Document:

EX-10.36

(This is the form of  Trademark\Tradename  Licensing  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.

                     TRADEMARK\TRADENAME LICENSING AGREEMENT
<PAGE>
                                TABLE OF CONTENTS
                                                                           Page

ARTICLE I      DEFINITIONS..................................................2
           1.1  "Agreement".................................................2
           1.2  "Business Portfolios".......................................2
           1.3  "Commercial Materials"......................................2
           1.4  "Independent Distributor Network"...........................2
           1.5  "Intercompany Agreements"...................................2
           1.6  "Know-How"..................................................3
           1.7  "Licensed Marks and Names"..................................3
           1.8  "Net Sales".................................................3
           1.9  "NSI Independent Distributor"...............................3
           1.10  "NSI Trademark"............................................3
           1.11  "NSI Tradename"............................................3
           1.12  "Product"..................................................4
           1.13  "Proprietary Information"..................................4
           1.14  "Sales Aid"................................................5
           1.15  "Territory"................................................5

ARTICLE II     GRANT OF EXCLUSIVE LICENSE; ROYALTIES........................5
           2.1  Grant of Exclusive License..................................5
           2.2  NSI's Interest in Licensed Marks and Names..................5
           2.3  Recitals of Value of Licensed Marks and Names...............5
           2.4  Warranty of Title...........................................6
           2.5  Royalties...................................................6

ARTICLE III    COMPUTATION AND PAYMENT TERMS................................6
           3.1  Royalty Payments............................................6
           3.2  Records.....................................................7
           3.3  Payment Terms...............................................7
           3.4  Default Rate................................................7

ARTICLE IV     CERTAIN COVENANTS............................................7
           4.1  Use of Licensed Marks and Names.............................7
           4.2  Modifications...............................................8
           4.3  Prejudicial Use.............................................8
           4.4  Labels......................................................8
           4.5  Goodwill....................................................8
           4.6  Export of Products..........................................9

ARTICLE V      TERM.........................................................9
<PAGE>
ARTICLE VI     TERMINATION..................................................9

ARTICLE VII    EFFECT OF TERMINATION........................................10
           7.1  Obligation of NSUSA Upon Termination........................10
           7.2  Survival of Obligations.....................................11
           7.3  Reversion of Rights.........................................11

ARTICLE VIII   GOVERNMENTAL APPROVALS, LAWS AND REGULATIONS.................11

ARTICLE IX     INFRINGEMENT; INDEMNIFICATION................................12

ARTICLE X      CONFIDENTIALITY..............................................13

ARTICLE XI     NATURE OF RELATIONSHIP.......................................14

ARTICLE XII    MAINTENANCE OF TRADEMARKS; RECORDING;
                 REGISTRATION OF TRADEMARK..................................14

ARTICLE XIII   MISCELLANEOUS................................................15
           13.1     Assignment..............................................15
           13.2     Force Majeure...........................................15
           13.3     Governing Law and Dispute Resolution....................16
           13.4     Waiver and Delay........................................17
           13.5     Notices.................................................17
           13.6     Integrated Contract.....................................18
           13.7     Modification and Amendment..............................18
           13.8     Severability............................................18
           13.9     Counterparts and Headings...............................18
<PAGE>
                    TRADEMARK \ TRADENAME LICENSING AGREEMENT

           THIS  TRADEMARK  \ TRADENAME  LICENSING  AGREEMENT  (hereinafter  the
"Agreement") is entered into and made effective this 31st day of December, 1997,
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" and each shall be individually referred to as "Party."

                               W I T N E S S E T H

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

           WHEREAS,  NSUSA  acts  as  the  exclusive  wholesale  distributor  of
Products  in the  Territory  (as  hereafter  defined)  , having  entered  into a
separate Wholesale Distribution Agreement with NSI dated as of the date hereof,

           WHEREAS,  NSUSA desires to affix NSI Trademarks (as defined below) to
Products and to affix NSI Tradenames (as defined below) to Commercial  Materials
it envisions for the Territory thereby deriving benefit from the goodwill, value
and  reputation  such  marks and names  shall  lend when used to  identify  such
Products and Commercial Materials; and,

           WHEREAS,  the Parties desire to enter into this Trademark \ Tradename
Licensing 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:
<PAGE>
                                   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   Trademark\Tradename   Licensing
Agreement  (together with any exhibits and schedules hereto), as the same may be
modified, amended or supplemented from time to time.

           1.2 "Business  Portfolios" shall mean those materials approved by NSI
and not purchased  from NSI that are intended for sale in  conjunction  with the
execution  of a  distributor  contract to NSI  Independent  Distributors  in the
Territory  explaining  the  Nu  Skin  independent  business   opportunity,   the
contractual  relationship  with NSI and the marketing  support  programs for the
Territory.

           1.3  "Commercial  Materials"  shall  mean,  without  limitation,  any
business marquis, sign, letterhead, business card, pamphlet, brochure, magazine,
flyer,  newsletter,  Sales  Aid,  advertisement  or  other  associated  tangible
materials NSUSA uses in its activities with the Independent  Distributor Network
or the public to enhance its image and  competitiveness  in the  Territory  that
NSUSA has not  purchased  from NSI.  Commercial  Materials  shall  not,  for the
purposes of this Agreement, include Business Portfolios (as defined below).

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

           1.5 "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.
<PAGE>
           1.6  "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, NSI Independent
Distributors, the NSI distributor lists, and the NSI sales compensation plan.

           1.7  "Licensed  Marks  and  Names"  shall  mean  any  NSI  Trademark,
including those affixed to any Product for purposes of identifying, promoting or
selling such Product in the Territory to any NSI  Independent  Distributor,  and
any NSI  Tradename,  including  those affixed to or used in connection  with any
Commercial  Materials produced to further NSUSA's  commercial  activities in the
Territory and any product formula as agreed to by the Parties from time to time.

           1.8 "Net Sales" shall mean,  for any period,  the number of Products,
Commercial  Materials and Introductory  Kits (or any part thereof) sold by NSUSA
during such period,  multiplied  by NSUSA's then  current  selling  price to NSI
Independent  Distributors  for  each  such  Product,   Commercial  Material  and
Introductory  Kits,  less  applicable  consumption  taxes and returns or refunds
reasonably accepted and credited by NSUSA during such period.

           1.9 "NSI  Independent  Distributor"  shall mean a person or  business
entity  authorized  by  contract  with  NSI  to  distribute,  as an  independent
contractor, Products and Sales Aids.

           1.10 "NSI Trademark" shall mean any NSI service mark, trademark, logo
or device (or  combination  thereof) used or for which NSI has a bonafide intent
to use, registered or otherwise.

