Document:

10.7 Management Serv Agree Malaysia

MANAGEMENT SERVICES AGREEMENT

between

NU SKIN INTERNATIONAL MANAGEMENT GROUP, INC.

(Company No. 1195205-0142)

and

                                        NU SKIN (MALAYSIA) SDN. BHD.

(Company No. 402787-V)

THIS MANAGEMENT SERVICES AGREEMENT
(hereinafter, this “Agreement”) is entered into this 20th day of June
2002 to be effective as of September 28, 2001 between NU SKIN INTERNATIONAL
MANAGEMENT GROUP, INC. (Company No. 1195205-0142), a company organized under
the laws of the State of Utah, United States of America and having its principal
place of business at 75, West Center Street, Provo, Utah 84601, United States of
America (“NSIMG”), and NU SKIN (MALAYSIA) SDN. BHD. (Company
No. 402787-V), a company incorporated in Malaysia and having its registered
office at 6th Floor, Menara Boustead, 69, Jalan Raja Chulan, 50200 Kuala Lumpur,
Malaysia and a place of business at Office Lot 04-01, Level 4, PNB Darby Park
Retail, No. 10, Jalan Binjai, 50450 Kuala Lumpur (“NSMY”). Hereinafter
NSIMG and NSMY shall be collectively referred to as the “Parties” and
each shall be individually referred to as a “Party.” 

WITNESSETH

WHEREAS, NSMY has licensed from Nu Skin
International, Inc. (Company No. 880564-0142) (“NSI”) the right to
utilize NSI’s network of independent distributors to market products and
services and has also acquired the right to distribute various products procured
from or through NSI; 

WHEREAS, NSIMG provides various services to
licensees and distributors of NSI to assist in the development of the business
of such licensees and distributors; 

WHEREAS, NSMY desires to engage the
services of NSIMG, and NSIMG desires to provide such services, all on the terms
and conditions set forth in this Agreement. 

AGREEMENT

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

ARTICLE 1DEFINITIONS

For purposes of this Agreement, unless the context otherwise
requires or the Parties otherwise agree within the terms of this Agreement, the
following words, terms and phrases shall have the meanings assigned to them
respectively by this Article 1: 

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

          

     	1.2	 	
          “Agreement” shall mean this Management Services Agreement
          between NSIMG and NSMY, as the same may be modified, amended or supplemented
          from time to time. 

          

     	1.3	 	
          “Compensation Expense” shall mean all expenses and costs
          associated with compensation and benefits provided to Consulting Personnel,
          including, without limitation, salary, bonus, housing reimbursements, retirement
          benefits, insurance costs, and any other benefits, perquisites or other
          compensation provided to Consulting Personnel. 

          

     	1.4	 	
          “Consulting Personnel” shall mean employees of NSIMG or, with
          the consent of NSMY, such other persons or entities as NSIMG may retain, hire,
          or otherwise contract with for the provision of Management and Consulting
          Services on behalf of, or in conjunction with, NSIMG, including employees and
          contractors of NSI and its Affiliates. 

          

     	1.5	 	
          “Consulting Rate” shall mean the consulting rate established
          for each Consulting Personnel by NSIMG. Such consulting rate may be a daily
          rate, an hourly rate, a monthly rate, or such other rate as NSIMG determines to
          be appropriate based on the Management and Consulting Services to be provided by
          NSIMG. 

          

     	1.6	 	
          “Direct Expenses” shall mean all expenses incurred in the
          provision of Management and Consulting Services for NSMY, which expenses are
          incurred solely for the benefit of NSMY, including, without limitation, business
          expenses, convention expenses and travel expenses, but specifically excluding
          Compensation Expense. 

          

     	1.7	 	
          “Expatriate Personnel” shall mean Consulting Personnel who
          reside in Malaysia and are seconded to NSMY for a definite or indefinite period
          of time to perform Management and Consulting Services. 

          

	1.8	  	"Intercompany
Agreements" shall mean the License Agreement and the Trademark Licensing Agreement
between NSMY and Nu Skin International, Inc., the Distribution Agreement between NSMY and
Nu Skin Enterprises Hong Kong, Inc., and this Agreement. 

     	1.9	 	
          “Management and Consulting Services” shall mean the following
          services: management, financial, marketing and distribution support/training,
          public relations, international expansion, human resources, strategic planning,
          product development and operations administration and such other services as the
          Parties may agree to from time to time. 

          

	1.10	 	"NSI"
shall mean Nu Skin International, Inc., a corporation duly organized and existing under
the laws of the State of Utah, United States of America. 

     	1.11	 	
          “NSIMG Confidential Information” shall mean any and all
          information that is unique, proprietary or competitively sensitive to the
          business of NSIMG and/or any Affiliate of NSIMG, including NSI, which NSMY may
          obtain knowledge of or access to in connection with its relationship with NSIMG
          and the transactions contemplated by the Intercompany Agreements information
          relating to products, NSI’s independent distributors, compensation or
          commission systems or schemes, pricing methods, historical, current and
          projected financial information, marketing information, and any and all
          information, technical data or know-how related to any aspect of NSIMG or any of
          its Affilliate’s business or technology including data, know-how, formulae,
          designs, drawings, proposals, specifications, and the terms of this Agreement. 

          

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

          

ARTICLE 2

MANAGEMENT AND CONSULTING SERVICES

	2.1 	Request
for Services 

	 	NSMY
may request NSIMG to provide Management and Consulting Services from time to time, either
for specific projects, or for regular, recurring duties and assignments (e.g. legal,
financial, and marketing) that are not tied to a specific project as follows:

	 	2.1(a) 
	If
NSMY requests Management and Consulting Services for a specific project that does not
fall within the scope of regular, recurring Management and Consulting Services, then NSMY
and NSI shall work together to define the scope of the services to be provided and set
forth their agreement in writing, either in the form of a statement of work or a purchase
order agreed to and signed by both parties.

	 	2.2(B)
	If NSMY requests NSIMG to provide regular, recurring Management and Consulting
Services, NSI and NSIMG shall meet initially and establish the areas of responsibilities
and servicesthat NSMY would like to secure and receive from NSIMG. Details of such
services need not be in writing, and NSIMG and the Consulting Personnel shall be
authorized to undertake and perform such services as they determine in good faith are in
the best interests of NSMY. NSMY and NSIMG thereafter shall meet on a quarterly basis to
review the Management and Consulting Services provided by NSIMG, including the scope of
such services, the quality of such services, the time being spent to perform such
services, the Consulting Personnel performing such services, the benefits to NSMY and the
Consulting Rates being charged. Based on such review, NSMY and NSIMG, may make such
changes to the Management Consulting Services as may be agreed to by both Parties. 

	2.2 	Fees 

	 	Unless
otherwise agreed in writing, all Management Consulting Services shall be provided on a
time and materials basis as more fully described in this Agreement. NSMY agrees to
reimburse and compensate NSIMG for Management and Consulting Services rendered pursuant to
this Agreement in accordance with the applicable compensation and invoicing provisions
hereof.

	2.3 	Performance
of Services 

	 	Subject
to the terms and conditions of this Agreement, NSIMG will act in good faith and provide
the services in a professional and workmanlike manner. NSIMG will retain sole control over
the manner and means by which the Management and Consulting Services are to be performed
and may engage third parties in the performance of its obligations under this Agreement.

	2.4 	Assistance 

	 	NSMY
shall provide, in a timely manner and at no cost to NSIMG, such assistance, cooperation,
equipment and information as NSIMG may request in connection with the performance of the
Management and Consulting Services.

	2.5 	Ownership
of Developed Intangibles 

	 	NSIMG or its Affiliates and contractors shall retain ownership of
all  intellectual  property  rights  developed  pursuant to this  Management and
Consulting  Services  provided  under  this  Agreement.   For  so  long  as  the
Intercompany  Agreements  remain in full  force and  effect,  NSMY  shall have a
limited  license to use for and in the  conduct  of  NSMY’s  business,  any
intellectual  property rights developed pursuant to the services performed NSIMG
and paid for in full by NSMY under the terms of this  Agreement.  NSMY shall not
take any action that would  negatively  impact  NSIMG’s  ownership  of such
intellectual  property  rights and shall not represent or hold itself out as the
owner of such rights.

	2.6 	Expatriate
Employees 

	 	(a) 
	The Parties shall agree to the terms and circumstances pursuant to which a Consulting
Personnel may be assigned and seconded by NSIMG as an Expatriate Personnel to work at and
as an employee of NSMY; providedthat nothing in this Agreement shall be
interpreted to mean that NSIMG must make available any Consulting Personnel to work at
NSMY as an Expatriate Personnel.  

