DISTRIBUTOR AND INTERNATIONAL SPONSOR AGREEMENT - NEW ZEALAND

This document consists of five sections: (A) Definitions, (B) Resident Country Product Purchase Agreement, (C) Distributor and the International Sponsor Agreement, (D) Mandatory and Binding Arbitration Agreement, and (E) Miscellaneous Provisions. The Resident Country Product Purchase Agreement is between Nu Skin Enterprises New Zealand, Inc. and me. The Distributor and the International Sponsor Agreement is between Nu Skin International, Inc. and me.
The Mandatory and Binding Arbitration Agreement and Miscellaneous Provisions are between all three parties.

A. DEFINITIONS

Defined terms are set forth below or may be separately defined in any of the following agreements. The meaning of capitalised terms not found in this document is set forth in the Policies and Procedures.
“Bonuses” means the compensation paid to Distributors based on the volume of Nu Skin Products sold by a Distributor, Downline Organisation, and Breakaway Executives upon meeting all requirements as set forth in the Sales Compensation Plan. Nu Skin New Zealand has been assigned the right to pay Bonuses to Distributors in the Resident Country.
“Business Portfolio” means the 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, and other sales and demonstration materials to assist a Distributor in starting and conducting their independent business.
“Contract” means the agreements between Nu Skin and me composed of this Distributor Agreement and the PPA (as each is defined below). Wherever the context will so require, all words are deemed to include the plural as well as the singular, and to include all genders.
“Distributor” means an independent contractor authorised by NSI to market Nu Skin Products, recruit other Distributors, and receive Bonuses in accordance with the requirements of the Sales Compensation Plan.
“Distributor Agreement” means the Distributor and International Sponsor Agreement (Section C), which also incorporates the Mandatory and Binding Arbitration Agreement (Section D), the Miscellaneous Provisions (Section E), the Policies and Procedures, the Sales Compensation Plan, and materials pertaining to optional programs, as each may be amended from time to time by NSI upon notification. The Distributor Agreement will be stored in the United States.
“Non-Resident Country” means an Authorised Country other than my Resident Country.
“Nu Skin” means Nu Skin International, Inc., Nu Skin New Zealand and their affiliated companies.
“NSI” means Nu Skin International, Inc., a Utah corporation, at 75 West Center Street, Provo, Utah 84601, USA.
“Nu Skin New Zealand ” means Nu Skin Enterprises New Zealand, Inc., an affiliated company of NSI, registered in New Zealand with business address at Unit 16/180 Montgomerie Road, Airport Oaks, Auckland 2022.
“Nu Skin Products” means the products and services of NSI’s affiliated company that are sold through local affiliates in the individual Authorised Countries.
“PPA” means the Resident Country Product Purchase Agreement (Section B), which also incorporates the Mandatory and Binding Arbitration Agreement (Section D), the Miscellaneous Provisions (Section E), and the Policies and Procedures, as each may be amended by Nu Skin New Zealand from time to time upon notification.
“Policies and Procedures” means the policies as part of the Contract that governs how I, as a Distributor, am to conduct my business and defines the rights and relationships of the parties. It is available in the Business Portfolio and may be amended from time to time by Nu Skin upon notification.
“Resident Country”means New Zealand in which I, if an individual, am a citizen or a legal resident and whose Distributor Agreement I have executed; or, if a Business Entity, such as a corporation, partnership, limited liability company, or any other form of business organisation, then New Zealand is where it has been legally formed under its laws, and each member of the Business Entity or Distributorship with joint participation has proper legal authorisation to conduct business in New Zealand, and a Distributor Agreement has been executed.
“Sales Compensation Plan” means the specific plan that outlines the details and requirements of the compensation structure for Distributors. It is available in the Business Portfolio and may be amended from time to time by NSI upon notification.

B. RESIDENT COUNTRY PRODUCT PURCHASE AGREEMENT

This Resident Country Product Purchase Agreement (“PPA”) is between Nu Skin New Zealand and me. Nu Skin New Zealand is the exclusive wholesale distributor of Nu Skin Products in New Zealand. Nu Skin New Zealand and I agree and understand that this PPA constitutes a distinct and separate agreement from my agreements with NSI.
1. Services Provided in Resident Country
Under this PPA, Nu Skin New Zealand will offer to me, as an independent contractor (as defined in Section C below), Nu Skin Products for wholesale purchase in New Zealand. I agree that I may only market these Nu Skin Products in New Zealand. Additionally, Nu Skin New Zealand will provide me with the following services in my Resident Country: (i) accept orders for and distribute Nu Skin Products to customers and Distributors in the Resident Country, (ii) handle all returns of Nu Skin Products purchased in the Resident Country and make appropriate refunds, (iii) provide support services to Distributors, and take any necessary actions pursuant to the policies of NSI, and (iv) pay Bonuses to Distributors in the Resident Country as determined and directed by NSI, and as further described in Section B paragraph 6 below. I understand that NSI has appointed and granted the authority to Nu Skin New Zealand to pay my Bonuses, which if necessary, includes the authority to generate and accept self-billing Bonus invoices from me, recharge Bonuses to NSI, pay Bonuses plus any required tax in my Resident Country in the name of Nu Skin New Zealand, and act on behalf of NSI and its affiliated companies with respect to me as a Distributor.
2. Marketing of Nu Skin Products; Pricing
I agree that: (a) there are no minimum purchases or inventory requirements; (b) I have the right to purchase Nu Skin Products at wholesale price from Nu Skin New Zealand; (c) I will promote the retail sale of Nu Skin Products in my Resident Country in accordance with the terms and conditions of the Contract; and (d) I will not make any claims about the Nu Skin Products and Sales Compensation Plan unless they are contained in official company literature
or on company labels of Nu Skin Products in my Resident Country. I have the right to purchase Nu Skin Products at the price stated by Nu Skin New Zealand and agree that Nu Skin New Zealand may change Nu Skin Product prices without prior notice.
3. Refunds
If I terminate this Distributor Agreement within thirty (30) days from the effective date, I may obtain a 100% refund for the required Business Portfolio and a 90% refund thereafter in accordance with the refund policy in the Policies and Procedures. Subject to any restrictions in the aforementioned refund policy or special terms disclosed at the time of purchase, all unopened, resalable Nu Skin Products and Business Support Materials sold by Nu Skin New Zealand that are returned within twelve months of my order date are eligible for a 90% refund, less applicable Bonuses.
4. Use of Credit Card
I agree that I should not use another individual’s credit card for any order without the individual’s prior written approval. I must provide a copy of such written approval to Nu Skin New Zealand upon request.

