranties hereinafter set forth
and for other valuable consideration, the sufficiency of which is hereby
acknowledged, the Parties agree as follows: 

ARTICLE I

DEFINITIONS

For the purposes of this Agreement, unless the context otherwise
requires or the Parties otherwise agree within the terms of the Agreement, the
following words, terms and phrases shall have the meaning assigned to them
respectively by this Article I: 

     	1.1	 	
          “Affiliate” shall mean, with respect to any specified person,
          any other person that directly or indirectly, through one or more
          intermediaries, controls, is controlled by, or under common control with, such
          specified person. 

          

     	1.2	 	
          “Agreement” shall mean this Agreement (together with any
          exhibits and schedules hereto), as the same may be modified, amended or
          supplemented from time to time. 

          

     	1.3	 	
          “Business Portfolios” shall mean those materials approved by
          NSI for supply by NSMY in conjunction with the execution of a distributor
          contract to NSI Independent Distributors in the Territory explaining the NSI
          independent business opportunity associated with retailing Products, the
          contractual relationship with NSI and the marketing support programs for the
          Territory. 

          

	1.4	 	"GAAP"
shall mean general accepted accounting principles in the Federation of Malaysia. 

	1.5	 	"Independent
Distributor Network" shall mean the network of all NSI Independent Distributors. 

	1.6	 	"Intercompany
Agreements" shall mean the License Agreement between the Parties, the Distribution
Agreement between NSMY and Nu Skin Enterprises Hong Kong, Inc. ("NSEHK"), the Management
Services Agreement between NSMY and Nu Skin International Management Group, Inc. and this
Agreement. 

     	1.7	 	
          “Know-How” shall mean any information, including, without
          limitation, any commercial or business information, lists, marketing methods,
          marketing surveys, processes, specifications, quality control reports, drawings,
          photographs, or any other information owned by NSI, relating to the Independent
          Distributor Network, NSI Independent Distributors, the NSI distributor lists,
          and the NSI sales compensation plan. 

          

     	1.8	 	
          “Licensed Marks and Names” shall mean those trademarks, service
          marks, tradenames, logos, marks or devices identified in Schedule A to this
          Agreement, as it may be modified and supplemented from time-to-time, whether or
          not such marks, names or devices are registered or unregistered. 

          

     	1.9	 	
          “Net Sales” shall mean, for any period, the aggregate gross
          sales of NSMY Products and NSMY Commercial Materials (excluding applicable sales
          and other consumption taxes and freight charges) less returns or refunds related
          to NSMY Products and NSMY Commercial Materials reasonably accepted and credited
          by NSMY during such period, all as determined in accordance with GAAP. 

          

     	1.10	 	
          “NSI Confidential Information” shall mean any and all
          information that is unique, proprietary or competitively sensitive to the
          business of NSI and/or any Affiliate of NSI which NSMY may obtain knowledge of
          or access to in connection with its relationship with NSI and the transactions
          contemplated by the Intercompany Agreements, including, but not limited to,
          information relating to Products, the NSI Independent Distributors, NSI’s
          compensation or commission systems or schemes, pricing methods, historical,
          current and projected financial information, marketing information, and any and
          all information, technical data or Know-How related to any aspect of NSI’s
          business or technology including data, know-how, formulae, designs, drawings,
          proposals, specifications, and the terms of this Agreement. 

          

     	1.11	 	“NSI Independent Distributor” shall mean a person or
          business entity authorized by contract with NSI to distribute, as an independent
          contractor, products of NSI and its Affiliates. 

          

     	1.12	 	
          “NSMY Confidential Information” shall mean any and all
          information that is unique, proprietary or competitively sensitive to the
          business of NSMY which NSI may gain knowledge of or access to in connection with
          the transaction contemplated hereunder but specifically excluding the NSI
          Confidential Information. 

          

     	1.13	 	
          “NSMY Commercial Materials” shall mean, without
          limitation, any of the following bearing a Licensed Mark and Name: any business
          marquis, sign, letterhead, business card, pamphlet, brochure, magazine, flyer,
          newsletter, sales aid, advertisement or other associated tangible materials
          which NSMY uses in its activities with the Independent Distributor Network or
          the public to enhance its image and competitiveness in the Territory and which
          NSMY has not purchased from or procured through NSI or NSEHK. NSMY Commercial
          Materials shall not, for the purposes of this Agreement, include Business
          Portfolios. 

          

     	1.14	 	
          “NSMY Product” shall mean any product or services bearing a
          Licensed Mark and Name in accordance with the terms of this Agreement that NSMY
          has not purchased or procured from or through NSI or its Affiliates including
          NSEHK. Products shall not, for the purposes of this Agreement, include Business
          Portfolios. 

          

 	1.15	 	
          “Royalty” shall mean the royalty
payable under this Agreement as set forth in Section 2.5 of Article II

          

	1.16	 	"Territory"
shall mean the Federation of Malaysia. 

ARTICLE II
GRANT OF NON EXCLUSIVE LICENSE; ROYALTIES

	2.1 	Grant
of Exclusive License 

	 	NSI
hereby grants to NSMY a license and right to use, in accordance with this Agreement and in
the Territory, the Licensed Marks and Names on the NSMY Products approved in advance in
writing by NSI, on Business Portfolios and NSMY Commercial Materials and also, in the case
of the trademark, “Nu Skin”, in the corporate name of NSMY. 

	2.2 	NSI’s
Interest in Licensed Marks and Names 

	 	Except
for the limited rights granted by this Agreement for the term of this Agreement, NSI
hereby retains legal title to and beneficial ownership of and all rights to the Licensed
Marks and Names and all intellectual property rights related thereto for all purposes,
including but not limited to, the bringing or defending of any legal action in the
Territory which NSI deems reasonable to protect its rights therein. NSMY agrees to assist
NSI in any manner to protect NSI’s rights in the Licensed Marks and Names which NSI
may reasonably request. NSI shall reimburse NSMY for any third party costs incurred by
NSMY in providing such assistance. 

	2.3 	NSMY’s
Acknowledgment of Value of Licensed Marks and Names 

	 	NSMY
recognizes and agrees that NSI has expended considerable time, effort and resources to
develop, register, apply for registrations, maintain and enhance the value and reputation
of, or to obtain licenses to use and to grant sub-licenses to use, the Licensed Marks and
Names. 

	 	NSMY
further recognizes and agrees that it will derive considerable benefit from its use of the
Licensed Marks and Names in the Territory and from NSI’s efforts and expenditures in
respect of the Licensed Marks and Names. 

	2.4 	Warranty
of Title &Rights 

	 	NSI
hereby represents and warrants that it is the sole and exclusive owner of the Licensed
Marks and Names, or has a valid license to use the Licensed Marks and Names in the
Territory, and that to the best of its knowledge and information, no claim exists or has
been made contesting NSI’s ownership of and title to, or right to use, the Licensed
Marks and Names. 

	2.5 	Royalty 

	 	As
compensation for the exclusive licenses granted pursuant to the terms of this Agreement,
NSMY shall pay to NSI a royalty equal to fourteen percent (14%) (or as otherwise mutually
agreed upon in writing by the Parties) of the Net Sales during the entire term of this
Agreement. If any of the NSMY Products or NSMY Commercial Materials are based on or
contain NSI proprietary information, formulas or ingredients of NSI, the applicable
royalty shall be eighteen percent (18%) of Net Sales for such NSMY Products or NSMY
Commercial Materials, or as otherwise mutually agreed upon in writing by the Parties. 

ARTICLE III 
COMPUTATION AND PAYMENT TERMS

	3.1 	Royalty
Payments 

	3.1(a)	 	
Within thirty (30) days from the close of each month, NSMY shall deliver to NSI, by
electronic transmission or such other medium as the Parties shall agree upon from time to
time, a statement of its Net Sales and a computation of the Royalty payable hereunder on
such Net Sales. Concurrently with the delivery of such statement, NSMY shall make payment,
in accordance with Section 3.3 of Article III hereof, of such Royalty less such
withholding tax as may be chargeable on such Royalty. 

	3.1(b)	 	
For purposes of computing the Royalty payable hereunder, NSMY Products and NSMY Commercial
Materials shall be considered sold when recognized for accounting purposes as a sale by
NSMY in accordance with GAAP. 

	3.2 	Records 

	 	NSMY
shall keep complete and accurate records of its activities under this Agreement and permit
NSI and its authorized representatives (including auditors) to inspect and, if required by
NSI, to audit such records at all reasonable times. 

	3.3 	Payment
Terms 

	 	All
amounts payable by NSMY to NSI under this Agreement shall be calculated and invoiced in
Ringgit but shall be paid in U.S. Dollars. For the purposes of such payment, amounts
stated in Ringgit shall be converted on the date payment is initiated at the selling rate
for US Dollars published on such date by such financial institution as is approved by NSI
in writing from time to time. Payments shall be made either directly to NSI in immediately
available funds by wire transfer to an account designated by NSI, or by such other means
of payment acceptable to NSI from time to time. 

	3.4 	Exchange
Regulations 

	 	If
NSMY shall be prevented by exchange regulation or restraint from making payment of any sum
due to NSI in U.S. Dollars then NSMY shall make payment in such other currency as may be
selected by NSI and be permitted by exchange regulations. 

	3.5 	Default
Rate 

	 	Without
limiting or prejudice to any of NSI’s other rights and remedies under this Agreement:

	 	3.5(a)	an
amount due and outstanding under the terms of this Agreement and not paid within sixty
(60)  days from the date on which such
amount is due ands payable in accordance with the payment provisions herein,
shall bear interest (both before and after judgment) at the rate of ten percent
(10%) per annum from the due date and until the date of actual payment; and

	3.5(b)	 	
NSI may (but shall not be obligated to) waive, whether with conditions or otherwise, its
right to the payment of interest payable pursuant to Section 3.5(a) of Article III hereof,
whether in respect of all or some of the monies due and payable from time-to-time by NSMY
to NSI and for such period as NSI deems appropriate in its absolute discretion. 

	3.5(c)	 	
Interest shall accrue daily and be calculated on the basis of a three hundred sixty (360)
day year and the actual number of days elapsed in any partial calendar month. 

	3.6 	Withholding
Tax 

	 	NSMY
shall make due payments to the Inland Revenue Board, Malaysia, of such withholding tax (if
any) as may be chargeable on and deducted from the royalty and any interest thereon
payable hereunder. NSMY shall furnish to NSI within fourteen (14) days of each payment, a
copy of the prescribed form for such payment and NSMY’s letter to the Inland Revenue
Board accompanying such payment. 

	3.7 	No
Set-Off 

	 	Subject
to the provisions of Section 3.6 of Article III hereof, all sums payable by NSMY to NSI
under this Agreement shall be paid without any set-off, counter-claim, qualification or
condition whatsoever. 

ARTICLE IV 

 CERTAIN COVENANTS

	4.1 	Use
of Licensed Marks and Names 

	 	NSMY may
use the Licensed Marks and Names only in accordance with the terms of this Agreement.  

	4.1(a)	 	
The use of the NSI Trademark, “Nu Skin”, in NSMY’s corporate name in any
manner other than that in which it is used as at the date of this Agreement shall be
subject to NSI’s prior written consent which may be withheld or granted with or
without conditions at NSI’s absolute discretion. 

	4.1(b)	 	
All NSMY Products and NSMY Commercial Materials shall be approved by NSI and shall be
manufactured and produced in accordance with standards, specifications and instructions
approved by NSI; 

	4.1(c)	 	
NSI shall have the right to inspect the premises of NSMY and those of any of NSMY’s
subcontractors at which NSMY Product(s) are being manufactured, at reasonable times, and
also to receive samples of such NSMY Product(s), in accordance with a reasonable schedule
to be established promptly between NSI and NSMY; 

	4.1(d)	 	
NSMY shall correct, as promptly as possible, any defects in the NSMY Product(s)
and/or the manufacturing processes therefor brought to NSMY’s attention by NSI or
otherwise; and, 

	4.1(e)	 	
NSMY shall submit to NSI for prior approval, which approval will not be unreasonably
withheld, labels, packaging, advertising and promotional materials, in relation to which
any of the Licensed Marks and Names are proposed to be used, including the marking legends
intended to be used in relation thereto. 