	 	(b) 
	During the term of an Expatriate Personnel’s secondment to NSMY, NSMY will
assume the sole and direct responsibility for supervising and managing such individual
with respect to the services and activities of such individual for and on behalf of NSMY.
In this regard, the Parties agree that the Expatriate Personnel shall perform no services
for NSIMG during the time of the secondment and NSIMG shall have no control of the
day-to-day activities of the Expatriate Personnel. 

	 	(c)

	During the term of secondment, the Expatriate Personnel will be subject to the
working conditions and schedules in effect at NSMY and shall be provided by NSMY with the
facilities and the equipment and supplies that such individual requires to perform his or
her services for and on behalf of NSMY.  

	2.7 	Approval
of Services 

	 	In
the event that NSMY disputes the amount of any invoice or the amount of services provided,
or has any disputes or complaints concerning the Management and Consulting Services
provided by NSIMG (such as any failure to perform such services in accordance with this
Agreement), NSMY shall provide written notice of such dispute or complaint within sixty
(60) days of the date of the invoice for such services. If NSMY fails to provide such
written notice with such sixty (60) day period, it shall be deemed to have: 

	 	(a)
	accepted the performance of the services in full and confirmed all of such services
were performed in accordance with the requirements of any specific agreement therefor
established pursuant to Clause 2.1 and also of this Agreement, including any warranty set
forth herein,

	 	(b) 	accepted
the accuracy of such invoice and the validity of all charges on such invoice, and

	 	(c) 	waived
any claim relating to such Management and Consulting Services. 

ARTICLE 3

COMPENSATION OF SERVICE PROVIDER

	3.1 	Compensation
for Services by Consulting Personnel 

	 	NSMY
agrees to compensate NSIMG for Management and Consulting Services that it provides to NSMY
through Consulting Personnel (other than Expatriate Personnel) in the form of a fee equal
to the Consulting Rate for such Consulting Personnel as established by NSMIG from time to
time multiplied by the number of hours, months or days or other time period, as the case
may be, that such Consulting Personnel provided Management and Consulting Services. 

	3.2 	Reimbursement
of Cost of Expatriate Personnel 

	 	NSMY
agrees to be responsible for any Compensation Expense of Expatriate Personnel seconded to
NSMY. NSMY also shall be responsible for all Direct Expenses associated with the services
of such Expatriate Personnel. 

	3.3 	Reimbursement
of Direct Expenses 

	 	NSMY
agrees to reimburse NSMY for all Direct Expenses incurred by Consulting Personnel in
connection with the Management and Consulting Services. 

	3.4 	Currency 

	 	Any
compensation to be paid to NSIMG for Management and Consulting Services rendered pursuant
to this Agreement shall be billed and paid in United States Dollars. 

	3.5 	Consulting
Rates

	 	NSIMG
shall provide NSMY on a periodic basis the Consulting Rates for the Consulting Personnel
who are to provide services to NSMY. In the event NSMY objects to the Consulting Rate for
any Consulting Personnel, NSMY shall provide NSIMG with notice and the parties shall meet
to discuss and agree upon the applicable Consulting Rate prior to the provision of the
services of the Consulting Personnel concerned. 

	3.6 	Payment
and Invoicing 

	 	3.6(a)
	Within
thirty (30) days after the end of each month, NSIMG shall prepare and deliver to NSMY,
invoice(s) setting forth the fees and/or the Compensation Expense and/or the Direct
Expenses payable hereunder for or in relation to the provision of Management and
Consulting Services rendered pursuant to this Agreement during such month.  

	 	3.6(b) 
	Payments
due under this Agreement shall be due and payable within thirty (30) days after the date
of dispatch of the invoice for such payments. Payments shall be made either directly to
NSIMG in immediately available funds by wire transfer to an account designated by NSIMG
or by such other means of payment acceptable to NSIMG from time to time.  

	 	3.6(c)
 
	Without limiting any of Parties’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 (both before and after judgment) at the rate of ten percent (10%) per
annum. NSIMG may (but shall not be obligated to) waive, whether with conditions or
otherwise, its right to the payment of interest payable hereunder, whether in respect of
all or some of the monies due and payable from time-to-time by NSMY to NSIMG and for such
period as NSIMG deems appropriate in its absolute discretion.  

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

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

	 	3.6(f)
 
	    All sums payable by NSMY to NSIMG under this Agreement shall be paid without any
set-off, counter-claim, qualification, or condition whatsoever. 

ARTICLE 4

PREPARATION AND SHARING OF REPORTS AND INFORMATION

	4.1 	Periodic
Reports on Management and Consulting Services 

	 	NSMY
may, upon thirty (30) days’ written notice, request operations reports of NSIMG
setting forth such information regarding the Management and Consulting Services provided
under this Agreement and for such time periods as NSMY shall reasonably request. 

	4.2 	Billing
Information 

	 	NSIMG
shall provide to NSMY, no less often than quarterly, a billing summary indicating the
number of hours or days or other time periods, as the case may be, each Consulting
Personnel has provided Management and Consulting Services to NSMY. 

	4.3 	Sharing
of Information and Access to Witnesses 

	 	At
all times during the term of this Agreement and for a period of three (3) years
thereafter, each of the Parties shall maintain at its principal place of business full,
complete and accurate books of account and records with regard to its activities under
this Agreement. In addition to the books and records pursuant to this Section 4.3 of
Article 4, NSIMG and NSMY may from time to time have in their possession or under their
control (or the control of persons or entities which have rendered services to time)
additional books, records, contracts, instruments, data and other information (together
with the books and records referred to in the first sentence of this Section 4.3, the
“Information”) which may prove necessary or desirable to the other in connection
with the other’s business. Accordingly, 

	 	(i) 
	NSIMG shall provide to NSMY, and NSMY shall provide to NSIMG upon the other’s
request, at all reasonable times, full and complete access to (persons with respect to,
and all Information as the other may reasonably request and require in the conduct of its
business, and 

	 	(ii)
 
	NSIMG shall make available to NSMY and NSMY shall make available to NSIMG, upon the
other’s request, such persons as may reasonably be required to assist with any
legal, administrative or other proceedings in which NSMY or NSIMG, as the case may be,
may from time to time be involved. The Information shall include, without limitation,
information sought for audit, accounting, claims, litigation and tax purposes as well as
for, in the case of NSMY, purposes of fulfilling disclosure and reporting obligations
under the United States securities laws. The Party providing Information or making
available witnesses shall be entitled to receive from the other Party, upon the
presentation of invoices therefor, payment for its reasonable out-of-pocket expenses
incurred in connection therewith (but not the labor costs thereof), but shall not be
entitled to receive any other payment with respect thereto. Nothing in this Agreement
shall require either Party to reveal to the other any information if to do so would
violate such Party’s written and enforceable duty of confidence to a third party
from whom such information was obtained; under such circumstances, however, the Parties
shall work together to obtain a release of such information without violation of such
duty of confidence. 

ARTICLE 5

NON-DISCLOSURE OF CONFIDENTIAL INFORMATION

	5.1 	NSMY
Confidentiality 

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

	5.2 	NSIMG
Confidentiality 

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

	5.3 	Exceptions 

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

	5.4 	Unauthorized
Disclosure 

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

	5.5 	Return
of Confidential Information 

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

ARTICLE 6
TERM

	6.1 	Term 

	 	This
Agreement shall commence and take effect on September 28, 2001, and the initial term shall
end on December 31, 2004 unless earlier terminated pursuant to the provisions of this
Article 6. This Agreement, however, shall automatically renew for successive one (1) year
terms unless either (i) terminated by either Party by written notice given not less than
ninety (90) prior to the end of the current term of this Agreement, or (ii) terminated in
accordance with Article 6 hereof. 

	6.2 	Termination
for Insolvency/Receivership 

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

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

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

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

	 	6.2(b)	there
shall be commenced against the other Party any case, proceeding or other action of a
nature referred to in Section 6.2(a) of Article 6 hereof which either results in the
entry of an order for relief or any such adjudication or appointment or remains
undismissed, undischarged or unbonded for a period of ninety (90) days; or  

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

	6.3 	Termination
for Breach of this Agreement 

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

	 	6.3(b) 	This
Agreement may be terminated by either Party, if the other Party is in default in the
performance of any material obligation hereunder, other than NSMY’s obligation to
pay the monies referred to in Section 6.2(a) of Article 6 hereof and such default has not
been cured within forty-five (45) days after receipt by the defaulting Party of written
notice of such default served by the defaulting party requiring such cure.  