           1.11 "NSI Tradename"  shall mean any  commercially  valuable  "mark,"
"name," or "device" or combination  thereof whether or not similar in appearance
to any NSI Trademark of which NSI is the owner, registered or otherwise.
<PAGE>
           1.12  "Product"  shall  mean  any of  the  following  bearing  an NSI
Trademark: any product, including,  without limitation,  cosmetics,  nutritional
products,  dietary supplements,  vitamins,  over-the-counter drugs, quasi-drugs,
drugs and  pharmaceutical  products,  and other  products,  which NSUSA designs,
manufactures,   produces   and/or   distributes   or  causes  to  be   designed,
manufactured,  produced  or  distributed  in the  Territory,  that NSUSA has not
purchased  from NSI.  Products  shall not, for the  purposes of this  Agreement,
include Business Portfolios.

           1.13 "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 Marks and Names and the Business Portfolios;
(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, trademarks, tradenames
and services;  (7) other business and commercial  practices in general  relating
directly or indirectly to the foregoing;  (8) computer disks or other records or
documents,  originals  or  copies,  containing  in  whole  or in part any of the
foregoing; and (9) tax information, returns and other financial information.
<PAGE>
           1.14 "Sales Aid" shall mean materials, in whatever form and/or design
produced  to assist in the  marketing  of  Products  or the Nu Skin  independent
business opportunity in the Territory.

           1.15 "Territory"  shall mean the United States of America,  including
its territories.

                                   ARTICLE II

                    GRANT OF NON EXCLUSIVE LICENSE; ROYALTIES

           2.1  Grant  of  Exclusive  License.  NSI  hereby  grants  to NSUSA an
exclusive  license  and  right  to use,  the  Licensed  Marks  and  Names in the
Territory,  provided  that all such uses shall comply in all  material  respects
with the terms of this Agreement.

           2.2 NSI's  Interest in Licensed  Marks and Names.  NSI hereby retains
legal title to the Licensed Marks and Names 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 Marks and Names which NSI may
reasonably request. NSI shall reimburse NSUSA for any third party costs incurred
by NSUSA in providing such assistance.

           2.3 Recitals of Value of Licensed Marks and Names.  NSUSA  recognizes
and agrees that NSI has  expended  considerable  time,  effort and  resources to
develop,  register, apply for registrations,  maintain and enhance the value and
reputation of the Licensed Marks and Names.  NSUSA further agrees it will derive
a  considerable  benefit  from its use of the  Licensed  Marks  and Names in the
Territory and from NSI's efforts and expenditures  respecting the Licensed Marks
and Names.
<PAGE>
           2.4 Warranty of Title. NSI hereby  represents and warrants that it is
the sole and  exclusive  owner of the  Licensed  Marks and Names 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 Marks and Names.

           2.5 Royalties.  As compensation  for the exclusive  licenses  granted
pursuant to the terms of this Agreement,  NSUSA shall pay to NSI a royalty equal
to five percent (5%) (or as  otherwise  mutually  agreed upon by the Parties) of
its Net Sales in the  Territory  during the entire  term of this  Agreement.  If
NSUSA elects to produce  and/or  purchase any Products from a third party rather
than  through  or from  NSI,  and  such  Product  is based  on or  contains  NSI
proprietary  information,  formulas  or  ingredients,  and  such  Product  bears
Licensed Marks and Names, the applicable  royalty shall be eight percent (8%) of
Net Sales, or as otherwise mutually agreed upon by the Parties.

                                  ARTICLE III

                          COMPUTATION AND PAYMENT TERMS

           3.1 Royalty Payments.

                3.1(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 from time to
                        time,  a statement of its Net Sales during such month in
                        the Territory and a computation of the royalties payable
                        hereunder. NSUSA shall make payment of such royalties in
                        accordance with Section 3.3 hereof concurrently with the
                        delivery of such statement.

                3.1(b)  For  purposes of  computing  the  royalty,  Products and
                        Commercial  Materials  shall  be  considered  sold  when
                        recognized for accounting purposes as a sale by NSUSA as
                        per U.S. GAAP.
<PAGE>
                3.1(c)  The  Parties   agree  that  the  royalty   shall  remain
                        competitive within the Territory 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.

           3.2 Records.  Each Party shall keep complete and accurate  records of
its  activities  under  this  Agreement  which  shall be open to  inspection  by
authorized representatives of the other party at any reasonable time.

           3.3 Payment Terms. 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.

           3.4 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 sixty (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. Whether or not interest charges are actually levied
is at the discretion of NSI.

                                   ARTICLE IV

                                CERTAIN COVENANTS

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

                4.1(a)  All  Products  and  Commercial   Materials  bearing  the
                        Licensed  Marks and Names  shall be  approved by NSI and
                        shall   be   used   in   accordance    with   standards,
                        specifications and instructions approved by NSI; and,
<PAGE>
                4.1(b)  NSI shall  have the right to  inspect  the  premises  of
                        NSUSA  and  those of any of  NSUSA's  subcontractors  at
                        which Product(s) are being  manufactured,  at reasonable
                        times,  and also to receive samples of such  Product(s),
                        in   accordance   with  a  reasonable   schedule  to  be
                        established promptly between NSI and NSUSA; and,

                4.1(c)  NSUSA agrees to correct,  as promptly as  possible,  any
                        defects in the Product(s) and/or  manufacturing  thereof
                        brought to NSUSA's attention by NSI or otherwise; and,

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

           4.2  Modifications.  NSUSA shall make no modification to the Licensed
Marks and Names without the express, prior written consent of NSI.

           4.3 Prejudicial Use. NSUSA shall not use the Licensed Marks and Names
in any way that will prejudice NSI's rights therein.

           4.4 Labels. At the request of NSI, labels or packaging which bear any
of the Licensed Marks and Names shall also bear an asterisk  placed  immediately
above the end of the mark to reference a statement which shall appear underneath
the mark and shall  contain  the  words "TM  Registered  -  Licensed  by Nu Skin
International, Inc." (where the mark is registered) or "TM - Licensed by Nu Skin
International, Inc." (where the mark is not registered).

           4.5 Goodwill. All goodwill generated by use of the Licensed Marks and
Names shall inure to NSI, and, upon  termination of this Agreement,  NSUSA shall
not have any claim against NSI for compensation for loss of distribution rights,
loss of goodwill or any similar loss.
<PAGE>
           4.6 Export of Products.  The Licensee shall not export any product on
which any Licensed Mark or Name is affixed to any country  outside the Territory
without the prior written consent of NSI.

                                    ARTICLE V

                                      TERM

           This Agreement  shall be effective from the Effective Date for a term
of two (5) years  unless  terminated  pursuant  to Article  11. The Term of this
Agreement  shall be renewed  automatically  for successive one year terms unless
terminated (90) days prior to the end of the then current term .

                                   ARTICLE VI

                                   TERMINATION

           6.1 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  12.1(a)  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>
           6.2 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; or

           6.3  This  Agreement  may be  terminated  by NSI (a) if the  original
pre-IPO  Shareholders of Nu Skin Asia Pacific shall no longer owns or controls a
majority of the voting interest in NSUSA;  (such  termination  will be effective
thirty (30) days after NSI gives written  notice 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  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).