	4.1(f)	 	
NSMY accepts full liability in every respect for all such NSMY Products and NSMY
Commercial Materials as are manufactured or produced and sold and/or distributed by NSMY.
Except where such claims are attributable to NSI’s wrongful act, willful default or
gross negligence, NSMY shall indemnify and hold NSI harmless against any and all claims
for damages, costs and interests arising directly or indirectly from the manufacture,
production, sale and/or distribution of the NSMY Products and NSMY Commercial Materials. 

	4.2 	Modifications 

	 	NSMY
shall make no modification to the Licensed Marks and Names without the express, prior
written consent of NSI, which consent may be withheld or granted with or without
conditions as NSI deems appropriate at its absolute discretion. 

	4.3 	Prejudicial
Use 

	 	NSMY
shall not use the Licensed Marks and Names in any way that will prejudice NSI’s
rights therein. Without limiting the foregoing, NSMY shall not attempt to vary or cancel
any registration of the Licensed Marks and Names, shall not hold itself out as or
represent it is the owner of the Licensed Marks and Names, or assist any other person in
any of the foregoing. NSMY shall not alter in any way the Licensed Marks and Names and
shall not combine the Licensed Marks and Names with any intellectual property of NSMY in a
manner that could create joint rights in the Licensed Marks and Names. 

	4.4 	Labels 

	 	At
the request of NSI, NSMY Products or NSMY Commercial Materials that bear any of the
Licensed Marks and Names shall also clearly indicate NSI’s ownership of the Licensed
Marks and Names in such manner as shall be approved by NSI. 

	4.5 	Goodwill 

	 	All
goodwill generated by use of the Licensed Marks and Names shall inure to NSI, and, upon
termination of this Agreement, NSMY shall not have any claim against NSI for compensation
for loss of distribution rights, loss of goodwill or any similar loss or in respect of any
benefit (if any) derived by NSI from the use of the Licensed Marks and Names. 

	4.6 	Export
of Products 

	 	NSMY
shall not export any NSMY Products to any country outside the Territory without the prior
written consent of NSI, which consent may be withheld or granted with or without
conditions as NSI deems appropriate at its absolute discretion. 

	4.7 	Prohibited
Uses 

	 	Except
for the Licensed Marks and Names, NSMY shall not have the right to use, and expressly
agrees not to use, any trademarks, service marks, trade names, logos, marks or devices
owned, used or licensed by NSI or an Affiliate of NSI, or which NSI or an Affiliate of NSI
has the bona fide intent to use, whether or not such marks, names or devices are
registered or unregistered. 

ARTICLE V 
 TERM

This Agreement shall commence and take effect on September 28,
2001, and the initial term shall end on December 31, 2004 unless earlier
terminated pursuant to the provisions of Article VI of this Agreement. This
Agreement shall renew automatically for successive one (1) year terms upon
expiration of the initial term or any renewal term unless terminated by either
Party by written notice given not less than (90) days prior to the end of the
then current term of this Agreement or in accordance with the provisions of
Article VI hereof. 

ARTICLE VI 
 TERMINATION

	6.1 	Termination
for Insolvency/Receivership 

	 	This
Agreement may be terminated by either Party immediately or at any time after the
occurrence of any of the following events: 

	6.1(a)	 	the
other Party shall commence any case, proceeding or other action: 

	 	(i) 
	under any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent,
or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
compensation or other relief with respect to it or its debts, or 
 

	 	(ii) 	seeking
appointment of a receiver, trustee, custodian or other similar action; or 

	6.1(b)	 	
there shall be commenced against the other Party any case, proceeding or other action of a
nature referred to in Section 6.1(a) of Article VI hereof which either results in the
entry of an order for relief or any such adjudication or appointment or remains
undismissed, undischarged or unbonded for a period of ninety (90) days. 

	6.1(c)	 	
if the other Party causes or allows a judgment in excess of ten percent (10%) of its
assets as reflected on its most recent balance sheet to be entered against it or
involuntarily allows a lien, security interest, or other encumbrance to attach to its
assets which secures an amount in excess of ten percent (10%) of its assets. 

	6.2 	Termination
for Breach of this Agreement 

	6.2(a)	 	
This Agreement may be terminated immediately by NSI if NSMY fails to pay on any due date
any monies payable hereunder by NSMY to NSI, and such failure continues for a period of
thirty (30) days from NSMY’s receipt of a written notice given by NSI requiring such
payment. 

	6.2(b)	 	
This Agreement may be terminated by either Party, if the other Party is in default in the
performance of any material obligation hereunder (other than NSMY’s obligation to pay
the monies referred to in Section 6.2(a)), and such default has not been cured within
sixty (60) days after receipt by the defaulting Party of written notice of such default
served by the other Party requiring such cure. 

	6.3 	Termination
for Breach of Shareholders Agreement/ Upon Termination of Other Intercompany Agreements  

          This Agreement may be terminated
by NSI if: 

	6.3(a)	  	any
of the parties (other than Nu Skin Enterprises, Inc.) to the Shareholders Agreement by
and between Nu Skin Enterprises, Inc. and the other shareholders of Nu Skin Malaysia
Holdings Sdn. Bhd (Company No. 552189-P) ("NSMH"), the parent/holding company of NSMY,
breaches such party's obligations thereunder and fails to cure such breach within thirty
(30) days after its receipt of a written notice of such breach is given by Nu Skin
Enterprises, Inc. requiring such cure; 

	6.3(b)	 	the
aforesaid Shareholders Agreement or any other(s) of the Intercompany Agreements is/are
terminated for any reason whatsoever; 

	6.3(c)	 	
by agreement between the parties to the aforesaid Shareholders Agreement, all of the
issued shares in NSMY are sold by NSMH to a third party or NSMY’s business and assets
are sold by NSMY to a third party; 

	6.3(d)	 	Nu
Skin Enterprises, Inc., NSI or other Affiliate of NSI ceases to hold directly or
indirectly, an equity interest of at least thirty percent (30%) in NSMY; or 

	6.3(e)	 	
persons representing from time-to-time such of Nu Skin Enterprises,
Inc., NSI or other Affiliates of NSI as is/are the holder(s) of an indirect thirty percent
(30%) equity interest in NSMY, cease (for any reason other than their removal by such
holder of an indirect thirty percent (30%) equity interest in NSMY) to hold office such
that the number of directors of NSMY representing Nu Skin Enterprises, Inc., NSI or other
Affiliates constitute less than thirty percent (30%) of the total number of NSMY’s
Board of Directors. 

	6.4 	Termination
for Loss of NSMY’s Direct Sales License 

	 	NSI
shall have the right to terminate this Agreement in the event any license, government
approval, or corporate authorization necessary to conduct the business in the Territory as
contemplated by the Parties and the Intercompany Agreements is terminated, not obtained or
renewed, or otherwise expires. 

ARTICLE VII 
EFFECT OF TERMINATION

	7.1 	Obligation
of NSMY Upon Termination 

          If this Agreement is terminated by
either Party, NSMY shall: 

	7.1(a)	 	
change its corporate name to one which does not include NSI’s Trademark “Nu
Skin” within ninety (90) days from the date of termination; 

	7.1(b)	 	
notwithstanding any other provision to the contrary herein, immediately pay all monies
then remaining unpaid and payable by NSMY to NSI and whether or not such monies shall then
have become due for payment; 

	7.1(c)	 	
destroy all NSMY Products and NSMY Commercial Materials bearing the Licensed Marks and
Names within forty-five (45) days from the date of termination, or repackage or modify
such NSMY Materials so that the Licensed Marks and Names are no longer contained on or in
such NSMY Products or NSMY Commercial Materials; 

	7.1(d)	 	
immediately discontinue use of the Licensed Marks and Name in any form and not adopt in
place thereof any word or design that is identical therewith or confusingly similar
thereto; and 

	7.1(e)	 	
immediately return to NSI, without retaining copies, all manuals, drawings, and standards
and any other documents and materials provided by NSI to NSMY relating to the use of the
Licensed Marks and Names. 

	7.2 	Survival
of Obligations 

	 	The
termination or expiration of this Agreement shall be without prejudice to the rights and
remedies of a Party in respect of any antecedent breach of this Agreement. The obligations
of a Party to pay any sums which are due and payable as of the expiration or termination
of this Agreement and its obligations under Article IX and under Article X hereof shall
survive the expiration or termination of this Agreement. 

	7.3 	Reversion
of Rights 

	 	Upon
termination of this Agreement by NSI, all rights and licenses herein granted to NSMY shall
immediately cease and shall revert to NSI, and NSMY shall cease representing to any third
party that it has any right to use the Licensed Marks and Names. 

ARTICLE VIII 
 GOVERNMENTAL APPROVALS, LAWS AND REGULATIONS

	8.1 	Regulatory
Approvals and Filings 

	 	NSMY
agrees to obtain, or cause to be obtained, at its sole cost and expense, any governmental
approval and make, or cause to be made, any filings or notifications required under all
applicable laws, regulations and ordinances of the Territory to enable this Agreement to
become effective or to enable any payment pursuant to the provisions of this Agreement to
be made. NSMY agrees to keep NSI informed of the progress in obtaining all such government
approvals. NSMY agrees to cooperate with NSI and to take such actions as NSI shall
reasonably request in order to obtain such approvals. 

	8.2 	Compliance
with Law 

	 	Each
Party agrees to refrain from any action that will cause the other party to be in violation
of any applicable law, regulation, or ordinance of the Territory or the United States or
elsewhere or any international convention or bilateral or multilateral treaty to which the
Territory or the United States is a signatory, including, without limitation, the U.S.
Foreign Corrupt Practices Act of 1977, the U.S. Export Control Laws, and the U.S.
Anti-Boycott laws. 

ARTICLE IX 
INFRINGEMENT; INDEMNIFICATION

	9.1 	No
Known Claims 

	 	NSI
hereby represents and warrants that to the best of its knowledge, as of the date hereof,
there are no infringement or misappropriation suits pending or filed or threatened against
NSI within the Territory that relate to the Licensed Marks and Names and NSI is not
presently aware of any such infringement or misappropriation. 

	9.2 	Infringement
Indemnity 

	 	NSI
shall indemnify and hold NSMY harmless from and against all claims, actions, suits,
proceedings, losses, liabilities, costs, damages and attorneys’ fees in respect of a
third party claim alleging infringement or misappropriation by NSMY in respect of its use
of the Licensed Marks and Names in the Territory; provided that NSMY shall give NSI
prompt written notice of any such claim, action, suit or proceeding and, without limiting
the generality of Section 2.2 of Article II hereof, shall cooperate with NSI in the
defense of any such claim, action, suit or proceeding. Notwithstanding the foregoing, NSI
shall have no obligation to indemnify NSMY for any liabilities arising out of NSMY’s
failure or the failure of the NSI Independent Distributors in the Territory to utilize the
Licensed Marks and Names 

	 	9.2(a) 	in
the manner for which the Licensed Marks and Names are reasonably intended, 

	 	9.2(b) 	in
compliance with NSI's policies and procedures or 

	 	9.2(c) 	as
contemplated by the Intercompany Agreements. 

	9.3 	Right
to Select Counsel 

	 	NSI shall have the right to select
counsel in any such claim, action, suit or proceeding.

	9.4 	Modification
by NSI to Licensed Marks and Names 

	 	In
the event that any such claim, action, suit or proceeding is successful, NSI shall use
reasonable efforts to make such changes in the Licensed Marks and Names to permit NSMY to
continue to use of the Licensed Marks and Names free and clear of all infringement and
misappropriation. 

	9.5 	Notice
by NSMY 

	 	NSMY
shall give NSI prompt written notice of any infringement or misappropriation of the
Licensed Marks and Names by any third party. 

	9.6 	Control
of Actions 

	 	NSI
shall have the sole right to initiate any and all legal proceedings against any such third
party and, without limiting the generality of Section 2.2 of Article II hereof, NSMY shall
cooperate with NSI in the pursuit of any such proceeding. NSI shall retain any damage
award obtained from such third party. 