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

          This Agreement may be terminated
by NSIMG if: 

	 	6.4(a) 
	any
of the parties (other than Nu Skin Enterprises, Inc.) to the Shareholders’Agreement
by and between Nu Skin Enterprises, Inc. and the other shareholders of NSMY’s
parent/holding company, Nu Skin Holdings Sdn Bhd (Company 552189-P) (“NSMH”),
breaches such party’s obligations thereunder and fails to cure such breach within
thirty (30) days after its receipt of a written notice of such breach is given by Nu Skin
Enterprises, Inc., requiring such cure; 

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

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

	 	6.4(d) 	Nu
Skin Enterprises, Inc., NSI or other Affiliate of NSI ceases to hold at least thirty
percent (30%) of the total issued equity capital of NSMY; or 

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

	6.5 	Obligations
of NSMY Upon Termination 

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

	6.6 	Survival
of Obligations 

	 	The
termination or expiration of this Agreement shall be without prejudice to the rights and
remedies of a Party in respect of any antecedent breach of this Agreement. The obligations
of a Party to pay any sums which are due and payable as of the expiration or termination
of this Agreement and its obligation under Article 5 and under Article 8 hereof shall
survive the expiration or termination of this Agreement. 

	6.7 	Termination
of Specific Services 

	 	NSMY
may terminate any specific Management and Consulting Service provided pursuant to this
Agreement by providing written notice thereof to NSIMG not less than sixty (60) days prior
to the desired termination date. NSIMG may discontinue providing any specific Management
and Consulting Service provided pursuant to this Agreement by providing written notice
thereof to the NSMY not less than sixty (60) days prior to the desired termination date. 

ARTICLE 7
WARRANTY

	7.1 	Warranties 

	 	NSIMG
makes no warranties of any type with respect to the Management and Consulting Services
other than the limited warranty that the Management and Consulting Services shall be
performed in a professional and workmanlike manner and consistent with industry standards.
NSIMG expressly disclaims any warranty that the work product will be free of any defects
or errors. THE WARRANTIES IN THIS SECTION 7.1 OF ARTICLE 7 ARE EXCLUSIVE AND ARE IN LIEU
OF ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY
QUALITY, AND NON-INFRINGEMENT. 

	7.2 	Exclusive
Remedies 

	 	NSMY
must report any breach of the foregoing warranty within sixty (60) days of the date of the
invoice for such services. NSMY’s sole and exclusive remedy, and NSIMG’s entire
liability, shall be: (a) to reperform such services at NSIMG’s own cost or expense,
or (b) if NSIMG is unable or elects not to perform such services, it shall refund the fees
paid with respect to the disputed service. In no event shall NSIMG’s liability exceed
the amount of fees paid to NSIMG for such disputed Management and Consulting Services.
NSIMG shall in no event be liable for any consequential, indirect, punitive or special
damages. 

ARTICLE 8

EFFECT OF TERMINATION

	8.1 	Cessation
of Rights 

	 	Upon
expiration or termination (collectively, the “Termination”) of this Agreement
for any reason whatsoever, all rights and obligations of the Parties hereunder shall
cease; provided however, that upon Termination of this Agreement, no Party shall be
released from its obligations to pay monies due or to become due or to complete any
unfulfilled obligations under this Agreement, and the provisions of Article 5 shall
survive such Termination. 

	8.2 	Damages 

	 	Upon
the Termination of this Agreement for any reason, no Party shall be liable or obligated to
the other Party with respect to any payments, future profits, exemplary, special or
consequential damages, indemnifications or other compensation regarding such Termination,
and, except as otherwise required by applicable law, each Party hereby waives and
relinquishes any rights, pursuant to law or otherwise, to any such payments,
indemnifications or compensation. 

ARTICLE 9

COMPLIANCE WITH APPLICABLE LAWS

	9.1 	Compliance
Generally 

	 	In
the performance of its obligations under this Agreement, the Parties shall, at all times,
strictly comply with all applicable laws, regulations and orders of the countries and
jurisdictions in which they operate and such United States laws as outlined in Section 9.3
of Article 9 hereof. 

	9.2 	Immigration
Passes 

	 	The
assignment and secondment of the Consulting Personnel as Expatriate Personnel pursuant to
Section 2.6(a) of Article 2 hereof and the provision by NSIMG of such Management
Consulting Services as require the performance by the Consulting Personnel of work in
Malaysia shall be subject to the grant by all relevant authorities in Malaysia (including
the Ministry of Domestic Trade and Consumer Affairs and the Director-General of
Immigration) of all requisite approvals, immigration passes and work permits therefor and,
in the case of the secondment of Consulting Personnel as Expatriate Personnel, of
immigration passes to enable their accompanying families, where applicable, to enter into
and reside in Malaysia, NSMY shall sponsor all applicable immigration passes and work
permits, provide every assistance (including complying with all terms and conditions
imposed on NSMY) for the issue and, if applicable, renewal of all approvals, immigration
passes and work permits, notify NSIMG promptly thereof and pay all fees, costs and
expenses in relation thereto. 

	9.3 	Authorizations 

	 	Subject
to the provisions of Section 9.2 of Article 9 hereof, each Party shall, at its own
expense, make, obtain and maintain in force at all times during the term of this
Agreement, all filings, registrations, reports, licenses, permits and authorizations
required under applicable law, regulations or orders in order for it to perform its
obligations under this Agreement. 

	9.4 	Business
Practices 

	 	In
conformity with the United States Foreign Corrupt Practice Act and with the Parties’
established corporate policies regarding business practices, the Parties and their
respective employees shall not directly or indirectly make an offer, payment, promise to
pay, or authorize payment, or offer a gift, promise to give, or authorize the giving of
anything of value for the purpose of influencing an act or decision (including a decision
not to act) of an official of any Government or of an employee or any company or including
such a person to use his influence to effect any such act or decision in order to assist
any of the Parties in obtaining, retaining or directing any business. 

ARTICLE 10

GENERAL PROVISIONS

	10.1 	Assignment 

	 	This
Agreement shall be binding on and inure to the benefit of the successors, assigns and
beneficiaries of the Parties; provided that no Party may assign this Agreement or any
rights or obligations hereunder, whether by operation of law or otherwise, without the
prior written consent of each of the other Party’s authorized representatives (which
consent may be withheld or granted with or without conditions at the sole discretion of
such other Party). Any attempted assignment by any Party without the prior written consent
of the other Party shall be void and unenforceable. Notwithstanding the foregoing, NSIMG
may assign this Agreement to any of its Affiliates. 

	10.2 	Notices 

	 	A
notice, request and other communication hereunder shall be in writing and shall be deemed
to have been duly given, if delivered by hand, courier or registered airmail, or
communicated by facsimile, cable or similar electronic means to the address, facsimile
number or cable identification number provided below (or as changed in accordance with
this Section 10.2) of the Party to whom it is addressed and shall be deemed to be given if
delivered by hand or courier, at the time of delivery or if communicated by facsimile,
cable or similar electronic means, at the time that receipt thereof has been confirmed by
return electronic communication or signal that the message has been received, or if
mailed, ten (10) days after dispatch by registered airmail, postage prepaid:- 

	 	If to NSIMG: 	Nu Skin International Management Group, Inc.

75 West Center, Provo,Utah 84601
United States of America
Attn: General Counsel
(801) 345-5500

	 	 	Facsimile No.: (801)345-5999

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

Office Lot 04-01, Level 4, PNB Darby Park Retail

No. 10, Jalan Binjai

50450 Kuala Lumpur

Malaysia
Attn: Managing Director

Facsimile No.: 603-2170 7799 

	10.3 	Waiver
and Delay 

	 	No
waiver by any Party of any breach or default in performance by any other Party, and no
failure, refusal or neglect of any 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 any Party
of its right at any time thereafter to require exact and strict compliance with the
provisions thereof. 

	10.4 	Governing
Law 

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

	10.5 	Dispute
Resolution 

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

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

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

	 	10.5(c)
 
	Pending the commencement of the arbitral proceedings, either Party may apply, to the
courts in Utah and/or Malaysia (which shall have non-exclusive jurisdiction) for the
grant of interim injunctions and orders for the protection and preservation of property
subject of or relating to this Agreement. For the purposes of this Section 10.5(c) and as
provided in Arbitration Rules of the AAA, arbitral proceedings shall be deemed to
commence on the date when the administrator of the AAA receives notice of arbitration
from the Party initiation the arbitration.

	10.6 	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, labour
disputes, freight embargoes or transportation delays, shortage of labour, 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, acts of terrorism 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. 

	10.7 	Applicability
of Post-Effective Laws 

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

	10.8 	Integrated
Contract 

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

	10.9 	Modifications
and Amendments 

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

     

	10.10 	Severability 

	 	To
the extent that any provision of this Agreement is (or, in the opinion of counsel mutually
acceptable to all Parties, would be) prohibited, judicially invalidated or otherwise
rendered unenforceable in any jurisdiction relevant to the Parties, 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. 

