Document:

EX-10.34

(This is the form of Wholesale  Distribution Agreement for Nu Skin USA, Inc. and
the other North  American  Private  affiliates.  Payments  are paid in the local
currency of the country in which the private affiliate operates)

                           Nu Skin International, Inc.
                                       AND
                                Nu Skin USA, Inc.

                        WHOLESALE DISTRIBUTION AGREEMENT
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                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I      DEFINITIONS....................................................2
         1.1   "Agreement"....................................................2
         1.2   "Independent Distributor Network"..............................2
         1.3   "Intercompany Agreements"......................................2
         1.4   "NSI Independent Distributor"..................................2
         1.5   "NSI"..........................................................2
         1.6   "Products".....................................................2
         1.7   "Sales Aids"...................................................3
         1.8   "Territory"....................................................3
         1.9   "Trademarks"...................................................3

ARTICLE II     APPOINTMENT AS EXCLUSIVE WHOLESALE DISTRIBUTOR.................3
         2.1   Scope..........................................................3
         2.2   Sub-distributors...............................................3
         2.3   Sales of Products and Sales Aids...............................3
         2.4   NSI Sales in the Territory.....................................4
         2.5   Sales Outside the Territory....................................4
         2.6   Territory Orders and Inquiries.................................4

ARTICLE III    GOVERNMENTAL APPROVALS AND REGISTRATIONS.......................5

ARTICLE IV     OBLIGATIONS OF NSUSA AS EXCLUSIVE WHOLESALE DISTRIBUTOR
               IN THE TERRITORY...............................................5
         4.1   Marketing and Distribution.....................................5
         4.2   NSUSA Operations...............................................6
         4.3   Pricing Information............................................7
         4.4   NSUSA Claims and Representations...............................7
         4.5   Capitalization.................................................7
         4.6   Customer Support...............................................7
         4.7   Allocation of Expenses.........................................7

ARTICLE V      PURCHASE SALE & DELIVERY OF PRODUCTS AND SALES AIDS............8
         5.1   Agreement to Purchase..........................................8
         5.2   Payment Due Date...............................................9
         5.3   Passage of Title and Risk of Loss..............................9
         5.4   Product Returns/Exchanges Inspection...........................9

ARTICLE VI     PRODUCT AND SALES AIDS PURCHASE PRICES AND TERMS OF PAYMENT...10
         6.1   Product Availability and Pricing..............................10
         6.2   Payment Method................................................10

ARTICLE VII    OBLIGATIONS OF NSUSA AS SUPPLIER OF PRODUCTS AND
               SALES AIDS....................................................11
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         7.1   Product Formulation...........................................11
         7.2   Warranty......................................................11
         7.3   Delivery......................................................11

ARTICLE VIII   SALE AND MANUFACTURE OF PRODUCTS..............................12
         8.1   Non-Competing Products........................................12
         8.2   Competing Products............................................12
         8.3   Discontinued Products.........................................12

ARTICLE IX     NATURE OF RELATIONSHIP........................................13

ARTICLE X      TERM..........................................................13

ARTICLE XI     TERMINATION...................................................13

ARTICLE XII    EFFECT OF TERMINATION.........................................15

ARTICLE XIII   CONFIDENTIALITY...............................................16

ARTICLE XIV    INDEMNIFICATION AND INSURANCE.................................17

ARTICLE XV     MISCELLANEOUS 19
         15.1  Assignment....................................................19
         15.2  Notices.......................................................19
         15.3  Waiver and Delay..............................................20
         15.4  Force Majeure.................................................20
         15.5  Governing Law and Dispute Resolution..........................21
         15.6  Integrated Contract...........................................21
         15.7  Modifications and Amendments..................................22
         15.8  Severability..................................................22
         15.9  Counterparts and Headings.....................................22
<PAGE>
                        WHOLESALE DISTRIBUTION AGREEMENT

         THIS WHOLESALE DISTRIBUTION AGREEMENT (hereinafter "Agreement") entered
into and made effective this 31st day of December,  1997 (the "Effective Date"),
by and between Nu Skin U.S.A.,  Inc., a corporation  organized under the laws of
the State of Delaware, U.S.A., (hereinafter "NSUSA"), and Nu Skin International,
Inc.,  a  corporation  organized  under  the  laws the  State  of Utah,  U.S.A.,
(hereinafter "NSI").  Hereinafter,  NSUSA and NSI collectively shall be referred
to as the "Parties."
                               W I T N E S S E T H

         WHEREAS,  NSI is engaged in the design,  production  and  marketing  of
Products and Sales Aids (as  hereinafter  defined) for  distribution  in markets
through a network of independent distributors; and,

         WHEREAS,  NSUSA desires,  on the terms and conditions  hereinafter  set
forth, to act as NSI's  exclusive  distributor of NSI of Products and Sales Aids
in the Territory (as hereinafter defined); and,

         WHEREAS,  NSI is willing,  on the terms and conditions  hereinafter set
forth, to grant to NSUSA the exclusive right to so distribute Products and Sales
Aids in the Territory; and,

         WHEREAS,  the  Parties  wish to  enter  into a  Wholesale  Distribution
Agreement as set forth herein; NOW, THEREFORE, in consideration of the premises,
the mutual covenants herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
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                                    ARTICLE I
                                   DEFINITIONS

         For the purposes of this  Agreement the  following  words,  terms,  and
phrases  shall have the meaning  assigned to them in this  Article I, unless the
context  otherwise  requires or the parties  otherwise agree within the terms of
this Agreement: 1.1 "Agreement" shall mean this Wholesale Distribution Agreement
between NSI and NSUSA (together with any exhibits and schedules hereto),  as the
same may be modified, amended or supplemented from time to time.

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

         1.3  "Intercompany  Agreements"  shall mean the Wholesale  Distribution
Agreement,  The Licensing and Sales Agreement, The Management Services Agreement
and the Trademark/Tradename Agreement between the Parties.

         1.4 "NSI  Independent  Distributor"  shall  mean a person  or  business
entity  authorized  by  contract  with  NSI  to  distribute,  as an  independent
contractor,  the  Products and Sales Aids in  accordance  with the terms of such
distributor contract.

         1.5 "NSI" shall mean Nu Skin  International,  Inc., a corporation  duly
organized and existing under the laws of the State of Utah, U.S.A.

         1.6 "Products"  shall mean  cosmetics,  nutritional  products,  dietary
supplements,   vitamins,   over-the-counter   drugs,   quasi-drugs,   drugs  and
pharmaceutical products that are produced,  manufactured or purchased by NSI for
sale or resale, and bearing a Nu Skin brand or trademark existing as of the date
hereof,  subject to  availability  due to local  regulatory  requirements in the
Territory.
<PAGE>
         1.7 "Sales  Aids" shall mean  materials,  in whatever  form,  designed,
approved and produced by NSUSA to assist in the marketing of the Products in the
Territory.

         1.8 "Territory"  shall mean the United States of America  including all
its territories.

         1.9 "Trademarks" shall mean those words, symbols, devices, logos, trade
names  and  company  names  or  combinations  thereof  owned  by NSI and used in
relation to or on Products and Sales Aids, whether or not registered.

                                   ARTICLE II
                 APPOINTMENT AS EXCLUSIVE WHOLESALE DISTRIBUTOR

         2.1 Scope.  NSI hereby appoints NSUSA as NSI's  exclusive  distributor,
during the term of this Agreement, for the sale and distribution of Products and
Sales Aids in the Territory,  under the Products' names,  logos, and Trademarks,
subject to all terms and conditions of this Agreement,  and NSUSA hereby accepts
such appointment and authorization.

         2.2 Sub-distributors. Except for the sale of Products and Sales Aids to
NSI  Independent  Distributors,  NSUSA  shall  not,  without  the prior  written
approval of NSI,  appoint  sub-distributors  or agents to promote or  distribute
Products or Sales Aids inside or outside the Territory.

         2.3 Sales of Products and Sales Aids.

                  2.3(a) NSUSA agrees that any distribution of Products or Sales
         Aids  in  the  Territory   shall  be  made  only  to  NSI   Independent
         Distributors.
<PAGE>
                  2.3(b) To facilitate  sales to NSI  Independent  Distributors,
         NSUSA  shall have the right to access  information  regarding  such NSI
         Independent  Distributors  in the Territory on NSI's computer system or
         as otherwise retained by NSI .

         2.4 NSI Sales in the Territory.  NSI agrees not to sell and, to use its
best efforts to prohibit any third party from selling  Products or Sales Aids to
any party  within  the  Territory  or to any party  outside  the  Territory  for
delivery  within  the  Territory,  except  to NSUSA  pursuant  to the  terms and
conditions  of this  Agreement,  unless NSI has received the written  consent of
NSUSA.  Notwithstanding the foregoing, NSI retains the right to license to other
entities the use of the  Independent  Distributor  Network for  distribution  of
products other than those included in the definition of Products in Section 1.5,
without the consent of NSUSA.