ARTICLE X 
CONFIDENTIALITY

	10.1 	NSMY
Confidentiality 

	 	NSMY
agrees that, during and after the term of this Agreement, NSMY shall maintain in
confidence all NSI Confidential Information and shall not disclose any NSI Confidential
Information to any third party or use any NSI Confidential Information for any purpose
whatsoever except as contemplated by this Agreement. In maintaining the confidentiality of
NSI Confidential Information, NSMY shall exercise the same degree of care that it
exercises with its own confidential information, and in no event less than a reasonable
degree of care. NSMY shall , without limiting its obligation to maintain the NSI
Confidential Information in confidence, use commercially reasonable efforts to ensure that
each of its employees and contractors holds in confidence and makes no use of any NSI
Confidential Information for any purpose other than those permitted by this Agreement.
NSMY shall use its best efforts to ensure that no person other than its employees shall
have access to NSI Confidential Information without the prior written consent of Nu Skin,
and shall restrict access to NSI Confidential Information to those having a need for
access thereto. 

	10.2 	NSI
Confidentiality 

	 	NSI
agrees that, during and after the term of this Agreement, NSI shall maintain in confidence
all NSMY Confidential Information and shall not disclose any NSMY Confidential Information
to any third party or use any NSMY Confidential Information for any purpose whatsoever
except as contemplated by this Agreement. In maintaining the confidentiality of NSMY
Confidential Information, NSI shall exercise the same degree of care that it exercises
with its own confidential information, and in no event less than a reasonable degree of
care. Without limiting its obligation to maintain the NSMY Confidential Information in
confidence, NSI shall use commercially reasonable efforts to ensure that each of its
employees and contractors holds in confidence and makes no use of any NSMY Confidential
Information for any purpose other than those permitted by this Agreement. NSI shall use
its best efforts to ensure that no person other than its employees and contractors shall
have access to NSMY Confidential Information without the prior written consent of NSMY,
and shall restrict access to NSMY Confidential Information to those employees and
contractors having a need for access thereto. 

	10.3 	Exceptions 

	 	The
obligation of confidentiality contained in this Agreement shall not apply to the extent
that (i) either party is required to disclose information by order or regulation of a
governmental agency or a court of competent jurisdiction, provided, however,
that such party shall not, to the extent possible, make any such disclosure without first
notifying the disclosing party and allowing the disclosing party a reasonable opportunity
to seek injunctive relief from (or a protective order with respect to) the obligation to
make such disclosure, or (ii) the party receiving disclosed information can demonstrate
that (A) the disclosed information was at the time of such disclosure already in, or
subsequently becomes part of, the public domain other than as a result of actions of the
receiving party, its affiliates, employees, consultants, agents or subcontractors in
violation hereof; (B) the disclosed information was received by the receiving party on an
unrestricted basis from a source unrelated to the disclosing party provided the receiving
party has no knowledge or reason to know that such party is under a duty of
confidentiality with respect to such information. 

	10.4 	Unauthorized
Disclosure 

	 	Each
Party acknowledges and confirms that the Confidential Information of the other Party
constitutes valuable proprietary information and trade secrets of the other Party and that
the unauthorized use, loss or outside disclosure of such information shall cause
irreparable injury to the other Party. Each Party shall notify the other Party immediately
upon discovery of any unauthorized use or disclosure of Confidential Information of the
other Party, and will cooperate with the other Party in every reasonable way to help
regain possession of such information and to prevent its further unauthorized use. Each
Party acknowledges that monetary damages may not be a sufficient remedy for unauthorized
disclosure of the Confidential Information of the other Party and that the other Party
shall be entitled, without waiving other rights or remedies, to such injunctive or
equitable relief as may be deemed proper by a court of competent jurisdiction, and shall
be entitled to recover reasonable attorneys’ fees for any action arising out of or
relating to a disclosure of such Confidential Information. 

	10.5 	Return
of Confidential Information 

	 	NSMY
shall, upon the request of NSI, return to NSI all NSI Confidential Information, including
any copies or reproductions thereof, in NSMY’s possession or control. 

ARTICLE XI 
NATURE OF RELATIONSHIP

The relationship of NSMY and NSI shall be and at all times
remain, respectively, that of Licensee and Licensor. Nothing contained or
implied in this Agreement shall be construed to constitute either Party as the
legal representative or agent of the other or to constitute or construe the
Parties as partners, joint ventures, co-owners or otherwise as participants in a
joint or common undertaking. Neither Party is authorized to conclude any
contract or agreement or make any commitment, representation or warranty that
binds the other or otherwise act in the name of or on behalf of the other Party. 

ARTICLE XII 
 MAINTENANCE OF TRADEMARKS; RECORDING;

REGISTRATION OF TRADEMARK

	12.1 	Registration 

	 	NSI
shall use its best efforts to maintain the registrations of the Licensed Marks and Names
currently registered in the Territory as set forth in Schedule A hereto. NSI, in its sole
discretion, shall have the right to record this Agreement or proof thereof, and to enter
NSMY as a registered user in the Territory. NSMY agrees to cooperate, as reasonably
requested by NSI, in arranging for such recordings or entries, or in or canceling such
recordings or entries in the event of amendments to or termination of this Agreement for
any reason. 

	12.2 	Cancellation 

	 	Upon
the expiration or the termination for any reason of this Agreement, the Parties shall do
everything necessary to effect cancellation of the record of NSMY as a registered user of
the NSI Trademarks in the Territory. 

	12.3 	No
Adverse Claims 

	 	NSMY
shall not dispute NSI’s rights, title or interest in or the validity of NSI’s
rights to the Licensed Marks and Names or use, register or apply for the registration of
any tradenames, words, marks, get ups or designs which are identical with or similar to
the Licensed Marks and Names. 

	12.4 	Applications 

	 	At
the request of NSMY, NSI shall file applications in the Territory for the registration of
all new NSI Trademarks that NSMY intends to use in the Territory that have been approved
by NSI and included as a Licensed Mark through amendment to the Schedule of Licensed Marks
and Names. If any mark used by NSI in the United States of America with respect to certain
Products is used by NSMY in the Territory in relation to similar Products, then, whether
or not the mark is registered in the Territory, NSMY shall not claim any proprietary
interest in any such NSI marks. If any of such marks are immediately registrable in the
Territory, NSMY will cooperate with NSI in filing an application for registration of the
marks in the name of NSI. If any such marks are not immediately capable of registration
because they lack distinctiveness, then at any time when in the opinion of legal counsel
for NSI the use of the marks by NSMY has conferred on them sufficient distinctiveness to
permit registration in the Territory, NSMY shall, when requested by NSI, do all things
necessary and execute all documents required to register such marks in the Territory and
assign the eventual registrations to NSI who shall reimburse NSMY for the cost of
registration and assignment, but shall not be obligated to make any other payment in
consideration for the assignment. 

ARTICLE XIII 
 MISCELLANEOUS

	13.1 	Assignment 

	 	This
Agreement shall be binding on and inure to the benefit of the respective successors,
assigns and beneficiaries of the Parties; provided that neither Party may assign this
Agreement or any rights or obligations hereunder, whether by operation of law or
otherwise, without the prior written consent of the other Party, which consent may be
withheld or granted with or without conditions at the sole discretion of such other Party.
Any attempted assignment without requisite written consent shall be void and
unenforceable. Notwithstanding the foregoing, NSI may assign this Agreement to any of its
Affiliates. 

	13.2 	Force
Majeure 

	 	A
Party shall not be responsible for failure to perform hereunder due to force majeure,
which shall include, but not be limited to: fires, floods, riots, strikes, labor disputes,
freight embargoes or transportation delays, shortage of labor, inability to secure fuel,
material, supplies, equipment or power at reasonable prices or on account of shortage
thereof, acts of God or of the public enemy, war, terrorist activities or civil
disturbances, any existing or future laws, rules, regulations or acts of any government
(including any orders, rules or regulations issued by any official or agency or such
government) affecting such Party that would delay or prohibit performance hereunder, or
any cause beyond the reasonable control of a party. If an event of force majeure should
occur, the affected Party shall promptly give notice thereof to the other Party and such
affected Party shall use its reasonable best efforts to cure or correct any such event of
force majeure. 

	13.3 	Governing
Law 

	 	This
Agreement shall be governed by and construed in accordance with the laws of the State of
Utah, applicable to contracts made and to be wholly performed within such State. 

	13.4 	Dispute
Resolution 

	 	Any
dispute or difference which may arise between the Parties at any time hereafter, whether
during the continuance in force of this Agreement or upon or after its termination,
touching any matter or thing herein contained or the operation or construction of this
Agreement or any matter or thing in any way connected with, arising from or in relation to
this Agreement or the rights, duties or liabilities of the Parties hereunder shall be
finally settled by arbitration in accordance with International Arbitration Rules of the
American Arbitration (“AAA”). 

	 	13.4(a) 	A
reference to arbitration shall be to three (3) arbitrators. 

	 	13.4(b)	The
arbitration shall be held in Provo, State of Utah, United States of America, at the
Regional Center and the language to be used in the arbitral proceedings shall be English.  

	 	13.4(c)	Pending
the commencement of the arbitral proceedings, either Party may apply, to the courts in
Utah and/or Malaysia (which shall have non-exclusive jurisdiction) for the grant of
interim injunctions and orders for the protection and preservation of property subject of
or relating to this Agreement. For the purposes of this Section 13.4(c) and as provided
in the Arbitration Rules of the AAA, arbitral proceedings shall be deemed to commence on
the date when the administrator of the AAA receives notice of arbitration from the Party
initiating the arbitration.  

	13.5 	Waiver
and Delay 

	 	No
waiver by either party of any breach or default in performance by the other party, and no
failure, refusal or neglect of either party to exercise any right, power or option given
to it hereunder or to insist upon strict compliance with or performance of the other
party’s obligations under this Agreement, shall constitute a waiver of the provisions
of this Agreement with respect to any subsequent breach thereof or a waiver by either
party of its right at any time thereafter to require exact and strict compliance with the
provisions thereof. 

	13.6 	Notices 

	 	A
notice, request and other communication hereunder shall be in writing and shall be deemed
to have been duly given, if delivered by hand, courier or registered airmail, or
communicated by facsimile, cable or similar electronic means to the address, facsimile
number or cable identification number provided below (or as changed in accordance with
this Section 13.6) of the Party to whom it is addressed and shall be deemed to be given if
delivered by hand or courier, at the time of delivery or if communicated by facsimile,
cable or similar electronic means, at the time that receipt thereof has been confirmed by
return electronic communication or signal that the message has been received, or if
mailed, ten (10) days after dispatch by registered airmail, postage prepaid:- 

	 	If to MSMY: 	 Nu Skin (Malaysia) Sdn. Bhd.

Office Lot 04-01, Level 4

PNB Darby Park Retail

No. 10, Jalan Binjai

50450 Kuala Lumpur 

Malaysia 
Attn: Managing Director

Facsimile: 603-2170 7799 

	 	If to NSI:	Nu Skin International, Inc.

75 West Center Street

Provo, Utah 84601

United States of America 

Attn: General Counsel

Facsimile Number: (801)345-5999 

	 	Either
Party may change its facsimile number, cable identification number or address by a notice
given to the other Party in the manner set forth above. 

	13.7 	Integrated
Contract 

	 	This
Agreement constitutes the entire agreement between the Parties relating to the subject
matter hereof and supersedes all prior or contemporaneous negotiations, representations,
agreements and understandings (both oral and written) of the Parties. 

	13.8 	Modification
and Amendment 

	 	No
supplement, modification or amendment of this Agreement shall be binding unless it is in
writing and executed by both of the Parties. 