	10.11 	Counterparts
and Headings 

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

     

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

NU SKIN INTERNATIONAL MANAGEMENT GROUP, INC.

By:          /s/  Steven J. Lund

Name:       Steven J. Lund

Title:     President

NU SKIN (MALAYSIA) SDN. BHD.

By:/s/  Datuk Mohd Nadzmi Bin Mohd Salleh

Name:  Datuk Mohd Nadzmi Bin Mohd Salleh

Title:  DirectorDistriubtion Agree (Malaysia)

DISTRIBUTION AGREEMENT

BETWEEN

NU SKIN ENTERPRISES HONG KONG, INC.

(Company No. 1107053-0142)

AND

                                        NU SKIN (MALAYSIA) SDN. BHD.

(Company No. 402787-V)

THIS DISTRIBUTION AGREEMENT (hereinafter,
this “Agreement”) is entered into this 20th day of June 2002 to be
effective as of September 28, 2001, between NU SKIN ENTERPRISES HONG KONG,
INC. (Company No. 1107053-0142), a company organized under the laws of the
State of Utah, United States of America and having its principal place of
business at 75, West Center Street, Provo, Utah 84601, United States of America
and a registered branch office at 26th Floor, Windsor House, 311 Gloucester
Road, Causeway Bay, Hong Kong (“NSEHK”), and NU SKIN (MALAYSIA)
SDN. BHD. (Company No. 402787-V), a company incorporated in Malaysia and
having its registered office at 6th Floor, Menara Boustead, 69, Jalan Raja
Chulan, 50200 Kuala Lumpur, Malaysia and a place of business at Office Lot
04-01, Level 4, PNB Darby Park Retail, No. 10, Jalan Binjai, 50450 Kuala Lumpur
(“NSMY”). Hereinafter NSMY and NSEHK shall be collectively referred to
as the “Parties” and each shall be individually referred to as a
“Party”. 

RECITALS

WHEREAS,  Nu Skin International,  Inc. ("NSI") and its Affiliates are engaged in the development,  marketing
and distribution of various products through a network of independent distributors;

WHEREAS, NSI has granted to NSEHK,
exclusive rights to distribute products in countries including the Federation of
Malaysia, in South East Asia, developed by or procured through NSI and its
Affiliates; 

WHEREAS, NSI has granted to NSMY a license to use
NSI’s network of independent distributors to market and distribute products
in the Federation of Malaysia; 

WHEREAS, NSMY desires, on the terms and
conditions hereinafter set forth, to act as the exclusive distributor in the
Federation of Malaysia of products procured from or through NSI and its
Affiliates including NSEHK and subject to NSI’s approval to such
appointment, NSEHK is willing to appoint NSMY as the exclusive distributor in
the Federation of Malaysia of such products; and 

WHEREAS, the Parties desire to enter into
this Agreement to establish the terms and conditions on which NSMY shall have
the right to act as a distributor of products procured from or through NSEHK and
NSI. 

AGREEMENT

NOW, THEREFORE, in consideration of the
premises, the mutual covenants contained in this Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows: 

ARTICLE I

DEFINITIONS

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

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

          

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

          

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

	1.4	 	"Intercompany
Agreements" shall mean the License Agreement and the Trademark Licensing Agreement
between NSMY and NSI, the Management Services Agreement between NSMY and Nu Skin
International Management Group, Inc., and this Agreement. 

     	1.5	 	
          “Intellectual Property” shall mean all of the patents,
          trademarks, trade names, service marks, other marks and devices, formulas,
          technologies, and other proprietary and confidential information relating to the
          design, specifications, manufacture, use or services of, or otherwise associated
          with, the Products. 

          

     	1.6	 	
          “Nu Skin Confidential Information” shall mean any and all
          information that is unique, proprietary or competitively sensitive to the
          business of NSEHK and/or any Affiliate of NSEHK, including NSI, which NSMY may
          obtain knowledge of or access to in connection with its relationship with NSEHK
          and its Affiliates, including NSI, and the transactions contemplated by the
          Intercompany Agreements, including, but not limited to, information relating to
          Products, the NSI Independent Distributors, NSI’s compensation or
          commission systems or schemes, pricing methods, historical, current and
          projected financial information, marketing information, and any and all
          information, technical data or know-how related to any aspect of NSEHK’s,
          or any of its Affiliates’, business or technology including data, know-how,
          formulae, designs, drawings, proposals, specifications, and the terms of this
          Agreement. 

          

     	1.7	 	
          “NSI Independent Distributor” shall mean a person authorized by
          contract with NSI to distribute, as an independent contractor, the Products in
          accordance with the terms of such distributor contract. 

          

     	1.8	 	
          “NSMY Confidential Information” shall mean any and all
          information that is unique, proprietary or competitively sensitive to the
          business of NSMY which NSEHK may gain knowledge of or access to in connection
          with the transactions contemplated hereunder, but specifically excluding the Nu
          Skin Confidential Information. 

          

     	1.9	 	
          “person” shall mean an individual, partnership, firm, joint
          venture, corporation, limited liability company, association, trust,
          unincorporated organization or other entity. 

          

     	1.10	 	
          “Products” shall mean those products identified on Schedule A
          to this Agreement, as such Schedule A may be amended from time to time by NSEHK,
          in writing in its sole discretion, by its addition to or deletion from such
          schedule of products in the manner more fully described in Section 2.1 of
          Article II. 

          

	1.11	 	"Territory"
shall mean the Federation of Malaysia. 

ARTICLE II
APPOINTMENT EXCLUSIVE WHOLESALE DISTRIBUTOR

	2.1 	Scope 

	 	Subject
to all terms and conditions of this Agreement, NSEHK hereby appoints NSMY as its exclusive
wholesale distributor of the Products in the Territory under the names, logos and
trademarks of the Products and, subject to availability, agrees to sell Products to NSMY
for wholesale distribution within the Territory during the term of this Agreement. NSEHK
may, from time to time, by thirty (30) days advance written notice to NSMY, add items to
the list of Products and delete or withdraw items from the list of Products, in its sole
discretion without any obligation to NSMY. NSMY accepts its appointment as the exclusive
wholesale distributor of Products in the Territory for the term of this Agreement. 

	2.2 	Sub-distributors 

	 	Except
for the sale of Products to NSI Independent Distributors, NSMY shall not appoint
sub-distributors or agents to promote or distribute Products inside or outside the
Territory without the prior written consent of NSEHK, which consent may be withheld or
granted with or without conditions in the sole and absolute discretion of NSEHK. 

	2.3 	Sales
by NSMY of Products 

	2.3(a)	 	
NSMY agrees that any distribution and sale of Products in the Territory shall be made only
by NSMY to NSI Independent Distributors, or, if NSEHK approves in writing the method and
manner of NSMY’s conduct of such sales, directly to the retail customers of NSI
Independent Distributors. NSEHK may, at its sole and absolute discretion, withhold or
grant, with or without conditions, an approval pursuant to this Section 2.3(a). 

	2.3(b)	 	
To facilitate sales to NSI Independent Distributors, NSMY shall have the right to access
information regarding such NSI Independent Distributors resident in the Territory as
provided by NSI to NSEHK pursuant to the Regional Distribution Agreement. 

	2.4 	Sales
by NSEHK in the Territory 

	 	Except
to NSMY pursuant to this Agreement or as otherwise provided in this Section 2.4 or with
NSMY’s written consent, NSEHK shall not sell, and shall use its commercially
reasonable efforts to prohibit any other Party from selling Products to any person within
the Territory or to any person outside the Territory for delivery to any person within the
Territory. Notwithstanding the foregoing, NSEHK, on behalf of itself and its Affiliates
including NSI, retains the right to enter into a distribution agreement for distribution
of products other than the Products included from time to time in Schedule A so long as
the products do not compete with the Products and the products are not distributed through
the Independent Distributor Network. In addition, NSEHK and its Affiliates, including NSI,
may sell Products to NSI Independent Distributors resident in the Territory provided such
Products are shipped only to an address in a market outside the Territory and limited in
quantity to such amounts as NSI establishes from time to time as its personal consumption
limitations in accordance with the NSI International Order Policy as it may be amended
from time to time. None of NSI, NSEHK and their Affiliates, however, will actively market
to or solicit purchases of Products outside the Territory from NSI Independent
Distributors whose country of residence, as shown in NSI’s records, is in the
Territory. 

	2.5 	Sales
Outside the Territory 

	 	NSMY
agrees that it will neither sell nor enable any person to sell Products to persons outside
the Territory or to any person within the Territory for resale or delivery outside the
Territory. Further, NSMY shall not promote or solicit customers for Product sales outside
the Territory. NSMY shall not establish any facility outside the Territory through which
orders are solicited or in which inventories of Products are stored without NSEHK’s
written consent, which consent may be withheld or granted with or without conditions in
the sole and absolute discretion of NSEHK. 