         2.5 Sales Outside the Territory. NSUSA agrees that it will neither sell
nor enable any third party to sell  Products or Sales Aids outside the Territory
or sell  Products or Sales Aids to any party within the  Territory for resale or
delivery  outside  the  Territory.  Further,  NSUSA shall not promote or solicit
customers  for Products or Sales Aids sales outside the  Territory.  NSUSA shall
not  establish  any  facility  outside the  Territory  through  which orders are
solicited or in which  inventories  of Products or Sales Aids are stored without
NSI's written consent.
<PAGE>
         2.6 Territory Orders and Inquiries.  The Parties  acknowledge that from
time to time inquiries and orders  concerning  the Territory will arise.  If NSI
receives any order or inquiry  concerning  the sale of Products or Sales Aids in
the  Territory,  NSI agrees to give  prompt  notice of such  inquiry or order to
NSUSA,  such  notice to include  the name and  address of the person  making the
order or inquiry as well as any other relevant  details  regarding such order or
inquiry  that NSUSA shall  reasonably  request.  If NSUSA  receives any order or
inquiry  concerning  the sale of Products or Sales Aids  outside the  Territory,
NSUSA agrees to give NSI prompt notice of such inquiry or order,  such notice to
include the name and address of the person making the order or inquiry,  as well
as any other  relevant  details  regarding  such order or inquiry that NSI shall
reasonably request.

                                   ARTICLE III
                    GOVERNMENTAL APPROVALS AND REGISTRATIONS

         NSUSA 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,  to enable the
Products  or Sales Aids to be  imported in the  Territory  (except as  otherwise
provided  herein) or to enable any payment  pursuant to the  provisions  of this
Agreement  to be made.  NSUSA  agrees to keep NSI  informed  of the  progress in
obtaining all such government approvals.

                                   ARTICLE IV
                   OBLIGATIONS OF NSUSA AS EXCLUSIVE WHOLESALE
                          DISTRIBUTOR IN THE TERRITORY

         4.1  Marketing  and  Distribution.   NSUSA  shall  have  the  following
obligations with respect to marketing and distribution of the Products and Sales
Aids:

                  4.1(a)  To use its best  efforts  to  further  the  promotion,
         marketing,  sales and other distribution of the Products and Sales Aids
         in the Territory.
<PAGE>
                  4.1(b) To maintain, or cause to be maintained, an adequate and
         balanced  inventory of  Products,  Sales Aids,  supplies and  necessary
         materials  to promote,  market,  sell and  distribute  the Products and
         Sales Aids within the Territory.

                  4.1(c)  To  ensure  that  all  inquiries  by  NSI  Independent
         Distributors  and  customers,  including  complaints  are  responded to
         promptly.  To ensure that all orders are processed and all shipments of
         Products  and Sales  Aids are made  within  the  Territory  in a timely
         fashion.

                  4.1(d) To diligently  investigate or cause to be  investigated
         all leads with  potential  customers  referred  to it by NSI or NSI, or
         their affiliates.

                  4.1(e) To permit NSI to visit NSUSA and to visit NSUSA's place
         of business and inspect its  inventories,  service  records,  financial
         records and other relevant documents.

                  4.1(f) To  maintain,  cause to be  maintained,  or contract to
         maintain,  adequate personnel,  distribution and laboratory  facilities
         dedicated on a full-time or part-time  basis to the quality control and
         sale of Products,  in compliance with and to the extent required by all
         laws, ordinances and regulations applicable within the Territory.

                  4.1(g) To provide,  at the request of NSI, a business plan for
         the term and in the form and detail reasonably  requested by NSI and to
         update such business plan as reasonably requested by NSI.

                  4.1(h) To  provide,  at the  request  of NSI,  reports  of its
         activities  and sales  respecting  the  Products  and Sales Aids in the
         Territory  in a form and in such detail and for such time period as NSI
         may reasonably require.
<PAGE>
         4.2  NSUSA  Operations.  NSUSA  agrees  to  maintain,  or  cause  to be
maintained,  such  facilities and other places of business  within the Territory
necessary to effect the purposes and intentions of this Agreement. NSUSA further
agrees  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 and legal expenses,  relating to
such facilities.

         4.3 Pricing Information.  At the request of NSI, NSUSA agrees to advise
NSI of the  distribution  prices of the Products or Sales Aids to be sold to NSI
Independent Distributors within the Territory.

         4.4  NSUSA  Claims  and  Representations.  NSUSA  shall  not  make  any
promises,  representations,  warranties or guarantees  respecting  the Products,
Sales  Aids or the NSI  distributor  sales  and  compensation  plan,  except  in
accordance with those  representations,  warranties or guarantees as provided by
NSI with respect  thereto and in accordance and  compliance  with the applicable
laws of the Territory.

         4.5  Capitalization.  NSUSA agrees to capitalize  itself adequately and
maintain its operations both on a financially sound basis and in compliance with
all applicable laws, regulations or ordinances covering the operations of such a
business entity within any country in which it may conduct business.

         4.6 Customer  Support.  NSI agrees to  cooperate  with NSUSA in dealing
with any NSI  Independent  Distributor  or customer  complaints  concerning  the
Products  and the Sales Aids and to take any action  requested by NSUSA to solve
such  complaints.  NSI also agrees to assist NSUSA in arranging for any customer
warranty service required by law or required pursuant to the judgement of NSUSA.
<PAGE>
         4.7      Allocation of Expenses.

                  4.7(a)  Import  Licenses.  To the extent  import  licenses are
         required  for the  importation  of the  Products or Sales Aids into the
         Territory, NSUSA hereby agrees that it will be responsible for securing
         and  maintaining  such  import  licenses  and  payment of all costs and
         expenses associated therewith.

                  4.7(b)  Import   Expenses.   NSUSA  agrees  that  it  will  be
         responsible  for payment of all customs duties,  excise taxes,  similar
         governmental  charges  and  levies,  and any other  charges or expenses
         related to any Products or Sales Aids imported into the Territory.

                  4.7(c) Other  Expenses.  In addition to the costs and expenses
         described  in clauses (a) and (b) above,  NSUSA  agrees that it will be
         responsible  for payments of the  following  expenses,  fees and costs,
         related to the  development  and maintenance of the Nu Skin business in
         the Territory: (a) fees and expenses to incorporate operating entities;
         (b) fees and expenses for obtaining business licenses and permits;  (c)
         fees,  costs and expenses  incurred in drafting and producing  required
         promotional  documentation,  Sales Aids, and other  literature  such as
         product  catalogues as well as contracts such as local product purchase
         agreements; (d) fees and costs incurred in determining the requirements
         for registering  Products,  including  ascertaining  and complying with
         labelling  and  custom\import  requirements;  (e)  expenses  and  costs
         related  to  locating  and  establishing  office,  warehouse  and other
         physical facilities, including build out, furnishings and equipment, as
         well as negotiation and securing of necessary  leases and permits;  (f)
         all costs and expenses  related to hiring a general  manager and staff,
         and compliance with local labor laws and requirements.
<PAGE>
                                    ARTICLE V
             PURCHASE, SALE AND DELIVERY OF PRODUCTS AND SALES AIDS

         5.1  Agreement  to  Purchase.  NSUSA  shall  order such  quantities  of
Products  and Sales Aids as it deems  necessary  to meet its sales  requirements
within the Territory.

                  5.1(a)  NSI shall use its best  effort to supply  and  deliver
         Products  and Sales  Aids to NSUSA in a timely and  productive  manner,
         subject to Section 15.4 hereof and the  availability  of NSI's  current
         inventory of the Product(s) or Sales aids requested by NSUSA.

                  5.1(b)   NSUSA  shall   source   Products   and  Sales  Aid(s)
         exclusively from NSI; provided however that, if NSI cannot deliver such
         Product(s)  or Sales Aid(s) in a timely  fashion,  NSUSA may source any
         such Product(s) or Sales Aid(s) from any other Nu Skin  affiliate.  5.2
         Payment  Due Date.  NSUSA shall pay for each  delivery of Products  and
         Sales Aids within sixty (60) days after the date of arrival or the date
         of dispatch of a commercial  shipping invoice,  whichever is later, and
         shall make  payment  for such  Products  and Sales Aids as  provided in
         Section 6.2 of this Agreement.

         5.3  Passage  of Title and Risk of Loss.  Title to and risk of loss for
any Product(s) or Sales Aid(s)  ordered and supplied  pursuant to this Agreement
shall pass to NSUSA upon  delivery of the goods  unless  otherwise  indicated in
writing.  Delivery  shall  be  made  in  a  commercially  reasonable  manner  in
accordance  with  standards  applicable in the trade and industry.  Delivery and
passage  of  title   shall  be   effected   within  the   confines  of  the  NSI
distribution/warehousing  facility as NSUSA personnel pick Products and/or Sales
Aids from inventory set for shipping to Independent Distributors.