	13.9 	Severability 

	 	To
the extent that any provision of this Agreement is (or in the opinion of counsel mutually
acceptable to both Parties would be) prohibited, judicially invalidated or otherwise
rendered unenforceable in any jurisdiction, such provision shall be deemed ineffective
only to the extent of such prohibition, invalidation or unenforceability in that
jurisdiction, and only within that jurisdiction. Any prohibited, judicially invalidated or
unenforceable provision of this Agreement will not invalidate or render unenforceable any
other provision of this Agreement, nor will such provision of this Agreement be
invalidated or rendered unenforceable in any other jurisdiction. 

	13.10 	Counterparts
and Headings 

	 	This
Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. All
headings and captions are inserted for convenience of reference only and shall not affect
the meaning or interpretation of any provision hereof. 

     

IN WITNESS WHEREOF, the Parties have by their
respective duly authorized representatives executed this Agreement as of the day
and year first-above written. 

NU SKIN INTERNATIONAL, INC.

By:    /s/  Truman Hunt

Name:    Truman Hunt

Its:    Executive Vice President

NU SKIN (MALAYSIA) SDN. BHD.

By:    /s/  Datuk Mohd Nadzmi Bin Mohd Salleh

Name:    Datuk Mohd Nadzmi Bin Mohd Salleh

Its:    Director10.10 License Agreement Malaysia

LICENSE AGREEMENT

BETWEEN

NU SKIN INTERNATIONAL, INC.

(Company No. 880564-0142)

AND

NU SKIN (MALAYSIA) SDN. BHD.

(Company No. 402787-V)

THIS LICENSE AGREEMENT (hereinafter, this
“Agreement”) is entered into this 20th day of June 2002 to be
effective as of September 28, 2001 between NU SKIN INTERNATIONAL, INC.
(Company No. 880564-0142), a company organized under the laws of the State
of Utah, United States of America and having its principal place of business at
75, West Center Street, Provo, Utah 84601, United States of America
(“NSI”), and NU SKIN (MALAYSIA) SDN. BHD. (Company No.
402787-V), a corporation organized under the laws of Malaysia and having its
registered office at 6th Floor, Menara Boustead, 69, Jalan Raja Chulan, 50200
Kuala Lumpur, Malaysia and a place of business at Office Lot 04-01, Level 4, PNB
Darby Park Retail, No. 10, Jalan Binjai, 50450 Kuala Lumpur (“NSMY”).
Hereinafter NSI and NSMY shall collectively be referred to as the
“Parties” in this Agreement. 

RECITALS

WHEREAS, NSI is engaged in the
international distribution of various products and related sales aids through a
network of independent distributors and has developed a sales compensation plan
and related know-how and technology for the distribution of such products and
sales aids; 

WHEREAS, NSMY desires to have the license
and right to utilize NSI’s network of independent distributors and
NSI’s sales compensation system and related know-how and technology to
market and distribute products in Malaysia as more fully described in this
Agreement; 

AGREEMENT

NOW THEREFORE, in consideration of the
premises, the mutual promises, covenants, and warranties hereinafter set forth
and for other valuable consideration, the sufficiency of which is hereby
acknowledged, the Parties agree as follows: 

ARTICLE I 
 DEFINITIONS

For the purposes of this Agreement, unless the context otherwise
requires or the Parties otherwise agree within the terms of this Agreement, the
following words, terms and phrases shall have the meaning assigned to them
respectively by this Article I: 

     	1.1	 	
          “Affiliate” shall mean, with respect to any specified person,
          any other person that directly, or indirectly through one or more
          intermediaries, controls, is controlled by, or is under common control with,
          such specified person. 

          

     	1.2	 	
          “Agreement” shall mean this License Agreement (together
          with any exhibits and schedules), as the same may be modified, amended or
          supplemented from time to time. 

          

     	1.3	 	
          “Starter Kit” shall mean those materials purchased by a NSI
          Independent Distributor upon the execution of a Distributor Contract which
          explains the Sales Compensation Plan and other NSI policies, procedures and
          programs, the contractual relationship with NSI and the marketing support
          programs for the Territory. 

          

     	1.4	 	
          “Commission Expense Percentage” shall mean the percentage
          determined and used by NSI from time to time to calculate the Fixed Commission
          Expense as more fully described in Article III. 

          

     	1.5	 	
          “Commission Payments” shall mean any and all monetary
          obligations due to any NSI Independent Distributor accrued or payable under the
          terms of the Sales Compensation Plan or any Distributor Contract, but
          specifically excluding any Special Commission Payments. 

          

     	1.6	 	
          “Copyrights” shall mean the copyright in any and all
          protectable software, programs, databases, source codes, applications,
          literature, marketing materials, product information, and any other
          copyrightable material owned by NSI or which NSI has a right to use, license or
          sub-license, relating directly or indirectly to the Independent Distributor
          Network, Distributor Lists or the Sales Compensation Plan. 

          

	1.7	 	"Derivative
Works and Work Product" shall mean: 

	 	(i) 	any
and all derivative works and work product that is developed from or with the Licensed
Property or contains in any manner any portion of the Licensed Property; 

	 	(ii) 	any
changes, enhancements, or improvements to the Licensed Property; and 

	 	(iii) 	any
other work product, information, research, trade secrets or intellectual or intangible
property, including all copyrights and patents related thereto, created or developed by
NSI or NSMY in connection with this Agreement or the distribution of the Products
relating to the Independent Distributor Network, the Distributor Lists, the Sales
Compensation Plan, Copyrights, and the associated Know How, or the Products.  

     	1.8	 	
          “Distributor Contract” shall mean any contract with NSI
          pursuant to which NSI authorizes a person to act as a distributor of Products. 

          

     	1.9	 	
          “Distributor Lists” shall mean any and all lists of present or
          future NSI Independent Distributors (including those operating in Malaysia)
          expressed in any medium or format, including any listing of individual or
          accumulated names, addresses, identification numbers, telephone numbers, gender,
          sponsor name or other personal information. 

          

     	1.10	 	
          “Fixed Commission Expense” shall mean, for any period, an
          amount equal to the product of the Net Commissionable Sales multiplied by the
          Commission Expense Percentage. 

          

	1.11	 	"GAAP"
shall mean general accepted accounting principles in the Federation of Malaysia. 

     	1.12	 	
          “Global Commission Expense” shall mean all expenses of NSI
          incurred in operating, managing, and executing the Sales Compensation Plan.
          These expenses include, but are not limited to, amounts paid to NSI Independent
          Distributors as Commission Payments as well as NSI’s operational costs
          associated with the calculation of these monthly payments, but specifically
          exclude Special Commission Payments. 

          

	1.13	 	"Intercompany
Agreements" shall mean the Trademark License Agreement between the Parties, the
Distribution Agreement between NSMY and Nu Skin Enterprises Hong Kong, Inc. ("NSEHK"),
the Management Services Agreement between NSMY and Nu Skin International Management
Group, Inc., and this Agreement. 

	1.14	 	"Independent
Distributor Network" shall mean the network of all NSI Independent Distributors. 

     	1.15	 	
          “Know-How” shall mean any information, including, without
          limitation, any commercial or business information, lists, marketing methods,
          marketing surveys, processes, specifications, quality control reports, drawings,
          photographs, or any other information owned by, leased or licensed to NSI,
          whether or not considered proprietary, relating to the Independent Distributor
          Network, the Distributor Lists, and the Sales Compensation Plan, which NSI makes
          available to NSMY pursuant to this Agreement. 

          

	1.16	 	"License
Fee" shall mean the license fee determined in accordance with Section 2.6 of Article II. 

     	1.17	 	
          “License Fee Percentage” shall mean the percentage used to
          calculate the License Fee as determined in accordance with Section 2.6 of
          Article II from time to time. 

          

     	1.18	 	
          “Licensed Property” shall mean the Independent Distributor
          Network, the Distributor Lists, the Sales Compensation Plan, the Copyrights, and
          the associated Know-How, and all Derivative Works thereof. 

          

	1.19	 	"Net
Commissionable Sales" shall mean, for any period, the sum of: 

	 	(A) 	
the product of the number of Products sold by NSMY to NSI Independent Distributors during
such period multiplied by the applicable commissionable portion of the price to NSI
Independent Distributors for each such Product less applicable sales and consumption taxes
and returns or refunds reasonably accepted and credited by NSMY during such period, and 

	 	(B) 	
the commissionable portion of any commissions received by NSMY with respect to sales of
third party products by NSI Independent Distributors in Malaysia, less any returns,
refunds or credits. 

	 	For
purposes of the foregoing, “commissionable portion” shall mean that portion of
the price or commission on which a commission may be earned as determined under the Sales
Compensation Plan and the currency conversion methodology used by NSI in connection with
the calculation of Commission Payments for NSI Independent Distributors on a global basis,
as modified from time to time in NSI’s sole discretion. The commissionable portion of
such price or commission shall be determined by NSI in its sole discretion from
time-to-time. 

     	1.20	 	
          “NSI Confidential Information shall mean any and all information
          that is unique, proprietary or competitively sensitive to the business of NSI
          and/or any Affiliate of NSI which NSMY may obtain knowledge of or access to in
          connection with its relationship with NSI and the transactions contemplated by
          the Intercompany Agreements, including, but not limited to, information relating
          to Products, the NSI Independent Distributors, NSI’s compensation or
          commission systems or schemes, pricing methods, historical, current and
          projected financial information, marketing information, and any and all
          information, technical data or know-how related to any aspect of NSI’s
          business or technology including data, know-how, formulae, designs, drawings,
          proposals, specifications, and the terms of this Agreement. 

          

 	1.21	 	
          "NSI Independent Distributor" shall mean a person who has entered into a Distributor Contract.

          

     	1.22	 	
          “NSMY Confidential Information” shall mean any and all
          information that is unique, proprietary or competitively sensitive to the
          business of NSMY which NSI may obtain knowledge of or access to in connection
          with its relationship with NSMY and the transactions contemplated by the
          Intercompany Agreements, but specifically excluding the NSI Confidential
          Information. 

          

     	1.23	 	
          “NSMY Revenue” shall mean the gross revenue of NSMY (excluding
          applicable sales and other consumption taxes and freight and revenue generated
          from the sale of Business Portfolio) less any returns or refunds reasonably
          accepted and credited by NSMY during such period, all as determined in
          accordance with GAAP. 

          

     	1.24	 	
          “Person” shall mean any individual, partnership, firm,
          corporation, joint venture, limited liability company, association, trust,
          unincorporated organization or other entity, 

          

     	1.25	 	
          “Products” shall mean any and all goods and services sold by
          NSI, NSEHK, NSMY or any Affiliate of NSI, NSEHK or NSMY. 

          

     	1.26	 	
          “Resident NSI Independent Distributor” shall mean any NSI
          Independent Distributor whose country of residence as shown on the records of
          NSI is in the Territory. 

          

	1.27	 	"Ringgit"
or "RM" shall mean the lawful currency of the Territory. 

     	1.28	 	
          “Sales Compensation Plan” shall mean the method employed by NSI
          to calculate Commission Payments paid to the Independent Distributor Network
          upon the sale of Products, as it may be amended from time to time. 

          

     	1.29	 	
          “Special Commission Payments” shall mean commission and other
          incentive payments paid to NSI Independent Distributors in connection with
          special promotions, incentives and other programs adopted by NSI and/or NSMY
          which payments are separate from the standard Commission Payments under the
          Sales Compensation Plan. 

          

	1.30	 	"Territory"
shall mean the Federation of Malaysia. 

ARTICLE II  
 GRANT OF LICENSE AND PARTIAL 

ASSIGNMENT OF OBLIGATIONS; LICENSE FEES

	2.1 	Grant
of License

	 	Subject
to the terms and conditions of this Agreement, NSI hereby grants to NSMY a limited license
to use, in accordance with this Agreement, the Licensed Property in the Territory in
connection with the promotion and sale of Products procured from or through NSI or NSEHK
or such other Products as may be approved by NSI in writing. NSMY shall not have the right
to grant any right, title, use or sublicense for the Licensed Property, or otherwise
assign its rights hereunder without the prior written consent of NSI, which may be
withheld or granted with or without conditions in the sole discretion of NSI. NSMY is
prohibited from using the Licensed Property in connection with any Products that are not
procured from or through NSI or NSEHK or otherwise approved in advance and in writing by
NSI, in its sole and absolute discretion. NSMY’s right to use or access the
information or data-base relating to NSI Independent Distributors comprised in the
Licensed Property shall not include the right to access commission information relating to
NSI Independent Distributors whose current residence, as indicated in the records of NSI,
is outside the Territory. Except to the extent permitted by NSI in its sole discretion,
NSMY shall have no right to use any information or data-base relating to any distributor
who is not a Resident NSI Independent Distributor. 