                                   ARTICLE VII

                              EFFECT OF TERMINATION

           7.1 Obligation of NSUSA Upon  Termination.  Upon  termination of this
Agreement  by either  Party,  NSUSA  agrees to (a) sell,  destroy  or  otherwise
dispose of all Products and Commercial  Materials bearing the Licensed Marks and
Names within 45 days after such termination;  (b) immediately discontinue use of
the Licensed  Marks and Name in any form and not adopt in place thereof any word
or  design  that is  confusingly  similar  thereto;  and (c)  return  to NSI all
manuals, drawings, and standards or any other documents provided by NSI to NSUSA
relating to the use of the Licensed Marks and Names.
<PAGE>
           7.2 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  obligations  under  Section 2.2,  Article IX and Article X
hereof shall survive the expiration or termination of this Agreement.

           7.3 Reversion of Rights.  Upon  termination of this Agreement by NSI,
all rights and  licenses  herein  granted to 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 Marks
and Names.

                                  ARTICLE VIII

                  GOVERNMENTAL APPROVALS, LAWS AND REGULATIONS

           8.1 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.
NSUSA  agrees  to keep  NSI  informed  of the  progress  in  obtaining  all such
government  approvals.  NSUSA  agrees  to  cooperate  with NSI and to take  such
actions as NSI shall reasonably  request in order to obtain such approvals.  NSI
shall reimburse NSUSA for any third party costs incurred by NSUSA in taking such
actions.  8.2 Each party  agrees to refrain  from any action that will cause the
other party to be in violation of any applicable law,  regulation,  or ordinance
of the Territory .
<PAGE>
                                   ARTICLE IX

                          INFRINGEMENT; INDEMNIFICATION

           NSI hereby represents and warrants that, as of the date hereof, there
are no  infringement  or  misappropriation  suits  pending  or filed  or, to its
knowledge,  threatened  against  NSI within  the  Territory  that  relate to the
Licensed Marks and Names and NSI is not presently aware of any such infringement
or  misappropriation.  NSI shall  indemnify  and hold  NSUSA  harmless  from and
against all claims, actions, suits,  proceedings,  losses,  liabilities,  costs,
damages  and  attorneys'  fees  in  respect  of a  third  party  claim  alleging
infringement or  misappropriation by NSUSA in respect of its use of the Licensed
Marks and Names in the  Territory;  provided  that  NSUSA  shall give NSI prompt
written  notice of any such  claim,  action,  suit or  proceeding  and,  without
limiting the generality of Section 2.2 hereof,  shall  cooperate with NSI in the
defense of any such  claim,  action,  suit or  proceeding.  Notwithstanding  the
foregoing,  NSI shall have no obligation to indemnify  NSUSA for any liabilities
arising  out  of  NSUSA?s   failure  or  the  failure  of  the  NSI  Independent
Distributors in the Territory to utilize the Licensed Marks and Names (i) in the
manner for which the Licensed Marks and Names are reasonably  intended,  (ii) in
compliance  with Nu Skin policies and procedures or (iii) as contemplated by the
Intercompany Agreements.  NSI shall have the right to select counsel in any such
claim,  action,  suit or proceeding.  In the event that any such claim,  action,
suit or proceeding is successful,  NSI shall use reasonable efforts to make such
changes in the  Licensed  Marks and Names to permit  NSUSA to continue to use of
the  Licensed  Marks  and  Names  free  and  clear  of  all   infringement   and
misappropriation. NSUSA shall give NSI prompt written notice of any infringement
or  misappropriation  of the Licensed  Marks and Names by any third  party.  NSI
shall have the sole right to initiate any and all legal proceedings  against any
such third party and,  without  limiting the  generality  of Section 2.2 hereof,
NSUSA shall cooperate with NSI in the pursuit of any such proceeding.  NSI shall
retain any damage award obtained from such third party.
<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) 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 for a
period of 10 years after he  termination  of this  Agreement  provided that this
Agreement is not extended or renegotiated.
<PAGE>
                                   ARTICLE XI

                             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.

                                   ARTICLE XII

                      MAINTENANCE OF TRADEMARKS; RECORDING;
                            REGISTRATION OF TRADEMARK

           NSI  covenants to use its best efforts to maintain the  registrations
of the NSI  Trademarks  currently  registered  in the  Territory as set forth in
Exhibit A hereto.  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. Upon termination of this Agreement for any reason, the
Parties agree to do everything necessary to effect cancellation of the record of
NSUSA as a registered user of the NSI Trademarks in the Territory.

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

                                  ARTICLE XIII

                                  MISCELLANEOUS

           13.1 Assignment.  This Agreement shall be binding on and inure to the
benefit of the 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 through its 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
                  Fax: 801-345-3099

If to NSI:        General Manager
                  Nu Skin International, Inc.
                  75 West Center Street
                  Provo, Utah 84601, U.S.A.
                  Facsimile Number:  (801) 345-5999

           Either party may change its facsimile  number,  cable  identification
number or address by a notice  given to the other  party in the manner set forth
above.
           13.6  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.
<PAGE>
           13.7  Modification  and  Amendment.  No supplement,  modification  or
amendment  of this  Agreement  shall be  binding  unless  it is in  writing  and
executed by both of the Parties.

           13.8 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 Vice President & Secretary     Its:     Vice PresidentEX-10.37

                    TAX SHARING AND INDEMNIFICATION AGREEMENT

         THIS TAX SHARING AND  INDEMNIFICATION  AGREEMENT (the  "Agreement")  is
dated as of December 31, 1997,  is by and among Nu Skin  International,  Inc., a
Utah corporation  ("NSI"), Nu Skin USA, Inc., a Delaware  corporation  ("NUSA"),
and the  shareholders  of NSI and NUSA and their  successors  and  assigns  (the
"Shareholders").

                                    RECITALS

         WHEREAS, NSI and NUSA have entered into a Contribution and Distribution
Agreement dated as of December 31, 1997 (the "Distribution Agreement"); and

         WHEREAS,  pursuant to the Distribution Agreement,  NSI shall distribute
all  the  issued  and  outstanding  common  stock  of  NUSA  (pro  rata)  to the
Shareholders (the "Distribution"); and

         WHEREAS, there are no tax allocation agreements between NSI and NUSA;

         WHEREAS,  NSI and NUSA each have been  taxed as an "S  corporation"  as
that term is  defined  in  Section  1361 of the Code at all times  during  their
respective existences;

         WHEREAS,  the  Shareholders  intend to transfer  the stock of NSI along
with the stock of other  corporations to Nu Skin Asia Pacific,  Inc., a Delaware
corporation ("NSAP") in exchange for stock of NSAP.

