Chapter 1 Your Distributorship
1 Becoming a Distributor
1.1 Applying to Become a Distributor
You may apply to become a Distributor by completing the following steps:
(a) Complete, sign, and return a hardcopy Distributor Agreement together with a copy of your
identity card (KTP) to the Company; and
(b) Purchase a not-for-profit Business Portfolio.
You can purchase a Business Portfolio directly from the Company or from your Sponsor. No Bonuses are
paid on this purchase. You are not required to purchase any other Products or other materials to
become a Distributor.
1.2 One Individual per Distributorship
Only one individual may apply for a Distributorship and submit a Distributor Agreement to the Company.
If the individual also wants to include a spouse or Co-habitant on the Distributor Agreement, then the
spouse or Co-habitant may also be included on the Distributor Agreement. Except for the addition of
spouses or Co-habitants or as otherwise provided in a specific Authorized Country, if more than one
Person wants to participate in a Distributorship, then the Persons must apply either as a Business Entity
or as a Distributorship with joint participation as set forth in Sections 1.10 and 1.10A of this Chapter 1
respectively.
1.3 Age Requirements
You must be at least 18 years old to become a Distributor.
1.4 Minors
(Not Applicable)
1.5 Legal Residency
Your Distributor Agreement must be filed and your Distributorship maintained in the country or market
where you are a legal resident or citizen and where you have a legal right to do the business. If you are
unable to prove your legal residency, citizenship, or legal right to do business in the country or market
where you have filed your Distributor Agreement, Nu Skin may declare your Distributor Agreement void
from its inception. You may only file to be a Distributor in an Authorized Country.
1.6 Former Distributors
If you have been a Distributor you may only apply to become a new Distributor under your original
Sponsor unless you meet the criteria in Section 3.3 of this Chapter 1 for signing up under a new Sponsor.
C h a p t e r 1 | Y o u r D i s t r i b u t o r s h i p
2 | P a g e
1.7 Spouses and Co-habitants
If the spouse or Co-habitant of a Distributor wants to become a Distributor, the spouse or Co-habitant
must be added to the Distributorship previously formed by the other spouse or Co-habitant. If the
spouse or Co-habitant of a former Distributor wants to become a Distributor, then the spouse or Cohabitant
must apply to become a Distributor under the Sponsor of the spouse’s or Co-habitant’s former
Distributorship unless the applicable inactive period regarding Business Activity of the former Distributor
has lapsed as set forth in Section 3.3 of this Chapter 1.
1.8 Acceptance of your Distributor Agreement
The Company reserves the right to reject any application for a Distributorship at its own discretion. You
become an approved Distributor upon the acceptance and processing of your Distributor Agreement by
the Company. In the event the Company gets more than one Distributor Agreement from an applicant,
the first Distributor Agreement received by the Company is the one that determines who your Sponsor
is.
1.9 Tax Payer Identification Number
You will be required to provide Nu Skin with your Indonesia Taxpayer Registration Number (NPWP)
before you are eligible to receive a Bonus, or when otherwise required by Nu Skin for tax or other
purposes. This requirement also applies to spouses and Co-habitants who sign the Distributor
Agreement. In the event you sign up using a Business Entity, you must provide the NPWP of the
Business Entity and NPWP of each Participant in the Business Entity. Nu Skin may also place a sales order
or Bonus hold on your account until you provide your NPWP and your NPWP has been verified.
1.10 Business Entities
A Business Entity may apply to become a Distributor by completing, signing, and returning a Business
Entity Form, signed by all the Participants, together with a Distributor Agreement, and purchasing a
Business Portfolio. In addition, the following other requirements apply to Business Entities:
(a) Each Participant must be a citizen or legal resident and have the legal right to do business in the
country or market where the Business Entity’s Distributor Agreement has been filed, and must
be able to provide proof of such. If the Business Entity is unable to provide this proof upon the
Company’s request, the Company may declare the Distributor Agreement void from its
inception. You should be aware that merely being listed as a member of a Business Entity does
not necessarily grant you any legal right to do business;
(b) Bonuses will be issued in the name of the Business Entity. The Company will not have any
liability to you if the Business Entity or any Participant in the Business Entity fails to allocate and
pay any portion of the Bonuses received by the Business Entity among the multiple Participants
in the Business Entity, or for any incorrect allocation and payment; and
(c) One Participant will be designated as the Authorized Representative of the Business Entity and
the Company may rely and act on any information provided by the Authorized Representative.
C h a p t e r 1 | Y o u r D i s t r i b u t o r s h i p
3 | P a g e
1.10A Distributorship with Joint Participation
You may apply to add some other individual(s) as Additional Participant(s) to jointly participate in your
Distributorship by completing, signing, and returning a Joint Participation Form, signed by you as the
Principal Distributor and each of the Additional Participants, together with a Distributor Agreement, and
purchasing a Business Portfolio. In addition, the following other requirements apply to a Distributorship
with joint participation:
(a) Each of the Additional Participants must be a citizen or legal resident and has the legal right to
do business in the country or market where the Principal Distributor has filed his Distributor
Agreement, and must be able to provide proof of such. Each of the Participants should be aware
that merely being listed as an Additional Participant in your Distributorship does not necessarily
grant any legal right for that Participant to do business;
(b) The Principal Distributor is the sole individual authorized to take any action on behalf of the
Distributorship with respect to the Distributor Agreement (including the execution of any such
agreements) or any other matter relating to the Company, and that the Company shall be
entitled to rely on the authority and instructions of the Principal Distributor with respect to all
matters pertaining to the Distributor Agreement (including amounts payable as Bonuses
thereunder) or the Company;
(c) Each of the Additional Participants is jointly liable for the acts and omissions of any of the
Participants in connection with the Distributorship, and the Company may take action against
the Distributorship for a violation of the Policies and Procedures by any of the Participants; and
(d) All Bonuses and other benefits generated by or attributable to the Distributorship (including
through the efforts of the Additional Participants) shall be paid or provided directly to the
Principal Distributor and none of the Additional Participants, whether individually or collectively,
shall have any claim against the Company with respect to such Bonuses or other benefits.
1.11 Changing to a Business Entity
If you want to change the form of your Distributorship from an individual to a Business Entity, you may
do so at any time. This change is subject to any applicable legal requirements and requires the
completion and delivery of a Business Entity Form to the Company.
1.12 Temporary Accounts
When you apply by fax or online a temporary account will be established. With a temporary account
you must purchase a not-for-profit Business Portfolio with your first order of Products. You may operate
a temporary account for up to 60 days. When you have set up a temporary account you are bound by all
the provisions of the Contract. You may apply to make a temporary account permanent by submitting a
copy of identity card (KTP) to the Company. If any temporary account is not made permanent within 60
days, sales order and Bonus holds may be placed on the account. If any temporary account is not made
permanent within 90 days, it may be terminated.
C h a p t e r 1 | Y o u r D i s t r i b u t o r s h i p
4 | P a g e
2 Personal Information
2.1 Collection of Personal Information
Nu Skin is aware of and responsive to your concerns regarding how information about you is collected,
used and shared as a result of your becoming a Distributor. Nu Skin respects your privacy and is
committed to protecting the privacy of Distributors. Nu Skin collects from you and holds certain
personal information about you in order to provide you with support, the benefits of being a Distributor,
and communicating with you regarding (i) Products and promotional offers, (ii) your Distributorship and
Downline Organizations, (iii) Bonuses, and (iv) other relevant business issues. All information submitted
by you will be held by Nu Skin at its corporate headquarters in the United States, its regional
headquarters, and/or its local affiliated companies in your Resident Country. You have the right to
access and verify your personal information held by Nu Skin by contacting the call center for your
Resident Country.
2.2 Authorization to Use Your Personal Information
You authorize Nu Skin to:
(a) transfer and disclose personal and/or confidential information, (a) which you have provided to
Nu Skin in connection with your Distributorship and Downline Organization, or (b) that has been
developed as a result of your activity as a Distributor, to (i) its parent and affiliated companies
wherever located, (ii) your upline Distributors when Nu Skin determines it is appropriate, and
(iii) applicable government agencies or regulatory bodies if required by law. You will have the
option to block the transfer of certain information that may be provided to your upline
Distributors.
(b) use your personal information for Distributor recognition and Nu Skin’s Business Support
Materials and Services unless you request in writing that Nu Skin not to do so.
(c) use your personal information described above, and you further agree that any other
disclosure of your personal information will be governed by Nu Skin’s Privacy Policy, as it
may be published and modified from time to time.
3 Maintaining Your Distributorship Account
3.1 Keeping your Distributor Agreement, Business Entity Form and Joint
Participation Form Current
(a) As a Distributor, it is your duty to keep the information contained in your Distributor Agreement,
Business Entity Form or Joint Participation Form current and accurate. You must immediately
inform the Company of any changes affecting the accuracy of information contained in these
documents. The Company may terminate a Distributorship or declare a Distributor Agreement
void from its inception if the Company determines false or inaccurate information was provided.
C h a p t e r 1 | Y o u r D i s t r i b u t o r s h i p
5 | P a g e
If you fail to update your Distributor Agreement, Business Entity Form or Joint Participation
Form, holds may be placed on your account or other disciplinary action may be taken, including
termination.
(b) You must submit a new Distributor Agreement, Business Entity Form or Joint Participation Form
with “Amended” written across the top to change your Distributorship information. Any
amended Distributor Agreement must be signed by you. A Business Entity’s amended
Distributor Agreement must be signed by the Authorized Representative of the Business Entity.
An amended Business Entity Form must be signed by the Authorized Representative and all new
Participants of the Business Entity. The amended Distributor Agreement of a Distributorship
with joint participation must be signed by the Principal Distributor. An amended Joint
Participation Form must be signed by all Participants in the Distributorship. The Company may
charge a fee for processing changes to the Distributor Agreement, Business Entity Form or Joint
Participation Form. The Company may refuse to accept any amendments.
3.2 Adding a New Participant
You may not allow a Person to engage in any Business Activity for, or have a Beneficial Interest in, your
Distributorship, unless your Distributorship is a Business Entity or is a Distributorship with joint
participation and that Person has applied to become a Participant and such application has been
accepted by the Company. The Company may reject any such application in its sole discretion. If the
Company rejects the application, the Person may not participate in the Distributorship.
3.3 Starting a Distributorship under a New Sponsor
If you are a former Distributor, you may establish a new Distributorship under a new Sponsor only if you
have not engaged in any Business Activity (whether for your Distributorship or the Distributorship of
another Person) for the indicated inactive period:
Account type during the 24 months preceding
the most recent Business Activity
Inactive Period
If you ever achieved Executive or higher 12 months
Distributor only 6 months
When Nu Skin concludes that an inappropriate Sponsor change has occurred or has been solicited, the
second-in-time Distributorship may be returned to and be merged with the first-in-time Distributorship
and Nu Skin may pursue other remedies listed in Chapter 6.
3.4 One Distributorship per Individual
You are not allowed to have a Beneficial Interest in more than one Distributorship except as follows: (i)
marriage of two Distributors who each had a Distributorship prior to the marriage, (ii) inheritance of a
Distributorship by an existing Distributor, or (iii) as otherwise approved in writing by Nu Skin.
C h a p t e r 1 | Y o u r D i s t r i b u t o r s h i p
6 | P a g e
3.5 Acquisition of Beneficial Interest in and Merger of Distributorships
(a) Overview. Occasionally, a Distributor wishes to form a partnership with another existing
Distributor and merge the two Distributorships or acquire a Beneficial Interest in a
Distributorship. Except as provided in this Section 3.5, the formation of a partnership between
Distributors, the merger of Distributorships, or the acquisition of a Beneficial Interest in a
Distributorship by a Distributor who has engaged in any Business Activity, is prohibited.
(b) Acquisition of Beneficial Interest. Except for those circumstances that may be approved by Nu
Skin in its sole discretion, if you have engaged in any Business Activity, you may not, at any time,
acquire a Beneficial Interest in a pre-existing Distributorship under a different Sponsor (whether
by purchase, merger, partnership, or otherwise) unless (i) you have terminated your
Distributorship and had no Business Activity for the applicable inactive period described in
Section 3.3 of this Chapter 1, and (ii) the Distributor Agreement for the Distributorship in which
you want to acquire a Beneficial Interest was submitted to Nu Skin after the applicable inactive
period for your Business Activity as described in (i) above. The prohibitions of this Subsection
(b) supersede the provisions of subsection (c) of this Section 3.5.
(c) Merger. Nu Skin may, in its sole discretion, consider mergers of Distributorships in the
following limited cases: (a) vertical mergers with (i) your immediate upline sponsor, or (ii) a
Distributor that is on your first level; and (b) any other merger as may be approved by Nu Skin
in its sole discretion.
(d) Company Review and Additional Requirements. In any case involving the proposed formation of
a partnership, mergers, or acquisitions of a Beneficial Interest, Nu Skin will, in its sole discretion,
decide whether to approve a requested exception to these Policies and Procedures. During its
review Nu Skin may impose additional requirements that it deems necessary, including upline
notifications and/or approvals.
4 Transferring and Terminating your Distributorship
4.1 Transferring Distributorships
You may not transfer your Distributorship or any rights therein, unless you have received the prior
written consent of Nu Skin, which will not be unreasonably withheld. Nu Skin will not consent to any
proposed transfer if it determines that the proposed transfer is not substantive and is being done to
avoid the requirements of these Policies and Procedures. Nu Skin will not recognize any assignment,
and the transferee will have no rights until the transfer has been approved by Nu Skin. Any exceptions
and waivers Nu Skin has made to the Contract for the benefit of a Distributorship will terminate upon
the transfer unless otherwise provided in a written agreement by Nu Skin.
4.2 Transfers Upon Death
(a) Individuals. If you are an individual, upon your death, your Distributorship may be passed on to
C h a p t e r 1 | Y o u r D i s t r i b u t o r s h i p
7 | P a g e
your heirs, or other beneficiaries whether by will, intestate succession, or otherwise. The
transfer will be recognized by Nu Skin when a court order or proper legal document addressing
the transfer to a qualified transferee is submitted to Nu Skin. Nu Skin encourages you to make
appropriate arrangements in consultation with an estate-planning attorney for the transfer of
your Distributorship.
(b) Participant in a Business Entity. If you are a Participant in a Business Entity, upon your death
your interest in the Distributorship will be transferred according to the Business Entity’s legal
documents and applicable law governing the transfer, provided that all Persons of the
transferee are qualified to hold an interest in a Distributorship under these Policies and
Procedures. The transfer of your interest will be recognized by Nu Skin when a court order or
proper legal documents addressing the transfer to a qualified transferee are submitted to Nu
Skin.
(c) During any time that a Distributorship may be temporarily without an owner, or a gap in
ownership occurs due to probate or other court procedures, the upline Blue Diamond or above
will be responsible for operating this Distributorship. As payment for their services, the upline
Blue Diamond or above will be entitled to a service fee. This fee will be an amount equal to 15
percent of the Distributorship’s net Bonuses, which the Company will deduct from the
Distributorship’s net Bonuses.
4.3 Divorce
In the event of a divorce, Nu Skin will neither determine the division of nor divide a Distributorship or a
Downline Organization. Generally, Nu Skin will not divide Bonuses or other rewards. Nu Skin may,
however, in its sole discretion, on a case-by-case basis, divide Bonuses on a simple, fixed-percentage
basis, pursuant to a court order or the written consent of both parties. IF NU SKIN AGREES TO DIVIDE
BONUSES ON A SIMPLE, FIXED PERCENTAGE BASIS, THE PARTIES TO THE DISTRIBUTORSHIP AGREE TO
HOLD NU SKIN HARMLESS FROM ANY AND ALL LIABILITIES, LOSSES, COSTS, DAMAGES, JUDGMENTS, OR
EXPENSES, INCLUDING REASONABLE ATTORNEY’S FEES, RESULTING OR ARISING FROM, DIRECTLY OR
INDIRECTLY, ANY ACTS OR OMISSIONS BY NU SKIN IN DIVIDING THE BONUSES. Nu Skin has the right to
withhold Bonuses in the event of a dispute among spouses regarding a Distributorship. Nu Skin may
charge a fee to Distributors each month as payment for its services in dividing Bonus payments.
4.4 Right to Terminate
You may terminate your Distributorship at any time. . Please see Section 3.9 of Chapter 6 for details.
8| P a g e
Chapter 2 Operating Your Business
1 Business Ethics
1.1 DSA Code of Ethics
Nu Skin is part of the network of NSI, while NSI is a member of the Direct Selling Association (DSA) in the
United States and in many countries around the world and abides by the DSA Code of Ethics. Along with
the ethical guidelines of this Section, you are strongly encouraged to read the DSA Code of Ethics and
adopt its principles in your business operations. The DSA Code of Ethics can be found at www.dsa.org.
1.2 Purpose of Your Business
The primary purpose of your business and Nu Skin is to sell high quality Products to retail customers. As
part of this process you may sponsor other Distributors in the business to build your sales organization.
However, the recruitment of other Distributors is not your primary focus, but rather an integral part of
your fundamental obligation to sell Products and increase the sales of Products to retail customers by
your Downline Organization.
1.3 General Ethics
You must operate your Distributorship in an ethical, professional, and courteous manner. This means,
among other things, the following:
 You must comply with the Contract and with applicable law.
 You must operate your Distributorship honestly.
 You should indicate to prospective customers and Distributors who you are, why you have
contacted them, and what Products you are selling.
 You may not make false or misleading claims about potential earnings under the Sales
Compensation Plan or about the benefits of using the Products.
 You may not pressure any Distributors or prospective Distributors to operate in a financially
irresponsible way, including, but not limited to, pressuring them to buy more Products or
Business Support Materials and Services than they can reasonably use or sell, or to maintain
specific inventory requirements.
 You must not encourage or recommend that Distributors or prospective Distributors incur debt
in order to participate in the business.
 You must explain how to return Products or cancel an order.
 You must not represent to prospective Distributors that they are required to purchase Products
or Product packages to become Distributors or to become Executives. Prospective Distributors
must be informed that they can sign up as customers or that they may purchase Products
individually and not in Product packages.
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
9 | P a g e
1.4 Non Disparagement
You may not make any misleading, unfair, inaccurate, or disparaging comparisons, claims,
representations, or statements about:
 Nu Skin;
 its Products, or commercial activities;
 other Persons;
 other companies (including competitors); or
 other companies’ products, services, or commercial activities.
1.5 Harassment
You must operate your Distributorship in a manner that is free of harassment, intimidation, threats, and
abuse. Harassment of any kind will not be tolerated, including, but not limited to, race, religion, physical
and verbal abuse, or soliciting, encouraging, or consummating any inappropriate or unwelcome written,
verbal, electronic or physical relationships, sexual advances, requests for sexual favors, or other
physical, verbal, or visual behavior of a sexual nature, with another Distributor, Nu Skin employee or
customer.
1.6 No Contact of Vendors or Scientific Advisory Board Members
You may not contact, either directly or indirectly, Nu Skin’s vendors, suppliers, scientific advisory board
members, basic research partners, Universities, or any other advisors or consultants of Nu Skin without
the prior written consent of Nu Skin.
1.7 Anti-Corruption
You must comply with all anti-corruption laws, including the Foreign Corrupt Practices Act (“FCPA”), in
the countries or markets in which Nu Skin does business. The FCPA requires that you never directly or
indirectly (i.e. through an agent) make a payment or gift with the purpose of influencing the acts or
decisions of foreign officials. There are some limited exceptions to this rule. Because the rules and
exceptions relating to anti-corruption are complex, you should consult with your own legal counsel
regarding questions relating to compliance with the FCPA or anti-corruption laws. For additional
information please refer to Nu Skin’s Anti-Corruption Policy in the Corporate Governance section of the
Investors link on the Nu Skin Enterprises, Inc. website at www.nuskinenterprises.com/
1.8 Maintaining the Nu Skin’s Reputation
You will not act in any way, including your actions outside the scope of your Distributorship, which could
be considered detrimental to the business or reputation of Nu Skin or its Distributors. Nu Skin has the
right to, in its sole discretion, determine what actions may be considered detrimental and take action
against you according to Chapter 6.
1.9 Records Review
As a condition to participating as a Distributor, you grant Nu Skin the right to review any records related
to your Distributorship in order to investigate whether you have been operating your Distributorship in
compliance with these Policies and Procedures. Nu Skin may request to review your Distributorship
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
10 | P a g e
records at any time and for any reason. You must comply with any request to review your
Distributorship records by promptly and completely making your true records available for review by Nu
Skin.
2 Independent Contractor
2.1 Distributors are Independent Contractors
You are an independent contractor. You are not an agent, employee, officer, partner, member, or jointventurer
with Nu Skin, and you may not represent yourself as such. You agree that as an independent
contractor, you:
 are responsible for your own business decisions and must determine in your sole discretion,
when you will work and the number of hours you will work;
 will be paid Bonuses based on sales and not the number of hours you work;
 are subject to entrepreneurial risk and responsible for all losses that you incur as a Distributor;
 must pay your own license fees and any insurance premiums or the like (if applicable);
 are responsible for all costs of your business including, but not limited to, travel, entertainment,
office, clerical, legal, equipment, accounting, and general expenses without advances,
reimbursement, or guarantee from Nu Skin; and
 will not be treated as an employee for tax purposes. If you meet a certain Bonus threshold, the
Company shall notify the tax authority the Bonuses paid to you in such fiscal year in accordance
with the applicable tax return requirements (if any).
2.2 Taxes
You must pay any self-employment taxes required by the relevant tax authority under local laws and
regulations.
2.3 No Authority to Act on Behalf of Nu Skin
You have no authority to act on behalf of the Company. This includes, but is not limited to, any attempt
to:
 register or reserve Nu Skin names, trademarks, trade names or Products;
 register URLs using Nu Skin names, trademarks or trade names;
 register or secure approval for Products or business practices; or
 establish business or governmental contacts of any kind on Nu Skin’s behalf.
You must indemnify Nu Skin for all costs and attorneys’ fees incurred by Nu Skin for any remedial action
needed to exonerate Nu Skin in the event that you improperly act on behalf of Nu Skin. You must
immediately assign to Nu Skin any registration of Nu Skin names, trademarks, trade names, Products, or
URLs registered or reserved in violation of this Section without Nu Skin’s reimbursement of any costs
you incurred.
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
11 | P a g e
2.4 Designation as Employer Prohibited
You may not identify Nu Skin as your employer on loan applications, government forms, employment
verification requests, applications for unemployment compensation or any other form or document.
3 Ordering Products or Services
3.1 Ordering
You may order Products directly from the Company or its Product centers. There is no minimum order;
however, shipping and handling costs may vary depending on the amount of Products ordered.
3.2 Transfer of Title
Title to and risk of loss for any Products you order transfers to you when the Products are shipped or
collected.
3.3 Inventory and the 80 Percent Rule
As a Distributor you have no specific inventory requirements. You must use your own judgment in
determining inventory needs based upon reasonably projected retail sales and personal use. You are
prohibited from ordering more than a reasonable amount of inventory. By placing an order, you certify
that you have sold or consumed at least 80 percent of your total inventory from previous orders.
3.4 Methods of Ordering
The Company does not accept orders on credit. Orders will not be shipped or allowed to be collected
until they are paid in full. Payment must be made by cash, credit card, wire transfer or such other
method as may be accepted by the Company.
3.5 Issuing Credits
A Company credit may be issued in instances of overpayment, Product exchanges, or in other
circumstances when an order cannot be completely filled. Personal Sales Volume and Group Sales
Volume (or if applicable, Commissionable Sales Value), are credited when the Company credit is used.
3.6 Pricing Changes
The Company maintains the right to change Product prices without prior notice.
3.7 Submitting Orders in the Name of Another Distributor
You are prohibited from submitting orders in the name of another Distributor without the other
Distributor’s prior written approval. You must provide a copy of written approvals to the Company upon
request.
3.8 Payments without Sufficient Funds
If any check or any similar form of payment is returned for insufficient funds or if any credit card
payment is reversed, you must immediately make payment to the Company for the full amount of the
returned check or reversed credit card payment. If you fail to promptly make such payment you are in
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
12 | P a g e
breach of the Contract.
3.9 Use of another Individual’s Credit Card
You should not use another individual’s credit card to order Products or the Company’s Business
Support Materials and Services without the individual’s prior written approval. You must provide a copy
of written approvals to the Company upon request.
3.10 Automatic Re-Ordering Program
The Automatic Re-Ordering Program (“ARO Program”) is an optional program available in some
Authorized Countries. The ARO Program allows you to place a standing order with the Company that
will be conveniently shipped to you on a monthly basis and charged to your credit card on a recurring,
monthly basis. The terms and conditions of the ARO Program are found on the Automatic Re-Ordering
Program Enrollment Agreement and the Company’s website. The Company may terminate (i) the ARO
Program at any time and for any reason, and (ii) your right to participate in the ARO Program as
described in the terms and conditions of the ARO Program. You may cancel your monthly ARO Program
order with written notice as described in the terms and conditions of the ARO Program.
3.11 Retailing of Products
(a) You may only resell Products in your Resident Country. The Products you resell must also be
purchased from the Company in your Resident Country, and you may not resell Products in your
Resident Country that you acquire from the Company in a Non-Resident Country.
(b) When you execute your Distributor Agreement incorporated with an International Sponsor
Agreement, you are granted the right to purchase Products in a Non-Resident Country. You
may only purchase Products in a Non-Resident Country for personal use or to demonstrate the
Products for potential new Distributors. You cannot resell Products in a Non-Resident Country.
You may be subject to additional requirements for a specific country or market.
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
13 | P a g e
4 Product Refunds and Exchanges
4.1 Refund Policy
(a) Unless otherwise required by applicable law, the Company will:
(i) refund ninety percent (90%) of the price, less value added tax and applicable Bonuses (plus
applicable tax if prepaid) on unopened and resalable Business Support Materials sold by the
Company that are returned within 30 days of the order date by the Distributor who
purchased the Business Support Materials from the Company; or
(ii) after deducting an administrative fee equivalent to 10% of the purchase price, refund
ninety percent (90%) of the price, less value added tax and applicable Bonuses (plus
applicable tax if prepaid) on unopened and resalable Products (except Business Support
Materials) sold by the Company that are returned within twelve (12) months of the order
date by the Distributor who purchased the Products from the Company.
The Company does not refund the original shipping costs on Products that you return. In order
for the Company to correctly back out the applicable Bonuses on returned Products, you must
keep the sales order number from the invoice. You must provide the sales order number to the
Company at the time you request a refund. You may also return individual Products that are
purchased as part of a kit or package. The form of the refund will be based on the original form
of payment such as a bank transfer or a credit card charge. Instead of a refund, the Company
may choose other alternatives such as a Product credit. The return of Products may affect your
eligibility to receive Bonuses and your pin level, and if Bonuses have already been paid on the
returned Products, then the Company will recoup your Bonuses as set forth below in Section 6.9
of this Chapter 2. The Company does not provide refunds for Products or Business Support
Materials and Services purchased from another Distributor. You must seek a refund directly
from the Distributor who sold you such Products or Business Support Materials and Services.
(b) (Not Applicable)
4.2 Exchange Policy for Products Purchased Directly from the Company
Unless otherwise required by applicable law, the Company will exchange Products purchased directly
from the Company that were incorrectly sent, or are defective, if you notify the Company within 30 days
of the date of purchase. If an exchange is not feasible, the Company may issue (i) a Company credit for
the amount of the exchanged Products, which may be used to purchase other Products, or (ii) a full
refund of the purchase price.
4.3 Procedures for Obtaining a Refund or Exchange
You must comply with the following procedures to obtain a refund or exchange:
(a) You must receive approval for the return in the form of a Return Merchandise Authorization
(“RMA”) number before you ship the return to the Company. This approval must be obtained
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
14 | P a g e
either by telephone or in writing, and the actual return shipment must be accompanied by the
RMA number (Shipping Inquiries at +62-21-30030088);
(b) The Company will provide you with the correct procedures and location for returning the
Products. The Company will not refund the original shipping costs on Products that you return.
All return shipping costs must be paid by you;
(c) Products sent to the Company without an RMA number will not qualify for a refund or exchange
and will be returned to you at your expense; and
(d) Procedures may vary in jurisdictions where different requirements are imposed by law.
4.4 Policy for Uncollected Products
You acknowledge that administrative time and costs will be incurred by the Company to retain Products
and/or Business Support Materials purchased but remain uncollected by and/or undelivered to you.
Accordingly, you agree that IN THE EVENT THAT:-
1) when collection is to be made by you and you fail or neglect to collect any Products and/or
Business Support Materials purchased from the Company within seven (7) days from the date of
purchase, the Company will deliver the purchased Products and/or Business Support Materials
to the address as provided by you at reasonable delivery charges and if such Products and/or
Business Support Materials cannot be successfully delivered to you and you fail or neglect for
whatsoever reason to collect the Products and/or Business Support Materials from the Company
within three (3) months from the date of purchase; or
2) where you have requested the Company and the Company has agreed to deliver any Products
and/or Business Support Materials to you but the Company is unable to deliver such Products
and/or Business Support Materials to you due to an incorrect or incomplete delivery address or
the unavailability of the named recipient at the address as provided by you, and you fail or
neglect to collect the Products and/or Business Support Materials from the Company within
three (3) months from the date of purchase,
THEN upon the expiry of the aforesaid period of three (3) months, the Company shall, without further
reference, notice or account to you, cancel your order of such Products and/or Business Support
Materials and refund to you the amount paid for such Products and/or Business Support Materials in
accordance with Section 4.1 of Chapter 2. If Bonuses have already been paid on such Products, then the
Company will recoup your Bonuses as set forth in Section 6.9 of Chapter 2.
5 Retail Sales and Customer Returns
5.1 Retail Sales
Products purchased from the Company may only be sold to retail customers, used for Product
demonstrations, or for your own personal use. You are authorized to resell Products you purchase from
the Company to retail customers. Subject to the provisions hereinbelow, you may establish your own
retail prices for Products and may keep all of the profits you earn from retailing the Products to your
retail customers.
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
15 | P a g e
The Company has established suggested retail prices for Products based on competitive pricing in each
market. Maintaining retail pricing for non-Distributors helps to preserve the value of the Company’s
Products and business opportunity. The Company may take disciplinary measures, including possible
termination of a Distributorship, in the event the Company determines that a Distributorship resells
Products at price levels that impair the viability of bona fide retail pricing for other Distributorships. The
selling of the Company’s Products in the market below the Company’s Distributor wholesale price in
that market is strictly prohibited.
5.2 No Wholesaling of Products
You may not sell or distribute Products to Persons who intend to resell the Products, or have resold
Products in the past. You are prohibited from selling to Persons, either directly or indirectly, who
ultimately (i) resell the Products through a retail store, (ii) resell the Products over the Internet,
regardless of the form of Internet distribution channel, unless it has been approved by the Company in
writing, (iii) import the Products into an Unopened Country, or (iv) use any other method of distribution
that violates the primary purpose of your direct selling business and that of the Company. You must take
reasonable steps to ensure that Persons who purchase Products from you do not intend to violate this
Section 5.2.
5.3 Retail Sales Receipts
You must provide Retail Sales Receipts to your customers in accordance with the following
requirements:
(a) You must provide the customer with two copies of the completed Retail Sales Receipt at the
time of the sale. All blanks in the section referring to the seven-day refund policy on the back of
the receipt must be completed. The Retail Sales Receipt should be completed and include the
items ordered, the amount of the sale, and the customer’s name, address, telephone number,
the date of the sale, the date of the third business day after sale, your name, business address,
and business telephone number.
(b) You must keep a copy of the Retail Sales Receipt for your records. You must keep copies of all
Retail Sales Receipts on file for at least four years.
5.4 Money-back Guarantees, Customer Refunds, and Exchanges for your
Retail Customers
(a) You must offer a seven-day money-back guarantee to your retail customers. This means that
you must, for any reason and upon request, give a full refund of the purchase price to the
customer. The only requirement is that the customer must request the refund within seven
business days of purchase and return the unused portion of Product. You must make a refund
for returned Products within 10 days of the customer’s request.
(b) (Not Applicable)
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
16 | P a g e
(c) If your retail customer purchases a Product directly from you, and your retail customer returns
the Product to you for a refund, then you are responsible for, and must provide the retail
customer with, a refund without any reimbursement from the Company. The Company
encourages you to honor your retail customer’s request for refunds even if made more than
seven business days after the date of sale.
(d) If your retail customer purchases a Product directly from you, and your retail customer returns
the Product to you for a Product exchange, then you are responsible for the Product exchange,
and the Company will only replace the exchanged Product if returned within 30 days from the
date of the retail sale and the Product is defective.
6 Sales Compensation Plan
6.1 Sales Compensation Plan
A complete copy of the Sales Compensation Plan has been provided to you. The Sales Compensation
Plan is a part of the Contract, and you are bound to its terms. The Sales Compensation Plan may be
changed by Nu Skin at any time with 30 days prior notice. A current copy of the Sales Compensation Plan
may be found at www.nuskin.co.id.
6.2 Exceptions to Sales Compensation Plan
Nu Skin, in its sole discretion, has the right to hold, maintain, or promote a Distributor to any pin level in
the Sales Compensation Plan without regard to fulfillment of pin level requirements, or waive any other
obligation or requirement of the Sales Compensation Plan. Unless otherwise agreed in writing by Nu
Skin, Nu Skin may terminate any exception granted pursuant to this Section 6.2 of this Chapter 2 at any
time and for any reason.
6.3 No Compensation for Sponsoring
You do not receive any compensation for sponsoring other Distributors. Your level of compensation will
be based on your hard work, your sale of Products, and the sales of your Downline Organization.
6.4 No Guaranteed Income
You are neither guaranteed a specific income nor assured any level of profit or success. Generating
meaningful compensation as a Distributor requires considerable time, effort, and commitment to the
business. You should operate your Distributorship in a financially responsible and businesslike
manner—you should not (i) incur debt to purchase Products or Business Support Materials and Services,
(ii) quit your current employment until you are confident that you can afford to do so, and (iii) incur
expenses that exceed the amount of your Bonuses. This is not a “get rich quick” program. Your profit
comes only through the successful sale of Products and the sales of other Distributors within your
Downline Organization.
6.5 Manipulation of Sales Compensation Plan
Maintaining the integrity of the Sales Compensation Plan is of vital importance to Nu Skin. You must
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
17 | P a g e
abide by the terms and conditions of the Sales Compensation Plan and you may not, in any form, use
false identification numbers, false names, false Distributorships, buy additional Product to maintain a
pin level, warehouse Products, or use any other form of manipulation that violates the terms and
conditions of the Sales Compensation Plan or its spirit and intent.
6.6 Bonuses
In addition to the retail profits you can earn from your resale of Products, you can also receive a Bonus
under the Sales Compensation Plan, subject to the following:
(a) You may not receive any Bonuses if you are in violation of the Contract;
(b) The requirements for receiving a Bonus and the terms for determining the amount of the Bonus
may be changed by Nu Skin at any time upon 30 days prior notice;
(c) Bonuses will be paid by wire transfer, or any other method chosen by Nu Skin;
(d) No interest accrues on Bonuses when the payment of such has been delayed by Nu Skin for any
reason; and
(e) Nu Skin will pay no Bonuses until the aggregate accrued monthly Bonuses are equal to 10 US
dollars (or the equivalent amount in local currency). If your Distributorship is terminated, any
unpaid accrued Bonuses under the 10 US dollar minimum (or the equivalent amount in local
currency) will be forfeited.
6.7 Required Retail Sales; Retail Sales Verification
You are not eligible to receive a Bonus in any month in which you do not have five retail sales as
required by the Sales Compensation Plan. You must retain documentation of retail sales for at least four
years to verify that you have met these retail sales requirements. You must make this documentation
available to Nu Skin at Nu Skin’s request. If you cannot document the required retail sales you are in
breach of the Contract. Nu Skin may recover all Bonuses paid for orders in any month for which you
cannot provide retail sales documentation. Nu Skin regularly audits Distributor compliance with this
Section.
6.8 Timing
An order for Products is included in the Bonus and Executive qualification computations for a given
month only if received by Nu Skin on or before the last business day of that month. If Nu Skin places
Products on backorder, Personal Sales Volume (or if applicable, Commissionable Sales Value) for those
Products will only be included in the Bonus and Executive qualification computations in the month the
Products are shipped.
6.9 Bonus Recovery
(a) In addition to any other recovery rights provided in these Policies and Procedures, Nu Skin has
the right to require you to repay any Bonuses paid to you:
(i) on Products returned under Nu Skin’s refund policy;
(ii) on Products returned in relation to any incident of Distributor misconduct;
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
18 | P a g e
(iii) that were mistakenly paid by Nu Skin; or
(iv) in the event you violate the provisions of Section 6.5 of this Chapter 2, in addition to any
other remedies available to the company, the Company shall have the right to adjust your
pin level and recalculate your Bonuses for the period in which such activities occurred by
disregarding the volume from Products that were returned, that were purchased in order to
maintain Executive pin levels, or any other activity that violate Section 6.5 of this Chapter 2.
You must repay any Bonuses that were paid to you in excess of the adjusted Bonus that is
calculated by the Company as set forth above.
(b) If you are obligated to repay any Bonuses to the Company, the Company will have the right to
recover such amount by (i) requiring a direct payment of the amount from you, or (ii)
withholding the amount from your present or future Bonus payments.
(c) Extension of Nu Skin’s refund policy, whether required by applicable law, or instances in which
Distributor misconduct, misrepresentation, or other extenuating circumstances necessitates a
Nu Skin refund in excess of its stated refund policy, will be considered on a case-by-case basis.
In the event Nu Skin is required to make a refund that exceeds the terms of its refund policy, Nu
Skin may recoup Bonuses paid to you on those Products as well.
6.10 Payment Corrections
It is your duty to make sure that the Bonuses paid to you are correct. If you discover an error in your
payment you must notify Nu Skin within 90 days after the receipt of your Bonus. If you fail to notify Nu
Skin of any errors or disputes with respect to a Bonus payment within this 90 day period, you will be
deemed to have accepted the payment as full and complete payment of any Bonuses earned during
such Bonus period and you will have no further right to dispute the Bonus payment or seek payment of
any additional Bonus.
7 Product Liability Claims and Indemnification
7.1 Indemnification
In the event of a product liability claim brought against you by a third party for a defective Product or for
injury from use of a Product, Nu Skin will indemnify and defend you from such claims, subject to the
limitations described in Section 7.2 of this Chapter 2.
7.2 Requirements for Indemnification
In order to be indemnified, you must notify Nu Skin of the claim in writing within 10 days of your
receiving notice of the claim. Nu Skin has no obligation to indemnify you if you have (a) violated the
Contract; (b) repackaged, altered or misused the Product, or made claims or given instructions about the
Product’s safety, uses or benefits which are not included in Nu Skin’s current approved literature,
warnings, or Product labels; or (c) settled or attempted to settle a claim without Nu Skin’s written
C h a p t e r 2 | O p e r a t i n g Y o u r B u s i n e s s
19 | P a g e
approval. In addition, indemnification is conditioned upon you allowing Nu Skin to assume the sole
defense of the claim.
7.3 Indemnification by You
You agree to indemnify Nu Skin from any claim by a third party that arises directly or indirectly because
you have (a) violated the Contract; or (b) repackaged, altered or misused the Product, or made claims or
given instructions about the Product’s safety, uses or benefits which are not included in Nu Skin’s
current approved literature, warnings, or Product labels.
8 Taxes
Nu Skin provides the service of collecting value added tax, as well as other taxes (as applicable) at the
time of purchase and remitting it to the authorized government agency in Indonesia. The amount of
value added tax is based upon the selling price of a product or service, calculated pursuant to the
prevailing tax rate in Indonesia.
Any Bonus payable by Nu Skin to the Distributor shall be subject to any relevant deduction of
withholding tax before the net amount is paid to the Distributor.
9 Associating Other Organizations with Nu Skin
Nu Skin’s business opportunity is not based on race, gender, beliefs, or political affiliations. When you
are training your Downline Organization, selling Products or promoting the business opportunity, you
may not promote, advocate, sell, or include literature, books, or other material that promotes any other
organization or individual, whether religious, political, business, or social, or that implies any association
between Nu Skin and any other organization. Nu Skin and Distributor meetings, calls or any other
functions may not be used as a forum to promote or express personal beliefs, other organizations,
companies, events, or individuals.
20 | P a g e
Chapter 3 Advertising
1 Business Support Materials and Trademark Use
1.1 Use of Business Support Materials
Subject to the exception in Section 4 of this Chapter regarding Blue Diamond Business Support
Materials, you may only use Business Support Materials that have been produced and distributed by Nu
Skin for the promotion of the business, the Products and the Sales Compensation Plan, and you may not
prepare or use your own Business Support Materials. In addition, because laws and regulations differ
from country/market to country/market, you may only use Business Support Materials that have been
specifically approved for use in that Authorized Country.
1.2 Use of Trademarks and Copyrights
(a) Use of Company Trademarks and Copyrights. Nu Skin’s trademarks and copyrights are valuable
assets of Nu Skin and Nu Skin strictly regulates the use of these trademarks and copyrights to
ensure that they do not lose their value to Nu Skin or its Distributors. You may not use Nu Skin’s
trademarks, copyrights and other intellectual property rights, registered or otherwise, in any
form except as specifically authorized by these Policies and Procedures or as otherwise
approved in writing by Nu Skin. Nu Skin may prohibit the use of Nu Skin’s trademarks or
copyrights in any Business Support Materials or other medium.
(b) Damages. You are liable to Nu Skin for any damages arising out of your misuse of Nu Skin’s
trade names, trademarks, copyrights and other intellectual property rights, in any form except
as specifically authorized by these Policies and Procedures or as otherwise approved in writing
by Nu Skin.
2 Product Claims
2.1 General Limitation
You may only make the specific Product related claims and representations published in Nu Skin’s
Business Support Materials, and Nu Skin literature, and that have been approved by Nu Skin for use in
Business Support Materials in the Authorized Country where you are making the claims.
2.2 No Medical Claims
You may not make medical claims, or state or imply that any Product is formulated, designed or
approved by Nu Skin or any regulatory authority to treat any disease or medical condition. These
representations imply that the Products are drugs rather than cosmetics or nutritionals. You also may
not compare Products to drugs, or make drug or medical claims. Any such representations, claims or
comparisons by you may result in your personal liability.
C h a p t e r 3 | A d v e r t i s i n g
21 | P a g e
2.3 No FDA Approved Claims
(Not Applicable)
2.4 Before and After Photographs
Only those pictures and videos that have been approved by Nu Skin may be used to demonstrate
Product benefits.
2.5 Modifications to Product Packaging
You may not modify any packaging, labels, literature or instructions for use for any Product. You may
not give instructions to use a Product in any way not described in Nu Skin’s current approved literature.
Any such modifications or instructions by you may result in your personal liability.
3 Income Claims
3.1 No Misleading Income Claims
It is important that all Distributors are fully informed and have realistic expectations concerning the
income opportunity associated with being a Distributor. To help make sure all Distributors have realistic
expectations, you must comply with the provisions of this Section 3 in all aspects of your business
activities. Most importantly, you may not make any claims, specific or implied, regarding the income
opportunity that are false or misleading, including income guarantees of any kind. You may not exhibit
actual or facsimile Bonus checks or other Bonus payment records.
3.2 Requirements for Lifestyle and Income Claims
You may only make lifestyle claims (e.g., my Nu Skin business allowed me to buy a boat, quit my job,
purchase a new home, etc.) or claims regarding the level of Bonuses or income associated with your Nu
Skin business if the following conditions are met:
(a) The information must be accurate and not misleading;
(b) The information must be based on your experience and actual compensation level, or the
experience and income level of Distributors in your immediate upline or Downline Organization,
or be consistent with information in Nu Skin or Blue Diamond Business Support Materials;
(c) The compensation claim must be stated in a monthly or annual amount and the actual
percentage of Distributors earning that amount;
(d) You must simultaneously disclose in immediate proximity to the compensation claim, the most
recent Distributor Compensation Summary;
(e) You may not make any claim regarding the amount of time required to reach specific
compensation levels without prior written approval from Nu Skin;
(f) If you make claims regarding “income” or “profit” rather than “bonuses” or “compensation”
you must either net out the expenses you incurred in generating such income or disclose the
amount of expenses that you incurred in generating such income; and
(g) If you make claims regarding Bonus levels you must note that such amounts are gross amounts
before the deduction of expenses associated with doing the business.
C h a p t e r 3 | A d v e r t i s i n g
22 | P a g e
4 Blue Diamond Produced Business Support Materials
4.1 Blue Diamond Business Support Materials
In order to protect the integrity of the Network and to ensure that Business Support Materials and
Services are only produced, utilized and distributed by Distributors with significant experience and
knowledge relating to Nu Skin and its Products, only Blue Diamond Distributors may produce, utilize and
distribute their own Business Support Materials and Services. Blue Diamond Distributors may produce
Business Support Materials and Services for their own use and for use by other Distributors only if they
comply with the terms of these Policies and Procedures, including, without limitation, the provisions of
Sections 2, 3, 4.3, and 4.4 of this Chapter 3 and Addendum B. Blue Diamond Business Support Materials
and Services may only be used in the specific Authorized Countries in which they have been registered.
For purposes of this Chapter 3, Blue Diamond Distributors are those Distributors that: (i) currently enjoy
active status as a Blue Diamond, (ii) have been a Blue Diamond for a minimum of three months, and (iii)
are not in material breach of the Contract.
4.2 No Endorsement or Approval by Nu Skin
Although Nu Skin allows Blue Diamond Distributors to produce, utilize and distribute Blue Diamond
Business Support Materials and Services for use by other Distributors, you need to be aware that these
Blue Diamond Business Support Materials and Services are independently produced by Blue Diamond
Distributors and are not produced, endorsed, recommended or approved by Nu Skin. If you elect to
purchase or use Blue Diamond Business Support Materials and Services, Nu Skin (i) has no responsibility
or obligation to you regarding refunds and exchanges, and (ii) does not guarantee that the Blue
Diamond Business Support Materials and Services comply with all applicable laws and regulatory
requirements. Moreover, the purchase of such materials is not required and there can be no guarantee
that such Blue Diamond Business Support Materials and Services will contribute meaningfully to your
business. You should evaluate the purchase of Business Support Materials carefully. You should not
spend more on such Blue Diamond Business Support Materials and Services than can be supported by
your current level of Bonuses under the Sales Compensation Plan.
4.3 License Agreement for Business Support Materials
A Blue Diamond Distributor must execute and submit to Nu Skin a License Agreement prior to producing
any Blue Diamond Business Support Materials and Services. The License Agreement is for a term of twoyears
and must be renewed if you want to continue to produce and use your Blue Diamond Business
Support Materials and Services. The License Agreement grants you the right to use certain Nu Skin
trademarks and trade names, and sets forth the terms and conditions you must agree to abide by in
order to produce Business Support Materials and Services and utilize Nu Skin’s trademarks.
4.4 Registration of Blue Diamond Business Support Materials and Services
Prior to using or distributing any Blue Diamond Business Support Materials and Services, a Blue Diamond
Distributor must register such Blue Diamond Business Support Materials and Services with Nu Skin and
receive a Notice of Registration from Nu Skin with respect to such Blue Diamond Business Support
Materials and Services as set forth in Addendum B to these Policies.
C h a p t e r 3 | A d v e r t i s i n g
23 | P a g e
4.5 Sales by Blue Diamonds; Purpose
Blue Diamond Distributors who sell Blue Diamond Business Support Materials and Services to other
Distributors must comply with these Policies and Procedures and the provisions of Addendum B to these
Policies. Blue Diamond Business Support Materials and Services may be sold only for the purpose of
promoting Products and Nu Skin’s business and for assisting, training, and motivating other Distributors
in their promotion of the Products and Nu Skin’s business.
4.6 Distributor Organizations
Distributor Organizations offering formal materials, training, website subscriptions, Business Support
Materials and Services, or other business promotion tools may only be formed by Blue Diamond
Distributors. Distributor Organizations must comply with Nu Skin’s written guidelines governing the
operation of a Distributor Organization. The Blue Diamond Distributor, who is the primary organizer of
the Distributor Organization, (i) must notify Nu Skin in writing of the formation of a Distributor
Organization, and (ii) is responsible for ensuring the Distributor Organization’s compliance with the
guidelines.
5 Mass Media; General Advertising
5.1 Promotions Utilizing Mass Media Prohibited
You may not use any form of media or other mass communication advertising to promote the Products,
including mass communication advertising on the Internet. This includes news stories or promotional
pieces on TV shows, newscasts, entertainment shows, internet ads, etc. Products may be promoted
only by personal contact or by literature produced and distributed by Nu Skin or by Distributors in
accordance with these Policies and Procedures. You may place generic opportunity advertisements in
jurisdictions allowing that type of advertisement, but only in accordance with the Policies and
Procedures of Nu Skin.
5.2 Media Interviews
You may not promote the Products or opportunity through interviews with the media, articles in
publications, news reports, or any other public information, trade, or industry information source,
unless specifically authorized, in writing, by Nu Skin. This includes private, paid membership, or “closed
group” publications. You may not speak to the media on Nu Skin’s behalf, and may not represent that
you have been authorized by Nu Skin to speak on its behalf. All media contacts or inquiries should be
immediately referred to the Company by calling +62-21-30030066.
5.3 Phone Book Advertising
In order to advertise in the yellow pages or list your name in any locally circulated directory in your area
or via an internet telephone directory, you must have previously attained and currently enjoy active
status as a Ruby-level or above, at the time the agreement for that listing is signed.
 The advertisement is to be limited to two lines containing the words “Pharmanex (or “Nu Skin”)
Independent Distributor, John Doe (your name),” and a telephone number. Neither bold print