	2.2 	NSI’s
Interest in Licensed Property and Derivative Works and Work Product 

	 	Except
for the limited rights granted herein for the term of this Agreement, NSI hereby retains
all rights and legal title to the Licensed Property and all intellectual property rights
related thereto for all purposes, including but not limited to, the bringing or defending
of any legal action in the Territory which it deems reasonable to protect its rights
therein. NSMY agrees to assist NSI in any manner to protect NSI’s rights in the
Licensed Property which NSI may reasonably request. NSI shall reimburse NSMY for any third
party costs incurred by NSMY in providing such assistance. NSI shall also be the sole
owner of all Derivative Works and Work Product and NSMY shall execute such documents and
take such action as NSI may reasonably request to confirm such ownership. NSMY shall not
do any act that would or might invalidate or dilute NSI’s registration of, or title
to, the Licensed Property. NSMY shall not attempt to vary or cancel any registration of
the Licensed Property, shall not hold itself out as or represent it is the owner of the
Licensed Property, or assist any other person in any of the foregoing. NSMY shall not
combine the Licensed Property with any intellectual property of NSMY in a manner that
could create joint rights in the Licensed Property. 

	2.3 	NSMY’s
Acknowledgment of Value of Licensed Property 

	 	NSMY
recognizes and agrees that NSI has expended considerable time, effort and financial
resources to develop, maintain, and enhance the Licensed Property for more than 15 years.
NSMY further agrees it will derive a considerable benefit from its use of the Licensed
Property in the Territory and from NSI’s efforts and expenditure in respect of the
Licensed Property. 

	2.4 	Warranty
of Title 

	 	NSI
hereby warrants and represents that it is the owner of, or has a valid license to use or
sublicense the Licensed Property, and to the best of its knowledge and information no
claim exists or has been made contesting NSI’s ownership, title or right to use said
Licensed Property. 

	2.5 	Modifications 

	 	NSMY
shall make no modification to the Licensed Property without the express, prior written
consent of NSI, which consent may be withheld or granted, with or without conditions, at
NSI’s sole and absolute discretion. 

	2.6	License
Fee 

	 	As
compensation for the exclusive license granted by this Agreement, NSMY shall pay to NSI a
License Fee equal to the product of the License Fee Percentage multiplied by NSMY Revenue
during the applicable measurement period. The initial License Fee Percentage shall be
established at four percent (4%) for the period commencing on the date of this Agreement
and ending on 31st December 2002. The License Fee Percentage will be set for
each subsequent calendar year commencing year 2003 as set forth in this Section 2.6 of
Article II. On or before November 1st following the end of the third quarter, NSMY shall
prepare a report showing an estimate of NSMY Revenue for the year (“Estimated NSMY
Revenue”) setting forth actual NSMY Revenue for the nine (9) month period ending on
September 30 as determined in accordance with GAAP and projected NSMY Revenue for the last
three (3) months of the year as forecasted by NSMY. A preliminary License Fee Percentage
for the succeeding year (the “New Year”) shall be established at a rate equal to
the percentage in the table below corresponding to the total amount of Estimated NSMY
Revenue as determined above: 

	License Fee Percentage	 	NSMY Revenue	 
	 	 	(Ringgit)	 
	4%	<    	192,500,000	 
	5%	 	192,500,000     to    $1,925,000,000	 
	

	6%	 	$1,925,000,000    to   $3,850,000,000	 
	7%	 	$3,850,000,000    to   $5,775,000,000	 
	8%	>    	$5,775,000,000	 

	 	The
new preliminary License Fee Percentage will take effect as of January 1st of the New Year.
On or before March 31 of the New Year, NSMY shall submit to NSI an audited income
statement for the preceding year. A final License Fee Percentage for the New Year shall be
established at a rate equal to the percentage set forth in the table above corresponding
to the total amount of actual NSMY Revenue for the previous year. In the event the final
License Fee Percentage for the New Year is different from the preliminary License Fee
Percentage, the License Fee for the first two months of the New Year shall be recalculated
using the final License Fee Percentage. If such recalculation results in a License Fee for
such two month period that is less than the License Fee that was calculated using the
preliminary License Fee Percentage, NSMY may apply such difference as an offset against
future License Fees billed by NSI. In the event such recalculation results in a License
Fee for such two month period that is greater than the License Fee calculated using the
preliminary License Fee Percentage, NSMY shall pay the difference to NSI on or before
April 30th. The final License Fee Percentage for the New Year shall be used to calculate
the License Fee for all the remaining months in the New Year. Either Party also may
request a review of the License Fee Percentage at any time it determines that a change in
actual NSMY Revenue warrants a review and an accompanying change in the License Fee
Percentage effective prior to the annual change described above. In the event of such a
request a procedure similar to that described above shall be used utilizing actual revenue
through the date of the request plus projected revenue through the remainder of the year
as forecasted by NSMY. The change shall be effective as of the 1st day of the month
following the month in which the review takes place. Both parties agree to complete the
review within 30 days following the date of the request. 

	2.7 	Payment
of License Fee 

          The procedures for payment of the
License Fee payable hereunder are as follows: 

	 	2.7(a)	Within
thirty (30) days following the close of each month, NSMY shall deliver to NSI, by
electronic transmission or such other medium as the Parties shall agree to from time to
time, a statement of the NSMY Revenue during such month in the Territory and a
computation of the License Fee payable under Section 2.6 of Article II hereof.
Concurrently with delivery of such statement, NSMY shall make payment, in accordance with
Section 4.1 of Article IV hereof, of such License Fee less such withholding tax as may be
chargeable on such License Fee.  

	 	2.7(b)	For
purposes of computing the License Fee, Products shall be considered sold when recognized
for accounting purposes as a sale by NSMY as per GAAP.  

ARTICLE III 
COMMISSION PAYMENTS

	3.1 	Commission
Payments 

	 	NSMY
confirms its knowledge of the provisions of the Distributor Contracts and the Sales
Compensation Plan and that NSI is obligated to make Commission Payments to each NSI
Independent Distributor based on the aggregate Commissionable Sales by such NSI
Independent Distributor and its downline distributors globally (both in and outside the
country of residence of such NSI Independent Distributor). NSMY agrees to be responsible
for and pay an amount equal to the Fixed Commission Expense to NSI. 

	3.2 	Payment
Procedure 

	 	NSMY
agrees to pay on behalf of NSI to NSI Resident Independent Distributors the total
Commission Payments to which they are entitled pursuant to their Distributor Contracts
(for sales both within and outside the Territory), whether such Commission Payments are
greater or less than the Fixed Commission Expense for such month. The Parties further
agree to settle the difference between the amount of such Commission Payments paid by NSMY
in each month and the Fixed Commission Expense in such month. The procedures for such
payment and settlement are as follows: 

	 	3.2(a) 
	Within
eight (8) days following the close of each month, NSMY shall deliver to NSI, by
electronic transmission or such other medium as the Parties shall agree to from time to
time, a statement of NSMY’s Net Commissionable Sales during such month (including
details of the sales made to each NSI Independent Distributor during such month) and of
such other items as NSI shall reasonably request from time to time (the “Detailed
Sales Report”). 

	 	3.2(b) 
	NSI
shall use its commercially reasonable best efforts to deliver to NSMY, by electronic
transmission or such other medium as the Parties shall agree to from time to time, by the
later of twelve (12) days after receipt of the Detailed Sales Report or twenty (20) days
after the end of such month, a calculation of the Commission Payments due to Resident NSI
Independent Distributors under their Distributor Contracts for such month (the “Monthly
Commission Amount”), a calculation of the Fixed Commission Expense for such month
and such other items as NSMY shall reasonably request from time to time (the “Commission
Statement”).

	 	3.2(c) 
	By
the later of thirty (30) days after receipt of the Commission Statement or thirty (30)
days after the end of such month, NSMY shall pay Commission Payments due to the Resident
NSI Independent Distributors. Concurrently with or promptly after such payment NSMY
shall: 

	 	(i) 	if
the aggregate Monthly Commission Amounts paid to all Resident NSI Independent
Distributors is less than the Fixed Commission Expense for such month, pay to NSI the
deficiency in accordance with the procedures set forth in Section 4.1 of Article IV
hereof, or  

	 	(ii) 	if
the aggregate Monthly Commission Amounts paid to all Resident NSI Independent
Distributors exceeds the Fixed Commission Expense for such month, issue an invoice to NSI
for reimbursement of such excess amount.  

	 	 
	In
the event NSMY shall have given NSI an invoice for reimbursement of excess Commission
Payments as set forth in Section 3.2(c)(ii)of Article III hereof, NSI shall pay the
amount so invoiced to NSMY pursuant to the procedures set forth in this Section 4.1
of Article IV hereof within thirty (30) days after receipt thereof. In lieu of making
payment of the amount of excess Commission Payments pursuant to the foregoing provisions,
NSI shall be entitled to set off of such amount against any License Fees or other monies
payable by NSMY to NSI.  

	 	3.2(d) 
	The
Parties acknowledge that the initial Commission Expense Percentage to be used in
calculating the Fixed Commission Expense has been set on the basis of NSI’s
historical experience. The initial Commission Expense Percentage shall be forty-three and
one-half percent (43.5%). The Parties agree that the Commission Expense Percentage used
in calculating the Fixed Commission Expense shall remain consistent with actual
commission expense as a percentage of commissionable sales of Products to NSI Independent
Distributors globally plus the costs incurred by NSI in calculating and administering the
Commission Payments. The initial Commission Expense Percentage may be changed by NSI at
anytime to reflect changes in the amount of actual Commission Expenses as a percentage of
total commissionable sales globally by providing thirty (30) days advance written notice
of any such change. Such change shall take effect on the date set forth in such notice.
NSMY shall have the right to request back-up to support any such change in the
percentage.

ARTICLE IV
 PAYMENT TERMS

	4.1 	Payments
to NSI 

	 	All
amounts payable by NSMY to NSI under this Agreement shall be invoiced in Ringgit and paid
in US Dollars. For purposes of determining the US Dollar amount thereof due and payable by
NSMY to NSI, the License Fees and all other monies computed in Ringgit payable by NSMY to
NSI under this Agreement shall be converted to US Dollars on the date payment is initiated
at the selling rate for US Dollars published on such date by such financial institution as
is approved by NSI in writing from time to time. NSMY shall cooperate in good faith
with NSI in timing payments so as to minimize any foreign exchange risks. Payments shall
be made either directly to NSI in immediately available funds by wire transfer to an
account designated by NSI or by such other means of payment acceptable to NSI from time to
time. 

	4.2 	Payments
to NSMY 

	 	All
amounts payable by NSI to NSMY under this Agreement shall be paid in U.S. Dollars. For the
purposes of such payment, amounts stated in Ringgit shall be converted at the buying rate
for US Dollars published by ABN-AMRO Bank Berhad, Kuala Lumpur on the date NSI initiates
such payment.  Payments shall be made either directly to NSMY in immediately
available funds by wire transfer to an account designated by NSMY or by such other means
of payment acceptable to NSMY from time to time. NSMY shall work with and cooperate with
NSI with respect to the timing of payments in order to assist NSI in managing foreign
currency fluctuation risks. 

	4.3 	Exchange
Regulations 

	 	If
NSMY shall be prevented by exchange regulation or restraint from making payment of any sum
due to NSI in US Dollars then NSMY shall make payment in such other currency as may be
selected by NSI and be permitted by exchange regulations. 

	4.4 	Default
Rate 

          Without limiting or prejudice to
any of NSI’s other rights and remedies under this Agreement: 

	 	4.4(a)
	amounts
due and outstanding under the terms of this Agreement and not paid within sixty (60) days
from the date on which such amount is due and payable in accordance with the payment
provisions herein, shall bear interest (both before and after judgment) at the rate of
ten percent (10%) per annum.