	2.6 	Territory
Orders and Inquiries 

	 	If
NSMY receives any order or inquiry concerning the sale of Products outside the Territory,
NSMY agrees to give NSEHK 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 NSEHK shall reasonably request. 

ARTICLE III

GOVERNMENTAL APPROVALS AND REGISTRATIONS

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

ARTICLE IV
OBLIGATIONS OF NSMY AS EXCLUSIVE WHOLESALE

DISTRIBUTOR IN THE TERRITORY

	4.1 	Marketing
and Distribution 

	 	NSMY
acknowledges that its strict performance of the obligations of this Agreement is essential
to the continuation of the privilege of acting as the exclusive wholesale distributor of
the Products in the Territory. NSMY shall have the following obligations, to be discharged
at its own cost and expense, with respect to marketing and distribution of the Products: 

	4.1(a)	 	
To use its best efforts to sell and actively promote and market, in accordance with all
applicable laws and regulations and to the maximum extent possible, the Products in the
Territory. 

	4.1(b)	 	
To purchase from NSEHK such quantities of the Products as are required to maintain a
balanced supply of the Products necessary to promote, market, sell and distribute the
Products within the Territory in an efficient and timely manner. 

	4.1(c)	 	
To ensure that all inquiries by NSI Independent Distributors and customers, including
complaints, are responded to promptly and in a professional and courteous manner. 

	4.1(d)	 	
ensure that all orders are processed and all shipments of Products are made within the
Territory in a timely fashion. 

	4.1(e)	 	
To diligently investigate or cause to be investigated all leads with potential customers
referred to it by NSEHK or its Affiliates, including NSI. 

	4.1(f)	 	
To permit NSEHK or its representatives to visit NSMY’s place of business and inspect
its inventories, service records, financial records and other relevant documents. 

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

	4.1(i)	 	
To provide, at the request of NSEHK, reports of its activities and sales respecting the
Products in the Territory in a form and in such detail and for such time period as NSEHK
may reasonably require. 

	4.2 	NSMY
Operations 

	 	NSMY
agrees to maintain, or cause to be maintained, such facilities and other places of
business within the Territory as may be necessary to effect the purposes and intentions of
this Agreement. NSMY further agrees to bear all fees and expenses it incurs in connection
with the maintenance of such facilities and other places of business, including, without
limitation, all leases, rentals, equipment, salaries, taxes, licenses, insurance, permits,
telephone, telegraph, promotional, advertising, travel, accounting and legal expenses. 

4.3 Pricing Information

	 	NSMY
shall, upon NSEHK’s request, advise NSEHK of the distribution or wholesale prices at
which the Products are to be sold from time to time by NSMY to NSI Independent
Distributors within the Territory. 

	4.4 	Forecasts 

	 	To
help NSEHK meet orders by NSMY for the Products, NSMY shall provide NSEHK, or NSI if NSEHK
requests the forecasts be sent directly to NSI, no less often than quarterly, with a
forecast of NSMY’s Product requirements, showing the quantities of prospective orders
by NSMY for Products, the estimated respective dates of such orders and the estimated
shipment dates for such orders. 

	4.5 	NSMY
Claims and Representations 

	 	NSMY
shall not make any promises, representations, warranties or guarantees respecting the
Products, sales of Products by NSI Independent Distributors or NSI’s sale
compensation plan, except in accordance with those representations, warranties or
guarantees as provided by NSEHK or NSI with respect thereto and in accordance and
compliance with the applicable laws of the Territory. NSMY shall not make any claims
concerning the Products that have not been approved in advance in writing by NSEHK. 

	4.6 	Capitalization 

	 	NSMY
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 in the Territory. 

	4.7 	Compliance
with Laws 

	 	NSMY
shall at all times conduct its efforts hereunder and its business in strict accordance
with all applicable laws and regulations and with the highest commercial standards. 

	4.8 	Storage
of Products 

	 	NSMY
shall store all inventories of Products at proper temperatures and environmental
conditions to maintain the quality of the Products. In the event of damage to any of the
Products for any reason rendering the contents unfit for use or consumption or otherwise
unsaleable, NSMY shall promptly notify NSEHK of the facts and shall not distribute or
transfer such Products to any other person or otherwise dispose of such Products except as
instructed in writing by NSEHK. 

	4.9 	Customer
Support 

	 	NSMY
shall be responsible for dealing with any NSI Independent Distributor or customer
questions or complaints concerning the Products and to take prompt action to solve such
questions or complaints. In fulfilling its customer service responsibilities, NSMY shall
maintain sufficient staff and resources in order to provide a high level of customer
service promptly and in a professional manner. NSMY shall report regularly to NSEHK
concerning its customer service activities and shall take such commercially reasonable
corrective measures as may be recommended by NSEHK to correct any deficiencies. In the
event of any product liability claim that could result in liability to NSEHK or NSI, NSMY
shall notify NSEHK and NSI and shall cooperate with NSEHK and NSI in dealing with such
claim. No such claim shall be settled without the consent of NSEHK and NSI if either of
them has potential liability. 

	4.10 	Allocation
of Expenses 

	 	4.10(a)
	Import Licenses

	 	 	To the
extent import licenses are required for the importation of the Products into the
Territory, NSMY hereby agrees that it will be responsible for securing and maintaining
such import licenses and payment of all fees and expenses associated therewith.  

	 	4.10(b)
	Import Expenses

	 	 	NSMY 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 imported into the Territory.  

	 	4.10(c)
	Other Expenses

	 	 	In addition
to the fees and expenses described in Articles 4.10 (a) and (b) above of Article 4
hereof, NSMY shall be responsible for the payment of all fees and expenses related to the
development and maintenance of its business in the Territory, including, without
limitation, the following:  

	 	(a) 	fees
and expenses to incorporate operating entities; 

	 	(b) 	fees
and expenses for obtaining business licenses and permits; 

	 	(c) 	fees
and expenses incurred in drafting and producing required promotional documentation and
other literature such as product catalogues as well as contracts such as local product
purchase agreements;  

	 	(d) 	fees
and expenses incurred in determining the requirements for registering Products, including
ascertaining and complying with labelling and custom\import requirements;  

	 	(e) 	fees
and expenses 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
fees and expenses related to hiring a general manager and staff, and compliance with
local labor laws and requirements; and 

	 	(g) 	all
other fees and expenses associated with the business other than those fees and expenses
expressly allocated to NSI or NSEHK pursuant to the terms of any of the Intercompany
Agreements. To the extent NSEHK incurs any of the foregoing fees or expenses on behalf of
NSMY, NSMY shall promptly reimburse NSEHK the amount of such fees and expenses upon the
receipt of an invoice from NSEHK.  

	4.11 	Endorsement
by NSI 

	 	At
NSMY’s request, NSEHK shall procure NSI’s confirmation on the Endorsement to
this Agreement of NSI’s approval of the appointment under this Agreement by NSEHK of
NSMY as NSEHK’s exclusive wholesale distributor of the Products in the Territory upon
the terms and subject to the conditions set forth in this Agreement and upon terms that
NSI shall be entitled to exercise and enforce in its own name, all rights reserved to NSI
and conferred upon NSI by this Agreement and in the same manner as if NSI were joined as a
party to this Agreement. The Parties shall countersign the Endorsement to this Agreement. 

ARTICLE V
PURCHASE OF PRODUCTS

	5.1 	Purchase
of Products 

	 	NSMY
agrees to purchase from NSEHK such quantities of Products as shall be necessary to meet
the sales demands within the Territory and to maintain an adequate supply of inventory in
order to avoid and minimize any Product shortages. 

	5.2 	Exclusive
Supplier 

          NSMY shall source the Products
exclusively from or through NSEHK. 

	5.3 	Pricing 

	 	The
prices payable by NSMY for the Products shall be as determined by NSEHK from time to time
and stipulated on a Pricing List for Malaysia to be established by NSEHK. NSEHK shall be
free to change and modify the pricing for the Products at any time for any reason without
any obligation to NSMY. Such revised pricing shall become effective thirty (30) days from
the date written notice of such price changes is delivered to NSMY. The revised pricing
shall apply to any purchase order received prior to the effective date if the Products are
to be delivered more than 30 days after acceptance of the purchase order. All prices are
exclusive of freight, packaging costs, taxes, import duty and fees, and insurance charges,
all of which are the responsibility of NSMY. 