         WHEREAS,  NSI  will  receive  or  has  received  an  opinion  of  Price
Waterhouse that the Distribution, taking into account the contribution of NSI by
the  Shareholders  to NSAP,  will qualify for tax-free  treatment  under Section
368(a)(1)(D) and 355 of the Code;

         WHEREAS,  NSI,  NUSA and the  Shareholders  desire  to enter  into this
Agreement to provide for the allocation  among NSI, NUSA and the Shareholders of
all  responsibilities,  liabilities and benefits  relating to or affecting Taxes
(as hereinafter defined) paid or payable by any of them for all taxable periods,
whether  beginning  before,  on or after the  Distribution  Date (as hereinafter
defined), to indemnify NSI if the Contribution and Distribution fails to qualify
for tax-free  treatment under Section  368(a)(1)(D)  and 355 of the Code, and to
provide for certain other matters.  This  Agreement  also provides,  among other
things,  for NUSA, NSI and the  Shareholders to assist each other for an interim
period in the preparation of Tax Returns (as hereinafter defined) required to be
filed after the Distribution Date.
<PAGE>
         NOW,  THEREFORE,  in consideration of the mutual covenants and promises
contained  herein,  and other good and valuable  consideration,  the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

                                    AGREEMENT

                                   ARTICLE I.

                                   DEFINITIONS

         Section 1.1 As used in this  Agreement,  the following terms shall have
the  following  meanings  (such  meanings to be equally  applicable  to both the
singular  and the plural  forms of the terms  defined).  Capitalized  terms used
herein and not otherwise  defined  shall have the meanings  given to them in the
Distribution Agreement.

         "Action" shall have the meaning ascribed to such term in Section 4.1.

         "Change"  shall mean (i) any audit,  amendment or other change in a Tax
Return, or (ii) the expiration of the statute of limitations with respect to any
Tax Item allocated to NUSA and/or NSI in the Workpapers; provided, such Tax Item
was not subject to a Change by application of clause (i) of this definition.

         "Closing  Balance Sheets" shall mean the NUSA Closing Balance Sheet and
the NSI Closing Balance Sheet.

         "Code" means the Internal  Revenue Code of 1986, as amended,  and shall
include corresponding provisions of any subsequently enacted federal tax laws.

         "Corporate-Level  Restructuring  Taxes" shall mean Restructuring  Taxes
payable by NSI or NUSA.

         "Corporate-Level  Taxes"  means Taxes that are taxed to NSI or NUSA and
not to the Shareholders.

         "Distribution"  shall  have the  meaning  ascribed  to such term in the
recitals.

         "Final  Determination" shall mean the final resolution of the liability
for any Tax Item for a taxable  period,  (i) by IRS Form 870 or  870-AD  (or any
successor forms  thereto),  on the date of acceptance by or on behalf of the IRS
with respect to United States Federal taxes,  or by a comparable  form under the
laws of other jurisdictions; except that a Form 870 or 870-AD or comparable form
that  reserves  (whether by its terms or by  operation  of law) the right of the
taxpayer to file a claim for refund and/or the right of the taxing  authority to
assert a  further  deficiency  for any Tax Item  shall  not  constitute  a Final
Determination for such Tax Item; (ii) by a decision,  judgment, decree, or other
order  by a  court  of  competent  jurisdiction,  which  has  become  final  and
unappealable; (iii) by a closing agreement or accepted offer in compromise under
Section 7121 or 7122 of the Code,  with respect to Federal Taxes,  or comparable
agreements as to other Taxes under the laws of other  jurisdictions;  (iv) by an
allowance of a refund or credit in respect of any  overpayment  of Tax, but only
after the expiration of all periods during which such refund may be recovered by
the Tax imposing jurisdiction; or (v) by any other final disposition,  including
by reason of the expiration of the applicable statute of limitations.
<PAGE>
         "IRS" shall mean the Internal Revenue Service.

         "NSI  Businesses"  means the  businesses  conducted by NSI  immediately
following the Distribution.

         "NSI Closing  Balance Sheet" shall mean the balance sheet of NSI, dated
as of December 31, 1997.

         "NSI Group" shall mean NSI and all  of its future subsidiaries.

         "NSI" shall have the meaning ascribed to such term in the preamble.

         "NUSA  Businesses"  means the businesses  conducted by NUSA immediately
following the Distribution.

         "NUSA  Closing  Balance  Sheet" shall mean the balance  sheet of NUSA ,
dated as of December 31, 1997.

         "NUSA Group" shall mean NUSA and all of its future subsidiaries.

         "NUSA" shall have the meaning ascribed to such term in the preamble.

         "Permanent Tax Item" shall mean any Tax Item other than a Temporary Tax
Item.

         "Reorganization"  shall  mean  NSI's  distribution  of all of the  NUSA
shares to the Shareholders.

         "Restricted  Period"  shall  mean the  two-year  period  following  the
Distribution Date.

         "Restructuring  Taxes"  means any Taxes  (other  than  Transfer  Taxes)
resulting  from  the  Reorganization  or  the  Distribution  including,  without
limitation,  any Tax arising  pursuant to, or as a result of, Section 311 of the
Code.

         "Settlement  Amount"  shall have the  meaning  ascribed to such term in
Section 4.1.
<PAGE>
         "Tax Benefit"  means any item of loss,  deduction,  credit or any other
Tax Item which decreases Taxes paid or payable.

         "Tax Detriment" means any item or income,  gain, recapture of credit or
any other Tax Item which increases Taxes paid or payable.

         "Tax Item"  means any  return,  form,  filing,  questionnaire  or other
document  required to be filed (or which may be filed),  including  requests for
extensions of time, filings made with estimated tax payments,  claims for refund
and amended returns that may be filed,  for any period with any taxing authority
(whether  domestic or foreign) in connection  with any Tax or Taxes  (whether or
not a payment is required to be made with respect to such filing).

         "Tax  Returns"  means  any  return,  declaration,   statement,  report,
schedule,  certificate,  form,  information  return or any other  document  (and
related or  supporting  information)  including an amended tax return filed with
respect to Taxes.

         "Taxes" means all forms of taxation,  whenever created or imposed,  and
whether of the  United  States or  elsewhere,  and  whether  imposed by a local,
municipal,  governmental,  state, federation or other body, and without limiting
the generality of the foregoing,  shall include income,  sales, use, ad valorem,
gross  receipts,  value  added,  franchise,  transfer,  recording,  withholding,
payroll,  employment,  excise, occupation, and property taxes, together with any
related interest, penalties and additions to any such tax, or additional amounts
imposed by any taxing  authority  (domestic  or foreign)  upon NSI or NUSA their
divisions or branches or upon the Shareholders.

         "Temporary  Tax Item"  shall  mean any Tax Item to the  extent  the Tax
Detriment or Tax Benefit  relating to such Tax Item in one tax period creates or
results from a corresponding  Tax Benefit or Tax Detriment,  respectively,  in a
different tax period;  provided,  that if the parties cannot agree whether a Tax
Item is a Temporary Tax Item, then generally accepted  accounting  principles in
effect on the Distribution Date shall determine if a Tax Item is a Temporary Tax
Item.

         "Transfer Taxes" shall mean any real property transfer or gains, sales,
use,  transfer,  value added,  stock  transfer,  and stamp taxes,  any transfer,
recording,  registration,  and other fees,  and any similar  Taxes which  become
payable in connection with the Distribution or Reorganization.

         "Workpapers"  shall mean the workpapers  underlying the  preparation of
the 1997 Federal Tax Return of NSI and the Closing Balance Sheets.
<PAGE>
                                   ARTICLE II.