C h a p t e r 3 | A d v e r t i s i n g
24 | P a g e
nor display advertisements are allowed. The advertisement must be in the Distributor’s name
only.
The advertisement must be placed under the category of “Nutrition” or “Cosmetic” or another Nu Skin
approved category.
5.4 Distributing Promotional Materials
All promotional materials, including, but not limited to, flyers, business cards, and Blue Diamond
Business Support Materials registered in accordance with Addendum B of these Policies and Procedures,
may be distributed through personal contact only. Promotional material may not be posted in public
places, mass mailed or faxed, placed on parked cars, put in mail boxes, or disseminated by any other
non-personal contact means.
6 Retail Store, Trade Show, and Service Establishment Sales Policy
6.1 Retail Stores
You may not sell Products and/or promote Nu Skin’s business opportunity through retail stores such as
health food stores, grocery stores, and other such establishments. You are also prohibited from selling
to any Person who will ultimately sell the Products through retail stores as set forth in Section 5.2 of
Chapter 2. You may, with the prior consent of a retail establishment, place Nu Skin-produced Advertising
Material and/or Personalized Advertising Material within the establishment. However, all Advertising
Material must be contained within one Nu Skin-produced brochure holder. Furthermore, the brochure
holder and Advertising Material must not be visible to the general public in a manner as to attract the
general public into the retail establishment.
6.2 Trade Show Booths
You may not sell any Products of Nu Skin or promote Nu Skin’s opportunity at flea markets, swap meets,
bazaars, supermarkets, exercise clubs, athletic leagues and games, malls or any other similar gatherings
where the opportunity or Products may be displayed.
6.3 Service Establishments
If you own or are employed by a service-related establishment you may provide Nu Skin’s Products to
customers through this establishment as long as you are providing proper prescreening and ongoing
support to your customers as called for by the Contract. In any event, no Product banners, or other
Advertising Material may be displayed visibly to the general public in a manner as to attract the general
public into the establishment to purchase Products.
(a) A service-related establishment is one whose revenue is earned primarily by providing personal
service rather than by selling products and whose use by customers is controlled by
membership or appointment.
(b) Distributors may only sell Products through service-related establishment that provide services
related to the Products. For example, Pharmanex Products may be sold through the offices of
C h a p t e r 3 | A d v e r t i s i n g
25 | P a g e
doctors and other healthcare professionals, health clubs, or gymnasiums. Nu Skin Products may
be sold through barber shops, beauty salons, nail boutiques, or tanning centers.
6.4 Nu Skin’s Right of Final Determination
Nu Skin reserves the right, in its sole discretion, to make a final determination as to whether an
establishment is service-related or is a proper place for the sale of the Products.
7 Internet
7.1 Use of the Internet in Distributor Business
You may use the Internet to promote Nu Skin, including its Products, only if such use is specifically
authorized by Sections 7.2 or 7.3 of these Policies and Procedures and is in compliance with all of the
provisions of these Policies and Procedures including Sections 2, 3, 4 and 5 of this Chapter 3, as well as
the written guidelines for internet use established by Nu Skin. All other uses of the Internet to promote
Nu Skin or its Products or its Sales Compensation Plan are prohibited.
7.2 Permitted Internet Activities
All Distributors may utilize the Internet as follows:
(a) You are allowed to utilize Nu Skin produced Distributor websites.
(b) You may use generic (i) business opportunity websites, (ii) splash pages, or (iii) social media with
links to Nu Skin websites. These generic pages may not contain Nu Skin’s trademarks or other
copyrighted material and may not contain information on Nu Skin, its Products or its business, or
pictures of Products or corporate facilities/personnel. They also must not contain any false or
misleading information.
(c) You may use the internet, including social networking sites, blogs, social media and applications,
and other sites that have content that is based on user participation and user generated
content, forums, message boards, blogs, wikis and podcasts (e.g., Facebook, Twitter, Flickr etc.)
to (1) communicate preliminary information about Nu Skin or your involvement with Nu Skin, (2)
direct users to a Nu Skin Internet Marketing Site or a registered Blue Diamond Internet
Marketing Site and (3) post Nu Skin produced Business Support Materials that have been
approved by Nu Skin for posting on personal blogs or social networking sites; provided,
however, that such communication and use must be (i) incidental to the primary use of such
forum, site, blog, board, wiki or podcast or other form of internet use, and (ii) may not be an
Internet Marketing Site. As set forth in Section 7.3 of this Chapter, only Blue Diamond
Distributors may maintain an Internet Marketing Site. Nu Skin has the right to make the
determination, in its sole discretion, whether your use of the Internet is permitted under this
section or whether such use is a prohibited Internet Marketing Site. Additionally, you must
comply with Nu Skin published guidelines governing use of the Internet. These guidelines may
change from time to time and it is your responsibility to know the current guidelines and comply
with them. In case of a violation, in addition to taking disciplinary action against you in
C h a p t e r 3 | A d v e r t i s i n g
26 | P a g e
accordance with Chapter 6 of these Policies and Procedures, Nu Skin may require you to
immediately remove any information or marketing site that is in violation of Nu Skin policies.
Examples of Permitted Uses by Non-Blue Diamond Distributors
If you maintain a personal Facebook page where you post a variety of information, you
could post information that that you are a Nu Skin distributor, information about Nu
Skin events you have participated in, and preliminary information about Nu Skin, and
direct readers to a Nu Skin Internet Marketing Site or an approved Blue Diamond
Internet Marketing Site for more information.
If you maintain a personal blog or social network site, you may blog in a particular post
that you are a Nu Skin Distributor and that others can sign up as Distributors, and to
contact you if they are interested in discussing the business with you.
Examples of Non-Permitted Uses by Non-Blue Diamond Distributors
A Facebook page that is primarily devoted to Nu Skin, that includes posted marketing
materials such as videos or before and after photos, or if it is a fan page or similar page
that utilizes Nu Skin’s trademarks, would be considered an Internet Marketing Site, and
would be a violation of policy for non-Blue Diamond Distributors.
A blog or social network site that is primarily about the Products or opportunity, i.e.,
that is the focus of your postings and discussions, that is titled with a Nu Skin trademark
or slogan, or utilizes marketing content, would be an Internet Marketing Site, and would
be a violation of policy for non-Blue Diamond Distributors.
The foregoing examples are provided for illustration purposes only, and are not
intended as an exhaustive list of permitted or non-permitted uses of the Internet or the
conditions or factors Nu Skin will consider in determining whether any particular use of
the internet is an Internet Marketing Site.
7.3 Blue Diamond Internet Marketing Site
In order to protect the integrity of the Network and to ensure that marketing content on the internet is
only created and posted by Distributors with significant experience and knowledge relating to Nu Skin
and its Products, only Blue Diamond Distributors (as defined in Section 4.1 of this Chapter 3) may create
or maintain an Internet Marketing Site. Such Internet Marketing Sites shall be considered Business
Support Materials and Services and shall be subject to Sections 4 and 5 of this Chapter 3. In addition to
the requirements set forth in Section 4 of these Policies with respect to Blue Diamond Business Support
Materials and Services, Blue Diamond Internet Marketing Sites are subject to the following rules:
(a) You must have submitted an Application for Registration for the location of any Blue Diamond
Internet Marketing Site and received a Notice of Registration for such Blue Diamond Internet
Marketing Site;
(b) You must notify Nu Skin immediately if posting any information on the Blue Diamond Internet
C h a p t e r 3 | A d v e r t i s i n g
27 | P a g e
Marketing Site that relates to Nu Skin, its Products, or the opportunity/Sales Compensation Plan
that has not been previously registered with Nu Skin;
(c) Downloadable materials such as PDFs, videos, pictures, PowerPoint presentations and other
files are considered separate Business Support Materials and you must register them with Nu
Skin and receive a Notice of Registration before posting them on your Blue Diamond Internet
Marketing Site;
(d) Any income claims posted on a Blue Diamond Internet Marketing Site must include the most
recent version of Nu Skin’s Distributor compensation summary, and must comply with all rules
regarding earning claims under Section 3 of this Chapter 3 of the Policies and Procedures;
(e) Your Blue Diamond Internet Marketing Sites may not contain more than fifty (50) pages, in the
aggregate, without the written consent of Nu Skin. You must provide Nu Skin with any
usernames or passwords as may be necessary to access all portions of the Blue Diamond
Internet Marketing Site; and
(f) If Nu Skin notifies you to remove or delete any information from your Blue Diamond Internet
Marketing Site, or to make any modifications or add additional information such as income
disclaimers, you must make the requested changes within 24 hours (or a shorter period as Nu
Skin may require in its sole discretion) or shut down the Blue Diamond Internet Marketing Site
until such changes have been made.
7.4 Additional Restrictions on Internet Use
All Distributor websites, whether Blue Diamond Internet Marketing Sites or Nu Skin produced
Distributor websites, and any other form of internet use allowed by these Policies, including internet
video and audio, social media, and other sites that have content based on user participation and user
generated content must comply with the following rules:
(a) You may not use or distribute replicating websites except Company produced replicating web
sites such as NSE Dreams;
(b) You may not include any Nu Skin or third party intellectual property or proprietary information
in the unique domain names/URL or meta-tags of your websites, on or in any other form of
internet use, including but not limited to, tags, links, blog names, social networking sites, social
media and applications, and other sites that have content based on user participation and user
generated content, forums, message boards, blogs, wikis and podcasts (e.g., Facebook,
YouTube, Twitter, Wikipedia, Flickr), or as “wallpaper;”
(c) You may not register your website(s) with search engines or web directories using any Nu Skin
or third-party owned intellectual property or any proprietary information (e.g., trademarks,
trade names, trade secrets, and copyrighted material) without written permission from the
owner;
(d) You may not use sponsored links or pay for placement advertising with internet search engines
and web directories;
(e) You may promote your websites or pages through one-on-one personal contact only; and
(f) You may provide links to your website or pages only from other websites that have been
registered with Nu Skin.
C h a p t e r 3 | A d v e r t i s i n g
28 | P a g e
7.5 Internet Video and Audio
You are prohibited from posting any video or audio content created by, produced by, belonging to or
relating to (i) Nu Skin, its Products, Sales Compensation Plan or Distributors, or (ii) you or any third party,
on any website unless you have received prior written authorization from Nu Skin or such posting is
specifically permitted by this Section 7.5 of this Chapter 3. This prohibition includes, but is not limited
to, video or audio recordings of Nu Skin personnel or Nu Skin or Distributor sponsored events, meetings,
training, or sales presentations. As an exception to this rule, Blue Diamond Distributors may post Nu
Skin produced audio and video presentations, specifically authorized by Nu Skin for internet posting by
Blue Diamond Distributors, on their Internet Marketing Sites as well as audio and video presentations
that have been registered with Nu Skin and for which a Notice of Registration has been issued.
7.6 Internet Selling
Products may be sold on the internet only through Nu Skin websites and may not be sold through
Distributor websites of any kind or any other form of internet use, including internet video and audio,
social networking sites, social media and applications, and other sites that have content based on user
participation and user generated content, forums, message boards, blogs, wikis and podcasts (e.g.,
Facebook, YouTube, Twitter, Wikipedia, Flickr). Blue Diamond Internet Marketing Sites may link to Nu
Skin websites. This prohibition on internet selling includes, but is not limited to, internet auction and
classified advertising websites such as ebay.com or craigslist.org.
7.7 Spam
You must comply with all laws regarding the sending of email messages and it is your duty to become
and remain informed about the requirements of these laws. You are prohibited from sending unsolicited
email regarding your website or Distributorship to individuals who have not specifically requested
information regarding Nu Skin’s business opportunity or Products. In the event an individual who has
formerly agreed to receive email information concerning the business opportunity and/or Products later
requests that you cease sending the individual email, you must honor this request immediately.
8 Lead Generation Services; No Speaking Fees
8.1 Lead Generation Services
Before you sell, purchase, or use any lead in the promotion of the business, you must verify that the lead
has been properly obtained and is legal for use in the area where you are contacting the identified lead.
This includes but is not limited to ensuring the lead’s compliance with “Do Not Call” lists (if applicable) in
the country, market, state, or region where the lead’s address is located. Any violation of laws related
to leads is the sole responsibility of the persons providing and contacting the leads. The person
committing the violation must indemnify the Company for any costs or damages arising from regulatory
or personal challenges to the use of the lead.
8.2 No Speaking Fees; Meetings
You may not charge a fee to speak at any Distributor meeting. However, you may be reimbursed for
your reasonable out-of-pocket expenses (e.g., travel, hotel, meals) that you incur in attending and
C h a p t e r 3 | A d v e r t i s i n g
29 | P a g e
speaking at a meeting. In the event you are putting on a meeting or other function, you may charge a
fee to Distributors attending the meeting or other function, but such fee must not be more than is
necessary to cover the costs of such meeting or other function.
9 No Recording of Nu Skin Events or Employees
You may record any Nu Skin sponsored event, or any speech or other presentation made by an
employee or other representative of Nu Skin at any meeting, event or otherwise if it is only for your own
private use, and is not posted, distributed, copied or broadcast in any format or media, and is not shown
to any other Distributors, prospective Distributors or customers regardless of the setting. Except for
recordings for private use as described in this Section 9, you may not record any Nu Skin sponsored
event, record any speech or other presentation made by an employee or other representative of Nu Skin
at any meeting, event, or otherwise without the prior written consent of Nu Skin.
30 | P a g e
Chapter 4 Sponsoring
1 Becoming a Sponsor
1.1 Requirements
You may only act as a Sponsor if you meet all the requirements and accept all the responsibilities
described in the Contract.
1.2 The Placement of New Distributors
You may refer Persons to become Distributors of Nu Skin by having them submit a Distributor
Agreement to Nu Skin. Upon acceptance by Nu Skin of the Distributor Agreement form, applicants are
placed directly below the Sponsor listed on the Distributor Agreement. Although a newly sponsored
Distributor may be referred to as part of your Downline Organization, this does not create in you any
form of ownership interest in that Distributorship or with respect to any information regarding that
Distributorship. All Distributors are part of the Network, and the Network and any information
regarding the Network are an asset that is owned solely by Nu Skin and not the Sponsor.
1.3 Business Portfolio
When you introduce a Person to the business opportunity, you must fully disclose that the only financial
requirement to become a Distributor is the purchase of a not-for-profit Business Portfolio. The Business
Portfolio does not generate a Bonus.
1.4 Distribution of Nu Skin Leads
When Nu Skin receives inquiries from individuals concerning the Nu Skin’s Products or business
opportunity, Nu Skin refers these individuals to Distributors according to its discretion.
2 Responsibilities of a Sponsor
2.1 Training of Downline Organization
You must supervise, train, support, and have on-going communication with (i) any Distributor that you
sponsor, and (ii) your Downline Organization in a manner consistent with the terms of the Contract.
Your responsibilities include, but are not limited to:
(a) Provide regular retail sales and organizational training, guidance, and encouragement to your
Downline Organization;
(b) Exercise your best efforts to make sure that all Distributors in your Downline Organization
properly understand and comply with the terms and conditions of the Contract and applicable
national and local laws, ordinances, and regulations;
(c) Intervene in any disputes arising between a customer and any of your Downline Organization
and attempt to resolve the disputes promptly and amicably;
C h a p t e r 4 | S p o n s o r i n g
31 | P a g e
(d) Maintain contact with your Downline Organization and be available to answer questions;
(e) Provide training to ensure that the Product sales and opportunity meetings conducted by your
Downline Organization are conducted in accordance with the Contract, current Nu Skin
literature, and in accordance with any applicable laws, ordinances, and regulations;
(f) Monitor the activities of those you personally sponsor and those in your Downline Organization
and work in good faith with Nu Skin to prevent the violation of these Policies and Procedures
and manipulation of the Sales Compensation Plan;
(g) Supervise and assist your Downline Organization’s efforts to sell Nu Skin’s Products to retail
customers; and
(h) Cooperate with Nu Skin regarding investigations of your Downline Organization, and, upon
request from Nu Skin, provide all relevant information pertaining to any investigation.
2.2 Line Switching
You may not encourage, entice, or otherwise assist another Distributor to transfer to a different
Sponsor. To do so constitutes an unwarranted and unreasonable interference with the contractual
relationship between Nu Skin and its Distributors. This prohibition includes, but is not limited to, offering
financial or other tangible incentives for another Distributor to terminate an existing Distributorship and
then re-sign under a different Sponsor. You agree that a violation of this rule inflicts irreparable harm on
Nu Skin and agree that injunctive relief is an appropriate remedy to prevent that harm. Nu Skin may also
impose penalties on any Distributorship that solicits or entices an existing Distributor to change lines of
sponsorship.
2.3 No Purchase of Products or Business Support Materials and Services
Required
The only required purchase to become a Distributor is the not-for-profit Business Portfolio, which does
not generate a Bonus. You may not require any Distributor or prospective Distributor to purchase any
Products or any Business Support Materials and Services, or imply that any such purchase is required.
2.4 Correct Information on Nu Skin Forms
You may not encourage or assist any Distributor or prospective Distributor to provide false or inaccurate
information in their Distributor Agreement or any other Nu Skin form.
2.5 Your Downline Organization’s Communication with Nu Skin
You may not discourage, attempt to prevent or prevent, for any reason, any Distributor from directly
contacting Nu Skin, or Nu Skin from directly contacting any Distributor. It is your duty to facilitate
communication between any Distributor in your Downline Organization and Nu Skin at the request of a
Distributor in your Downline Organization or at the request of Nu Skin.
3 International Business
3.1 International Business
Subject to the Contract, you may conduct business activity as a Distributor in any Authorized Country. If
C h a p t e r 4 | S p o n s o r i n g
32 | P a g e
the country or market is an Unopened Country, then you are limited to providing business cards and
conducting, organizing or participating in meetings where the number of attendees at any given
meeting, including you, does not exceed five. You may not use flyers, cold calling, mass emailing,
advertising or mass soliciting of any kind in order to promote attendance at these meetings. In
Unopened Countries you may not:
(a) Import or facilitate the importation of, sell, gift, or distribute in any manner, Nu Skin Products or
Product samples;
(b) Place any type of advertisement or distribute any promotional materials regarding Nu Skin, its
Products or the opportunity, except for any Nu Skin Approved Business Support Materials that
Nu Skin may have specifically authorized for distribution in a designated Unopened Country;
(c) Solicit or negotiate any agreement for the purpose of committing a citizen or resident of an
Unopened Country to the opportunity, a specific Sponsor or specific line of sponsorship.
Furthermore, Distributors may not sign up citizens or residents of Unopened Countries in an
Authorized Country or by using Distributor Agreement forms from an Authorized Country,
unless the citizen or resident of the Unopened Country has, at the time of sign up, permanent
residence and the legal authorization to work in the Authorized Country. It is the Sponsor’s
responsibility to ensure compliance with residency and work authorization requirements.
Membership or participation in, or ownership of a corporation, partnership or other legal entity
in an Authorized Country does not by itself fulfill the residency or legal authorization to work
requirements. If a Participant in a Distributorship fails to provide verification of residency and
work authorization when requested by Nu Skin, Nu Skin may, at its election, declare a
Distributor Agreement void from its inception;
(d) Accept money or other consideration, or be involved in any financial transaction with any
prospective Distributor either personally or through an agent, for purposes relating to Nu Skin’s
Products or the opportunity, including renting, leasing or purchasing facilities for the purpose of
promoting or conducting Nu Skin-related business, or
(e) Promote, facilitate or conduct any type of activity which exceeds the limitations set forth in
these Policies and Procedures or which Nu Skin, in its sole discretion, deems to be contradictory
to Nu Skin’s business or ethical interests in international expansion.
3.2 Meetings in an Authorized Country with Attendees from an Unopened
Country
If you have a meeting in an Authorized Country with people who are visiting from an Unopened Country,
those people visiting from the Unopened Country are subject to all the restrictions that arise out of their
residence or citizenship in an Unopened Country. This means, among other things, that they may not
submit a Distributor Agreement to become Distributors or purchase Product for import (including for
personal use).
3.3 The International Sponsor Agreement
If you wish to conduct business in an Authorized Country that is not your Resident Country, you must
comply with all applicable laws of that specific Authorized Country, including but not limited to, all
C h a p t e r 4 | S p o n s o r i n g
33 | P a g e
immigration, visa, and registration requirements. In addition, prior to conducting any Business Activity in
an Authorized Country that is not your Resident Country, you must sign an International Sponsor
Agreement if you did not already sign one when you submitted your Distributor Agreement. Nu Skin, in
its sole discretion, reserves the right to reject or revoke your authorization as an International Sponsor
in any Authorized Country. When you sign an International Sponsor Agreement; Nu Skin grants to you
the right to sponsor new Distributors in an Authorized Country other than your Resident Country. The
International Sponsor Agreement does not grant to you the right to market Products in any Authorized
Country other than your Resident Country.
3.4 China
Nu Skin’s business model in China is different from the business model used in any other country or
market. China is not an Authorized Country and before conducting business there you must know and
comply with all the current rules and conditions that Nu Skin has in place for operating in China.
3.5 Express Prohibition of Pre-Marketing in Certain Countries
Nu Skin reserves the right to designate certain countries or markets wherein all pre-marketing conduct
is expressly prohibited. It is your responsibility, prior to each instance of conducting pre-market opening
activities in an Unopened Country, to verify through current contact with Nu Skin that the country or
market in which you plan to conduct those activities is not a prohibited country or market.
3.6 Remedies
In addition to other remedies allowed by the Contract, if you fail to comply with any provision of Section
3 in this Chapter 4, you may be prohibited from participating in the affected international market for a
period deemed appropriate by Nu Skin and may be subject to the remedies set forth in Chapter 6. This
prohibition could include, but is not limited to the following: restricting your right to sponsor new
Distributors in the affected international market; prohibiting the payment of Bonuses to you and your
upline on volume you have generated by your Downline Organization in the respective international
market. In all markets, for a period of up to one year, you may not be entitled to privileges traditionally
afforded Distributors such as recognition at corporate events or in corporate literature.
3.7 Petition for Permission to Participate
If you have been unable to participate in a market because of non-compliance with Section 3 of this
Chapter 4, you must petition Nu Skin in writing for written permission to participate in the market after
the period of prohibition has passed.
3.8 No Waiver
The provisions of Section 3 of this Chapter 4 do not waive Nu Skin’s rights as set forth elsewhere in these
Policies and Procedures or in the Contract.
34 | P a g e
Chapter 5 Restrictive Covenants
1 Ownership of Network
You acknowledge and agree that: (i) the Network is protected as a valuable, proprietary, trade secret
asset that is owned by Nu Skin; (ii) the Network has been developed for the exclusive benefit of Nu Skin
and Distributors as they promote authorized business activities and Products of Nu Skin through the
Network; (iii) the protection of the Network is fundamental to the ongoing success of both Nu Skin and
its Distributors; and (iv) a violation of your obligations under this Chapter 5 inflicts irreparable harm to
the Network, to Nu Skin and to fellow Distributors. Based on the foregoing, you agree that the breach of
your obligations under Chapter 5 of these Policies and Procedures would constitute an unwarranted and
unreasonable interference with the contractual relationship between Nu Skin, its Distributors and
customers, and damage the competitive business interest and integrity of Nu Skin and Network.
2 Restrictive Covenants
2.1 Non-Solicitation
(a) Sale of Third-Party Products and Services. You may not, in any manner, directly or indirectly,
promote, market or sell the products or services of another Business Entity or Individual to the
Network unless you have a pre-existing business relationship with that Distributor prior to one
of you becoming a Distributor. For example, if you own a hair salon, and as a Distributor you
sponsor one of your customers, who then becomes a Distributor, then you may continue selling
your customer your services and hair products from your salon. Notwithstanding the foregoing,
you may not offer third-party products, services or opportunities in conjunction with the sale of
Products, or package third-party products, services or opportunities with Products, or offer or
promote third-party products, services or opportunities at Nu Skin or Distributor meetings, calls
or any other Nu Skin-related functions without the prior written consent of Nu Skin.
(b) Recruit to another Direct Sales Company. You may not, in any manner, directly or indirectly,
recruit, solicit, or sponsor any Distributor or customer, to (i) form a relationship with, (ii)
promote, sell or purchase the products or services of, (iii) participate as a salesperson of, (iv) or
otherwise associate with, a Direct Sales Company, or encourage any Distributor or customer to
do so or to terminate their relationship with Nu Skin.
(c) Survival of Obligation. Your obligations under this Subsection survive for a period of two years
from the date of your resignation, termination, transfer or other change in ownership status of
your Distributorship.
(d) Injunctive Relief. In addition to other compensatory damage awards to Nu Skin, temporary and
permanent injunctive relief is an appropriate remedy to prevent further damage to the Network
and Nu Skin.
C h a p t e r 5 | R e s t r i c t i v e C o v e n a n t s
35 | P a g e
2.2 Exclusivity
(a) You acknowledge and agree that a Distributor or Distributorship, and any Person who has a
Beneficial Interest in the Distributorship (including spouses and Co-habitants), which has
achieved the pin level of Ruby or higher, is being compensated, publicly recognized and
otherwise promoted by Nu Skin as a key Distributor leader. As a Distributor with a Ruby or
higher pin level, you are reasonably expected to exclusively sell Nu Skin Products, train
Distributors in your Downline Organization, and promote Nu Skin’s business. Therefore, as a
condition to receiving ongoing breakaway compensation on Executive Levels 3 through 6 in your
Downline Organization, and recognition as a Ruby-level or higher Distributor leader at Nu Skin
events, you may not be engaged in any Business Development Activity for any other Direct
Sales Company.
(b) If you engage in Business Development Activity for any other Direct Sales Company while you
are a Distributor with a pin level of Ruby or higher, then your Distributorship will not be eligible
to receive any Executive Breakaway Bonus on Executive levels 3 to 6 in your Downline
Organization during any period in which you, your spouse, your Co-habitant, or any Person with
a Beneficial Interest in your Distributorship, (i) engage in any Business Development Activity, or
(ii) maintain a Beneficial Interest in any form with respect to such Direct Sales Company,
regardless of the number of Breakaway Executives on your first level or other qualifications for
payment on levels 3 to 6.
(c) Within 5 business days of the first engagement in any Business Development Activity for any
other Direct Sales Company, you agree to notify Nu Skin that you, your spouse, your Cohabitant,
or any Person with a Beneficial Interest in your Distributorship, is engaged in such
Business Development Activity. You further agree that upon engaging in such Business
Development Activity, you will no longer be eligible to receive Executive Breakaway Bonuses on
Executive Levels 3 through 6 as set forth in the preceding paragraph. You further agree that you
(i) will be liable to refund to Nu Skin any such Executive Breakaway Bonuses paid to you during
any period following your engagement in any such Business Development Activity whether or
not you provide the notice to Nu Skin as required by this paragraph (c), and (ii) Nu Skin will have
the right to recover any such amount by offsetting such liability against any other Bonuses, past,
present or future, that may be payable to you under the Sales Compensation Plan. Failure to
notify Nu Skin of your engagement in any Business Development Activity for any other Direct
Sales Company will be considered a violation of these Policies and Procedures and may result in
other action being taken by Nu Skin, including termination of your Distributorship.
2.3 Confidential Information
As a result of your position as a Distributor, you have access to Confidential Information that you
acknowledge to be proprietary, highly sensitive and valuable to Nu Skin's business, which information is
available to you solely and exclusively for purposes of furthering the sale of Nu Skin Products and
prospecting, training and sponsoring third parties who wish to become Distributors, and to further build
and promote your business. You and Nu Skin agree and acknowledge that, but for your agreement of
C h a p t e r 5 | R e s t r i c t i v e C o v e n a n t s
36 | P a g e
confidentiality and nondisclosure, Nu Skin would not make Confidential Information available to you.
During any term of the Distributor Agreement, and for a period of four years after the termination or
expiration of the Distributor Agreement, you will not, for any reason, on your own behalf, or on behalf
of any other Person:
 Disclose any Confidential Information related to or contained in the Network to any third
party directly or indirectly;
 Disclose, directly or indirectly, the password or other access code to the Network;
 Use the Confidential Information to compete with Nu Skin, or for any purpose other than
promoting Nu Skin;
 Solicit any Distributor or customer of Nu Skin or of the Network, or in any manner attempt
to influence or induce any Distributor or customer of Nu Skin, to alter their business
relationship with Nu Skin;
 Use or disclose to any Person any Confidential Information related to or contained in the
Network that was obtained while your Distributor Agreement was in effect; or
 Recruit or attempt to recruit an existing Distributor for another Direct Sales Company.
Upon non-renewal, resignation or termination of your Distributorship, you will promptly destroy or
return to Nu Skin all Confidential Information. The obligations of this Section 2.3 will survive the
termination or expiration of the Distributor Agreement.
2.4 Confidentiality of Distributorship Information
As a result of your position as a Distributor, you may, at the sole discretion of Nu Skin, be provided
access to information about other Distributorships and their Downline Organizations for the sole
purpose of allowing you to provide business support to these Distributorships and their Downline
Organizations. This information is highly confidential and you may not disclose information about a
Distributorship and his Downline Organization to other Distributors or to any other party. By accessing
such information, you expressly agree to these restrictions and acknowledge that, but for your
agreement of confidentiality and nondisclosure, Nu Skin would not make such information about other
Distributorships and their Downline Organizations available to you.
2.5 Non-Disparagement
In consideration of Nu Skin’s recognition, Bonuses, and other compensation that you receive as a
Distributor, you will not disparage Nu Skin, or any other company or person, including but not limited to
other Distributors, Nu Skin’s Products, the Sales Compensation Plan, the Policies and Procedures or Nu
Skin employees. Disparagement may result in termination of your Distributorship.
2.6 Remedies
You acknowledge that Nu Skin would suffer irreparable harm as a result of any unauthorized disclosure
or use of Confidential Information, including the Network, or recruiting current Distributors for another
Direct Sales Company in violation of Section 2.1 of this Chapter 5, and that monetary damages are
insufficient to compensate Nu Skin for such harm. Therefore, if you are in breach of any of the
requirements of this Chapter 5, Nu Skin is entitled to an injunction or temporary restraining order
C h a p t e r 5 | R e s t r i c t i v e C o v e n a n t s
37 | P a g e
without prior notice to you, restraining any unauthorized disclosure or use of Confidential Information,
which relief may be in addition to any other available legal remedy, including damages. In any such
action, if Nu Skin prevails, you agree that you will reimburse Nu Skin for its costs and reasonable
attorneys' fees incurred in connection with taking the necessary legal action. As to Nu Skin, you waive all
bonding requirements otherwise applicable to a temporary restraining order and/or Injunction.
2.7 Enforceability
In the event that any provision of this Chapter 5 should ever be deemed or adjudged by a court of
competent jurisdiction or an arbitrator with proper jurisdiction, to exceed the limitations permitted by
applicable law, then the remaining provisions will nevertheless be valid and enforceable to the
maximum extent allowable as determined by such court or arbitrator, and such provisions will be
reformed to the maximum allowable limitations as determined by such court or arbitrator. The
remainder of the prohibitions and protections in this Chapter 5 will remain in full force and effect.
38 | P a g e
Chapter 6 Enforcement of Contract
1 The Contract
You agree that the relationship between you and Nu Skin is based entirely on the written Contract. The
Contract may be amended by Nu Skin as provided in these Policies and Procedures. You may not amend
the Contract unless the amendment is in writing and signed by you and Nu Skin. Neither you nor Nu
Skin may claim that the Contract (i) has been altered or amended by any practice or course of dealing or
course of action, (ii) has been modified or amended verbally by an officer or employee of Nu Skin, or (iii)
that there is a quasi-contract or an implied in fact contract between you and Nu Skin.
2 Acts of Participants in a Distributorship
The acts of any Participant, spouse, partner or agent of a Distributor will be considered to be the acts of
the Distributorship and subject to the terms and conditions of the Contract.
3 Procedures for Investigation, Discipline and Termination
3.1 Reports of Alleged Violations
All reports of violations must be in writing and sent to the attention of Nu Skin’s Distributor Compliance
Review Committee (DCRC) by an individual who has personal knowledge of the alleged violation. Nu
Skin may also investigate an alleged violation of which it becomes aware of through its own
independent resources or internal investigations. Nu Skin may take action on its internal investigations
at any time and is not bound by the time limits set forth in Section 3.2 of this Chapter 6.
3.2 Time Limit for Reports of Violations
IN ORDER TO PREVENT STALE CLAIMS FROM DISRUPTING THE BUSINESS ACTIVITIES OF
DISTRIBUTORSHIPS AND NU SKIN, NU SKIN WILL NOT TAKE ACTION ON ANY ALLEGED VIOLATION OF THE
TERMS AND CONDITIONS OF THE CONTRACT NOT SUBMITTED IN WRITING TO NU SKIN’S DCRC, WITHIN
TWO YEARS OF THE FIRST OCCURRENCE OF THE ALLEGED VIOLATION. ALLEGED VIOLATIONS WILL BE
REFERRED TO AS “DISPUTES,” WHICH IS FURTHER DEFINED IN THE GLOSSARY OF DEFINED TERMS IN
ADDENDUM A.
3.3 Balance of Rights of Privacy
Nu Skin’s investigative procedures and Dispute resolution process is intended to balance your rights of
privacy and the rights of other Distributors and the rights of Nu Skin. Therefore, until the Dispute has
been submitted to arbitration, all information and evidence received by Nu Skin will be released only to
you and other Distributors involved in the Dispute as Nu Skin deems necessary. Before releasing any
information, Nu Skin will consider (i) the complexity of the Dispute; (ii) the duty to balance privacy rights
and disclosure obligations. If the Dispute is referred to arbitration, all information and evidence will be
C h a p t e r 6 | E n f o r c e m e n t o f C o n t r a c t
39 | P a g e
made available in accordance with the rules and procedures for arbitration of Disputes described in
Chapter 7.
3.4 Procedure
Your rights under the Contract depend on you meeting all of your obligations under the Contract. If Nu
Skin determines that you have breached the terms of the Contract, then based on the nature of the
Dispute, Nu Skin, in its sole discretion, may proceed as follows: (i) immediately terminate your
Distributorship or take any other appropriate action as provided in Section 3.7 of this Chapter 6; (ii)
proceed directly to arbitration in accordance with Chapter 7, or (iii) process the alleged Dispute
according to the following procedures:
(a) Written Notice. You will receive written notice from Nu Skin that you are or may be in violation
of the Contract.
(b) Responses and Nu Skin Prohibitions. You will have 10 business days from the date of the written
notice during which you may present in writing all the information that you consider relevant to
the alleged Dispute. You may provide information about individuals that have relevant
information, together with their names and addresses, other appropriate contact information,
and copies of all relevant documents. If you fail to respond to the written notice or fail to
provide all relevant facts and information, Nu Skin may take action that it deems appropriate.
Nu Skin has the right to prohibit the activities of your Distributorship (placing Product orders,
sponsoring, receiving Bonuses, etc.) from the time the written notice is sent to you until a final
decision issued.
(c) DCRC. Nu Skin will review any information submitted by you within the 10-day period or by
collateral sources and any information that Nu Skin has independently discovered. The DCRC
will make a final decision regarding the Dispute and the action that Nu Skin will take, if any, and
will send you a copy of the decision of the DCRC. Nu Skin may, at its sole option, send a copy of
the decision of the DCRC to other interested parties.
3.5 Distributor Compliance Appeals Committee (DCAC)
If Nu Skin takes immediate action as provided in Section 3.7 of this Chapter 6, or the DCRC has issued a
decision regarding the Dispute, then you will have 10 business days from the date of the written notice
to submit in writing your appeal to the DCAC. Your written notice should include a description of your
objection to Nu Skin’s immediate action or the DCRC decision. Within 90 days of receipt of your written
notice, the DCAC will review your appeal and provide written notice (i) of its final decision, (ii) that its
review will require additional time, or (iii) that the matter should proceed directly to arbitration under
Chapter 7. If the DCAC has decided that the matter should proceed directly to arbitration, and you do
not desire to participate in the arbitration, then you will still be bound by the decision in the arbitration.
When the DCAC has made a final decision, it will send you written notice and you will have 60 days from
the date of the DCAC decision to request arbitration of the DCAC decision.
C h a p t e r 6 | E n f o r c e m e n t o f C o n t r a c t
40 | P a g e
3.6 Nu Skin Actions for Breach of Contract
Once Nu Skin determines that a breach of the Contract has occurred, Nu Skin may, in its sole discretion,
terminate your Contract. In addition to, or in lieu of terminating your Contract, Nu Skin may take any
other action it deems appropriate, including any or all of the following:
(a) Notify you in writing of Nu Skin’s concerns and of Nu Skin’s intent to discontinue your rights
under the Contract if your non-performance continues;
(b) Suspend your rights under the Contract;
(c) Monitor your future performance over a specified period of time;
(d) Identify specific actions you must take to correct your non-performance and require you to
provide Nu Skin with a written description of what you intend to do to meet your Contractual
obligations;
(e) Stop performing Nu Skin’s obligations under the Contract and suspend your privileges under the
Contract, including, without limitation, terminating or suspending your right to receive awards,
terminating your right to be recognized at corporate events or in corporate media (publications,
videos, etc.), terminating your right to participate in Nu Skin sponsored events or Distributor
sponsored events, terminating your right to place orders for Products, terminating your right to
receive promotions within the Sales Compensation Plan, or terminating your right to participate
as an International Sponsor; reducing your pin title and terminating your right to receive
Bonuses on volumes on one or more levels of your Downline Organization; terminating your
status or eligibility to be recognized and compensated as an “Executive” under the Sales
Compensation Plan;
(f) Reduce the payment of all or any part of your Bonuses you have earned from sales made by you
or all or any part of your Downline Organization;
(g) Reassign all or part of your Downline Organization to a different Sponsor;
(h) Recover from your Distributorship any damages caused by the breach;
(i) Take any action that Nu Skin deems appropriate to protect Nu Skin and its Network; and
(j) Seek injunctive relief or any other remedies available by law.
3.7 Immediate Action
If Nu Skin determines, in its sole discretion, that a Dispute requires immediate action, or Nu Skin has
previously notified you that it will take immediate action for violations or actions similar to those
described in such notice, then Nu Skin may take any immediate action or remedy that it deems
appropriate, including termination of your Distributorship, or your right to receive any Bonuses. Nu Skin
will provide you with written notice of its action. You will have 10 business days to appeal Nu Skin’s
action as provided in this Chapter 6.
3.8 Remedies
Nu Skin reserves the right, at its sole discretion, to exercise any remedy available to it. Any failure or
delay by Nu Skin in exercising such remedies will not operate as a waiver of such remedies.
C h a p t e r 6 | E n f o r c e m e n t o f C o n t r a c t
41 | P a g e
3.9 Termination of Your Contract
(a) Subject to the conditions of this Section 3.9 of Chapter 6, (i) you may terminate your
Distributorship at any time by providing Nu Skin with a signed written notice of termination; (ii)
Nu Skin may terminate your Distributorship as provided in this Chapter 6; and (c) Nu Skin may
terminate your Distributorship without notice if you have not engaged in any Business Activity
on your account for a period of 12 or more consecutive months.
(b) If you terminate your Distributorship, then termination becomes effective on whichever is later:
(i) the date Nu Skin receives your written notice of termination, or (ii) the date specified in your
written notice.
(c) Termination of your Distributorship results in the loss of all rights and benefits as a Distributor,
including the permanent loss of your Downline Organization. After your Distributorship has
been terminated, whether by you or the Company, you may apply to become a Distributor again
by submitting to the Company a new Distributor Agreement. The requirement that you must
submit a new Distributor Agreement is mandatory regardless of whether you are applying to be
a Distributor under your former Sponsor or a new Sponsor.
(d) Upon termination of a Distributorship for whatever reason, if there is any pending investigation
of, and/or unresolved legal issue related to the Distributorship, which includes any alleged
breach or actual breach of the Contract, then the Downline Organization may not roll up until all
pending investigations and/or legal issues have been resolved by Nu Skin and all penalties have
been fully satisfied.
(e) The obligations of the Contract described in Chapter 5 will survive the cancellation, termination
or expiration of the Contract. Any other provisions, or parts thereof, which, by their nature,
should survive cancellation, termination, or expiration, will also survive.
42 | P a g e
Chapter 7 Arbitration
1 What is Mandatory Arbitration
In order to expedite the resolution of all Disputes, Nu Skin has instituted a mandatory arbitration
procedure. Arbitration is the referral of a Dispute to an impartial third party selected by you, Nu Skin
and any other Distributors involved in the Dispute. An arbitrator acts as a judge, listens to the parties’
evidence, and renders a binding decision. The arbitrator’s decision is a judgment that is enforceable in a
court of law. The object of arbitration is the final disposition of differences of the parties in a faster, less
expensive, and perhaps less formal manner than is available in ordinary court proceedings.
2 Arbitration is Mandatory and Binding as to all Disputes
YOU AND NU SKIN AGREE THAT MANDATORY AND BINDING ARBITRATION IS THE SOLE MEANS TO
RESOLVE ANY AND ALL DISPUTES. YOU WAIVE ALL RIGHTS TO JURY OR COURT TRIALS TO RESOLVE A
DISPUTE. THE ARBITRATION IS FINAL AND THE DECISION CANNOT BE APPEALED.
3 Definition of a Dispute
A “Dispute” means “ANY AND ALL PAST, PRESENT OR FUTURE CLAIMS, DISPUTES, CAUSES OF ACTION
OR COMPLAINTS, WHETHER BASED IN CONTRACT, TORT, STATUTE, LAW, PRODUCT LIABILITY, EQUITY,
OR ANY OTHER CAUSE OF ACTION, (I) ARISING UNDER OR RELATED TO THIS CONTRACT, (II) BETWEEN
YOU AND OTHER DISTRIBUTORS ARISING OUT OF OR RELATED TO A DISTRIBUTORSHIP, OR YOUR
BUSINESS RELATIONSHIPS AS INDEPENDENT CONTRACTORS OF NU SKIN, (III) BETWEEN YOU AND NU
SKIN, (IV) RELATED TO NU SKIN OR ITS PAST OR PRESENT AFFILIATED ENTITIES, THEIR OWNERS,
DIRECTORS, OFFICERS, EMPLOYEES, INVESTORS, OR VENDORS, (V) RELATED TO THE PRODUCTS, (VI)
REGARDING NU SKIN’S RESOLUTION OF ANY OTHER MATTER THAT IMPACTS YOUR DISTRIBUTORSHIP,
OR THAT ARISES OUT OF OR IS RELATED TO NU SKIN’S BUSINESS, INCLUDING YOUR DISAGREEMENT
WITH NU SKIN’S DISCIPLINARY ACTIONS OR INTERPRETATION OF THE CONTRACT.”
“Indonesia Dispute” shall mean any dispute involving Nu Skin and an Indonesian Distributor that is not
an “International Dispute” as defined below.
“International Dispute” shall mean any dispute with a Distributor if:
(a) such Distributor has signed an International Sponsor Agreement, which permits a Distributor to
conduct activities outside of Indonesia; or (b) the dispute involves activity occurring outside of
Distributor’s Resident Country.
4 Mediation
Mediation is a process whereby a neutral third party attempts to resolve a Dispute between contending
parties. The object of the mediator is to increase the parties’ mutual understanding of the Dispute and
persuade them to adjust their positions towards each other and hopefully reconcile the Dispute. If all
C h a p t e r 7 | A r b i t r a t i o n
43 | P a g e
the parties that participated in the DCRC proceeding agree to mediation, then Nu Skin will facilitate a
mediation at the offices of Nu Skin’s outside counsel. The mediation will be conducted in the English
language. All fees and costs of the mediation will be borne equally by the parties in the mediation. If not
all the parties agree to the mediation, then the Dispute will submitted to arbitration as provided in this
Chapter 7.
5 Request for Arbitration
For easy reference, all parties that participated in the DCAC proceeding, and that will participate in the
arbitration, including Nu Skin, may be referred to as “Participants” in this Chapter 7. Within 60 days
from the date of the DCAC’ decision, any Participant, who is not satisfied with the DCRC’ decision, will
notify, in writing, all the other Participants in the DCAC proceeding that the Participant requests that the
Dispute be referred to arbitration before a neutral third party arbitrator (“Petition for Arbitration”).
Failure to submit a timely Petition for Arbitration will constitute acceptance of the DCAC decision and
the Participant agrees to abide by the terms of the decision. Within a reasonable time after receipt of
the Petition for Arbitration, Nu Skin, through its outside counsel, will contact all the Participants
regarding an arbitration date and provide a list of potential arbitrators.
6 Arbitration Procedure
6.1 Rules of Arbitration; Location
The arbitration will be conducted by a professional arbitrator that has been agreed to by the
Participants.
If the Dispute is an International Dispute, the arbitration will be conducted in accordance with the Utah
Uniform Arbitration Act. The arbitration will be held in Salt Lake City, Utah in the offices of Nu Skin’s
outside counsel.
If the Dispute is an Indonesia Dispute, the arbitration will be conducted in accordance with the Law of
Republic of Indonesia. The arbitration will be held in Jakarta, Indonesia in BANI.
6.2 Discovery
The arbitrator will have the discretion to order a pre-arbitration exchange of information by the
Participants, including but not limited to, production of requested documents, exchange of summaries
of testimony of proposed witnesses, and the depositions of witnesses and the Participants. Additionally,
subject to the approval of the selected arbitrator, the Participants may submit a pre-arbitration brief
outlining the legal causes of action and factual background.
6.3 Date of Arbitration
Unless all the Participants agree to extend the date of the arbitration, the arbitration will take place no
later than six months after the date of the Petition for Arbitration.
C h a p t e r 7 | A r b i t r a t i o n
44 | P a g e
The Participants agree to waive the applicability of Article 48.1 of the Law No. 30 of 1999 on Arbitration
and Alternative Dispute Resolution (Indonesian Arbitration Law) so that the arbitration need not be
completed within a specific time. During the period of the submission to arbitration and thereafter until
the publication of the arbitral award, the Parties shall, except in the event of termination, continue to
perform all their obligations hereunder.
6.4 Language
The arbitration will be conducted in the English language, but at the request and expense of the
requesting Participant, documents and testimonies will be translated into the requesting Participant’s
preferred language.
6.5 No Class Actions
No Dispute will be adjudicated, in arbitration or any other judicial proceeding, as a class action.
6.6 Permitted Attendees
Each Participant in the arbitration is limited to the attendance of the Participant, those individuals
appearing on the Participant’s Distributor Agreement, and no more than two attorneys per Participant.
6.7 Fees and Expenses of Arbitrator
All fees and expenses of the arbitrator will be borne equally by the Participants in the arbitration.
6.8 Awards
(a) The arbitration will be final and binding. It will be a full resolution of all claims and disputes
between the Participants in the arbitration. Judgment upon the award rendered by the
arbitrator may be entered in any court. All upline Distributors and Downline Organizations of
the Participants will be bound by the final arbitration award.
(b) Any award by the arbitrator will be in writing and based on the application of the strict rules of
law to the facts before the arbitrator. The arbitrator is authorized to award a Participant any
sums that are deemed proper for the time, expense, and trouble of arbitration including
arbitration fees and attorney’s fees. Punitive damages, however, will not be allowed in any
Dispute. NEITHER ANY PARTICIPANT NOR NU SKIN, NOR ANY OF NU SKIN’S RELATED ENTITIES,
OFFICERS, DIRECTORS, EMPLOYEES, INVESTORS, OR VENDORS, WILL HAVE ANY LIABILITY FOR
ANY PUNITIVE, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR INDIRECT DAMAGES, INCLUDING
LOSS OF FUTURE REVENUE OR INCOME, OR LOSS OF BUSINESS REPUTATION OR
OPPORTUNITY RELATING TO THE BREACH OR ALLEGED BREACH OF THE CONTRACT OR FOR
ANY ACT, OMISSION, OR OTHER CONDUCT ARISING OUT OF THE PARTICIPANT’S STATUS AS
AN INDEPENDENT CONTRACTOR AND DISTRIBUTOR OF NU SKIN’S PRODUCTS.
6.9 Confidentiality
All arbitration proceedings will be closed to the public and confidential. Except as may be required by
law and Nu Skin’s use of an arbitrator’s award as precedence for deciding future Disputes, neither a
Participant nor the arbitrator may disclose the existence, content, or results of any arbitration without
C h a p t e r 7 | A r b i t r a t i o n
45 | P a g e
the prior written consent of all the Participants.
6.10 Enforcement of Award; Injunctive Relief
Notwithstanding this arbitration policy, any Participant may apply to a court of competent jurisdiction or
in any other jurisdiction as necessary (i) to enforce an arbitration award or the injunctive relief granted
by an arbitrator, or (ii) to seek a temporary restraining order, preliminary injunction, or other injunctive
relief before, during the pendency of, or after a decision in any arbitration proceeding. The institution of
any action in a court for equitable relief, or to enforce an arbitration award or order, will not constitute
a waiver of the obligation of any Participant to submit any Dispute to arbitration.
6.11 Survival
Your agreement to arbitrate will survive any termination or expiration of the Contract or any other
agreements between you and Nu Skin.
7 Third Party Claims
In order to protect Nu Skin, its assets, and its reputation from claims or disputes created by outside
(non-Distributor) third parties, Nu Skin requires the following: if any Distributor is charged with any
infringement of any proprietary right of any outside third party (who is not a Distributor) arising from
any of Nu Skin’s proprietary assets, or if the Distributor becomes the subject of any claim or suit related
to that Distributor’s business-related conduct or any other action that directly or indirectly negatively
affects or puts Nu Skin, its reputation, or any of its tangible or intangible assets at risk, the affected
Distributor will immediately notify Nu Skin. Nu Skin may, at its own expense and upon reasonable
notice, take whatever action it deems necessary (including, but not limited to, controlling any litigation
or settlement discussion related thereto) to protect itself, its reputation, and its tangible and intangible
property. The Distributor will take no action related to that claim and suit, unless Nu Skin consents,
which consent will not unreasonably be withheld.
46 | P a g e
Chapter 8 General Terms
1 General Terms
1.1 Contract Changes
Nu Skin expressly reserves the right to make any modifications to the Contract upon 30 days notice by
publication on Nu Skin’s websites, normal channels of communication with Distributors, or as provided
in Section 1.6 of this Chapter 8. You agree that 30 days after such notice, any modification becomes
effective and is automatically incorporated into the Contract between you and Nu Skin as an effective
and binding provision. By continuing to act as a Distributor, engaging in any Business Activity, or
accepting any Bonus after the modifications have become effective, you acknowledge acceptance of the
new Contract terms.
1.2 Waivers and Exceptions
Nu Skin reserves the right, in its sole discretion, to waive a breach of, or make an exception to, any
provision of the Contract. Any waiver by Nu Skin of a breach of any provision of the Contract or any
exception made by Nu Skin of any provision of the Contract must be in writing and will not be construed
as a waiver of any subsequent or additional breach or an exception for any other Person. Any right or
prerogative of Nu Skin under the Contract may be exercised at Nu Skin’s sole discretion. Any exception
made by Nu Skin, or any failure or delay by Nu Skin in exercising any right or prerogative under the
Contract will not operate as a future exception or waiver of that right or prerogative.
1.3 Integrated Contract
The Contract is the final expression of the understanding and agreement between you and Nu Skin
concerning all matters touched upon in the Contract and supersedes all prior and contemporaneous
agreements of understanding (both oral and written) between the parties. The Contract invalidates all
prior notes, memoranda, demonstrations, discussions and descriptions relating to the subject matter of
the Contract. The Contract may not be altered or amended except as provided in these Policies and
Procedures. The existence of the Contract may not be contradicted by evidence of any alleged prior
contemporaneous oral or written agreement.
Should any discrepancy exist between the terms of the Contract and verbal representations made to
you by Nu Skin employee or another Distributor, the express written terms and requirements of the
Contract will prevail.
1.4 Severability
Any provision of the Contract that is prohibited, judicially invalidated, or otherwise rendered
unenforceable in any jurisdiction is ineffective only to the extent of the prohibition, invalidation, or
unenforceability in that jurisdiction, and only within that jurisdiction. Any prohibited, judicially
invalidated or unenforceable provision of the Contract will not invalidate or render unenforceable any
47 | P a g e