         5.4 Product Returns/Exchanges Inspection. If any Products or Sales Aids
are returned to NSUSA because of defect, NSUSA shall within forty-five (45) days
following  actual  receipt,  return  such  Products or Sales Aids to NSI. In the
event of such a return, NSI shall make appropriate  arrangements,  acceptable to
NSUSA,  to replace any such defective  Products or Sales Aids at NSI's sole cost
and expense or, failing such  replacement,  shall,  at the option of NSI, either
credit the  purchase  price of the  defective  Products or Sales Aids to NSUSA's
account or promptly grant NSUSA a cash refund for such purchase price. If NSI is
not  notified  in  writing  of any  defective  Products  or  Sales  Aids  within
forty-five (45) days after actual receipt thereof by NSUSA,  then NSUSA shall be
deemed to have  waived  its right to claim any defect in the  Products  or Sales
Aids;  provided that for any latent or other defect not  reasonably  discernible
upon inspection of the Products or Sales Aids under the prevailing circumstances
NSUSA shall have until  forty-five  (45) days after  discovery of such defect to
exercise its rights under this Section 5.4.

                                   ARTICLE VI
           PRODUCT AND SALES AIDS PURCHASE PRICES AND TERMS OF PAYMENT

         6.1 Product Availability and Pricing. Prices to be paid by NSUSA to NSI
for  Products  and  Sales  Aids  purchased  hereunder  shall be  negotiated  and
determined  on an arm's length basis and be adjusted from time to time as agreed
by the Parties in writing,  provided  that the purchase and price terms shall be
based upon the terms offered by NSI to its other Nu Skin affiliates.
<PAGE>
         6.2  Payment  Method.  NSUSA  shall  pay the  commercial  invoices  for
Products and Sales Aids shipped under this  Agreement in  immediately  available
funds by wire  transfer to a bank or banks  designated  by NSI, or by such other
means of payment  agreed to by NSI from time to time.  All purchases of Products
and Sales Aids will be payable in U.S.  dollars . Without  limiting any of NSI's
other rights and remedies  pursuant to this  Agreement,  amounts not paid within
the time period set forth in the payment  provisions  herein shall bear interest
at the prime  interest  rate as  reported in The Wall  Street  Journal  plus two
percent (2%) for the full period outstanding.

                                   ARTICLE VII
           OBLIGATIONS OF NSUSA AS SUPPLIER OF PRODUCTS AND SALES AIDS

         7.1 Product  Formulation.  NSI and NSUSA agree to cooperate to mutually
determine the formulae or  ingredients  to be used for Products in the Territory
based on local market regulations and consumer  preferences.

         7.2  Warranty.  NSI warrants  that the Products and Sales Aids supplied
hereunder  shall be  merchantable  under  (and  will  comply  with) the laws and
regulations of the  jurisdiction in which  distribution of such Product or Sales
Aid is intended;  that it will deliver good title  thereto and that Products and
Sales Aids will be  delivered  free from any lawful  security  interest or other
lien or encumbrance.

                  7.2(a) NSI's liability for any breach of such warranties shall
         not exceed in amount the price of the Products or Sales Aids in respect
         of which  any  breach  is  claimed.  NSI'S  WARRANTY  STATED  HEREIN IS
         EXPRESSLY  IN  LIEU  OF  ANY  OTHER  WARRANTIES,  EXPRESS  OR  IMPLIED,
         INCLUDING ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.

                  7.2(b) NSI neither assumes nor authorizes any person or entity
         to assume for it any other liability in connection with the Products or
         Sales  Aids  supplied  hereunder,  and there are no oral  contracts  or
         warranties collateral to or affecting this Agreement.  NSI shall not be
         liable to NSUSA or any third  parties  for  consequential,  special  or
         incidental damages.

         7.3  Delivery.  NSI shall  promptly,  in  accordance  with  normal  and
commercially  reasonable delivery schedules in the trade, deliver to NSUSA those
Products or Sales Aids for which NSUSA  requires in  accordance  with  Article V
hereof.

                                  ARTICLE VIII
                        SALE AND MANUFACTURE OF PRODUCTS

         8.1 Non-Competing Products. Nothing contained herein, shall restrict or
prohibit  NSUSA  from  selling,  distributing,  manufacturing  or  causing to be
manufactured  products or materials which do not compete  directly or indirectly
with the  Products  and Sales  Aids,  provided  that such other  products do not
infringe upon any patent,  name,  Trademark,  emblem,  trade name, design right,
model or other commercial or industrial property right of NSI.

         8.2 Competing Products. During the term of this Agreement,  NSUSA shall
not,  and  shall  not  authorize  a third  party  to,  manufacture,  cause to be
manufactured, distribute or sell (i) any products or materials which directly or
indirectly  compete  with the  Products  or the Sales Aids or (ii) copies of the
Products,  Sales Aids, or other  products that might  reasonably be deemed under
U.S. or foreign law to be confusingly  similar to the Products or Sales Aids, in
each case without the prior written consent of NSI.
<PAGE>
         8.3 Discontinued Products.  Notwithstanding the foregoing, in the event
NSUSA receives notice from NSI of the discontinuance of the sale of any Product,
NSUSA  may  elect  to  manufacture  or cause to be  manufactured  such  Product;
provided that, if such discontinued Product competes directly or indirectly with
any other NSI Product,  the prior written consent of NSI shall be required which
consent  shall not be  unreasonable  withheld or delayed.  If NSUSA elects to so
manufacture or cause to be manufactured such discontinued  Product, NSI shall, ,
request  that NSI license the formula to such  discontinued  Product to NSUSA on
substantially  the same  terms as set forth in the  Trademark/Tradename  License
Agreement, dated as of the date hereof, by and between NSI and NSUSA.
<PAGE>
                                   ARTICLE IX
                             NATURE OF RELATIONSHIP

The   relationship  of  NSUSA  and  NSI  shall  be  and  at  all  times  remain,
respectively,  that of independent  contractor and  contracting  party.  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.

                                    ARTICLE X
                                      TERM

          This  Agreement  shall be effective from the Effective Date for a term
of five (5) years  unless  terminated  pursuant  to Article XI. The Term of this
Agreement  shall be  renewed  automatically  for  successive  one (1) year terms
unless terminated 90 days prior to the expiration of the current term.

                                   ARTICLE XI
                              TERM AND TERMINATION

         11.1 Term.  This  Agreement  shall be effective from the Effective Date
for a term of five (5) years unless terminated  pursuant to paragraph 7.2 below.
The term of this  Agreement  shall be renewed  automatically  for successive one
year terms unless terminated (90) days prior to the then current term.

         11.2  Termination.  This  Agreement  may be  terminated by either party
immediately or at any time after the occurrence of any of the following events:

                  (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

                  (b) there shall be commenced against the other Party any case,
         proceeding or other action of a nature  referred to in clause (a) above
         which  (A)  results  in the  entry of an order  for  relief or any such
         adjudication or appointment or (B) remains undismissed, undischarged or
         unbonded for a period of 90 days.  Events  described in clauses (a) and
         (b) of this Section 7.2 shall be referred to as a  "Bankruptcy  Event".
         If a Bankruptcy  Event occurs,  all amounts owing under this  Agreement
         shall become immediately due and payable, without any notice thereof.

         11.3 Termination on Default. This Agreement may be terminated by either
party,  if the other  party is in default  in the  performance  of any  material
obligation  under this  Agreement  and such  default  has not been cured  within
ninety  (90)  days  after  receipt  of  written  notice of such  default  by the
defaulting party.

         11.4  Termination  by NSI . This Agreement may be terminated by NSI (a)
if the original  pre-IPO  shareholders of Nu Skin Asia Pacific no longer owns or
controls a majority of the voting interest in NSUSA;  such  termination  will be
effective  thirty (30) days after  delivery of written notice by NSI to NSUSA of
the  occurrence  of a change in control  and its  intention  to  terminate  this
Agreement based thereon); or, (b) if NSUSA causes or allows a judgment in excess
of  twenty-five  million  dollars  ($25,000,000)  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 twenty-five  million  dollars
($25,000,000).
<PAGE>
         11.5 Survival of Obligations. The obligations of the Parties to pay any
sums  which are due and  payable as of the  expiration  or  termination  of this
Agreement shall survive the expiration or termination of this Agreement.

         11.6 Reversion of Rights. Upon termination of this Agreement by NSI all
rights and licenses  herein granted to NSUSA shall  immediately  cease and shall
revert to NSI, and NSUSA shall cease representing to any third party that it has
any right to use, assign, convey or otherwise transfer the Licensed Property.

                                   ARTICLE XII
                              EFFECT OF TERMINATION

         12.1 Upon termination of this Agreement by NSI, all rights and licenses
herein  granted to NSUSA  shall  cease and shall  revert to NSI and NSUSA  shall
immediately cease holding itself out to the public as NSI's exclusive  wholesale
distributor in the Territory or otherwise represent that it is associated in any
manner with NSI.