                      PREPARATION AND FILING OF TAX RETURNS

         Section 2.1 Manner of Preparation. All Tax Returns of NSI or NUSA filed
after the  Distribution  Date shall be prepared  on a basis which is  consistent
with the tax opinions  obtained from Price  Waterhouse  in  connection  with the
Reorganization  and the Distribution (in the absence of a controlling  change in
law or circumstances)  and shall be filed on a timely basis (including  pursuant
to extensions) by the party responsible for such filing under this Agreement. In
the  absence  of a  controlling  change  in law or  circumstances,  or except as
otherwise agreed in writing, all Tax Returns of NSI or NUSA filed after the date
of this Agreement  shall be prepared on a basis  consistent  with the elections,
accounting  methods,  conventions,  and principles of taxation used for the most
recent taxable periods for which Tax Returns of NSI involving  similar Tax Items
have been filed,  except  that,  with  respect to Tax Items not  relating to the
Reorganization or Distribution,  one party may take an inconsistent  position to
the extent that, with respect to Tax Items not relating to the Reorganization or
Distribution,  such  position does not create a Tax Detriment to the other party
or to the Shareholders of the other party.

         Section 2.2 Pre-Distribution Tax Returns.

                  (a) All federal or state  income Tax Returns that are required
         to be filed for periods beginning before the Distribution Date shall be
         prepared and filed by the Shareholders or by NSI.

                  (b) All Tax Returns for state and local sales, use,  property,
         transfer and other Taxes for periods  beginning before the Distribution
         Date which are not  measured by income  shall be prepared  and filed by
         NSI.  NSI shall  prepare  all  Federal  and state  payroll  Tax Returns
         required  to be filed by it after the  Distribution  which  include any
         period beginning before the Distribution Date.

                  (c) All  foreign  Tax  Returns  and any other Tax  Returns not
         described  elsewhere  in this Section 2.2 that are required to be filed
         for any period beginning before the Distribution Date shall be prepared
         and filed by NSI.

         Section 2.3  Post-Distribution  Corporate Tax Returns.  All Tax Returns
for periods  beginning after the Distribution  Date with respect to NSI shall be
prepared  and filed by NSI.  All tax  returns for  periods  beginning  after the
Distribution  Date with respect to NUSA shall be prepared and filed by NUSA. The
Shareholders shall file all Tax Returns required to be filed by them that relate
to or include Tax Items associated with NSI or NUSA.
<PAGE>
                                  ARTICLE III.

                                PAYMENT OF TAXES

         Section 3.1 Tax for Taxable Periods Beginning Prior to the Distribution
Date.

                  (a) The  Shareholders  shall pay all Taxes due (or receive all
         refunds)  in  connection  with the filing of NSI's  federal  income Tax
         Returns for all taxable  periods  ending on or before the  Distribution
         Date.

                  (b) NSI or the  Shareholders  shall pay to the relevant taxing
         authority all non-U.S. federal income Taxes for the Tax Returns for all
         taxable periods ending on or before the Distribution  Date with respect
         to  which  NSI and  the  Shareholders  each  have a  respective  filing
         responsibility under relevant state, local or foreign law.

                  (c) NSI shall be responsible  for the payment of all Taxes due
         or payable with respect to taxable  periods  beginning on or before the
         Distribution  Date that are  required to be reported on the Tax Returns
         described in Sections 2.2(b) and 2.2(c).

         Section  3.2 NSI and  Shareholder  Tax  Deficiencies  and  Refunds  for
Periods  Prior to the  Distribution  Date.  If there is a Change in a Tax Return
filed by NSI and with  respect to which NSI,  for a taxable  period prior to the
Distribution  Date, has tax liability  pursuant to Section 3.1,  irrespective of
whether such Change occurs before, on or after the Distribution  Date, NSI shall
pay and  discharge  any Tax or receive  any refund of Tax  associated  with such
Change.  For taxable  periods  beginning  prior to the  Distribution  Date,  the
Shareholders  shall  bear the  burden  of any Tax  arising  from a Change in Tax
Returns  filed by them that relate to or include Tax Items  associated  with NSI
and with  respect to which they are  liable,  and shall have the  benefit of any
refund of Tax associated  with such Change,  irrespective of whether such Change
occurs before, on or after the Distribution Date.

         Section 3.3 Transfer Taxes.  NUSA or the Shareholders  shall pay to the
relevant taxing authority all Transfer Taxes.

         Section 3.4 Indemnities, Payments, Temporary Tax Items and Code Section
336(e).

                  (a) NUSA and Shareholders Indemnity Obligations.  NUSA and the
         Shareholders shall indemnify and hold harmless NSI against:

                           (i)   any   and   all    Restructuring    Taxes   and
                  Corporate-Level Restructuring Taxes imposed as a result of the
                  completion of the  Distribution or  Reorganization,  except to
                  the extent that such taxes result  solely from NSI's breach of
                  the covenants contained in Section 5.4, and

                           (ii)  any  and  all  Taxes  for  which  NUSA  or  the
                  Shareholders have agreed to be responsible pursuant to Article
                  III of this Agreement.
<PAGE>
                  (b) NSI Indemnity  Obligations.  NSI shall  indemnify and hold
         harmless NUSA and the Shareholders  against any Restructuring  Taxes or
         Corporate-Level  Restructuring  Taxes  imposed  upon or incurred by the
         Shareholders or NUSA if NSI breaches the covenants contained in Section
         5.4 and such  breach  results  in the  failure of the  Distribution  or
         Reorganization   to  qualify  for  tax-free   treatment  under  Section
         368(a)(1)(D)  or Section 355 of the Code or similar  provisions  of the
         state or local law.  The  Shareholders  shall be  indemnified  and held
         harmless  under this Section 3.4(b) without regard to the fact that NSI
         received an opinion or ruling from the IRS as  contemplated  by Section
         5.4(b).

                  (c) All  payments  required  to be made  by NUSA  pursuant  to
         Section  3.4(a) or by NSI  pursuant to Section  3.4(b) shall be made no
         later  than 10 days  after  notice  of a  Final  Determination  of such
         Restructuring Taxes or Corporate-Level Restructuring Taxes. Any payment
         not so made  within  10 days  shall  thereafter  bear  interest  at two
         percentage  points  above  the  applicable   Federal   short-term  rate
         established pursuant to Section 6621 of the Code.

                  (d)  If  Section   3.4(a)(i)   applies   to  the   payment  of
         Corporate-Level  Restructuring  Taxes,  and the Tax Item  creating such
         Corporate-Level  Restructuring Taxes is a Temporary Tax Item, NSI shall
         pay to  NUSA  _______  percent  of the  Tax  Benefit  relating  to such
         Temporary Tax Item that NSI realizes.  Any payment  required to be made
         under this  Section  3.4(c) shall be made at the time the Tax Return on
         which such Tax Benefit is realized is filed.

                  (e) If NSI is otherwise required to recognize gain pursuant to
         Section 311 of the Code with respect to the Distribution,  then, to the
         extent permitted by law or regulation, the parties shall elect pursuant
         to  Section  336(e)  of  the  Code  to  treat  the  Distribution  as  a
         disposition of all the assets of NUSA.