other provision of the Contract, nor will that provision of the Contract be invalidated or rendered
unenforceable in any other jurisdiction.
1.5 Governing Law/Jurisdiction
If the Dispute is an International Dispute, Utah will be the exclusive venue for arbitration or any other
resolution of any International Disputes. The place of origin of the Contract is the State of Utah, USA,
and the Contract will be governed by, construed in accordance with, and interpreted pursuant to the
laws of the State of Utah, USA, without giving effect to its rules regarding choice of laws. The exclusive
venue for any and all International Disputes, including the validity of provisions regarding arbitration,
place of venue, and jurisdiction, will be in Salt Lake County, Utah. You consent to the personal
jurisdiction of any court within the State of Utah and waive any objection to improper venue.
If the Dispute is an Indonesia Dispute, the Contract is to be construed, with respect to its validity and
performance of obligations there under, in accordance with the laws of the Republic of Indonesia. With
respect to any Indonesia Dispute, a Distributor agrees to submit to the binding arbitration with the
Indonesian National Arbitration Board (BANI) for resolution of any conflict arising under or in connection
with the interpretation of the Contract which cannot be solved by mutual negotiation and the internal
conflict resolution procedures of Nu Skin. If there is any difference between the Indonesian and English
language text of terms and conditions of the Contract, the Indonesian language shall prevail.
1.6 Notices
Unless otherwise provided in the Contract, any notice or other communications requested or permitted
to be given under the Contract will be in writing and will be delivered personally, transmitted by
facsimile or sent by first class, certified (or registered) or express mail, postage prepaid. Unless
otherwise provided in the Contract, notices will be deemed given when delivered personally, or if
transmitted by facsimile, one day after the date of that facsimile, or if mailed, five days after the date of
mailing to the address of Nu Skin’s headquarters at 75 West Center Street, Provo, Utah or to the
Distributor’s address as provided on the Distributor Agreement, unless notice of an address change has
been received by Nu Skin.
1.7 Successors and Claims
The Contract will be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns.
1.8 Headings
The headings in the Contract are for convenience of reference only and will not limit or otherwise affect
any of the terms or provisions of the Contract.
1.9 Internal References
All references to Sections or Chapters herein refer to Sections or Chapters of these Policies and
Procedures unless otherwise indicated.
48 | P a g e