	5.4 	Ordering 

	 	All
orders for Products submitted by NSMY shall be initiated by written purchase orders sent
to NSEHK (or NSI if so directed by NSEHK) or via electronic submissions or other means
approved by NSEHK; provided, however, that an order may initially be placed orally or by
e-mail if a confirmation written or electronic purchase order is received by NSEHK within
ten (10) days after said oral or e-mail order. Each purchase order shall identify the
Products to be purchased, the country to which such Products shall be distributed to
ensure shipment and receipt of Products which comply with such country’s laws and
regulations, the quantities thereof, and the requested shipment dates thereof. All
purchase orders for the Products received by NSEHK are subject to its acceptance in its
sole and absolute discretion and NSEHK shall have no liability if it elects not to supply
the Products for any reason. NSEHK, however, shall use its good faith efforts to fill the
order of NSMY for any non-discontinued Products with due regard to availability, demand of
other distributors of NSI in other Territories, inventory on hand at NSEHK and NSI, and
capacity of manufacturers. NSMY understands that NSEHK sources most of the Products from
or through NSI who in turn sources most of the Products from contract manufacturers. As a
result, availability shall similarly be conditioned upon the ability of NSI and such
contract manufacturers to fulfil their manufacturing requirements and NSEHK shall have no
liability for any failure of NSI or the contract manufacturer to fulfil their obligations
in a timely and accurate manner. Following receipt of a purchase order, NSEHK shall
promptly notify NSMY whether it accepts such purchase order and an estimate as to when the
Products are to be delivered. NSEHK shall use its good faith efforts to fulfill the order
by the estimated shipping date. NSEHK, however, shall have no liability of any kind for
any delay in fulfillment of an order for any reason. The terms and conditions for the sale
of any Products shall be governed by the terms of this Agreement and the standard terms
and conditions of sale established by NSEHK from time to time as provided to NSMY in
written form. NSEHK shall not be subject to any terms or conditions set forth in a
purchase order from NSMY. Nothing contained in any such purchase order shall in anyway
modify the terms of this Agreement or NSEHK’s then existing standard terms and
conditions of sale or any additional terms or conditions thereto agreed to by NSEHK in
writing. In the event of a conflict between the terms of this Agreement and NSEHK’s
standard terms and conditions of sale from time to time and/or additional terms or
conditions thereto agreed to by NSEHK, the terms of this Agreement shall prevail. 

	5.5 	Shipping
Terms 

	 	Title
to and risk of loss for any Product(s) ordered and shipped pursuant to the terms of this
Article shall remain with NSEHK until their actual delivery to NSMY or its designated
agent at the port designated in the Purchase Order or at such other time as the parties
may agree to in writing, for title and risk of loss to pass to NSMY. Shipment shall be
made in a commercially reasonable manner in accordance with standards applicable in the
trade and industry. Unless NSEHK notifies NSMY to the contrary, NSEHK shall ship all
Products CIP to the shipping destinations designated by NSMY. In the event shipments of
products are made to a bonded facility in Malaysia for the benefit of NSEHK, the title to
and risk of loss for any Product(s) ordered and shipped to such bonded facility shall
remain with NSEHK until their actual delivery to NSMY or its designated agent or shipper
at or near the bonded facility in Malaysia. 

	5.6 	Payment
Due Date 

	 	NSMY
shall pay for each delivery of Products within thirty (30) days after the date of arrival
of the Products at the destination specified in the Purchase Order or the date of dispatch
of a commercial shipping invoice, whichever is later. 

	5.7 	Payment
Terms 

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

	5.8 	Exchange
Regulations 

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

	5.9 	Default
Rate 

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

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

	5.9(b)	 	
NSEHK may (but shall not be obligated to) waive, whether with conditions or otherwise, its
right to the payment of interest payable pursuant to Section 5.9(a) of Article V hereof,
whether in respect of all or some of the monies due and payable from time-to-time by NSMY
to NSEHK and for such period as NSEHK deems appropriate in its sole and absolute
discretion. 

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

	5.10 	No
Set-Off 

	 	All
sums payable by NSMY to NSEHK under this Agreement shall be paid without any set-off,
counter-claim, qualification or condition whatsoever. 

	5.11 	Product
Returns/Exchanges Inspection 

	 	NSMY
shall thoroughly inspect all Products within fifteen (15) days of the arrival of the
Products at the destination designated by NSMY in the Purchase Order. NSMY shall promptly
notify NSEHK of any defect in the Products or any non-conformance with the specifications
agreed upon by the Parties with respect to such Products and the order. If any Products
are to be returned by NSMY because of defect or non-conformity, NSMY shall within
forty-five (45) days following actual receipt, return such Products to NSEHK or to NSI if
so designated by NSEHK. In the event of such a return, NSEHK shall make appropriate
arrangements, acceptable to NSMY, to replace any such defective Products at NSEHK’s
sole cost and expense. Failing such replacement, NSEHK shall, at the option of NSEHK,
either credit the purchase price of the defective Products plus any customs or duties paid
with respect to such defective Products to NSMY’s account or promptly grant NSMY a
cash refund for the purchase price paid by NSMY for such Products. If NSEHK is not
notified in writing of any defective Products within forty-five (45) days after the
arrival of the Products at the shipping destination designated by NSMY, then NSMY shall be
deemed to have accepted the Products concerned and waived its right to return any such
Products. After this forty-five (45) day period, NSMY may not return a Product for any
reason without NSEHK’s prior written consent, which may be withheld or granted with
or without conditions in the sole and absolute discretion of NSEHK. NSMY shall be
responsible for all shipping charges for Products returned after the forty-five (45) day
period. 

	5.12 	Creation
of Security Interest 

	 	Simultaneously
with the execution of this Agreement (or such later date as may be acceptable to NSEHK),
NSMY shall execute a Deed of Debenture in terms reasonably required by NSEHK and thereby
create a fixed charge over NSMY’s fixed assets and a floating charge in favour of
NSEHK, NSI and Nu Skin International Management Group, Inc. over NSMY’s undertaking,
current and future inventory of Products purchased pursuant to this Agreement, NSMY’s
receivables and other properties and assets to secure full and prompt payment by NSMY of
all amounts which NSMY is obligated to pay to NSI, NSEHK and their Affiliates under the
terms of this Agreement and the other Intercompany Agreements. NSMY shall take such
actions, and execute such documents, as may be necessary to establish and perfect such
security interest under applicable law. 

ARTICLE VI
OBLIGATIONS OF NSEHK AS SUPPLIER OF PRODUCTS

	6.1 	Product
Formulation 

	 	NSEHK
and NSMY agree to cooperate and work with NSI to mutually determine the formulae or
ingredients to be used for Products in the Territory based on local market regulations and
consumer preferences. NSI shall own all right, title and interest to any formula,
technology or other intangible property developed for Products and shall compensate NSMY
for any services provided by NSMY. 

	6.2 	Warranty 

	 	With
respect to Products procured by NSEHK from manufacturers who are not Affiliates of NSEHK
or NSI, NSEHK, to the extent possible, shall pass on and assign to NSMY the warranty
provided by such manufacturers and NSEHK shall assist NSMY in making any claims against
such manufacturers. NEITHER NSI NOR NSEHK MAKES ANY WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH
RESPECT TO PRODUCTS PROCURED FROM MANUFACTURERS WHO ARE NOT AFFILIATES OF NSEHK OR NSI.
Subject to the provisions of Section 5.11 of Article V hereof, NSEHK shall be responsible
for any shipping charges associated with the return of Products that do not meet the
manufacturer’s warranty. With respect to any Products that are manufactured by NSI,
NSEHK or their Affiliates, NSEHK warrants that such Products shall conform to the
specifications established by NSI, NSEHK and NSMY and that such Products shall be
merchantable and free from defects. Provided that the Products manufactured by NSI, NSEHK
or their Affiliates are stored in appropriate conditions, NSEHK warrants that such
Products shall have the shelf life specified in the specifications agreed to by the
Parties. NSMY assumes responsibility for ensuring that the specifications agreed upon by
the Parties comply with all applicable laws and regulations of the Territory and neither
NSEHK nor NSI assumes any obligation with respect to such compliance. NSEHK further
warrants that it will deliver good title to the Products and that the Products will be
delivered free from any lawful security interest or other lien or encumbrance except as
provided by this Agreement. 

	6.2(a)	 	
In no event shall NSEHK’s or NSI’s liability for any breach of such warranties
exceed in amount the price of the Products in respect of which any breach is claimed.
NSEHK’S AND NSI’S WARRANTY STATED HEREIN ARE EXPRESSLY IN LIEU OF ANY OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE. 

	6.2(b)	 	
NSI and NSEHK neither assume nor authorize any person or entity to assume for it any other
liability in connection with the Products supplied hereunder, and there are no oral
contracts or warranties collateral to or affecting this Agreement. Neither NSEHK nor NSI
shall be liable to NSMY or any other persons for consequential, special or incidental
damages. 