         Section 3.5 Reduction in Corporate-Level Taxes.

                  (a) If there is a reduction  of any  Corporate-Level  Taxes of
         NSI for a taxable  period  beginning  after the  Distribution  Date, by
         reason of a Tax Item  attributable to the NUSA Businesses  arising with
         respect to a period on or before the  Distribution  Date, NSI shall pay
         NUSA an  amount  equal  to such  reduction  in  Taxes.  If  there  is a
         reduction  of any  Corporate-Level  Taxes of NUSA for a taxable  period
         beginning  after  the  Distribution  Date,  by  reason  of a  Tax  Item
         attributable to the NSI Businesses  arising with respect to a period on
         or before the Distribution  Date, NUSA shall pay NSI an amount equal to
         such reduction in Taxes.
<PAGE>
                  (b) Any payment  required to be made  pursuant to this Section
         3.5  shall be made no later  than 10 days  after the Tax  reduction  is
         actually or deemed received, credited or otherwise utilized by a party.
         Any payment not so made within 10 days shall  thereafter  bear interest
         at two percentage points above the then applicable  Federal  short-term
         rate established pursuant to Section 6621 of the Code.

         Section 3.6 Payment.  Pursuant to the  Assumption  of  Liabilities  and
Indemnification  Agreement  and Article III of this  Agreement,  NSI will or may
assume  or  satisfy,  or make an  indemnification  payment  with  respect  to, a
liability of NUSA, and vice versa.  If, pursuant to a Final  Determination,  the
after-Tax  position of either NUSA or NSI is  different  than it would have been
had NSI or NUSA made all payments directly to the relevant third party obligees,
then such  party  shall make a payment  to the other  party (or the other  party
shall make a payment to such  party) in an amount  such  that,  on an  after-Tax
basis,  the parties will share the payment of the underlying claim in accordance
with  the  allocation  of such  claim  between  NUSA  and NSI set  forth  in the
Assumption of Liabilities and  Indemnification  Agreement or this Agreement,  as
the case may be.

                                   ARTICLE IV.
                   TAX AUDITS, TRANSACTIONS AND OTHER MATTERS

         Section  4.1 Notice of  Proposed  Adjustments.  If a notice of audit is
given, an audit is begun, an audit adjustment is (or has been) proposed,  or any
other claim is (or has been made) by any taxing  authority with respect to a Tax
liability  that,  pursuant  to the  terms  hereof,  which  could be  indemnified
pursuant to Article III of this Agreement  (collectively,  a "Notice of Proposed
Adjustment"),  the party  receiving  such  Notice of Proposed  Adjustment  shall
promptly  notify the other parties to this Agreement in writing of such receipt.
Thereafter,  the party receiving such Notice of Proposed  Adjustment  shall keep
the other parties, on a timely basis,  informed of all material  developments in
connection with audits, administrative proceedings, litigation and other similar
matters that may affect their  respective Tax  liabilities.  Failure or delay in
providing  notification  hereunder  shall not  relieve  any party  hereto of any
obligation  hereunder in respect of any particular Tax liability,  except to the
extent  that (i) such  failure or delay  precludes  the ability of such party to
contest such  liability  administratively  or in the courts,  and (ii) otherwise
materially and adversely prejudices such party.
<PAGE>
         Section 4.2 Tax Audits and Controversies Involving  Corporate-Level Tax
Items.  In the event (i) either NSI or NUSA  notifies the other party in writing
that it wishes to settle any audit, inquiry, suit, action or proceeding (each an
"Action")  affecting  the  Tax  liability  of  the  other  party  (including  by
application of this  Agreement),  and (ii) the Action relates to a Permanent Tax
Item,  such other  party shall have the right (by giving  written  notice to the
party  wishing  to  settle  the  Action  within  a  reasonable  amount  of time,
considering  all the facts and  circumstances,  of having received notice of the
intention  to settle),  to  prohibit  such  settlement,  in which case the party
favoring settlement shall have the right (within 30 days of receipt of the other
party's written notice prohibiting the settlement) to pay to the other party (or
receive from the other  party) an amount (a  `Settlement  Amount')  equal to the
aggregate  amount which it would have paid (or received),  after  application of
each  provision  of  this  Agreement  other  than  this  Section  4.2,  in  full
satisfaction  of the  Action  and its  obligation  to pay  amounts  (or right to
receive  amounts)  as  provided  in  this  Agreement.  The  party  opposing  the
settlement shall thereafter  control, in its sole and absolute  discretion,  the
further defense and disposition of the Action,  shall be fully and wholly liable
for all Taxes (and receive any refund of Taxes)  resulting  therefrom  and shall
indemnify and hold harmless the party favoring the  settlement  from and any and
all liability for Taxes which results from the ultimate resolution of the Action
in excess of the Settlement Amount. The party opposing the settlement shall have
no  obligation  or duty to reimburse or refund to the other party any portion of
the Settlement Amount,  regardless of the ultimate resolution of the Action. The
party  favoring the  settlement  shall have the right,  at its own  expense,  to
participate  in any Action for which the other party has assumed  control  under
this Section 4.2. If the party  favoring  settlement  does not on a timely basis
exercise its right to make or receive a Settlement  Amount,  the  obligations of
NSI and NUSA  under  this  Agreement  shall  be  determined  as if the  proposed
settlement did not exist (e.g., the party favoring  settlement  cannot settle an
action  without  again  complying  with the  procedure set forth in this Section
4.2).

         Section 4.3  Retention of Books and  Records.  NSI agrees to retain all
Tax Returns,  related  schedules and  Workpapers,  and all material  records and
other documents  relating thereto existing on the date hereof or created through
or with respect to taxable  periods ending on or before the  Distribution  Date,
until the later of (i) the expiration of the statute of  limitations  (including
extensions)  of the taxable  year to which such Tax Returns and other  documents
relate, or (ii) ten years from the date hereof.

         Section  4.4   Cooperation   in  Return   Filings,   Examinations   and
Controversies.

                  (a) In addition  to any  obligations  imposed  pursuant to the
         Distribution Agreement, NUSA and the Shareholders shall fully cooperate
         with  NSI  and  its  representatives  and  with  the  Shareholders  (if
         necessary),  in a prompt and timely manner,  in connection with (i) the
         preparation  and filing of and (ii) any  inquiry,  audit,  examination,
         investigation,  dispute, or litigation involving,  any Tax Return filed
         or  required  to be  filed by or for NSI and the  Shareholders  for any
         taxable period beginning before the Distribution Date. Such cooperation
         shall include,  but not be limited to, making  available to NSI and the
         Shareholders,  during normal business hours, and within sixty (60) days
         of any request  therefor,  all books,  records and  information  (which
         books, records and information may be copied by NSI or the Shareholders
         at their  expense),  and the  assistance of all officers and employees,
         reasonably necessary or useful in connection with any Action.
<PAGE>
                  (b) In addition  to any  obligations  imposed  pursuant to the
         Distribution Agreement,  NSI and the Shareholders shall fully cooperate
         with NUSA and its  representatives,  in a prompt and timely manner,  in
         connection with (i) the preparation and filing of and (ii) any inquiry,
         audit,  examination,  investigation,  dispute, or litigation involving,
         any  Tax  Return  filed  or  required  to be  filed  by or  NUSA or the
         Shareholders.  Such  cooperation  shall include,  but not be limited to
         making available to NUSA and the  Shareholders,  during normal business
         hours, and within sixty (60) days of any request  therefor,  all books,
         records and  information  (which books,  records and information may be
         copied  by  NUSA  or  the  Shareholders  at  their  expense),  and  the
         assistance  of all  officers  and  employees,  reasonably  necessary or
         useful in connection with any Action.