1.10 Plurality and Gender
All words will be deemed to include the plural as well as the singular and to include all genders.
1.11 Translations
In the event that any discrepancies exist between the English and Indonesian version of the Contract
and any translation thereof, the Indonesian version will be controlling.
49 | P a g e

Addendum A
Glossary of Defined Terms
Advertising Material
Any electronic, printed, oral presentation or other material used in the offer or sale of Products,
recruitment of prospective Distributors, or training of Distributors, which makes reference to Nu Skin,
the Products, the Sales Compensation Plan, or the trade names or logos, and may include Personalized
Advertising Material.
Authorized Country
Any country or market designated in writing by NSI as officially opened for business for all Distributors.
Beneficial Interest
As to Distributorships:
Any interest whatsoever, whether it is direct or indirect, including but not limited to any ownership
interest, rights to present or future benefits, financial or otherwise, rights to go on Nu Skin sponsored
trips and other events, rights to purchase Products at wholesale prices, recognition of any type or other
tangible or intangible benefits associated with a Distributorship.
An individual has a Beneficial Interest in the Distributorship of a spouse or Co-habitant.
If a Person is or should be listed on the Business Entity Form of a Business Entity he is considered to
have a Beneficial Interest in such Business Entity’s Distributorship. Any individual with a Beneficial
Interest in a Business Entity will be deemed to have Beneficial Interest in the Distributorship.
If a Person is or should be listed as an Additional Participant in a Joint Participation Form, he is
considered to have a Beneficial Interest in such Distributorship.
As to a Direct Sales Company:
Any interest whatsoever, whether it is direct or indirect, including but not limited to any ownership
50 | P a g e