ARTICLE VII
SALE AND MANUFACTURE OF PRODUCTS

	7.1 	Non-Competing
Products 

	 	Nothing
contained herein, shall restrict or prohibit NSMY from selling, distributing,
manufacturing or causing to be manufactured products or materials which do not compete
directly or indirectly with the Products, provided that such other products do not
infringe upon any patent, name, trademark, emblem, trade name, design right, model,
formula, Nu Skin Confidential Information or other commercial or industrial property
rights of NSEHK or NSI or any of their Affiliates. Notwithstanding the foregoing, in the
event NSMY desires to sell or distribute a product or service that is not currently
available through NSEHK or NSI, NSMY shall work with NSEHK and NSI and allow NSEHK the
opportunity to develop and manufacture, or cause to be developed or manufactured, such
product or service. In the event that NSMY and NSEHK are unable to agree upon terms acting
in good faith, NSMY may acquire from another person, such product or service if it does
not compete directly or indirectly with the Products or any other products or services
NSEHK or NSI sells outside the Territory and which NSEHK has agreed to provide to NSMY on
terms consistent with those upon which NSEHK provides such products or services to its
other Affiliates. 

	7.2 	Competing
Products 

	 	During
the term of this Agreement, NSMY shall not, and shall not authorize another party to,
manufacture, cause to be manufactured, distribute or sell (i) any products or materials
which directly or indirectly compete with the Products or (ii) copies of the Products or
other products that might reasonably be deemed under U.S. or foreign law to be confusingly
similar to the Products, in each case without the prior written consent of NSI and NSEHK,
which may be withheld or granted with or without conditions in the sole and absolute
discretion of NSEHK and NSI. 

	7.3 	Discontinued
Products 

	 	Notwithstanding
the foregoing, in the event NSMY receives notice from NSEHK of the discontinuance of the
sale of any Product, NSMY may elect to manufacture or cause to be manufactured such
Product; provided that, if such discontinued Product competes directly or
indirectly with any other Product, the prior written consent of NSEHK shall be required,
which may be withheld or granted with or without conditions in the sole and absolute
discretion of NSEHK. If NSMY elects to so manufacture or cause to be manufactured such
discontinued Product, NSEHK shall, to the extent NSEHK or NSI retains any rights to such
formula, license the formula or cause NSI to license the formula to such discontinued
Product to NSMY on substantially the same terms as set forth in the Trademark Licensing
Agreement, dated as of the date hereof, by and between NSI and NSMY. In the event NSI and
NSEHK no longer owns or has any further rights to such Product or formula, NSMY shall not
have the right to market such Product unless it obtains the right to market such Product
from the person holding the rights to such Product or formula. 

ARTICLE VIII
NATURE OF RELATIONSHIP

The relationship of NSMY and NSEHK 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 IX 
TERM AND TERMINATION

	9.1 	Term 

	 	This
Agreement shall commence and take effect on September 28, 2001 and the initial term shall
end on December 31, 2004, unless terminated earlier pursuant to the provisions of this
Article IX. This Agreement automatically shall renew for successive one (1) year terms
unless terminated by either Party by written notice given not less than (90) days prior to
the end of the current term of this Agreement or in accordance with Sections 9.2, 9.3 or
9.4 of Article IX hereof. 

	9.2 	Termination
for Insolvency/Receivership 

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

	9.2 (a)	 	
the other Party shall commence any case, proceeding or other action: (i) under any
existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution,
compensation or other relief with respect to it or its debts, or (ii) seeking appointment
of a receiver, trustee, custodian or other similar action; or 

	9.2(b)	 	
there shall be commenced against the other Party any case, proceeding or other action of a
nature referred to in Section 9.2(a) of Article IX hereof which either results in the
entry of an order for relief or any such adjudication or appointment or remains
undismissed, undischarged or unbonded for a period of 90 days. 

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

	9.3 	Termination
for Breach of this Agreement 

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

	9.3(b)	 	
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 (other than NSMY’s
obligation to pay monies referred to in Section 9.3(a) of this Article IX) and such
default has not been cured within thirty (30) days after receipt of written notice of such
default by the defaulting Party. 

	9.4 	Termination
for Breach of Shareholders Agreement/ Upon Termination of Other Intercompany Agreements/
Unenforceability of Deed of Debenture 

     This Agreement may be terminated by NSEHK
if: 

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

	9.4(b)	 	
the aforesaid Shareholders Agreement or any other(s) of the Intercompany Agreements is/are
terminated for any reason whatsoever or the Deed of Debenture referred to in Section 5.12
of Article 5 hereof and/or either of the charges created thereunder is/are void for any
reason whatsoever; 

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

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

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

	9.5 	Termination
for Loss of License 

	 	NSEHK
shall have the right to terminate this Agreement if any license, regulatory approval, or
corporate authority necessary to conduct the business in the manner contemplated by the
Parties and the Intercompany Agreements, is terminated, is not obtained or renewed, or
expires. 

	9.6 	Survival
of Obligations 

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

ARTICLE X 
EFFECT OF TERMINATION

	10.1 	Termination
of Rights 

	 	Upon
termination of this Agreement by NSEHK, all rights herein granted to NSMY by or pursuant
to this Agreement shall cease to be exercisable by NSMY and shall revert to NSEHK, and
NSMY shall immediately cease to hold itself out to the public as NSEHK’s exclusive
wholesale distributor in the Territory or otherwise represent that it is associated in any
manner with NSEHK or NSI. The provisions of this Section 10.1 shall not apply to sales by
NSMY of Products which NSEHK does not repurchase pursuant to Section 10.3 of Article X
hereof. 

	10.2 	Ordered
Products 

	 	Upon
termination of this Agreement, NSEHK may either (a) deliver, and NSMY shall pay for, all
Products ordered by NSMY prior to such termination or (b) cancel, without cost or
liability, NSMY’s orders for such Products. 

	10.3 	Inventory
Repurchase 

	 	Upon
the expiration or termination of this Agreement, NSEHK shall have the option, but not the
obligation, to repurchase for cash all or any portion of NSMY’s inventory of Products
at the original purchase price paid by NSMY to NSEHK for such Products as determined by
NSEHK’s sales records. NSEHK may exercise this right by providing written notice of
its election to exercise this option to purchase all or a portion of the inventory.
Following the termination of this Agreement, NSEHK shall have the right to enter
NSMY’s premises to inspect NSMY’s inventory of Products. NSEHK shall be
responsible for making transportation arrangements for any Products repurchased after NSMY
has prepared them for shipping. NSMY agrees to promptly prepare the Products for shipping
upon receipt of written notice of NSEHK’s election to repurchase the inventory. NSMY
shall be responsible for the shipping charges. If the Products are not repurchased by
NSEHK, NSMY is solely responsible for their disposal, and NSMY undertakes to dispose of
such Products in such a manner as will not infringe the intellectual property rights of
NSEHK or NSI, or interfere with NSI’s or NSEHK’s goodwill. NSMY will destroy or
return all material that NSMY possesses on which NSEHK’s or NSI’s Intellectual
Property appears. 

	10.4 	No
Release of Payment obligations 

	 	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. 

	10.5 	Limitation
on Damages 

	 	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. NSMY acknowledges and agrees that any amounts spent by NSMY in the performance
of this Agreement shall be spent and incurred with the knowledge that this Agreement may
be terminated as provided in this Agreement and NSMY shall make no claim against NSEHK or
NSI for, and NSEHK and NSI shall not be liable with respect to, NSMY’s investment or
expenditures incurred in anticipation of the continuance of this Agreement. 

	10.6 	Survival 

	 	The
provisions of Article XI, Article XII and Article XIII, 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 XI
CONFIDENTIALITY

	11.1 	NSMY
Confidentiality 

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

	11.2 	NSEHK
Confidentiality 

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

	11.3 	Exceptions 

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

	11.4 	Unauthorized
Disclosure 

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

	11.5 	Return
of Confidential Information 

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

	11.6 	Property
Rights 

	 	NSMY
agrees that NSI or NSEHK owns all right, title and interest in, or has a valid license to
use, the Intellectual Property. This Agreement confers no rights with respect to the
Intellectual Property except for the limited right to resell the Products during the term
of this Agreement as set forth herein, which right shall terminate upon termination of
this Agreement. This Agreement confers no right or license to, expressly or by
implication, and NSMY shall not, manufacture, duplicate or otherwise copy or reproduce any
of the Products or use the Intellectual Property for any other purpose. 