                                   ARTICLE V.
                          REPRESENTATIONS AND COVENANTS

         Section 5.1 Representations of NUSA and the Shareholders.  NUSA and the
Shareholders  hereby  represent  and  warrant  to NSI that  NUSA has no  present
intention to undertake  any of the  transactions  set forth in Section 5.2 or to
cease to engage in the active conduct of the NUSA Businesses (within the meaning
of Section 355(b)(2) of the Code).

         Section 5.2 Covenants of the Shareholders and NUSA.

                  (a) Except as provided in Section  5.2(b),  the  Shareholders,
         both  directly and on behalf of NUSA,  and NUSA  directly  covenant and
         agree with NSI that during the Restricted Period:

                           (i) NUSA shall continue to actively  conduct the NUSA
                  Businesses in the United States (within the meaning of Section
                  355(b)(2)  of the Code) and shall  continue to maintain in the
                  United States a substantial portion of its assets and business
                  operations as they existed prior to the Distribution, provided
                  that the  foregoing  shall not be deemed to prohibit NUSA from
                  entering  into or acquiring  other  businesses  or  operations
                  which may or may not be consistent with NUSA's  Businesses and
                  operations as they existed prior to the  Distribution  so long
                  as NUSA continues to conduct the NUSA Businesses in the United
                  States and continues to so maintain such  substantial  portion
                  of its assets in the United States;
<PAGE>
                           (ii) NUSA shall not dispose of any of the assets that
                  NUSA  owned  immediately  after the  Distribution,  except for
                  dispositions  of such  assets made in the  ordinary  course of
                  business;

                           (iii)   neither  NUSA  nor  any  of  its   directors,
                  officers, or other representatives shall undertake, authorize,
                  approve, recommend, facilitate, or enter into any contract, or
                  consummate any  transaction  with respect to: (A) the issuance
                  of NUSA capital stock (including options,  warrants, rights or
                  securities  exercisable for, or convertible into, NUSA capital
                  stock) in a single  transaction  or in a series of  related or
                  unrelated  transactions or otherwise or in the aggregate which
                  would exceed ten percent (10%) when  expressed as a percentage
                  of the outstanding capital stock of NUSA immediately following
                  the  Distribution;  (B) any redemptions,  repurchases or other
                  acquisitions or capital stock of NUSA in a single  transaction
                  or a series of related or unrelated  transactions or otherwise
                  or in the aggregate  which would exceed ten percent (10%) when
                  expressed as a percentage of the outstanding  capital stock of
                  NUSA  immediately  following  the  Distribution;  or  (C)  the
                  dissolution, merger or complete or partial liquidation of NUSA
                  or any announcement of such action.

                  (b) The Shareholders, both directly and on behalf of NUSA, and
         NUSA  directly,  may take any  action or engage  in  conduct  otherwise
         prohibited  by Section  5.2 so long as prior to such action or conduct,
         as the case may be, NUSA  receives:  (i) an opinion from NUSA's counsel
         in form and substance reasonably satisfactory to NSI and upon which NSI
         can rely to the effect that the proposed action or conduct, as the case
         may be, will not cause the Distribution and  Reorganization  to fail to
         qualify for the  tax-free  treatment  under  Section  368(a)(1)(D)  and
         Section  355 of the  Code,  or (ii) a  ruling  from the IRS in form and
         substance reasonably satisfactory to NSI and upon which NSI can rely to
         the effect that the  proposed  action or  conduct,  as the case may be,
         will not cause the Distribution and  Reorganization  to fail to qualify
         for tax-free  treatment under Section  368(a)(1)(D)  and Section 355 of
         the Code.

         Section 5.3  Representations of NSI. NSI hereby represents and warrants
to the  Shareholders  that NSI has no present  intention to undertake any of the
transactions  set  forth in  Section  5.4 or to cease to  engage  in the  active
conduct of the NSI  Businesses  (within the meaning of Section  355(b)(2) of the
Code).
<PAGE>
         Section 5.4 Covenants of NSI.

                  (a) Except as provided in Section  5.4(b),  NSI  covenants and
         agrees  with  NUSA and the  Shareholders  that  during  the  Restricted
         Period:

                           (i) NSI shall  continue to  actively  conduct the NSI
                  Businesses in the United States (within the meaning of Section
                  355(b)(2)  of the Code) and shall  continue to maintain in the
                  United States a substantial portion of its assets and business
                  operations as they existed prior to the Distribution, provided
                  that the  foregoing  shall not be deemed to prohibit  NSI from
                  entering  into or acquiring  other  businesses  or  operations
                  which may or may not be consistent with the NSI Businesses and
                  operations as they existed prior to the  Distirbution  so long
                  as NUSA  continues to conduct the NSI Businesses in the United
                  States and continues to so maintain such  substantial  portion
                  of its assets in the United States;

                           (ii) NSI not  dispose of any of the  assets  that NSI
                  owned  immediately  after  the  Distribution,  except  for the
                  dispositions  of such  assets made in the  ordinary  course of
                  business;

                           (iii) neither NSI nor any of its directors, officers,
                  or other representatives shall undertake,  authorize, approve,
                  recommend,   facilitate,   or  enter  into  any  contract,  or
                  consummate any  transaction  with respect to: (A) the issuance
                  of NSI capital stock (including  options,  wrrants,  rights or
                  securities  exercisable for, or convertible  into, NSI capital
                  stock) in a single  transaction  or in a series of  related or
                  unrelated  transactions or otherwise or in the aggregate which
                  would exceed ten percent (10%) when  expressed as a percentage
                  of the outstanding capital stock of NSI immediately  following
                  the  Distribution;  (B) any redemptions,  repurchases or other
                  acquisitions  of capital stock of NSI in a single  transaction
                  or a series of related or unrelated  transactions or otherwise
                  or in the aggregate  which would exceed ten percent (10%) when
                  expressed as a percentage of the outstanding  capital stock of
                  NSI  immediately  following  the  Distribution;   or  (C)  the
                  dissolution,  merger or complete or partial liquidation of NSI
                  or any announcement of such action.
<PAGE>
                  (b) NSI may take any  action or engage  in  conduct  otherwise
         prohibited  by Section  5.4 so long as prior to such action or conduct,
         as the case may be, NSI receives  (i) an opinion from NSI's  counsel in
         form and substance reasonably  satisfactory to NUSA and upon which NUSA
         can rely to the effect that the proposed action or conduct, as the case
         may be, will not cause the Distribution and  Reorganization  to fail to
         qualify for the  tax-free  treatment  under  Section  368(a)(1)(D)  and
         Section  355 of the  Code,  or (ii) a  ruling  from the IRS in form and
         substance reasonably  satisfactory to NUSA and upon which NUSA can rely
         to the effect that the proposed action or conduct,  as the case may be,
         will not cause the Distribution and  Reorganization  to fail to qualify
         for tax-free  treatment under Section  368(a)(1)(D)  and Section 355 of
         the Code.