interest, rights to present or future benefits, financial or otherwise, rights to go on Direct Sales Company
sponsored trips and other events, rights to purchase the products of a Direct Sales Company at
wholesale prices, recognition of any type or other tangible or intangible benefits associated with a
distributorship of a Direct Sales Company. An individual has a Beneficial Interest in a Direct Sales
Company distributorship of (i) a spouse or Co-habitant, or (ii) a Business Entity if the individual has a
Beneficial Interest in the Business Entity; or (iii) any other person if the individual shares in the benefits
(financial or otherwise) of the distributorship of such other person.
Blue Diamond Internet Marketing Site
A website that is (i) owned, operated, or containing material provided by a Distributor whose current pin
title is a Blue Diamond or higher, and (ii) properly registered with Nu Skin and subject to a current
Notice of Registration.
Bonus
Compensation paid by Nu Skin to a Distributor based on the volume of Products sold by a Distributor, his
Downline Organization, and breakaway Executives upon meeting all requirements as set forth in the
Sales Compensation Plan. Bonus pay periods are calculated on a calendar-month basis.
Business Activity
Any activity that benefits, promotes or assists the business of a Distributorship, including signing a
Distributor Agreement, purchasing Products from or returning Products to Nu Skin, sponsoring and/or
recruiting new Distributors, use of credit cards, shipping services, or any other activities that Nu Skin, in
its sole discretion, determines to be a material promotion of Nu Skin’s business.
Business Development Activity
Any activity that benefits, promotes, assists, or supports in any way the business, development, sales, or
sponsorship of another Direct Sales Company, including but not limited to, selling products or services,
promoting the business opportunity, appearing on behalf of the Direct Sales Company or one of its
representatives, allowing your name to be used to market the Direct Sales Company, its products,
services or opportunity, sponsoring or recruiting on behalf of the Direct Sales Company, acting as a
member of the board of directors, as an officer, or a representative or distributor of the Direct Sales
Company, an ownership interest, or any other beneficial interest, whether the interest is direct or
51 | P a g e