         12.2 Upon  termination of this  Agreement,  NSI may either (a) deliver,
and NSUSA shall pay for,  all  Products and Sales Aids ordered by NSUSA prior to
such  termination  or (b) cancel,  without cost or liability,  the order of such
Products or Sales Aids. 12.3 Upon  termination of this Agreement,  neither party
shall be released from its obligations to pay monies due or to become due to the
other party or to complete any unfulfilled obligations under this Agreement, and
each party shall  immediately pay, perform and discharge all debts,  obligations
and liabilities hereunder.
<PAGE>
         12.4 Upon  termination of this Agreement for any reason,  neither party
shall be liable for any special, indirect, incidental, punitive or consequential
damages, regarding such termination, irrespective of whether such obligations or
liabilities may be  contemplated in any law applicable  within the Territory and
or elsewhere,  and,  except as otherwise  provided by applicable law, each party
hereby waives and relinquishes any rights,  pursuant to law or otherwise, to any
such damages. The remedies contained herein shall be exclusive.

         12.5 The  provisions  of Article XII,  Article XIII and Article XIV, as
well as any other  provisions  that by their  terms so  provide,  shall  survive
termination of this Agreement and continue in full force and effect thereafter.

                                  ARTICLE XIII
                                 CONFIDENTIALITY

         13.1 All  trade  secrets,  proprietary  technology,  know-how  or other
non-public or proprietary business or technical information owned or used by NSI
or NSUSA and supplied to or acquired by the other whether in oral or documentary
form  (the  "Confidential  Information")  shall  be  supplied  and  acquired  in
confidence  and shall be solely for the use of the receiving  party  pursuant to
this  Agreement  and  such  party  shall  keep  the   Confidential   Information
confidential  and shall not  disclose  the same,  at any time during the term of
this  Agreement  or after  its  termination,  except  to its  employees,  or its
affiliates,  or its  affiliates'  employees  for the purposes of its business in
accordance  with this  Agreement and except as may be required by law;  provided
that if the receiving party determines that a disclosure is required by law, the
<PAGE>
receiving  party  shall  notify  the  disclosing  party  in  order  to give  the
disclosing  party an opportunity  to seek an injunction or otherwise  attempt to
keep the Confidential  Information  confidential.  The receiving party shall, at
the  request  of the  disclosing  party,  destroy  or  return  the  Confidential
Information  without  retaining  copies  if,  as  and  when  this  Agreement  is
terminated or expires.  For purposes of this Agreement,  the term  "Confidential
Information"  shall  not  include  information  or  documents  that  (i)  become
generally  available to the public other than as a result of a disclosure by the
receiving party, (ii) was otherwise  lawfully  available to the receiving party,
or (iii) was generated  independently  by the receiving party. The provisions of
this Article shall survive termination of this Agreement.

                                   ARTICLE XIV
                          INDEMNIFICATION AND INSURANCE

         14.1  NSI  agrees  during  and  after  the  term of this  Agreement  to
indemnify  and  hold  harmless  NSUSA  from  liability,  loss,  cost or  damage,
(including  reasonable  attorneys'  fees)which  NSUSA  may  incur as a result of
claims,  demands or  judgements,  of any kind or nature,  by anyone  whomsoever,
arising  out of (i) an alleged or actual  defect in the design,  manufacture  or
content of, or any harm  caused by any  Products or Sales Aids or the failure of
any  Product  to  comply  with all  applicable  regulatory  requirements  in the
Territory;  or (ii) a claim that NSI's  proprietary  information  infringes  any
patent, copyright,  trade secret or other intellectual property right of a third
party;  provided  that NSUSA  provides NSI with prompt  notice in writing of any
such claim or demand and NSUSA  cooperates with NSI in the defense or settlement
of any such claim or action.  Notwithstanding  the foregoing,  NSI shall have no
obligation to indemnify NSUSA for any liabilities arising out of NSUSA's failure
or the failure of the NSI Independent  Distributors in the Territory to utilize,
sell,  market or promote the  Products  (i) in the manner for which the Products
are reasonably intended, (ii) in compliance with Nu Skin policies and procedures
or (iii) as  contemplated by the  Intercompany  Agreements,  including,  but not
limited to,  liabilities  arising out of false or misleading  claims made by the
NSI  Independent  Distributors,  unless NSUSA shall have  requested  NSI to take
disciplinary  actions  against an NSI Independent  Distributor  operating in the
Territory and NSI shall have,  either  negligently or in breach of its fiduciary
duties, failed to take such actions against such NSI Independent Distributor and
the  failure  of NSI to take  such  actions  is deemed  to have  reasonably  and
proximately  resulted  in  NSUSA  incurring  a loss in  which  event  NSI  shall
indemnify  NSUSA for such loss pursuant to the  provisions of this Section 14.1.
14.2 NSUSA agrees  during and after the term of this  Agreement to indemnify and
hold harmless NSI from  liability,  loss, cost or damage  (including  reasonable
attorney's  fees),  which  NSI may  incur  as a result  of  claims,  demands  or
judgements,  of any kind or  nature,  by  anyone  whosoever,  arising  out of or
resulting  from the  possession,  use or sale of the  Products  or Sales Aids by
NSUSA or any of the NSI Independent  Distributors  (except to the extent NSI has
indemnified  NSUSA  against  such claims,  demands,  or  judgements  pursuant to
Section 14.1 hereof);
<PAGE>
By way of  elaboration,  but not  limitation,  NSUSA shall indemnify NSI for any
liabilities arising out of NSUSA's failure or the failure of the NSI Independent
Distributors to utilize,  sell, sell,  market or promote the Products (i) in the
manner for which the Products are reasonably  intended,  (ii) in compliance with
Nu Skin policies and  procedures or (iii) as  contemplated  by the  Intercompany
Agreements,  including but not limited to,  liabilities  arising out of false or
misleading  claims made by NSI  Independent  Distributors.  Notwithstanding  the
foregoing,  in the event NSUSA  shall have  requested  NSI to take  disciplinary
actions against an NSI Independent  Distributors  operating in the Territory and
NSI shall have, either negligently or in breach of its fiduciary duties,  failed
to take such actions against such NSI Independent  Distributor,  NSUSA shall not
be obligated to indemnify NSI for any loss which NSI might incur as a reasonable
and proximate result of such failure. 14.3 At all times during and following the
terms of this  Agreement,  each of NSI and NSUSA shall  maintain  insurance  (or
cause the other  party to be added as an  additional  insured  to any policy not
maintained  by such party) with one or more  reputable  insurers  reasonable  in
coverage and amount in direct proportion and corresponding to the business to be
conducted by such party pursuant to this Agreement.

                                   ARTICLE XV
                                  MISCELLANEOUS

         15.1  Assignment.  This Agreement  shall be binding on and inure to the
benefit of the heirs,  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's authorized  representative.  Any such
attempted assignment, without the written consent provided herein, shall be void
and unenforceable.
<PAGE>
         15.2 Notices. All notices,  requests and other communications hereunder
shall be in writing and shall be deemed to have been duly given, if delivered by
hand, or if communicated by facsimile,  cable or similar electronic means to the
facsimile number or cable  identification  number as previously provided by each
party to the other,  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,
from any post office addressed as follows:

         If to NSI:        Attn.: General Manager
                           Nu Skin International, Inc.
                           75 West Center Street
                           Provo, Utah 84601
                           USA
                           Facsimile: 801-345-5999

         If to NSUSA:      Attn.:  General Manager
                           Nu Skin U.S.A., Inc.
                           75 West Center Street
                           Provo, Utah 84601
                           USA
                           Facsimile No.: 801-345-5099

         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.
         15.3  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.
<PAGE>
         15.4 Force Majeure. The Parties 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 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 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.

         15.5  Governing Law and Dispute  Resolution.  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. Any
dispute  arising out of this Agreement,  if not resolved by mutual  agreement of
NSI and NSUSA  within 30 days after  written  notice of such dispute is given by
NSI or NSUSA, as the case may be, shall be resolved  through the Utah office and
division of the American Arbitration  Association ("AAA"). If the dispute is not
resolved  within  such 30-day  period,  the Parties  shall  petition  the AAA to
promptly  appoint a competent,  disinterested  person to act as such arbitrator.
Within 30 days after the  designation or appointment  of such  arbitrator,  such
<PAGE>
arbitrator shall be required to commence the arbitration proceeding in the State
of Utah at a time and place to be fixed by the  arbitrator,  who shall so notify
NSI and NSUSA. Such arbitration proceeding shall be conducted in accordance with
the  applicable  rules and  procedures  of the AAA,  and/or as otherwise  may be
agreed by NSI and  NSUSA.  The  decision  of the  arbitrator  shall be final and
binding  upon NSI and  NSUSA  and may be  enforced  in any  court  of  competent
jurisdiction.  The expenses and costs of such  arbitration  shall be divided and
borne equally by NSI and NSUSA;  provided,  that each of NSI and NSUSA shall pay
all fees and expenses  incurred by it in  presenting  or defending  against such
claim, right or cause of action.

         15.6 Integrated Contract. This Agreement together with the document and
agreements  referred  to herein  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.

         15.7  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.

         15.8  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.