	 	4.4(b) 
	NSI
may (but shall not be obligated to) waive, whether with conditions or otherwise, its
right to the payment of interest payable pursuant to Section 4.4(a) of Article IV hereof,
whether in respect of all or some of the monies due and payable from time-to-time by NSMY
to NSI and for such period as NSI deems appropriate in its absolute discretion.  

	4.5 	Withholding
Tax 

	 	NSMY
shall make due payments to the Inland Revenue Board, Malaysia, of such withholding tax (if
any) as may be chargeable on and deducted from the License Fee and any interest thereon
payable hereunder and any other payments which may be subject to withholding tax (if any)
and shall furnish to NSI within fourteen (14) days of each payment, a copy of the
prescribed form for such payment and NSMY’s letter to the Inland Revenue Board
accompanying such payment. A copy of the receipt issued to NSMY for each payment made as
aforesaid shall be delivered by NSMY to NSI within fourteen (14) days from NSMY’s
receipt thereof. 

	4.6 	No
Set-Off 

	 	Subject
to the provisions of Section 4.5 of Article IV hereof, all sums payable by NSMY to NSI
under this Agreement shall be paid without any set-off, counter-claim, qualification, or
condition whatsoever. 

	4.7 	Records 

	 	Each
Party shall keep complete and accurate records of its compliance with its obligations
under this Agreement and permit the other Party and its authorized representatives
(including auditors) to inspect and, if such other Party so requires, to audit such
records at all reasonable times. 

ARTICLE V 
 CERTAIN OBLIGATIONS OF THE PARTIES

UNDER THE AGREEMENT

	5.1 	Certain
Obligations, Rights and Duties of NSI 

	 	NSI
agrees that, in addition to its other obligations under this Agreement, NSI will maintain
and provide support for the Sales Compensation Plan. NSI agrees, among other things: 

	 	5.1(a) 	to
maintain a computer system, including hardware, software, data links, computer
peripherals, printers, etc. to adequately fulfill NSI's obligations under the Sales
Compensation Plan; 

	 	5.1(b) 	to
receive and approve or reject all distributor agreements submitted by Resident NSI
Independent Distributors; 

	 	5.1(c)
 
	to provide necessary training and support to NSMY relating to the Resident NSI
Independent Distributors, including information relating to training methods,
motivational strategies, convention and event planning, technical policies and procedure
knowledge, etc; 

	 	5.1(d) 
	to
receive and use NSMY’s sales information to compute the correct and appropriate
payments to the Resident NSI Independent Distributors as set forth in Section 3.2(b) of
Article III hereof; 

	 	5.1(e)	to
enforce its policy and procedures and, in consultation with NSMY, to discipline NSI
Independent Distributors as it deems necessary to help ensure that the reputation of NSI
is not damaged;  

	 	5.1(f)	to
maintain a record of the Distributor Contracts and, save for information concerning
Commission Payments and special Commission Payments by NSI to NSI Independent
Distributors whose country of residence, as shown in NSI’s records, is not in the
Territory, provide to NSMY, such information relating thereto as NSMY may reasonably
request; and  

	 	5.1(g)	to
perform any other function or provide the necessary support to comply with the terms of
this Agreement and to otherwise support and maintain the Independent Distributor Network
within the Territory.  

	5.2 	Certain
Obligations, Rights and Duties of NSMY 

	 	In addition
to its other obligations under this Agreement NSMY agrees, among other things:  

	 	5.2(a) 
	to
maintain, at its sole cost and expense, such facilities and other places of business
within the Territory necessary to effect the purposes and intentions of this Agreement
and to bear all costs and expenses it incurs in the negotiation, memorialization,
execution and performance of all leases, rentals, equipment, salaries, taxes, licenses,
insurance, permits, telephone, telegraph, promotional, advertising, travel, accounting,
legal and such similar expenses, relating to the business of NSMY under the terms and
conditions of this Agreement, unless otherwise agreed in writing by the Parties;  

	 	5.2(b) 	to
manage its business affairs in such a manner that the reputation of NSI is not damaged; 

	 	5.2(c) 	to
sell Business Portfolio to potential NSI Independent Distributors in accordance with all
applicable laws and industry standards; 

	 	5.2(d)
	to
collect requests for Distributor Contracts from potential NSI Independent Distributors
and forward these contracts to NSI in a timely manner (provided that all such requests
for Distributor Contracts shall be reviewed for acceptance or rejection by NSI in the
United States and in no instance shall NSMY accept or reject such requests for
Distributor Contracts,); 

	 	5.2(e) 	to
lend assistance to NSI Independent Distributors in the Territory; 

	 	5.2(f) 	to
transmit information regarding Net Sales to NSI Independent Distributors and such other
information as NSI may reasonably request; 

	 	5.2(g) 	to
pay Commission Payments to Resident NSI Independent Distributors as set forth in Article
III hereof; 

	 	5.2(h) 	to
use its best efforts to monitor the activities of Resident NSI Independent Distributors; 

	 	5.2(i) 
	to
take any action against Resident NSI Independent Distributors for violation of the terms
and conditions of a Distributor Contract, NSI’s policies and procedures, or any
other rules and regulations of NSI or NSMY as NSI shall reasonably request; and 
 

	 	5.2(j) 
	to
perform any other function or provide support as NSI shall reasonably request to enable
NSI to fully perform its obligations to NSI Independent Distributors under the Sales
Compensation Plan and their Distributor Contracts.  

	5.3 	Board
Representation 

	 	NSI
shall be entitled to appoint a person selected by NSI to hold office as a Director of NSMY
and to remove such appointee at any time and to appoint another in his stead. By its
execution of this Agreement, NSMY confirms that its shareholders have knowledge of
NSI’s right of appointment described in this Section 5.3 and that the shareholders of
NSMY have entered into a shareholders agreement whereby they have acknowledged and agreed
to NSI’s right of appointment aforesaid. 

ARTICLE VI 
BUSINESS PORTFOLIO SALES

	6.1 	Agreement
to Purchase Business Portfolio  

	 	The
Parties acknowledge that by this Agreement, NSMY is granted a license to use the Licensed
Property, including the Independent Distributor Network, in the Territory. NSMY shall use
its best efforts to support the development of the Independent Distributor Network in the
Territory by selling to potential NSI Independent Distributors in the Territory, Business
Portfolio which NSMY has either: 

	 	6.1(a) 	purchased
from NSI, or 

	 	6.1(b) 
	has
sourced and priced locally, or any part thereof, subject to NSI’s review, approval
and general supervision and in accordance with instructions and specifications given by
NSI. 

	6.2 	Pricing 

	 	The
Parties agree that the price of Business Portfolio shall be sold at such prices as the
Parties shall agree and as may be adjusted from time to time by agreement between the
Parties in writing. 

	6.3 	Payment
Method 

	 	NSMY
shall pay in the manner set forth in Article III hereof, the prices stated in the
commercial invoices for Business Portfolio shipped under this Agreement and all import and
other duties and taxes chargeable thereon. 

	6.4 	Quantities 

	 	NSMY
agrees to purchase sufficient quantities of the Business Portfolio from NSI to fill, in a
timely manner, orders received from potential NSI Independent Distributors in the
Territory. 

	6.5 	Quality
of Business Portfolio 

	 	NSI
shall use its best efforts to maintain and augment the quality, image and value of the
Business Portfolio such that Business Portfolio sold in the Territory are consistent with
the quality of those sold in the United States of America. 

	6.6 	Limited
Warranty 

	  	NSMY shall
work with NSI in connection with the development of the Business Portfolio.  

	 	6.6(a)
 
	NSI shall have the right to grant final approval over each form of the Business
Portfolio proposed by NSMY. 

	 	6.6(b)
 
	NSI warrants that Business Portfolio sold to NSMY pursuant to this Agreement will be
consistent with the form of Business Portfolio most recently approved by NSI and shall be
free from defects subject to NSMY making a claim within the time period described below.

	 	6.6(c)
 
	If NSMY determines that any Business Portfolio supplied under this Agreement are not
consistent with the form of Business Portfolio most recently approved by NSI or are
materially defective in any manner, a claim for a refund of the price paid must be made
within forty-five (45) days from the day such Business Portfolio are received in the
Territory.  

	 	6.6(d)
 
	NSI agrees to refund, or credit the account of NSMY, for the purchase price of such
non-merchantable Business Portfolio provided that NSMY either returns the non-conforming
or defective Business Portfolio or destroys them as instructed by NSI.

	 	6.6(e)
 
	In the event no claim is made within such forty-five (45) days, NSI shall have no
obligation to provide a refund of the price paid. 
 

	 	6.6(f)
 
	Except as expressly provided in this Section 6.6 of Article VI hereof, no
representations or warranties by NSI may be implied or are given by NSI regarding the
Business Portfolio whether as to quality, merchantability, fitness for a particular
purpose or otherwise. 

ARTICLE VII 
GOVERNMENTAL APPROVALS, LAWS AND REGULATIONS

	7.1 	Government
Approvals 

	 	NSMY
agrees to obtain, or cause to be obtained, at its sole cost and expense, any governmental
approval and make, or cause to be made, any filings or notifications required under all
applicable laws, regulations and ordinances in the Territory to enable this Agreement to
become effective or to enable any payment pursuant to the provisions of this Agreement to
be made. NSMY agrees to keep NSI informed of its progress in obtaining all such government
approvals. 

	7.2 	Compliance
with Laws 

	 	Each
Party agrees to refrain from any action that will cause the other Party to be in violation
of any applicable law, regulation, or ordinance of any jurisdiction in the Territory or
the United States or elsewhere or any international convention or bilateral or
multilateral treaty to which any jurisdiction in the Territory or the United States is a
signatory, including, without limitation, the U.S. Foreign Corrupt Practices Act of 1977,
the U.S. Export Control Laws, and the U.S. Anti-Boycott laws. 

	7.3 
	Compliance
of Licensed Property 

	 	NSI
agrees to take, or cause to be taken, at its sole cost and expense, all actions necessary
to ensure the compliance of the Licensed Property with applicable laws, regulations and
ordinances in the Territory (including, without limitation, direct selling laws). NSI
agrees to keep NSMY informed of its progress in obtaining all such government approvals. 

ARTICLE VIII

TERM AND TERMINATION

	8.1 	Term 

	 	Subject
to Section 8.2 hereof, this Agreement shall commence and take effect on September 28,
2001, and the initial term shall end on December 31, 2004 unless terminated earlier
pursuant to the provisions of this Article VIII. This Agreement, however, shall
automatically renew for successive one (1) year terms unless either (i) terminated by
either Party by written notice given not less than ninety (90) prior to the end of the
current term of this Agreement, or (ii) terminated in accordance with Sections 8.2 to 8.3
or 8.4 of Article VIII hereof. 

	8.2 	Termination
for Insolvency/Receivership 

	 	This
Agreement may be terminated by either Party immediately or at any time after the
occurrence of any of the following events: 

	 	8.2(a) 	the
other Party shall commence any case, proceeding or other action: 

	 	(i) 	under
any existing or future law of any jurisdiction, domestic or foreign, relating to
bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for
relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent,
or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
compensation or other relief with respect to it or its debts, or  

	 	(ii) 	seeking
the appointment of a receiver, trustee, custodian or other similar action; 

	 	8.2(b) 
	there
shall be commenced against the other Party any case, proceeding or other action of a
nature referred to in Section 8.2(a) of Article VIII hereof which either results in the
entry of an order for relief or any such adjudication or appointment or remains
undismissed, undischarged or unbonded for a period of ninety (90) days; or  

	 	8.2(c) 
	if
the other Party causes or allows a judgment in excess of ten percent (10%) of its total
assets as reflected on its most recent balance sheet to be entered against it or
involuntarily allows a lien, security interest, or other encumbrance to attach to its
assets to secure an amount in excess of ten percent (10%) of its total assets.  