indirect.
Business Entity
Any business entity such as a corporation, partnership, limited liability company, trust, or other form of
business organization legally formed under the laws of the jurisdiction in which it was organized.
Business Entity Form
A supplemental document considered part of the Distributor Agreement. The Business Entity Form must
be completed and signed by a Business Entity applying to become a Distributor, as well as each
Participant in the Business Entity. The Business Entity Form must list all Persons who are partners,
shareholders, principals, officers, directors, members or anyone else with a Beneficial Interest in the
Business Entity.
Business Portfolio
The Business Portfolio is a non-commissionable, not-for-profit kit and is the only purchase required to
become a Distributor. The Business Portfolio contains the Policies and Procedures, the Sales
Compensation Plan, a Distributor Agreement, a Business Entity Form, a Joint Participation Form and
other sales and demonstration materials to assist a Distributor in starting and conducting their
independent business.
Business Support Materials
Any electronic, printed, audio or video presentation or other material used in the offer or sale of
Products, recruitment of prospective Distributors or training of Distributors, which makes reference to
Nu Skin, its Products, the Sales Compensation Plan or its trade names.
Business Support Materials and Services
This term is used to refer to Business Support Materials and Business Support Services together.
Business Support Services
Any services or business tools supporting the offer or sale of Nu Skin’s Products, recruitment of
prospective Distributors, or the training of Distributors.
Co-habitant
A person who is living with a Distributor as if a spouse of the Distributor, but is not legally married.
52 | P a g e