         15.9  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.
<PAGE>
         IN WITNESS  WHEREOF,  the  Parties  have caused  this  Agreement  to be
executed in the United  States of America by their  respective  duly  authorized
representatives as of the day and the year first above written.

NU SKIN INTERNATIONAL, INC.                          NU SKIN USA, INC.

By:      /s/  Steven J. Lund                         By:      /s/ Keith R. Halls
Name:    Steven J. Lund                              Name:    Keith R. Halls
Its:     Executive Vice President & Secretary        Its:     Vice PresidentEX-10.35

(This is the form of Licensing and Sales Agreement for Nu Skin USA, Inc. and the
other North American Private affiliates. Payments are paid in the local currency
of the country in which the private affiliate operates)

                           NU SKIN INTERNATIONAL, INC.
                                       AND
                               NU SKIN USA, INC.

                          LICENSING AND SALES AGREEMENT
<PAGE>
                                TABLE OF CONTENTS

                                                                            Page

ARTICLE I         DEFINITIONS.................................................2
         1.1      "Agreement".................................................2
         1.2      "Bonus Payments"............................................2
         1.3      "Commission Expense.........................................2
         1.4      "Copyrights" ...............................................2
         1.5      "Distributor Contract"......................................3
         1.6      "Distributor Lists".........................................3
         1.7      "Fixed Commission Expense"..................................3
         1.8      "Independent Distributor Network"...........................3
         1.9      "Intercompany Agreements"...................................3
         1.10     "Introductory Kit"..........................................3
         1.11     "Know-How"..................................................3
         1.12     "Licensed Property".........................................3
         1.13     "Net Sales".................................................3
         1.14     "NSI Independent Distributor"...............................4
         1.15     "Products"..................................................4
         1.16     "Proprietary Information"...................................4
         1.17     "Resident NSI Independent Distributor"......................5
         1.18     "Sales Compensation Plan"...................................5
         1.19     "Sales Aids"................................................5
         1.20     "Territory".................................................5

ARTICLE II        GRANT OF LICENSE AND PARTIAL ASSIGNMENT OF
                  OBLIGATIONS; LICENSE FEES...................................5
         2.1      Grant of License............................................5
         2.2      Assignment of Obligations...................................5
         2.3      NSI's Interest in Licensed Property.........................6
         2.4      Recitals of Value of Licensed Property......................6
         2.5      Warranty of Title...........................................6
         2.6      Modifications...............................................6
         2.7      License Fee.................................................6

ARTICLE III       COMPUTATION AND PAYMENT TERMS...............................6
         3.1      Bonus Payments..............................................6
         3.2      License Fee.................................................8
         3.3      Records.....................................................9
         3.4      Payments to NSI.............................................9
         3.5      Payments to NSUSA...........................................9
         3.6      Default Rate................................................9

ARTICLE IV        CERTAIN OBLIGATIONS OF THE PARTIES UNDER
                  THE AGREEMENT...............................................9
         4.1      Certain Obligations, Rights and Duties of NSI...............9
         4.2      Certain Obligations, Rights and Duties of NSUSA............10
<PAGE>
ARTICLE V         INTRODUCTORY KIT SALES.....................................11
         5.1      Agreement to Purchase Introductory Kits....................11
         5.2      Pricing....................................................11
         5.3      Payment Method.............................................11
         5.4      Quantities.................................................12
         5.5      Quality of Introductory Kits...............................12
         5.6      Merchantability............................................12

ARTICLE VI        GOVERNMENTAL APPROVALS, LAWS AND REGULATIONS...............12
         6.1      Government Approvals.......................................12
         6.2      Compliance with Laws.......................................13
         6.3      Compliance of Licensed Property............................13

ARTICLE VII       TERM AND TERMINATION.......................................13
         7.1      Term.......................................................13
         7.2      Termination................................................13
         7.3      Termination on Default.....................................14
         7.4      Termination on Change of Control...........................14
         7.5      Survival of Obligations....................................14
         7.6      Reversion of Rights........................................14

ARTICLE VIII      INFRINGEMENT; INDEMNIFICATION..............................15

ARTICLE IX        NATURE OF RELATIONSHIP.....................................16

ARTICLE X         CONFIDENTIALITY............................................17

ARTICLE XI        MAINTENANCE OF LICENSED PROPERTY; RECORDING................18

ARTICLE XII       TECHNOLOGY TRANSFER REGISTRY (TTR) REQUIREMENTS............18
         12.1     Continued Access to Improvements...........................18

ARTICLE XIII      MISCELLANEOUS..............................................18
         13.1     Assignment.................................................18
         13.2     Force Majeure..............................................18
         13.3     Governing Law and Dispute Resolution.......................19
         13.4     Waiver and Delay...........................................19
         13.5     Notices....................................................20
         13.6     Integrated Contract........................................20
         13.7     Modifications and Amendments...............................20
         13.8     Severability...............................................21
         13.9     Counterparts and Headings..................................21
<PAGE>
                          LICENSING AND SALES AGREEMENT

         THIS LICENSING AND SALES  AGREEMENT  (hereinafter  the  "Agreement") is
entered into and made effective this 31st day of December,  1997 (the "Effective
Date"),  between Nu Skin International,  Inc., a corporation organized under the
laws of the State of Utah,  U.S.A.  (hereinafter  referred to as "NSI"),  and Nu
Skin USA, Inc., a corporation organized under the laws of the State of Delaware,
U.S.A. (hereinafter "NSUSA").  Hereinafter,  NSI and NSUSA shall collectively be
referred to as the "Parties."

                               W I T N E S S E T H

         WHEREAS,  NSI is engaged in the design,  production  and  marketing  of
products  and related  sales aids,  for  multi-national  distribution  through a
network of independent distributors; and

         WHEREAS,  NSUSA  desires  to act as the  wholesale  distributor  of NSI
products in the  Territory (as  hereafter  defined) , having  entered a separate
written Wholesale Distribution Agreement with NSI; and,

         WHEREAS,  NSI and NSUSA  desire to  allocate  use of NSI's  Independent
Distributor  Network (as defined  below) to promote  sales of Products and Sales
Aids (as hereafter defined); and

         WHEREAS,  NSI desires to further  develop  and enlarge its  Independent
Distributor  Network in the Territory  with the  assistance of NSUSA,  for their
mutual  benefit,  in  accordance  with  the  terms  and  conditions  hereinafter
provided; and

         WHEREAS, NSUSA recognizes and agrees that NSI has expended considerable
time,  effort and  resources to develop and  maintain the Licensed  Property (as
hereafter  defined)  and  NSUSA  further  agrees it will  derive a  considerable
benefit from its use of the Licensed  Property in the  Territory  and from NSI's
efforts and expenditures respecting the Licensed Property; and
<PAGE>
         WHEREAS,  the  Parties  wish to enter  into  this  Licensing  and Sales
Agreement as set forth herein;

         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, the following words and terms shall
have the meaning assigned to them in this Article I:

         1.1 "Agreement" shall mean this Licensing and Sales Agreement (together
with any exhibits and schedules hereto), as the same may be modified, amended or
supplemented from time to time.

         1.2 "Bonus Payments" shall mean, for any Independent  Distributor,  all
monetary  obligations  due to such  distributor  accrued  under the terms of the
Sales Compensation Plan portion of such distributor's Distributor Contract .

         1.3 "Commission Expense" shall mean all direct expenses of NSI incurred
in  operating,  managing,  and  executing  the Sales  Compensation  Plan.  These
expenses   include,   but  are  not  limited  to  amounts  paid  to  Independent
Distributors  as Bonus Payments as well as NSI's  operational  costs  associated
with the calculation of these monthly payments.

         1.4 "Copyrights" shall mean any and all protectable software, programs,
databases,  source codes and applications  owned by NSI or which NSI has a right
to  use,  license  or  sub-license,  relating  directly  or  indirectly  to  the
Independent  Distributor  Network,  Distribution Lists or the Sales Compensation
Plan.
<PAGE>
         1.5  "Distributor   Contract"  shall  mean,  for  any  NSI  Independent
Distributor,  its  contract  pursuant to which it is  authorized  to  distribute
Products and Sales Aids.

         1.6   "Distributor   Lists"  shall  mean  any  and  all  individual  or
accumulated name, address,  identification  number,  sponsor name and/or similar
lists of all present or future NSI  Independent  Distributors  expressed  in any
medium.

         1.7 "Fixed  Commission  Expense" shall mean, for any period,  forty-two
percent (42%) of the aggregate  amount in U.S.  dollars of Net Sales of Products
by NSUSA during such period.

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

         1.9  "Intercompany  Agreements"  shall mean the Wholesale  Distribution
Agreement, The Licensing and Sales Agreement, the Management Services Agreement,
and the Trademark/Tradename License Agreement between the Parties.

         1.10 "Introductory Kit" shall mean those materials  purchased by an 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.

         1.11  "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, whether or not considered
proprietary,  relating to the Independent  Distributor  Network, the Distributor
Lists, and the Sales Compensation Plan.