	8.3
	Termination
for Breach of this Agreement
 

	 	8.3(a)
 
	This Agreement may be terminated immediately by NSI if NSMY fails to pay on due date,
any monies payable hereunder by NSMY to NSI and such failure continues for a period of
thirty (30) days from NSMY’s receipt of a written notice given by NSI requiring such
payment. 
 

	 	8.3(b)
 
	This Agreement may be terminated by either Party, if the other Party is in default in
the performance of any material obligation hereunder, other than NSMY’s obligation
to pay the monies referred to in Section 8.2(a), and such default has not been cured
within forty-five (45) days after receipt by the defaulting Party of written notice of
such default served by the defaulting Party requiring such cure.  

	8.4 	Termination
for Breach of Shareholders Agreement/ Upon Termination of Other Intercompany Agreements 

          This Agreement may be terminated
by NSI if: 

	 	8.4(a) 
	any
of the parties (other than Nu Skin Enterprises, Inc.) to the Shareholders’Agreement
by and between Nu Skin Enterprises, Inc. and the other shareholders of NSMY’s
parent/holding company Nu Skin Malaysia Holdings Sdn Bhd (Company No. 552189-P) (“NSMH”),
breaches such party’s obligations thereunder and fails to cure such breach within
thirty (30) days after its receipt of a written notice of such breach is given by Nu Skin
Enterprises, Inc., requiring such cure; 

	 	8.4(b) 	the
aforesaid Shareholders Agreement or any other(s) of the Intercompany Agreements is/are
terminated for any reason whatsoever; 

	 	8.4(c) 
	by
agreement between the parties to the aforesaid Shareholders Agreement, all of the issued
shares in NSMY are sold by NSMH to a third party or NSMY’s business and assets are
sold by NSMY to a third party; 

	 	8.4(d) 	Nu
Skin Enterprises, Inc., NSI or other Affiliate of NSI ceases to hold, directly or
indirectly, an equity interest of at least thirty percent (30%) in NSMY; 

	 	8.4(d) 
	persons
representing from time-to-time such of Nu Skin Enterprises, Inc., NSI or other Affiliate
of NSI as is the holder of an indirect thirty percent (30%) equity interest in NSMY,
cease (for any reason other than their removal by such holder of an indirect thirty
percent (30%) equity interest in NSMY) to hold office as such number of directors of NSMY
as constitute at least thirty percent (30%) of the total number of NSMY’s Board of
Directors.  

	8.5 	Termination
for Loss of NSMY’s Direct Sales License 

	 	NSI
may terminate this Agreement if any license, government approval or corporate authority
necessary for NSMY to conduct business in the Territory as contemplated by the Parties or
the Intercompany Agreements is terminated, not obtained or renewed, or otherwise expires. 

	8.6 	Obligations
of NSMY Upon Termination 

	 	If
this Agreement is terminated by either Party, NSMY shall, notwithstanding any other
provision to the contrary herein, immediately pay all monies then remaining unpaid and
payable by NSMY to NSI whether or not such monies shall then have become due for payment. 

	8.7 	Survival
of Obligations 

	 	The
termination or expiration of this Agreement shall be without prejudice to the rights and
remedies of a Party in respect of any antecedent breach of this Agreement. The obligations
of a Party to pay any sums which are due and payable as of the expiration or termination
of this Agreement and its obligations under Section 2.2 of Article II, under Article IX
and under Article XI hereof shall survive the expiration or termination of this Agreement. 

	8.8 	Reversion
of Rights 

	 	Upon
termination of this Agreement, all rights and licenses herein granted to NSMY shall
immediately cease and shall revert to NSI, and NSMY shall cease representing to any third
party that it has any right to use the Licensed Property. 

ARTICLE IX

INFRINGEMENT; INDEMNIFICATION

	9.1 	No
Known Claims 

	 	NSI
hereby represents and warrants that, as of the date hereof and to the best of its
knowledge, there are no infringement or misappropriation suits pending or filed or, to its
knowledge, threatened against NSI within the Territory that relate to the Licensed
Property and NSI is not presently aware of any such infringement or misappropriation. 

	9.2 	Infringement
Indemnity 

	 	NSI
shall indemnify and hold NSMY harmless from and against all claims, actions, suits,
proceedings, losses, liabilities, costs, damages and attorneys’ fees in respect of a
third party claim alleging infringement or misappropriation by NSMY in respect of its use
of the Licensed Property in the Territory; provided that NSMY shall give NSI prompt
written notice of any claim, action, suit or proceeding and without limiting the
generality of Section 2.2 hereof of Article II, shall cooperate with NSI in the
defense of any such claim, action, suit or proceeding. 

	9.3 	Right
to Select Counsel 

	 
	    NSI
shall have the right to select counsel in any such claim, action, suit or proceeding.  

	9.4 	Modification
by NSI to Licensed Property 

	 	In
the event that any such claim, action or proceeding is successful, NSI shall use
reasonable efforts to make such changes in the Licensed Property to permit NSMY to
continue to make use of the Licensed Property free and clear of all infringement and
misappropriation. 

	9.5 	Notice
by NSMY 

	 	NSMY
shall give NSI prompt written notice of any infringement or misappropriation of the
Licensed Property by any third party. 

	9.6 	Control
of Actions 

	 	NSI
shall have the sole right to initiate any and all legal proceedings against any such third
party and, without limiting the generality of Section 2.2 of Article II hereof, NSMY shall
cooperate with NSI in the pursuit of any such proceeding. NSI shall retain any damage
award obtained from such third party. If NSI elects not to pursue any infringement, NSMY
shall have the right to do so at its own expense and shall retain any damage award
obtained from any third party. 

ARTICLE X

NATURE OF RELATIONSHIP

The relationship of NSMY and NSI shall be and at all times
remain, respectively, that of Licensee and Licensor. Nothing contained or
implied in this Agreement shall be construed to constitute either Party as the
legal representative or agent of the other or to constitute or construe the
Parties as partners, joint venturers, co-owners or otherwise as participants in
a joint or common undertaking. Neither Party is authorized to conclude any
contract or agreement or make any commitment, representation or warranty that
binds the other or otherwise act in the name of or on behalf of the other Party. 

ARTICLE XI

CONFIDENTIALITY

	11.1 	NSMY
Confidentiality 

	 	NSMY
agrees that, during and after the term of this Agreement, NSMY shall maintain in
confidence all NSI Confidential Information and shall not disclose any NSI Confidential
Information to any third party or use any NSI Confidential Information for any purpose
whatsoever except as contemplated by this Agreement. In maintaining the confidentiality of
NSI Confidential Information, NSMY shall exercise the same degree of care that it
exercises with its own confidential information, and in no event less than a reasonable
degree of care. NSMY shall, without limiting its obligation to maintain the NSI
Confidential Information in confidence, use commercially reasonable efforts to ensure that
each of its employees and contractors holds in confidence and makes no use of any NSI
Confidential Information for any purpose other than those permitted by this Agreement.
NSMY shall use its best efforts to ensure that no person other than its employees shall
have access to NSI Confidential Information without the prior written consent of Nu Skin,
and shall restrict access to NSI Confidential Information to those having a need for
access thereto. 

	11.2 	NSI
Confidentiality 

	 	NSI
agrees that, during and after the term of this Agreement, NSI shall maintain in confidence
all NSMY Confidential Information and shall not disclose any NSMY Confidential Information
to any third party or use any NSMY Confidential Information for any purpose whatsoever
except as contemplated by this Agreement. In maintaining the confidentiality of NSMY
Confidential Information, NSI shall exercise the same degree of care that it exercises
with its own confidential information, and in no event less than a reasonable degree of
care. Without limiting its obligation to maintain the NSMY Confidential Information in
confidence, NSI shall use commercially reasonable efforts to ensure that each of its
employees and contractors holds in confidence and makes no use of any NSMY Confidential
Information for any purpose other than those permitted by this Agreement. NSI shall use
its best efforts to ensure that no person other than its employees and contractors shall
have access to NSMY Confidential Information without the prior written consent of NSMY,
and shall restrict access to NSMY Confidential Information to those employees and
contractors having a need for access thereto. 

	11.3 	Exceptions 

	 	The
obligation of confidentiality contained in this Agreement shall not apply to the extent
that (i) either Party is required to disclose information by order or regulation of a
governmental agency or a court of competent jurisdiction, provided, however,
that such Party shall not, to the extent possible, make any such disclosure without first
notifying the disclosing Party and allowing the disclosing Party a reasonable opportunity
to seek injunctive relief from (or a protective order with respect to) the obligation to
make such disclosure, or (ii) the Party receiving disclosed information can demonstrate
that (A) the disclosed information was at the time of such disclosure already in, or
subsequently becomes part of, the public domain other than as a result of actions of the
receiving Party, its Affiliates, employees, consultants, agents or subcontractors in
violation hereof; (B) the disclosed information was received by the receiving Party on an
unrestricted basis from a source unrelated to the disclosing Party provided the receiving
Party has no knowledge or reason to know that such Party is under a duty of
confidentiality with respect to such information. 

	11.4 	Unauthorized
Disclosure 

	 	Each
Party acknowledges and confirms that the Confidential Information of the other Party
constitutes valuable proprietary information and trade secrets of the other Party and that
the unauthorized use, loss or outside disclosure of such information shall cause
irreparable injury to the other Party. Each Party shall notify the other Party immediately
upon discovery of any unauthorized use or disclosure of Confidential Information of the
other Party, and will cooperate with the other Party in every reasonable way to help
regain possession of such information and to prevent its further unauthorized use. Each
Party acknowledges that monetary damages may not be a sufficient remedy for unauthorized
disclosure of the Confidential Information of the other Party and that the other Party
shall be entitled, without waiving other rights or remedies, to such injunctive or
equitable relief as may be deemed proper by a court of competent jurisdiction, and shall
be entitled to recover reasonable attorneys’ fees for any action arising out of or
relating to a disclosure of such Confidential Information. 

	11.5 	Return
of Confidential Information 

	 	NSMY
shall, upon the request of NSI, return to NSI all NSI Confidential Information, including
any copies or reproductions thereof, in NSMY’s possession or control. 

ARTICLE XII

RESTRICTIONS ON NSMY’S ACTIVITIES

	 	12.1 
	Acknowledgments
by NSMY 

	  	NSMY acknowledges
and agrees:  

	 	12.1(a) 
	that
the availability to NSMY pursuant to this Agreement of the NSI Confidential Information
and the Know How enables NSMY to commence, undertake and continue to conduct a
multi-level or direct sales business;  

	 	12.1(b) 
	    that
NSI and its Affiliates including those who are co-party to NSMY to others of the
Intercompany Agreements, conduct their respective businesses synergistically on a
worldwide basis and as an integrated business; 

	 	12.1(c) 	that
the Products are promoted and sold by NSI and its Affiliates on a worldwide basis through
NSI's Independent Distributors; 

	 	12.1(d) 
	that
each of NSI’s Independent Distributors is entitled to market and sell, whether by
himself/herself/itself or by others of NSI’s Independent Distributors in his/her/its
downline organisation, the Products in any country in which NSI or any of its Affiliates
carries on business; 

	 	12.1(e) 	that
accordingly the provisions of Section 12.2 of Article XII hereof are necessary and
reasonable to enable NSI and its Affiliates to protect:- 

	 	i) 	the
NSI Confidential Information and the Know-How which are made available to NSMY pursuant
to the Agreement and which NSMY as a user is required to safeguard; and 

	 	ii) 	the
intellectual and other property which are owned by NSI and/or its Affiliates and which
NSMY is permitted to use as a licensee pursuant to this Agreement and the others of the
Intercompany Agreements;  

	 	12.1.(f) 
	that
in conducting any multi-level business or direct sales business, NSMY or its Affiliate
will necessarily use the NSI Confidential Information and the Know-How made available to
NSMY pursuant to this Agreement; 
 

	 	12.1.(g) 
	that
damages alone would not constitute an adequate remedy for a breach by NSMY of its
obligation under Section 12.2 of Article XII.  