Commissionable Sales Value
Commissionable Sales Value is the monthly currency value of the commissionable products and services
purchased from the Company upon which Sales Compensation Plan bonuses and commissions will be
calculated. Commissionable Sales Value is equal to the wholesale price of a product or service minus any
taxes, FSP payments, and Personal Sales Volume discounts (ARO, Web, etc). Qualification requirements
will be based on Personal Sales Volume and Group Sales Volume.
Company
PT Nusa Selaras Indonesia, an Indonesian direct selling company appointed to sell and distribute Nu Skin
Products by PT Nu Skin Distribution Indonesia (“PT NSDI”), an affiliated company of Nu Skin for
Indonesia.
Nu Skin Approved Business Support Materials
Marketing materials designated in writing by Nu Skin as approved for use in specific countries or
markets.
Confidential Information
All private, confidential and/or proprietary information disclosed to or discovered by you regarding Nu
Skin including, without limitation, intellectual property rights, trade secrets, the Network, personal
information, sales volumes and genealogy, manuals, protocols, policies, procedures, marketing, and
strategic information, computer software, training materials, nonpublic financial information, and any
copies, notes or abstracts of any such information, or any other information that Nu Skin considers
proprietary, highly sensitive, or valuable to its business.
Contract
The agreement between a Distributor and Nu Skin composed of the following: these Policies and
Procedures, the Sales Compensation Plan, Distributor Agreement, Business Entity Form, Joint
Participation Form, supplemental services, International Sponsor Agreement, Product Purchase
Agreement, Arbitration Agreement, and other international agreements (collectively, the “Contract”).
The Contract is the complete and only agreement between Nu Skin and a Distributor.
53 | P a g e

DCAC
Distributor Compliance Appeals Committee whose duties are described in Chapter 6.
DCRC
Distributor Compliance Review Committee whose duties are described in Chapter 6.
Direct Sales Company
A company that uses a sales force of independent contractors who sell products and services and that
compensates the independent contractors through a single-level or multi-level compensation plan for (i)
their own sales, and/or (ii) the sales of other independent contractors who have signed up under the
independent contractors to distribute the same products and services.
Dispute
Defined in Section 3 of Chapter 7.
Distributor
An independent contractor authorized by Nu Skin under the Contract to purchase and retail Products,
recruit other Distributors, and receive Bonuses in accordance with the requirements of the Sales
Compensation Plan. A Distributor’s relationship to Nu Skin is governed by the Contract.
Distributor Agreement
The Distributor application and agreement, and if applicable, the Business Entity Form or the Joint
Participation Form, that must be completed and submitted to Nu Skin in order to apply to become a
Distributor.
Distributor Organization
Any organization established by a Distributor that offers sales support, motivational or training material,
website subscriptions, Business Support Materials and Services, training courses, recognition events,
leads or other business promotion tools to a specific group of affiliated distributors.
Distributorship
The distributor account created when either an individual or a Business Entity enters into a contractual
relationship with the Company.
54 | P a g e

Downline Organization
A group of Distributors either directly sponsored or linked in a direct chain of sponsorship in the sales
organization of a particular Distributor.
Executive
A Distributor who has completed the formal qualification process outlined in the Sales Compensation
Plan to become an Executive. Executives break away from their Sponsor’s group and their volume does
not count towards their Sponsor’s volume totals or maintenance requirements but the Sponsor
continues to receive breakaway Bonuses on the group as defined in the Sales Compensation Plan.
Group Sales Volume
The Personal Sales Volume of a Distributor plus the Personal Sales Volume of all Distributors in his group
(not including the volumes of breakaway Executives and their Downline Organizations).
International Sponsor
A Distributor in good standing, authorized under an International Sponsor Agreement to act as a
Sponsor in an Authorized Country outside the country, market, territory, or other political jurisdiction in
which that Distributor first established a Distributorship with Nu Skin.
Internet Marketing Site
An “Internet Marketing Site” is any a location on the Web that is (a) used primarily (or to which a
significant portion is used) to post or communicate information about Nu Skin, its Products, or the Sales
Compensation Plan/income opportunity, or (b) that contains “internet marketing materials.” Internet
marketing materials shall mean marketing materials concerning Nu Skin, its Products, or the Sales
Compensation Plan/income opportunity that have not been produced by Nu Skin and approved for
posting on personal blogs, facebook pages and social networking sites.
Joint Participation Form
A supplemental document considered part of the Distributor Agreement. The Joint Participation Form
must be completed and signed by the individual applying to become a Distributor, as well as each of the
other individuals who wishes to join as Participant to the Distributorship. The Joint Participation Form
must list all Participants to the Distributorship with joint participation.
55 | P a g e