	11. 7	Intellectual Property Covenants 

	 	NSMY
shall not do any act that would or might invalidate or dilute NSI’s registration of,
or title to, the Intellectual Property. NSMY shall not attempt to vary or cancel any
registration of the Intellectual Property, shall not hold itself out as or represent it is
the owner of the Intellectual Property, or assist any other person in any of the
foregoing. NSMY shall not alter in any way the Intellectual Property used in connection
with the goods and shall not combine Intellectual Property with any intellectual property
of NSMY in a manner that could create joint rights in the Intellectual Property. 

	11.8 	Trademarks 

	 	During
the term of this Agreement, NSMY shall have the right to indicate to the public that it is
the authorized distributor of the Products and to utilize the trademarks associated with
the Products or the packaging of the Products in all respects in accordance with the terms
and conditions of this Agreement. NSMY’s use of trademarks other than on the
packaging of the Products procured through NSEHK, shall be governed by the Trademark
Licensing Agreement entered into simultaneously with this Agreement. Any use of trademarks
on any packaging to be produced by NSMY shall first be submitted to NSEHK for approval of
the design, color and other details of the use of the trademark, which approval may be
withheld or granted with or without conditions in the sole and absolute discretion of
NSEHK. Any use of the trademarks of NSI must state that NSI is the owner of the trademark. 

ARTICLE XII
INDEMNIFICATION AND INSURANCE

	12.1 	NSEHK
Indemnity 

	 	NSEHK
agrees during and after the term of this Agreement to indemnify and hold harmless NSMY
from liability, loss, cost or damage, (including reasonable attorneys’ fees) which
NSMY may incur as a result of claims, demands or judgements, of any kind or nature, by
anyone whomsoever, arising out of: 

	 	(i) 	any
breach of the representations and warranties set forth in Article VI; or 

	 	(ii) 	
a claim that the Products or NSI’s Confidential Information infringes any patent,
copyright, trade secret or other intellectual property right of a third party; provided
that NSMY provides NSEHK with prompt notice in writing of any such claim or demand, NSEHK
is given the right to assume control of such defense and NSMY shall cooperate with NSEHK
in the defense or settlement of any such claim or action. NSEHK shall not have any
obligation to indemnify NSMY for any claim if such claim is settled without the consent of
NSEHK. 

	 	Notwithstanding
the foregoing, NSEHK shall have no obligation to indemnify NSMY for any liabilities
arising out of NSMY’s failure or the failure of the NSI Independent Distributors in
the Territory to utilize, sell, market or promote the Products: 

	 	(i) 	in
the manner for which the Products are reasonably intended; 

	 	(ii) 	in
compliance with NSEHK's or NSI's 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. In
addition, neither NSEHK nor NSI shall have any liability with respect to any alleged
infringement to the extent such alleged infringement relates to information or
specifications provided by NSMY, or alteration of the Product by NSMY. 

	12.2 	NSMY
Indemnity 

	 	NSMY
agrees during and after the term of this Agreement to indemnify and hold harmless
NSEHK and NSI from liability, loss, cost or damage (including reasonable attorney’s
fees), which NSEHK or 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 by NSMY or any of the NSI Independent Distributors (except to the
extent NSEHK has indemnified NSMY against such claims, demands, or judgements pursuant to
Section 14.1 hereof); By way of elaboration, but not limitation, NSMY shall indemnify
NSEHK and NSI for any liabilities arising out of NSMY’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 NSMY shall have requested NSI to take
disciplinary actions against an NSI Independent Distributors operating in the Territory
and NSI shall have, in breach of its obligations under its License Agreement with NSMY,
failed to take such actions against such NSI Independent Distributor, NSMY shall not be
obligated to indemnify NSEHK or NSI for any loss that NSI NSEHK might incur as a
reasonable and proximate result of such failure. 

	12.3 	Insurance 

	 	At
all times during and following the terms of this Agreement, each of NSEHK and NSMY 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. 

	12.4	Infringement
Remedy 

	 	In
the event a claim of infringement by a third party covered by the indemnity set forth in
Section 12.1 of this Article XII, NSEHK shall have the right to elect, at its option and
expense, to either replace or modify the Products so that they become non-infringing, or
accept return of the Products and refund to NSMY an amount equal to the aggregate purchase
price paid by NSMY for such Products. 

ARTICLE XIII 
MISCELLANEOUS

	13.1 	Assignment 

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

	13.2 	Notices 

	 	A
notice, request and other communication hereunder shall be in writing and shall be deemed
to have been duly given, if delivered by hand, courier or registered airmail, or
communicated by facsimile, cable or similar electronic means to the address, facsimile
number or cable identification number provided below (or as changed in accordance with
this Section 13.2) of the Party to whom it is addressed and shall be deemed to be given if
delivered by hand or courier, at the time of delivery or if communicated by facsimile,
cable or similar electronic means, at the time that receipt thereof has been confirmed by
return electronic communication or signal that the message has been received, or if
mailed, ten (10) days after dispatch by registered airmail, postage prepaid:- 

	 	If to NSEHK:	 Nu Skin Enterprises Hong Kong, Inc

26th Floor, Windsor House, 311 Gloucester Road

Causeway Bay, Hong Kong

Attn: Regional Controller

Facsimile No.: 852-882-7809 

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

Office Lot 04-01, Level 4, PNB Darby Park Retail

 No. 10, Jalan Binjai, 50450 Kuala Lumpur 

Malaysia

Attn: Managing Director

Facsimile: 603-2170 7799 

	 	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. 

	13.3 	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. 

	13.4 	Force
Majeure 

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

	13.5 	Governing
Law 

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

	13.6 	Dispute
Resolution 

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

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

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

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

	13.7 	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. 

	13.8 	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. 

	13.9 	Severability 

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

	13.10 	Counterparts
and Headings 

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

     

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

NU SKIN ENTERPRISES HONG KONG, INC.

By:    /s/  Truman Hunt

Name: Truman Hunt

Its: Vice President

NU SKIN (MALAYSIA) SDN. BHD.

By:    /s/  Datuk Mohd Nadzmi Bin Mohd Bin Mohd Salleh

Name:    Datuk Mohd Nadzmi Bin Mohd Bin Mohd Salleh

Its:     Director

ENDORSEMENT

WE, NU SKIN INTERNATIONAL, INC. (Company No.
880564-0142), a corporation organized under the laws of the State of Utah,
United States of America and having its principal place of business at 75, West
Center Street, Provo, Utah 84601, United States of America confirm our approval
of the appointment under the Distribution Agreement (to which this Endorsement
is attached) by NU SKIN ENTERPRISES HONG KONG, INC. (Company No.
1107053-0142), a company organized under the laws of the State of Utah, United
States of America and having its principal place of business at 75, West Center
Street, Provo, Utah 84601, United States of America and a registered branch
office at 26th Floor, Windsor House, 311 Gloucester Road, Causeway Bay, Hong
Kong (“NSEHK”) of NU SKIN (MALAYSIA) SDN. BHD. (Company No.
402787-V), a company incorporated in Malaysia and having its registered office
at 6th Floor, Menara Boustead, 69, Jalan Raja Chulan, 50200 Kuala Lumpur,
Malaysia and a place of business at Office Lot 04-01, Level 4, PNB Darby Park
Retail, No. 10, Jalan Binjai, 50450 Kuala Lumpur (“NSMY”) as
NSEHK’s exclusive wholesale distributor of the Products in the Territory
upon the terms and subject to the conditions set forth in the Distribution
Agreement and upon terms that we shall be entitled to exercise and enforce in
our name and in the same manner as if we were joined as a party to the
Distribution Agreement, all rights reserved to us and conferred upon us by the
Distribution Agreement. 

The expressions “Products” and “Territory”
as used in this Endorsement shall have the meanings given to them by the
Distribution Agreement. 

NU SKIN INTERNATIONAL, INC.

By:    /s/  Steven J. Lund

   Steven J. Lund

Its: President

Date:

ENDORSEMENT

WE, NU SKIN ENTERPRISES HONG KONG, INC. (Company No. 1107053-0142) and NU SKIN (MALAYSIA) SDN. BHD.
(Company No. 402787-V) confirm that NU SKIN INTERNATIONAL, INC. (Company No. 880564-0142) ("NSI") is
entitled to exercise and enforce in its own name and as if NSI were joined as a party to the Distribution
Agreement, all rights reserved to NSI and conferred upon NSI by the Distribution Agreement.

			
	NU SKIN ENTERPRISES	 	NU SKIN (MALAYSIA) SDN.	 	 	 
	HONG KONG, INC	 	BHD.	 
	By:    /s/  Truman Hunt	 	By:    /s/  Datuk Mohd Nadzmi Bin Mohd Bin Mohd Salleh	 
	Truman Hunt	 
	Its:  Vice President	 	Its:  DIrector	 	 	 
	Date:	 	Date:

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