         1.12  "Licensed  Property"  shall  mean  the  Independent   Distributor
Network, the Distributor Lists, the Sales Compensation Plan, the Copyrights, and
the associated Know-How.

         1.13 "Net Sales" shall mean, for any period, the number of Products and
Sales Aids sold by NSUSA to NSI  Independent  Distributors  during such  period,
multiplied by NSUSA's then current selling price to NSI Independent Distributors
for each such  Product  or Sales  Aids less  applicable  value  added  taxes and
returns or refunds reasonably accepted and credited by NSUSA during such period.
<PAGE>
         1.14 "NSI  Independent  Distributor"  shall  mean a person or  business
entity who has entered into a Distributor Contract.

         1.15 "Products" shall mean those goods sold by NSI or NSUSA which carry
a point value within the Sales Compensation Plan.

         1.16 "Proprietary  Information"  shall mean,  without  limitation,  all
information other than information in published form or expressly  designated by
either  party in writing as  non-confidential,  which is directly or  indirectly
disclosed to the other party,  regardless  of the form in which it is disclosed,
relating in any way to the following  property owned by the Parties or which the
Parties have been  licensed to use or  sub-license:  (1)  proprietary  technical
information  related to the  Licensed  Property  and the  Introductory  Kit; (2)
information  respecting  actual or potential  customers or customer contacts and
customer sales  strategies,  names,  addresses,  phone  numbers,  identification
numbers, database information and its organization, unique business methods; (3)
market studies, penetration data, customers,  products,  contracts,  copyrights,
computer programs,  applications,  technical data, licensed technology, patents,
inventions,   procedures,  methods,  designs,  strategies,  plans,  liabilities,
assets, cost revenues,  sales costs,  production costs, raw material sources and
other market  information;  (4) other sales and  marketing  plans,  programs and
strategies;  (5) trade secrets, Know-How, designs and proprietary commercial and
technical information,  methods, practices, procedures, processes, formulae with
respect to  manufacturing,  assembly,  design or processing  products subject to
this Agreement and any  component,  part or  manufacture  thereof;  (6) profits,
organization,  employees,  agents,  distributors,  suppliers, trade marks, trade
names and  services;  (7) other  business  and  commercial  practices in general
relating  directly or indirectly to the  foregoing;  and, (8) computer  disks or
other records or documents,  originals or copies, containing in whole or in part
any of the foregoing.
<PAGE>
         1.17 "Resident Independent  Distributor" shall mean any NSI Independent
Distributor  whose country of primary residence for tax purposes as shown on the
records of NSI is the Territory.

         1.18 "Sales  Compensation  Plan" shall mean the copyrighted  method set
forth in the  Distributor  Contract  employed by NSI to calculate Bonus Payments
paid to the Independent Distributor Network upon the sale of Products.

         1.19 "Sales Aids" shall mean materials,  in whatever form and/or design
produced to assist in the marketing of Products. 1.20 "Territory" shall mean the
United States including all of its Territories.

                                   ARTICLE II

                   GRANT OF LICENSE AND PARTIAL ASSIGNMENT OF
               DISTRIBUTOR CONTRACT OBLIGATIONS; AND LICENSE FEES

         2.1 Grant of  License.  Subject  to the terms  and  conditions  of this
Agreement,  NSI hereby grants to NSUSA an exclusive  license to use the Licensed
Property  in the  Territory;  provided  that all such uses  shall  comply in all
material  respects with the terms of this Agreement and;  provided  further that
NSUSA shall not have the right to grant any right,  title use or sublicense  for
the Licensed Property.

         2.2  Assignment  of  Obligations.  NSI hereby  transfers and assigns to
NSUSA  its   obligations  to  make  Bonus   Payments  to  Resident   Independent
Distributors  under their  Distributor  Contracts and NSUSA hereby  accepts such
transfer and assignment and assumes such  obligations.  NSUSA shall be obligated
to  make  such  Bonus  Payments  earned  on a  monthly  basis,  and  shall  bear
responsibilities and financial obligations  associated with any exceptions NSUSA
may  grant  under  the  terms of the  Sales  Compensation  Plan  (hereafter  the
"Exceptions").
<PAGE>
         2.3 NSI's Interest in Licensed Property. NSI hereby retains legal title
to the Licensed  Property 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.  NSUSA  agrees to assist NSI in any
manner to protect NSI's rights in the Licensed Property which NSI may reasonably
request.  NSI shall  reimburse NSUSA for any third party costs incurred by NSUSA
in providing such assistance.

         2.4 Recitals of Value of Licensed Property. NSUSA recognizes and agrees
that NSI has  expended  considerable  time,  effort and  resources  to  develop,
maintain and enhance the Licensed Property.  NSUSA further agrees it will derive
a  considerable  benefit from its use of the Licensed  Property in the Territory
and from NSI's efforts and expenditures respecting the Licensed Property.

         2.5 Warranty of Title.  NSI hereby  warrants and represents  that it is
the sole and  exclusive  owner of the Licensed  Property and that to the best of
its knowledge and  information  no claim exists or has been made  contesting the
ownership and title of said Licensed Property.

         2.6  Modifications.  NSUSA shall make no  modification  to the Licensed
Property without the express, prior written consent of NSI.

         2.7 License Fee. As compensation  for the licenses  granted pursuant to
the terms of this  Agreement,  NSUSA shall pay to NSI a license fee equal to two
percent (2%) of its Net Sales of Products, Sales Aids and other items (exclusive
of  Introductory  Kits and goods sold on  consignment)  sold to NSI  Independent
Distributors (the "License Fee").

                                   ARTICLE III

                          COMPUTATION AND PAYMENT TERMS

         3.1 Bonus  Payments.  Pursuant to Section 2.2 hereof,  NSUSA  agrees to
make Bonus Payments to Resident NSI  Independent  Distributors to which they are
entitled pursuant to their Distributor  Contracts.  The Parties further agree to
settle the difference between the amount of such Bonus Payments paid by NSUSA in
each month (excluding the Exceptions) and the Fixed  Commission  Expense in such
month. The procedures for such payment and settlement are as follows:
<PAGE>
         3.1(a) Within eight (8) days  following the close of each month,  NSUSA
         shall deliver to NSI, by electronic  transmission  or such other medium
         as the Parties shall agree to from time to time, a statement of NSUSA's
         Net Sales  during such month  (including  a detail of sales to each NSI
         Independent  Distributor to which sales were made during such month and
         any  Exceptions  granted  ) and  of  such  other  items  as  NSI  shall
         reasonably  request from time to time (the  "Detailed  Sales  Report").

         3.1(b) By the later of twelve (12) days after  receipt of the  Detailed
         Sales Report or twenty (20) days after the end of such month, NSI shall
         deliver to NSUSA,  by electronic  transmission  or such other medium as
         the parties  shall  agree to from time to time,  a  calculation  of the
         Bonus  Payments due to Resident  Independent  Distributors  under their
         Distributor  Contracts for such month (the "Monthly Bonus  Amount"),  a
         calculation  of the Fixed  Commission  Expense  for such month and such
         other items as NSUSA shall  reasonably  request  from time to time (the
         "Bonus Statement").

         3.1(c)  By the  later of ten  (10)  days  after  receipt  of the  Bonus
         Statement or thirty (30) days after the end of such month,  NSUSA shall
         pay  Bonus  Payments  due to the.  Resident  Independent  Distributors.
         Concurrently with or promptly after such payment NSUSA shall deliver to
         NSI (i) if the aggregate Monthly Bonus Amounts excluding any Exceptions
         paid to all Resident  Independent  Distributors  is less than the Fixed
         Commission  Expense  for  such  month,  payment  of the  deficiency  in
         accordance with the procedures set forth in Section 3.4 hereof, or (ii)
         if the aggregate Monthly Bonus Amounts excluding any Exceptions paid to
         all Resident NSI Independent  Distributors exceeds the Fixed Commission
         Expense for such  month,  an invoice to NSI for  reimbursement  of such
         excess  amount.  In the event NSUSA shall have given NSI an invoice for
         reimbursement  of excess  Bonus  Payments  as set forth in clause  (ii)
         above,  NSI shall pay the amount so invoiced  to NSUSA  pursuant to the
         procedures  set forth in this  Section 3.1 and Section 3.5 below within
         10 days after receipt thereof.
<PAGE>
         3.1(d) The Parties agree that the percentage  used in  calculating  the
         Fixed Commission Expense shall remain consistent with actual Commission
         Expense as a  percentage  of sales of Products to Resident  Independent
         Distributors,  shall be  negotiated  and  determined on an arm's length
         basis,  and may be adjusted  from time to time as agreed by the Parties
         in writing based upon an annual review thereof.

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

         3.2(a) Within 30 days  following  the close of each month,  NSUSA shall
         deliver to NSI, by electronic  transmission or such other medium as the
         parties  shall agree to from time to time, a statement of its Net Sales
         during such month in the Territory and a computation of the License Fee
         payable  under  Section  2.7 hereof.  NSUSA shall make  payment of such
         License Fee in  accordance  with Section 3.4 hereof  concurrently  with
         delivery of such statement.