License Agreement
The agreement between Nu Skin and a Blue Diamond Distributor that governs the Blue Diamond
Distributor’s right to use certain Nu Skin trademarks and trade names in Blue Diamond Business Support
Materials and Services and on the internet.
Network
The Distributor and customer network of Nu Skin and all compilations of various lists describing that
network or members thereof, including but not limited to, any and all contact or personal information
collected by Nu Skin regarding the Distributors and customers.
Non-Resident Country
An Authorized Country other than your Resident Country.
Nu Skin International (“NSI”)
Nu Skin International, Inc., a Utah corporation whose principal place of business is located at 75 West
Centre Street, Provo, Utah 84601, U.S.A.
Nu Skin
The Company, NSI, PT NSDI and their affiliated companies.
Participant
Any Person who has a Beneficial Interest in a Business Entity or Distributorship.
Person
An individual or Business Entity.
Personalized Advertising Material
Business cards, letterhead, stationery, envelopes, note pads, self-stick labels, name badges or Direct
Selling Association cards imprinted with Nu Skin names or logos and a Distributor’s name, address,
telephone number and other personal contact information.
Personal Sales Volume
The point value of Products purchased by a Distributor in one calendar month, from any designated
affiliate of Nu Skin, primarily for resale to customers.
56 | P a g e

Policies and Procedures
The policies governing how a Distributor is to conduct his business as set forth in this document
(including Supplemental Policies) and defining the rights and relationships of the parties.
Products
The products and services of Nu Skin that are sold through local affiliates in the individual Authorized
Countries.
Resident Country
If you are an individual, then it is the country, market, territory, or other political jurisdiction in which
you are a citizen or a lawful resident and whose country/market’s Distributor Agreement you have
executed. If you are a Business Entity, such as a corporation, partnership, limited liability company, or
any other form of business organization, then it is the country, market, territory, or other political
jurisdiction in which you are legally formed under the laws of your Resident Country, and each member
of the Business Entity has proper legal authorization to conduct business in the Resident Country, and
whose country/market’s Distributor Agreement you have executed.
Sales Compensation Plan
The specific plan utilized by Nu Skin that outlines the details and requirements of the compensation
structure for Distributors.
Sponsor
A Distributorship under which another Distributorship is originally placed after it has applied to become
a Distributor.
Unopened Country
Any country or market that is not an Authorized Country.
URL
A Uniform Resource Locator or web address.
57 | P a g e

Addendum B
Policies for Blue Diamond Business
Support Materials and Services
1 Blue Diamond Business Support Materials
1.1 Compliance with Law and Policies and Procedures
Blue Diamond Business Support Materials must comply with these Policies and Procedures and with all
applicable laws and regulations, including any intellectual property rights of other Persons. You bear full
responsibility for the content of your Blue Diamond Business Support Materials. The registration of your
Blue Diamond Business Support Materials is for tracking purposes only, and Nu Skin has no obligation
for ensuring that your Blue Diamond Business Support Materials comply with applicable laws and
regulations. The registration process is not legal advice from Nu Skin and you are strongly advised to
seek the advice of independent legal counsel with regard to the legality and regulatory compliance of
your Blue Diamond Business Support Materials.
1.2 Identification of Publisher
Blue Diamond Business Support Materials must prominently indicate (a) that the materials are
“Independent Distributor Produced,” and such other designation as may be required by Nu Skin to
identify the materials as distributor-produced, and (b) the name and address of the Blue Diamond
Distributor publishing the Blue Diamond Distributor Business Support Material. For example: “This was
produced by John Doe, an independent distributor of PT Nusa Selaras Indonesia at [address]”. You may
not state, suggest, or imply that the Blue Diamond Business Support Materials were produced,
approved, endorsed, offered, or recommended by Nu Skin.
1.3 Use of Nu Skin-Produced Content
Blue Diamond Business Support Materials may use Nu Skin-produced content such as pictures, videos,
and descriptions of Products and the Sales Compensation Plan that have been designated by Nu Skin as
available for use in (i) Blue Diamond Business Support Materials, and (ii) the Authorized Market you
58 | P a g e

intend to use such materials. The use of any Nu Skin trademarks, trade names, slogans, or copyrighted
materials and any Nu Skin-produced content in Blue Diamond Business Support Materials must comply
with the terms set forth in the Business Support Materials Authorization Agreement. If you use Nu
Skin-produced content, you must not alter the content and must clearly designate Nu Skin’s copyright in
such content. Nu Skin reserves the right to revoke the right to use any Nu Skin-produced materials at
any time in its sole discretion.
2 Sale of Blue Diamond Produced Business Support Materials and
Services
2.1 Registration Required Prior to Sale
You must register the Blue Diamond Business Support Materials and Services with Nu Skin and receive a
Notice of Registration in accordance with the provisions of Section 6 of this Chapter 3 prior to selling
them to other Distributors.
2.2 Primary Focus is Selling Products
Your principal business focus must always be on the sale of Products for consumption. The sale of
Business Support Materials and Services must not become a material profit center for you. Nu Skin
recommends that Blue Diamond Business Support Materials and Services generally should be sold at
cost, and must, in any event, be sold at reasonable prices. Consistent with this principal, you also may
not offer any incentives to other Distributors in connection with any sale of Blue Diamond Business
Support Materials and Services to other Distributors and customers. For example, you cannot offer to
pay a Bonus, directly or indirectly, to a Distributor for selling Blue Diamond Business Support Materials
and Services to other Distributors or customers or for referring a potential purchaser of Blue Diamond
Support Materials and Services to you.
2.3 No Required Purchases; No Sale to Prospective Distributors
You may not require any prospective Distributor to purchase Business Support Materials and Services as
a precondition to signing up as a Distributor. You also may not state, suggest, or imply that
 Nu Skin or Blue Diamond Business Support Materials and Services are required or necessary to
join or succeed in the business;
59 | P a g e

 Nu Skin or Blue Diamond Business Support Materials and Services are required or necessary to
receive upline support and training;
 the Blue Diamond Business Support Materials and Services were produced by Nu Skin or are
being offered or sold by Nu Skin; or
 Nu Skin approves, endorses, or recommends the Blue Diamond Business Support Materials and
Services.
You may not sell any Nu Skin or Blue Diamond Business Support Materials and Services to a prospective
Distributor before the prospective Distributor has submitted an application to become a Distributor to
Nu Skin.
2.4 Return Policy
In connection with the sale of Blue Diamond Business Support Materials and Services, you must offer
the same return policy that is offered by Nu Skin for its Business Support Materials. You must refund 90
percent of the purchase price less any value added tax of any unopened and resalable Blue Diamond
Business Support Materials and Services for a period of 30 days.
2.5 Disclosure Statement
You must provide a Business Support Materials Disclosure Statement to a Distributor before the first
sale of Blue Diamond Business Support Materials and Services to that Distributor. You may obtain a
copy of the required Disclosure Statement from the My Office website. You should regularly check the
web site to ensure you have the most recent version of the Disclosure Statement. Delivery of a receipt
in compliance with Section 2.6 below will satisfy the obligation set forth in this Section 2.5 if such receipt
is delivered simultaneously with the purchase of the Blue Diamond Business Support Materials and
Services.
2.6 Receipt
You must provide a receipt for all purchases of Blue Diamond Business Support Materials and Services.
The receipt must comply with Section 6.3 of Chapter 2 and also include the following disclosure:
You are not required to purchase any business support materials or services in order to become
a Nu Skin distributor.
60 | P a g e

“These business support materials or services are produced and distributed by an
independent distributor of PT Nusa Selaras Indonesia and not by PT Nusa Selaras
Indonesia. Although some distributors may have found these products and services to
be helpful in their Nu Skin business, they are not required in order to be a distributor
and no success is guaranteed because you purchase them. Your refusal to purchase
these items will not affect your upline’s responsibility to provide you with training and
support. PT Nusa Selaras Indonesia does not approve, endorse, recommend or support
these materials and services. Your expenditures on these items should be reasonable
and the amount you spend should be in relation to your business and sales volume.
In the event you desire to return the business support materials or services, you may
obtain a refund only from the independent distributor who sold you the business
support materials or services. You are entitled to a refund of 90 percent of the
purchase price less value added tax if you return any unopened and resalable business
support materials or services to the seller at the address listed on this receipt within 30
days of the date of purchase.”
In the event that you provide Blue Diamond Business Support Materials and Services on a subscription
basis or other method in which the Distributor does not have to affirmatively request each purchase
(e.g., a monthly web access fee), then you must include the following sentence in the receipt described
above for the initial subscription or order and any subsequent receipts: “You may terminate your
[order/subscription, etc.] at any time by providing written or electronic notice to [insert name and
contact information(including e-mail)].”
2.7 Compliance with Laws
The sale of Blue Diamond Business Support Materials and Services and the performance of any Blue
Diamond Business Support Services must comply with these Policies and Procedures and with all
applicable laws and regulations, including but not limited to laws related to consumer privacy, data
protection, do not call regulations, anti-spam regulations, and any related consumer protection laws.
You bear full responsibility for ensuring that you comply with all applicable laws and you will be liable to
Nu Skin in the event the Nu Skin incurs any liability as a result of your non-compliance. You are
encouraged to consult with your own legal counsel regarding your compliance with these laws and
61 | P a g e

regulations. While Nu Skin may review Blue Diamond Business Support Materials and Services and may
request modifications to such materials, Nu Skin’s review of, and its permission to sell, such Blue
Diamond Business Support Materials and Services are neither legal advice from Nu Skin nor a
representation in any form that the materials comply with all applicable laws.
2.8 Affordability
You must ensure that the quantity and cost of any Blue Diamond Business Support Materials and
Services that you sell to another Distributor is reasonably related to the sales volume and Bonus level of
that Distributor. You may not encourage a Distributor to go into debt to purchase either Nu Skin or Blue
Diamond Business Support Materials and Services.
2.9 No Selling Activity at Corporate Events
You may not display, promote, or sell any Blue Diamond Business Support Materials and Services at
meetings or events sponsored and conducted, in whole or in part, by Nu Skin.
2.10 Web Sites
Although you may allow other Distributors to use your website and assess a reasonable charge to cover
your costs for providing the service; you may not sell replicating or template websites to other
Distributors without the prior written approval of Nu Skin.
2.11 Nu Skin Retained Rights; Restrictive Covenants
(a) Your right to sell Blue Diamond Business Support Materials and Services to other Distributors is
conditioned upon your agreement that all information relating to Distributors who purchase the
Blue Diamond Business Support Materials and Services remains the property of Nu Skin,
including their contact information. You agree that in the event you terminate your
Distributorship that you will: (i) immediately return to Nu Skin, or destroy, all such information
and any copies thereof; and (ii) not utilize this information for any purpose.
(b) In consideration of Nu Skin allowing you to market and sell Blue Diamond Business Support
Materials and Services to its Distributors you hereby agree that during the period in which you
are a Distributor and for a period of two years thereafter, you will not, in any manner, directly
or indirectly, recruit, solicit, or sponsor any Distributor (including any who purchase Blue
62 | P a g e

Diamond Business Support Materials and Services from you), to (i) form a relationship with, (ii)
promote, sell or purchase the products or services of, (iii) participate as a salesperson of, (iv) or
otherwise associate with, a Direct Sales Company, or encourage any Distributor or customer to
do so or to terminate their relationship with Nu Skin. This obligation survives the termination of
the Contract.
2.12 Records
You must maintain accurate and complete records with respect to any sales of Blue Diamond Business
Support Materials and Services, including financial records documenting production costs and profits
generated from the sale of the Blue Diamond Business Support Materials and Services. At the request of
Nu Skin, you must make these records available for review by Nu Skin to confirm whether you have
been complying with these Policies and Procedures with respect to the sale of any Blue Diamond
Business Support Materials and Services. You must comply with any request to review your
Distributorship records promptly and completely.
3 Registration of Blue Diamond Business Support Materials and
Services
3.1 Application for Registration
(a) In order to register Blue Diamond Business Support Materials and Services, you must file an
Application for Registration with Nu Skin together with a copy of the proposed Blue Diamond
Business Support Materials and Services with supporting documentation. The Application for
Registration contains additional terms and conditions that governs your production and
distribution of your Blue Diamond Business Support Materials and Services. A Notice of
Registration issued pursuant to an Application for Registration will expire two years from the
date of issuance. Until its expiration, any additional proposed Blue Diamond Business Support
Materials and Services will be treated as an addendum to the current Application of Registration
on file with Nu Skin. Upon expiration of a Notice of Registration, you must submit a new
Application for Registration for the continued use of any previously submitted Blue Diamond
Business Support Materials and Services or with the submission of any new Blue Diamond
Business Support Materials and Services.
63 | P a g e

(b) The Application for Registration may be obtained from the My Office website or by calling
Distributor Compliance or your Account Manager. Nu Skin could require you to make changes
to your proposed Blue Diamond Business Support Materials and Services, so you should not
produce multiple copies of the materials or incur other significant costs until you have received
a Notice of Registration from Nu Skin. Failure to do so may require you to destroy such copies,
pay for the reprint the Blue Diamond Business Support Materials, or otherwise incur
unnecessary or duplicative expenses which will not be reimbursed by Nu Skin.
3.2 Additional Documentation; Right of Review; Modifications
Upon receipt of an Application for Registration, Nu Skin will review the application and related
submissions and provide you with any required modifications to the Blue Diamond Business Support
Materials and Services that it deems appropriate in its sole discretion. Nu Skin may ask for additional
documentation, support, and legal opinions as it determines to be appropriate. Nu Skin also has the
right to review your Blue Diamond Business Support Materials and Services at any time, including
additional reviews after the issuance of a Notice of Registration. You must provide Nu Skin with any
passwords or IDs as may be necessary for Nu Skin to review the Blue Diamond Business Support
Materials and Services. Based upon any such review, Nu Skin may require you to make modifications to
the Blue Diamond Business Support Material and Services as Nu Skin determines appropriate in its sole
discretion. If Nu Skin notifies you of any required modifications, you must promptly make such changes
to the Blue Diamond Business Support Materials and Services and may no longer use, offer, sell or
perform any Blue Diamond Business Support Materials and Services that have not been modified in
accordance with the instructions of Nu Skin.
3.3 Application Fees
Nu Skin may impose a reasonable fee for registering Blue Diamond Business Support Materials and
Services.
3.4 Notice of Registration
Following a review of the Application for Registration, Nu Skin will decide whether to issue a Notice of
Registration with respect to the Distributor Business Support Materials and Services covered by the
application. Nu Skin has the right to make this decision in its sole discretion and has no obligation to
64 | P a g e

issue a Notice of Registration for an Application for Registration and may refuse to issue a Notice of
Registration in its sole discretion. In such event, you may not use, offer, sell, or perform the Blue
Diamond Business Support Materials and Services covered by the Application for Registration. In the
event Nu Skin decides to issue a Notice of Registration, it will deliver the Notice of Registration to you at
the address indicated on the application.
3.5 Renewal of Registration; Revocation
(a) The Notice of Registration will indicate the date on which such Notice of Registration expires.
You may not continue to use, offer, sell or perform any Business Support Materials and Services
for which the Notice of Registration has expired unless you have re-submitted the materials for
registration with Nu Skin and have received a new Notice of Registration from Nu Skin for such
Blue Diamond Business Support Materials and Services. The materials you wish to renew will be
submitted as part of your current Application for Registration that is on file with Nu Skin and
handled in accordance with the same procedure. If your Application of Registration has expired,
then you must file a new Application for Registration together with any Blue Diamond Business
Support Materials and Services that you wish to renew.
(b) Notwithstanding anything to the contrary in these Policies and Procedures, Nu Skin reserves the
right to terminate and revoke any Notice of Registration at any time in its sole discretion. If the
Notice of Registration is revoked, then you must immediately cease using or distributing the
specified Blue Diamond Business Support Materials and Services. Nu Skin is not liable for and
will not reimburse you for any costs incurred by you for the production of your Blue Diamond
Business Support Materials and Services that are the subject of the revoked Notice of
Registration.