	12.2 	Restricted
activities 

	  	Subject to
the provisions of Section 12.4 of Article XII hereof:  

	 	12.2(a) 
	for
so long as this Agreement is in force, NSMY shall not and shall ensure that its Affiliate
will not establish, develop, carry on or assist in carrying on or be engaged, concerned
or interested in or provide technical, commercial or professional advice to any business,
enterprise or venture or hold, directly or indirectly, any beneficial interest in a
company carrying on in Malaysia a multi-level or direct sales business in competition
with NSI or any of its Affiliates; 

	 	12.2(b) 
	for
so long as this Agreement is in force, NSMY shall not and shall ensure that its Affiliate
will not establish, develop, carry on or assist in carrying on or be engaged, concerned
or interested in or provide technical, commercial or professional advice to any business,
enterprise or venture or hold, directly or indirectly, any beneficial interest in a
company carrying on, in a country other than Malaysia where NSI and/or any of its
Affiliates carries on business, any multi-level or direct sales business in competition
with NSI or any of its Affiliates;

	 	12.2(c) 
	NSMY
shall not and shall ensure that its Affiliate will not, for a period of two (2) years
from the date of expiry or termination of this Agreement, establish, develop, carry on or
assist in carrying on or be engaged, concerned or interested in or provide technical,
commercial or professional advice to any business, enterprise or venture or hold,
directly or indirectly, any beneficial interest in a company carrying on in Malaysia any
multi-level or direct sales business in competition with NSI or any of its Affiliates;

 

	 	12.2(d) 
	NSMY
shall not and shall ensure that its Affiliate will not, for a period of three (3) years
from the date of expiry or termination of this Agreement, establish, develop, carry on or
assist in carrying on or be engaged, concerned or interested in or provide technical,
commercial or professional advice to any business, enterprise or venture or hold,
directly or indirectly, any beneficial interest in a company carrying on in a country
other than Malaysia, where NSI and/or any of its Affiliates carries on business, any
multi-level or direct sales business in competition with NSI or any of its Affiliates;

	 	12.2(e) 
	for
a period of two (2) years from the date of expiry or termination of this Agreement, NSMY
shall not and shall ensure that its Affiliate will not, for the purpose of offering to
such client or customer or obtaining from such supplier, goods or services similar to or
materially competing with those of NSI or any of its Affiliates or the Products, solicit,
canvass or entice away or endeavour to solicit, canvass or entice away from the business
of NSI or any of its Affiliates, the custom of any person, firm or company who (as
applicable) is or was at any time during the period of twelve (12) months immediately
preceding the date of expiry or termination of this Agreement:  

	 	(i) 	following
its negotiations with NSI or any of its Affiliates for the supply of goods or services, a
potential supplier of goods or services to NSI or any of its Affiliates in relation to
the business of NSI or that of any of its Affiliates;  

	 	ii) 	a
customer of or supplier to the business of NSI or that of any of its Affiliates; or 

	 	iii) 	in
the habit of otherwise dealing with NSI or any of its Affiliates in relation to the
business of NSI or that of any of its Affiliates; and 

	 	12.2(f) 
	for
so long as this Agreement is in force and effect and for a period of two (2) years
thereafter, NSMY shall not and shall ensure that its Affiliate will not solicit or entice
away from NSI or any of its Affiliates, any person who is an officer, manager or employee
of NSI or any of its Affiliates or who is seconded or whose services are otherwise made
available to NSMY or NSI or any of its Affiliates. 
 

	12.3 	Construction
of restrictions 

	 	12.3(a) 
	The
obligations contained in Section 12.2 of Article XII hereof shall be construed as
separate obligations and if one or more of such obligation is/are held to be against the
public interest or unlawful or in any way an unreasonable restraint of trade, the
remaining obligations shall continue to bind NSMY. 

	 	12.3(b) 
	If
any obligation contained in Section 12.2 of Article XII hereof would be void as drawn in
any jurisdiction but would be valid if the period or territory of application were
reduced or if some part of the obligation were deleted, the obligation in question shall
apply in such jurisdiction with such modification as may be necessary to make it valid
and effective. 

	12.4 	Limits
on restriction 

	 	The provisions
of Section 12.2 of Article XII hereof shall not apply to:- 

	 	12.4(a) 
	the
sale, marketing or distribution of products which are not personal care, nutritional
products or other products marketed by NSI or any of its Affiliates from time to time; or

 

	 	12.4(b) 
	the
holding by NSMY or its holding company of not more than two percent (2%) of the ordinary
shares of a company carrying on any multi-level or direct sales business which is the
same as or similar to that of NSI or any of its Affiliates if such company is listed on
the Kuala Lumpur Stock Exchange or other recognised stock exchange and the ordinary
shares of such company are quoted on (as applicable) the Kuala Lumpur Stock Exchange or
other recognised stock exchange.  

ARTICLE XIII

MAINTENANCE OF LICENSED PROPERTY;
   RECORDING

	13.1 	Maintenance 

	 	NSI
shall use its best efforts and take all reasonable steps consistent with its existing
internal policies and procedures and with this Agreement to maintain the Licensed Property
in the Territory. In no event shall the provisions of this Article XIII be construed to
require NSI to establish or maintain a branch office, subsidiary corporation or fixed
place of business or similar permanent establishment in the Territory. NSI, in its sole
discretion, shall have the right to record this Agreement or proof thereof, or to enter
NSMY as a registered user in the Territory. NSMY agrees to cooperate, as reasonably
requested by NSI, in arranging for such recordings or entries, or in canceling such
recordings or entries in the event of amendments to or termination of this Agreement for
any reason. 

	13.2 	Cancellation 

	 	Upon
the expiration or the termination of any reason of this Agreement, the Parties shall do
everything necessary to effect the cancellation of the record of NSMY as a registered user
of the Licensed Property in the Territory. 

ARTICLE XIV

MISCELLANEOUS

	 	14.1 
	Assignment 

	 	This
Agreement shall be binding on and inure to the benefit of the respective successors,
assigns and beneficiaries of the Parties; provided that neither party may assign this
Agreement or any rights or obligations hereunder, whether by operation of law or
otherwise, without the prior written consent of the other Party, which consent may be
withheld or granted with or without conditions at the sole discretion of such other Party.
Any such attempted assignment, without the requisite written consent, shall be void and
unenforceable. Notwithstanding the foregoing, NSI may assign this Agreement to any of its
Affiliates. 

	14.2 	Force
Majeure 

	 	A
Party shall not be responsible for failure to perform hereunder due to force majeure,
which shall include, but not be limited to: fires, floods, riots, strikes, labor disputes,
freight embargoes or transportation delays, shortage of labor, inability to secure fuel,
material, supplies, equipment or power at reasonable prices or on account of shortage
thereof, acts of God or of the public enemy, war, terrorist activities or civil
disturbances, any existing or future laws, rules, regulations or acts of any government
(including any orders, rules or regulations issued by any official or agency or such
government) affecting a Party that would delay or prohibit performance hereunder, or any
cause beyond the reasonable control such Party. If an event of force majeure should occur,
the affected Party shall promptly give notice thereof to the other Party and such affected
Party shall use its reasonable best efforts to cure or correct any such event of force
majeure. 

	14.3 	Governing
Law 

	 	This
Agreement shall be governed by and construed in accordance with the laws of the State of
Utah, applicable to contracts made and to be wholly performed within such State. 

	14.4 	Dispute
Resolution 

	 	Any
dispute or difference which may arise between the Parties at any time hereafter whether
during the continuance in force of this Agreement or upon or after its termination,
touching any matter or thing herein contained or the operation or construction of this
Agreement or any matter or thing in any way connection with, arising from or in relation
to this Agreement or the rights, duties or liabilities of the Parties hereunder shall be
finally settled by arbitration in accordance with the International Arbitration Rules of
the American Arbitration (“AAA”). 

	 	14.4(a) 	A
reference to arbitration shall be to three (3) arbitrators. 

	 	14.4(b) 
	The
arbitration shall be held in Provo, State of Utah, United States of America and the
language to be used in the arbitral proceedings shall be English. 

	 	14.4(c)
 
	Pending the commencement of the arbitral proceedings, either Party may apply, to the
courts in Utah and/or Malaysia (which shall have non-exclusive jurisdiction) for the
grant of interim injunctions and orders for the protection and preservation of property
subject of or relating to this Agreement. For the purposes of this Section 14.4(c) and as
provided in the Arbitration Rules of the AAA, arbitral proceedings shall be deemed to
commence on the date when the administrator of the AAA receives notice of arbitration
from the Party initiating the arbitration.  

	14.5 	Applicability
of Post-Effective Law 

	 	The
parties agree that neither the Vienna Convention on the International Sale of Goods nor
any such similar law, treaty or act that becomes effective during the term of this
Agreement shall be applicable to this Agreement or the transactions contemplated
hereunder. 

	14.6 
	Waiver
and Delay
 

	 	No
waiver by either Party of any breach or default in performance by the other Party, and no
failure, refusal or neglect of either party to exercise any right, power or option given
to it hereunder or to insist upon strict compliance with or performance of the other
Party’s obligations under this Agreement, shall constitute a waiver of the provisions
of this Agreement with respect to any subsequent breach thereof or a waiver by either
Party of its right at any time thereafter to require exact and strict compliance with the
provisions thereof. 

	14.7 	Notices 

	 	A
notice, request and other communication hereunder shall be in writing and shall be deemed
to have been duly given, if delivered by hand, courier or registered airmail, or
communicated by facsimile, cable or similar electronic means to the address, facsimile
number or cable identification number provided below (or as changed in accordance with
this Section 14.7) of the Party to whom it is addressed and shall be deemed to be given if
delivered by hand or courier, at the time of delivery or if communicated by facsimile,
cable or similar electronic means, at the time that receipt thereof has been confirmed by
return electronic communication or signal that the message has been received, or if
mailed, ten (10) days after dispatch by registered airmail, postage prepaid:- 

	If to NSMY:	 	Nu Skin (Malaysia) Sdn. Bhd.

Office Lot 04-01, Level 4

PNB Darby Park Retail

No. 10, Jalan Binjai

50450 Kuala Lumpur

Malaysia

Attn: Managing Director

Facsimile No.: 603-2170 7799	 

	If to NSI:	 	Nu Skin International, Inc.

75 West Center Street,

Provo, Utah 84601

United States of America

Attn: General Counsel

Facsimile No:  (801) 345-5999	 

	 	Either
Party may change its facsimile number, cable identification number or address by a notice
given to the other Party in the manner set forth above. 

	14.8 	Integrated
Contract 

	 	This
Agreement constitutes the entire agreement between the Parties relating to the subject
matter hereof and supersedes all prior or contemporaneous negotiations, representations,
agreements and understandings (both oral and written) of the Parties. 

14.9 Modifications and Amendments

	 	No
supplement, modification or amendment of this Agreement shall be binding unless it is in
writing and executed by both of the Parties. 

14.10 Severability

	 	To
the extent that any provision of this Agreement is (or in the opinion of counsel mutually
acceptable to both Parties would be) prohibited, judicially invalidated or otherwise
rendered unenforceable in any jurisdiction, such provision shall be deemed ineffective
only to the extent of such prohibition, invalidation or unenforceability in that
jurisdiction, and only within that jurisdiction. Any prohibited, judicially invalidated or
unenforceable provision of this Agreement will not invalidate or render unenforceable any
other provision of this Agreement, nor will such provision of this Agreement be
invalidated or rendered unenforceable in any other jurisdiction. 

	14.11 	Counterparts
and Headings 

	 	This
Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. All
headings and captions are inserted for convenience of reference only and shall not affect
the meaning or interpretation of any provision hereof. 

IN WITNESS WHEREOF, the Parties have, by their
respective duly authorized representatives, executed this Agreement as of the
day and year first above written. 

NU SKIN INTERNATIONAL, INC.

By:    /s/  Steven J. Lund

Name: Steven J. Lund

Its: President

NU SKIN (MALAYSIA) SDN. BHD.  

By:     Datuk Mohd Nadzmi Bin Mohd Salleh  

Name:    Datuk Mohd Nadzmi Bin Mohd Salleh 

Its:    Director

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