         Section 5.5 The parties  hereto  recognize  that failure to comply with
their  respective  obligations  under this Section 5.1 may result in irreparable
harm to the  other  party  and  that  the  other  party  may  not be  adequately
compensated by monetary damages for such failure.  If either party shall fail to
comply with its respective  obligations  under this Section 5.1, the other party
shall be entitled to injunctive  relief and specific  performance in addition to
all other remedies.

                                   ARTICLE VI.
                                  MISCELLANEOUS

         Section  6.1  Expenses.  Unless  otherwise  expressly  provided in this
Agreement or in the  Distribution  Agreement,  each party shall bear any and all
expenses that arise from their respective obligations under this Agreement.

         Section 6.2 Entire  Agreement;  Termination of Prior  Agreements.  This
Agreement constitutes the entire agreement of the parties concerning the subject
matter hereof and supersedes all other  agreements,  whether or not written,  in
respect of any Tax  between or among  them.  This  Agreement  may not be amended
except by an agreement  in writing,  signed by the parties  hereto.  Anything in
this Agreement or the Distribution  Agreement  and/or  Assumption of Liabilities
and Indemnification Agreement to the contrary notwithstanding,  in the event and
to the extent that there  shall be a conflict  between  the  provisions  of this
Agreement and the  Distribution  Agreement  and/or the Assumption of Liabilities
and Indemnification Agreement, the provisions of this Agreement shall control.

         Section 6.3  Notices.  All notices and other  communications  hereunder
shall be in writing and shall be  delivered by hand or mailed by  registered  or
certified  mail  (return  receipt  requested)  to the  parties at the  following
addresses (or at such other  addresses for a party as shall be specified by like
notice) and shall be deemed given on the date on which such notice is received:
<PAGE>
                            If to NSI:

                            Nu Skin International, Inc.
                            One Nu Skin Plaza
                            75 West Center Street
                            Provo, UT  84601
                            Attention: Mr. Richard M. Hartvigsen

                            If to NUSA:

                            Nu Skin USA, Inc.
                            One Nu Skin Plaza
                            75 West Center Street
                            Provo, UT  84601
                            Attention: Mr. Richard M. Hartvigsen

                            With a copy to:

                            Holland & Hart, LLP
                            215 South State Street, Suite 500
                            Salt Lake City, UT  84111
                            Attention:  David R. Rudd

If the last day for providing any notice,  communication or payment hereunder is
a Saturday, Sunday or legal holiday, such due date shall be extended to the next
business day.

         Section 6.4 Resolution of Disputes.  In the event of a dispute  arising
with respect to this Agreement  which the parties are unable to resolve on their
own,  such dispute  shall be resolved by  arbitration  conducted as described in
Section 3.9 of the Assumption of Liabilities and Indemnification Agreement being
executed  concurrently  herewith,  with the  parties on each side of the dispute
selecting one arbitrator and the two  arbitrators so selected  selecting a third
arbitrator.

         Section  6.5  Application  to  Present  and Future  Subsidiaries.  This
Agreement is being entered into by NSI and NUSA on behalf of themselves and each
member of the NSI Group  and NUSA  Group,  respectively.  This  Agreement  shall
constitute a direct  obligation  of each such member and shall be deemed to have
been readopted and affirmed on behalf of any corporation  which becomes a member
of the NSI Group or NUSA Group in the future.  NSI and NUSA hereby guarantee the
performance of all actions,  agreements and obligations  provided for under this
Agreement of each member of the NSI Group and the NUSA Group, respectively.  NSI
and NUSA  shall,  upon the  written  request  of the  other,  cause any of their
respective  Group members  formally to execute this  Agreement.  This  Agreement
shall be binding  upon,  and shall  inure to the  benefit  of,  the  successors,
assigns and persons controlling any of the corporations bound hereby for so long
as such successors,  assigns or controlling persons are members of the NSI Group
or the NUSA Group, respectively, or their respective successors and assigns.
<PAGE>
         Section  6.6  Term.  This  Agreement  shall  commence  on the  date  of
execution indicated below and shall continue in effect until otherwise agreed to
in writing by NSI and NUSA, or their successors.

         Section 6.7 Titles and Headings. Titles and headings to sections herein
are inserted for the  convenience of reference only and are not intended to be a
part or to affect the meaning or interpretation of this Agreement.

         Section 6.8 Legal Enforceability. Any provision of this Agreement which
is  prohibited  or  unenforceable   in  any  jurisdiction   shall,  as  to  such
jurisdiction,   be   ineffective   to  the   extent  of  such   prohibition   or
unenforceability  without invalidating the remaining provisions hereof. Any such
prohibition  or  unenforceability  in any  jurisdiction  shall not invalidate or
render unenforceable such provision in any other jurisdiction. Without prejudice
to any rights or remedies  otherwise  available to any party hereto,  each party
hereto acknowledges that damages would be an inadequate remedy for any breach of
the provisions of this Agreement and agrees that the  obligations of the parties
hereunder shall be specifically enforceable.

         Section 6.9 Singular and Plural.  As used  herein,  the singular  shall
include the plural and vice versa.

         Section 6.10  Governing  Law. This  Agreement  shall be governed by the
laws of Utah.

          IN WITNESS WHEREOF, the parties have executed this agreement as of the
31st day of December, 1997.

                                    THE COMPANIES:

                                    NU SKIN INTERNATIONAL, INC.

                                    By:    /s/ Keith Halls
                                    Name:  Keith Halls
                                    Title: Vice President
<PAGE>
                                    NU SKIN USA, INC.

                                    By:    /s/ Keith Halls
                                    Name:  Keith Halls
                                    Title: Vice President

                                    THE SHAREHOLDERS:

                                    /s/ Blake M. Roney
                                    Blake M. Roney

                                    /s/ Nedra Dee Roney
                                    Nedra Dee Roney

                                    /s/Sandie N. Tillotson
                                    Sandie N. Tillotson

                                    /s/ Craig Bryson
                                    Craig Bryson

                                    /s/ Craig S. Tillotson
                                    Craig S. Tillotson

                                    /s/ Steven J. Lund
                                    Steven J. Lund

                                    /s/ Brooke R. Roney
                                    Brooke R. Roney

                                    /s/ Kirk V. Roney
                                    Kirk V. Roney

                                    /s/ Keith R. Halls
                                    Keith R. Halls

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