         3.2(b) For  purposes of computing  the License Fee,  Products and Sales
         Aids shall be considered sold when  recognized for accounting  purposes
         as a sale by NSUSA as per U.S. GAAP.

         3.2(c) The Parties agree that the License Fee shall remain  competitive
         within the market and shall be  negotiated  and  determined on an arm's
         length  basis  and may be  adjusted  from time to time as agreed by the
         Parties in writing.
<PAGE>
         3.3 Records. Each Party shall keep complete and accurate records of its
compliance  with its  obligations  under this  Agreement  which shall be open to
inspection by authorized  representatives  of the other Party at any  reasonable
time.

         3.4 Payments to NSI. Payments made by NSUSA to NSI under this Agreement
shall be payable in U.S. dollars.  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.

         3.5  Payments  to  NSUSA.  Payments  made by NSI to  NSUSA  under  this
Agreement  shall be  payable  in U.S.  dollars.  Payments  shall be made  either
directly to NSUSA in immediately  available funds by wire transfer to an account
designated  by NSUSA or by such other means of payment  acceptable to NSUSA from
time to time

         3.6  Default  Rate.  Without  limiting  any of NSI's  other  rights and
remedies  under  this  Agreement,  amounts  outstanding  under the terms of this
Agreement  not paid  within  60 days from the date due and  payable,  and as set
forth in the  payment  provisions  herein,  shall  bear  interest  at the  prime
interest  rate as reported in the Wall Street  Journal plus two percent (2%) for
the full period outstanding.

                                   ARTICLE IV

             CERTAIN OBLIGATIONS OF THE PARTIES UNDER THE AGREEMENT

         4.1 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:
(1) 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; (2) to provide necessary training and support
to NSUSA  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; (3) to
receive and use NSUSA's sales information to compute the correct and appropriate
payments to the Resident NSI  Independent  Distributors  as set forth in Section
<PAGE>
3.1(b) hereof;  (4) in  consultation  with NSUSA,  to discipline NSI Independent
Distributors  as it deems necessary to help insure the reputation of NSI; (5) to
maintain a record of the Distributor  Contracts and provide such  information to
NSUSA, as reasonably requested; and (6) 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.

         4.2 Certain Obligations, Rights and Duties of NSUSA. In addition to its
other obligations under this Agreement NSUSA agrees,  among other things: (1) 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 NSUSA  under  the terms  and  conditions  of this
Agreement,  unless otherwise agreed in writing by the Parties; (2) to manage its
business affairs in such a manner that the reputation of NSI is not damaged; (3)
to sell  Introductory  Kits to potential  Resident  Independent  Distributors in
accordance  with all  applicable  laws and  industry  standards;  (4) to collect
requests  for  Distributor   Contracts  from  potential   Resident   Independent
Distributors  and forward these  contracts to NSI in a timely fashion  (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
NSUSA accept such  requests for  Distributor  Contracts);  (5) to train and lend
assistance  to  Resident  Independent  Distributors  in  the  Territory;  (6) to
transmit information  regarding Net Sales to Resident  Independent  Distributors
and such  other  information  as NSI may  reasonably  request;  (7) to pay Bonus
Payments to Resident  Independent  Distributors as set forth in Sections 2.2 and
<PAGE>
3.1 hereof;  (8) to use its best efforts to monitor and supervise the activities
of Resident Independent  Distributors;  (9) to use its best efforts to cause the
enforcement of the Distributor Contracts to ensure compliance therewith and with
NSI's  policies and  procedures  and to any action  againstResident  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 NSUSA as NSI shall  reasonably  request;  and (10) to  perform  any other
function  or provide  support as NSI shall  reasonably  request to enable NSI to
fully perform its  obligations to Resident  Independent  Distributors  under the
Sales Compensation Plan and their Distributor Contracts.

                                    ARTICLE V

                             INTRODUCTORY KIT SALES

         5.1 Agreement to Purchase  Introductory  Kits. The Parties  acknowledge
that, pursuant to this Agreement, NSUSA is being granted a non-exclusive license
to use the Licensed Property,  including the Independent Distributor Network, in
the  Territory.  NSUSA  agrees  to  use  its  best  efforts  in  supporting  the
development of the Independent  Distributor  Network in the Territory by selling
to potential  Resident  Independent  Distributors in the Territory  Introductory
Kits which  NSUSA has either (i)  purchased  from NSI,  or (ii) has  sourced and
priced locally, or any part thereof,  subject to review,  approval and oversight
of NSI and in accordance with instructions and specifications given by NSI.

         5.2  Pricing.  The Parties  agree that the price of  Introductory  Kits
shall be negotiated  and determined on an arm's length basis and may be adjusted
from time to time as agreed by the Parties in writing.

         5.3  Payment  Method.  NSUSA  shall  pay the  commercial  invoices  for
Introductory  Kits  shipped  under  this  Agreement  in the  manner set forth in
Section 3.4.
<PAGE>
         5.4 Quantities.  NSUSA agrees to purchase sufficient  quantities of the
Introductory  Kits from NSI to fill orders,  in a timely fashion,  received from
potential NSI Independent Distributors in the Territory.

         5.5 Quality of  Introductory  Kits.  NSI shall use its best  efforts to
maintain and augment the quality, image and value of the Introductory Kits.

         5.6 Merchantability. NSI warrants that Introductory Kits it may sell to
NSUSA pursuant to this Agreement will be merchantable and of sufficient  quality
for sales within the Territory.  If NSUSA  determines that certain  Introductory
Kits supplied under this Agreement are not merchantable, a claim for a refund of
the price paid can be made within 45 days from the day the Introductory Kits are
received in the Territory. NSI agrees to refund, or credit the account of NSUSA,
for the purchase price of such non-merchantable Introductory Kits.

                                   ARTICLE VI

                  GOVERNMENTAL APPROVALS, LAWS AND REGULATIONS

         6.1 Compliance of Licensed  Property.  NSUSA 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.  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)
(collectively,  the "Territory  Laws"). NSI agrees to keep NSUSA informed of its
progress in obtaining all such government approvals and ensuring such compliance
with the  Territory  Laws.  NSUSA agrees to cooperate  with NSI and to take such
actions as NSI shall  reasonably  request in order to obtain such  approvals and
ensure such compliance.
<PAGE>
         6.2 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.

         6.3 Use of Licensed Property. NSUSA agrees to use the Licensed Property
in compliance  with the  Territory  Laws and, to the extent not in conflict with
the foregoing,  in a manner reasonably consistent with prior use of the Licensed
Property in the Territory.

                                   ARTICLE VII

                              TERM AND TERMINATION

         7.1 Term. This Agreement shall be effective from the Effective Date for
a term of five (5) years unless terminated  pursuant to paragraph 7.2 below. The
term of this Agreement  shall be renewed  automatically  for successive one year
terms unless terminated (90) days prior to the then current term.

         7.2  Termination.  This  Agreement  may be  terminated  by either party
immediately or at any time after the occurrence of any of the following  events:
(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 (b) there shall be commenced  against the
other  Party any case,  proceeding  or other  action of a nature  referred to in
clause  (a) above  which (A)  results in the entry of an order for relief or any
such  adjudication  or appointment or (B) remains  undismissed,  undischarged or
unbonded  for a period of 90 days.  Events  described  in clauses (a) and (b) of
this Section 7.2 shall be referred to as a "Bankruptcy  Event".  If a Bankruptcy
Event occurs,  all amounts owing under this Agreement  shall become  immediately
due and payable, without any notice thereof.
<PAGE>
         7.3 Termination on Default.  This Agreement may be terminated by either
party,  if the other  party is in default  in the  performance  of any  material
obligation  under this  Agreement  and such  default  has not been cured  within
ninety  (90)  days  after  receipt  of  written  notice of such  default  by the
defaulting party.

         7.4 Termination by NSI . This Agreement may be terminated by NSI (a) if
the  original  pre-IPO  shareholders  of Nu Skin Asia  Pacific  no longer own or
control a majority of the voting  interest in NSUSA;  such  termination  will be
effective  thirty (30) days after  delivery of written notice by NSI to NSUSA of
the  occurrence  of a change in control  and its  intention  to  terminate  this
Agreement based thereon;  or, (b) if NSUSA causes or allows a judgment in excess
of  twenty-five  million  dollars  ($25,000,000)  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 twenty-five  million  dollars
($25,000,000).

         7.5 Survival of Obligations.  The obligations of the Parties to pay any
sums  which are due and  payable as of the  expiration  or  termination  of this
Agreement  and their  obligation  under  Sections  2 and 3.1,  Article  VIII and
Article X hereof shall survive the expiration or termination of this Agreement.

         7.6 Reversion of Rights.  Upon termination of this Agreement by NSI all
rights and licenses  herein granted to NSUSA shall  immediately  cease and shall
revert to NSI, and NSUSA shall cease representing to any third party that it has
any right to use, assign, convey or otherwise transfer the Licensed Property.
<PAGE>
                                  ARTICLE VIII

                          INFRINGEMENT; INDEMNIFICATION

         8.1 NSI agrees during and after the term of this Agreement to indemnify
and hold  harmless  NSUSA  from  liability,  loss,  cost or  damage,  (including
reasonable attorneys' fees) which NSUSA may incur as a result of claims, demands
or judgements,  of any kind or nature, by anyone whomsoever,  arising out of (i)
an alleged or actual  defect in the  design,  manufacture  or content of, or any
harm  caused by any  Products  or Sales Aids or the  failure  of any  Product to
comply with all applicable regulatory  requirements in the Territory;  or (ii) a
claim that NSI's Licensed Property infringes any patent, copyright, trade secret
or other  intellectual  property  right of a third  party;  provided  that NSUSA
provides NSI with prompt notice in writing of any such claim or demand and NSUSA
cooperates  with NSI in the defense or  settlement  of any such claim or action.
Notwithstanding  the foregoing,  NSI shall have no obligation to indemnify NSUSA
for any  liabilities  arising  out of  NSUSA's  failure  or the  failure  of any
Resident  Independent  Distributors  to  utilize,  sell,  market or promote  the
Products (i) in the manner for which the Products are reasonably intended,  (ii)
in compliance  with Nu Skin policies and procedures or (iii) as  contemplated by
the Intercompany Agreements,  including, but not limited to, liabilities arising
out of false or misleading claims made by the Resident Independent Distributors,
unless NSUSA shall have  requested NSI to take  disciplinary  actions  against a
Resident  Independent  Distributor and NSI shall have, either  negligently or in
breach  of its  fiduciary  duties,  failed  to take such  actions  against  such
Resident  Independent  Distributor and the failure of NSI to take such action is
deemed to have reasonably and proximately  resulted in NSUSA incurring a loss in
which event NSI shall  indemnify  NSUSA for such loss pursuant to the provisions
of this Section 8.1.
<PAGE>
         8.2  NSUSA  agrees  during  and  after  the term of this  Agreement  to
indemnify and hold harmless NSI from liability,  loss, cost or damage (including
reasonable attorney's fees), which NSI may incur as a result of claims,  demands
or judgements,  of any kind or nature,  by anyone  whosoever,  arising out of or
resulting  from the  possession,  use or sale of the  Products  or Sales Aids by
NSUSA or any  Resident  Independent  Distributors  (except to the extent NSI has
indemnified  NSUSA  against  such claims,  demands,  or  judgements  pursuant to
Section 8.1 hereof).  By way of  elaboration,  but not  limitation,  NSUSA shall
indemnify NSI for any liabilities  arising out of NSUSA's failure or the failure
of the Resident  Independent  Distributors to utilize,  sell, market, or promote
the Products (i) in the manner for which the Products are  reasonably  intended,
(ii) in compliance with Nu Skin policies and procedures or (iii) as contemplated
by the  Intercompany  Agreements,  including  but not  limited  to,  liabilities
arising  out of false of  misleading  claims  made by the  Resident  Independent
Distributors.  Notwithstanding  the  foregoing,  in the event  NSUSA  shall have
requested  NSI to take  disciplinary  actions  against  a  Resident  Independent
Distributor operating in the Territory and NSI shall have, either negligently or
in breach of its  fiduciary  duties,  failed to take such  actions  against such
Resident Independent Distributor,  NSUSA shall not be obligated to indemnify NSI
for any loss which NSI might incur as a reasonable and proximate  result of such
failure.

         8.3 At all times during and following the terms of this Agreement, each
of NSI and NSUSA shall maintain  insurance (or cause the other party to be added
as an additional insured to any policy not maintained by such party) with one or
more reputable  insurers  reasonable in coverage and amount in direct proportion
and corresponding to the business to be conducted by such party pursuant to this
Agreement.

                                   ARTICLE IX

                             NATURE OF RELATIONSHIP

         The  relationship  of NSUSA 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.
<PAGE>
                                    ARTICLE X

                                 CONFIDENTIALITY

         All Proprietary Information or other non-public or proprietary business
or  technical  information  owned or used by NSI or  NSUSA  and  supplied  to or
acquired by the other  whether in oral or  documentary  form (the  "Confidential
Information")  shall be supplied and acquired in confidence  and shall be solely
for the use of the  receiving  party  pursuant to this  Agreement and such party
shall keep the Confidential  Information confidential and shall not disclose the
same,  at any time during the term of this  Agreement or after its  termination,
except to its employees,  or its affiliates or its affiliates' employees for the
purposes of its business in accordance  with this Agreement and except as may be
required  by  law;  provided  that  if the  receiving  party  determines  that a
disclosure is required by law, the receiving  party shall notify the  disclosing
party in order to give the disclosing party an opportunity to seek an injunction
or otherwise  attempt to keep the  Confidential  Information  confidential.  The
receiving party shall, at the request of the disclosing party, destroy or return
the  Confidential  Information  without  retaining  copies  if, as and when this
Agreement is terminated  or expires.  For purposes of this  Agreement,  the term
"Confidential  Information" shall not include  information or documents that (i)
become generally  available to the public other than as a result of a disclosure
by the receiving party, (ii) were otherwise  lawfully available to the receiving
party,  or (iii)  were  generated  independently  by the  receiving  party.  The
provisions  of this Article shall survive  termination  of this  Agreement for a
period of 10 years after the  termination of this  Agreement  provided that this
Agreement is not extended or renegotiated.
<PAGE>
                                   ARTICLE XI

                   MAINTENANCE OF LICENSED PROPERTY; RECORDING

         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 this clause
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  NSUSA  as a  registered  user in the
Territory.  NSUSA  agrees to  cooperate,  as  reasonably  requested  by NSI,  in
arranging  for such  recordings  or  entries,  or in bearing or  canceling  such
recordings  or  entries in the event of  amendments  to or  termination  of this
Agreement for any reason.

                                   ARTICLE XII

                           KNOW -HOW AND IMPROVEMENTS

         12.1  Continued  Access  to  Improvements.  NSI  shall  give  to  NSUSA
reasonable  continued access to improvements in techniques and processes related
to the Licensed Property during the term of this Agreement.

                                  ARTICLE XIII

                                  MISCELLANEOUS

         13.1  Assignment.  This Agreement  shall be binding on and inure to the
benefit of the heirs,  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's authorized  representative.  Any such
attempted assignment, without the written consent provided herein, shall be void
and unenforceable.

         13.2 Force Majeure. The Parties 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 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 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.
<PAGE>
         13.3  Governing Law and Dispute  Resolution.  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. Any
dispute  arising out of this Agreement,  if not resolved by mutual  agreement of
NSI and NSUSA  within 30 days after  written  notice of such dispute is given by
NSI or NSUSA, as the case may be, shall be resolved through arbitration with the
Utah office and division of the American Arbitration Association ("AAA"). If the
dispute is not resolved  within such 30-day  period,  the Parties shall petition
the AAA to promptly  appoint a  competent,  disinterested  person to act as such
arbitrator.  Within  30  days  after  the  designation  or  appointment  of such
arbitrator,  such  arbitrator  shall be  required to  commence  the  arbitration
proceeding  in the  state  of  Utah  at a time  and  place  to be  fixed  by the
arbitrator, who shall so notify NSI and NSUSA. Such arbitration proceeding shall
be conducted in accordance with the applicable  rules and procedures of the AAA,
and/or as  otherwise  may be agreed by NSI and NSUSA and may be  enforced in any
court of competent  jurisdiction.  The  expenses  and costs of such  arbitration
shall be divided and borne equally by NSI and NSUSA; provided,  that such of NSI
and NSUSA  shall  pay all fees and  expenses  incurred  by it in  presenting  or
defending against such claim, right or cause of action.

         13.4  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.
<PAGE>
         13.5 Notices. All notices,  requests and other communications hereunder
shall be in writing and shall be deemed to have been duly given, if delivered by
hand, or if communicated by facsimile,  cable or similar electronic means to the
facsimile number or cable  identification  number as previously provided by each
party to the other,  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,
from any post office addressed as follows:

         If to NSUSA:               General Manager
                                    Nu Skin U.S.A., Inc.
                                    75 West Center Street
                                    Provo, Utah 84601
                                    USA
                                    Facsimile No.: 801-345-5099

         If to NSI:                 General Manager
                                    Nu Skin International, Inc.
                                    75 West Center Street,
                                    Provo, Utah 84601, U.S.A.
                                    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.

         13.6  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.

         13.7  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.
<PAGE>
         13.8  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.

         13.9  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.
<PAGE>
         IN WITNESS  WHEREOF,  the  Parties  have caused  this  Agreement  to be
executed in the United  States of America by their  respective  duly  authorized
representatives as of the day and year first-above written.

NU SKIN INTERNATIONAL, INC.                          NU SKIN USA, INC.

By:      /s/ Steven J. Lund                          By:      /s/Keith R. Halls
Name:    Steven J. Lund                              Name:    Keith R. Halls
Its:     Executive President & Secretary             Its:     Vice President

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