5. Automatic Delivery Rewards Program (“ADR Program”)
(a) I understand that no minimum product purchases are required to participate in the ADR Program. If my monthly ADR order totals 50 personal sales volume (PSV) or more, I will be entitled to the following benefits:
(i) I will get a 5% discount off the wholesale prices of the product in my ADR order; and (ii) I will earn product points that may be redeemed for additional products. (iii) I will be entitled to discount shipping rates provided that
my ADR order is created and managed online.
(b) If I have specified on the reverse side of this agreement the type and quantity of Nu Skin Products that I desire to receive each month automatically, then these Nu Skin Products will be charged on a recurring monthly basis to the form of payment I have provided, and they will be shipped monthly to my listed delivery address unless I notify Nu Skin New Zealand in writing one month in advance of any desired changes.
(c) Nu Skin New Zealand may change the price of or discontinue the specific Nu Skin Products that I have chosen to receive on the ADR Program of this agreement or a separate ADR Program enrolment form. In such situations,
Nu Skin New Zealand will notify me at least 30 days prior of the change and (i) in the case of a discontinued Nu Skin Product, will continue to send me the remaining items, and may substitute another product of equal or greater value, and (ii) in the case of a price change or updated product, will send me the same items I have selected under the ADR Program, but at the new price, unless I direct Nu Skin New Zealand to revise my monthly order.
(d) To pay for each monthly ADR Program order, I authorise Nu Skin New Zealand to establish an automatic credit card debit arrangement as specified on the ADR section of this agreement or the ADR Program enrolment form.
Nu Skin New Zealand will make no other charge to my designated payment account except those that I have authorised.
(e) I agree that: (i) there are no returns allowed on Nu Skin Products purchased with ADR Program points (ii) no personal sales volume or group sales volume is earned on Nu Skin Products purchased with ADR Program points; and (iii) the value of the redemption will be treated as income to me.
(f) I agree that if any Nu Skin Products from a qualifying purchase are returned, the balance of the qualifying amount for the month in which Nu Skin Products are returned must be repurchased in order to remain qualified and receive ADR Program points.
(g) I agree that Nu Skin New Zealand may terminate (i) the ADR Program at any time and for any reason; and (ii) my right to participate in the ADR Program under this agreement if (A) the credit card or bank authorisation provided in this agreement expires, is cancelled or otherwise terminated, (B) I violate the terms and conditions of this Contract, or (C) NSI terminates my distributorship. I may cancel my monthly ADR Program order upon written notice to
Nu Skin New Zealand. Nu Skin New Zealand will cancel my ADR Program within 30 days after it receives my written notice.
(h) The terms and conditions governing the discounted shipping rates, the actual shipping discounts, the requirements governing product points, how they are earned, their redemption and expiration, may be found at nuskin.co.nz and by clicking on the ADR section, which terms and conditions are incorporated by reference in to this ADR agreement.
6. Bonuses
(a) I authorise Nu Skin New Zealand, as determined and directed by NSI, to deposit the payment of any Bonuses to my account at the financial institution designated by me. This authorisation replaces any previous authorisation and will remain in full force and effect until (i) Nu Skin New Zealand has received written notice from me of my withdrawal from the direct deposit program, and (ii) Nu Skin New Zealand has a reasonable opportunity to make such a change pursuant to my notice.
(b) I agree that I must notify Nu Skin New Zealand immediately (i) prior to changing or closing my direct deposit account, or (ii) if my financial institution changes my routing number or account number. Failure to notify Nu Skin New Zealand of account number changes may delay my receipt of Bonuses. If I change my financial institution and/or account number, I must fill out a new Electronic Funds Transfer (EFT) Authorisation Form and send it to Nu Skin New Zealand before I close my existing account.
(c) Neither NSI nor Nu Skin New Zealand will be liable to me for Nu Skin New Zealand’s failure to access my account or provide direct deposits to my account in a timely manner unless such failure or loss is a direct result of Nu Skin New Zealand’s gross negligence or intentional misconduct. Nu Skin’s liability will not exceed the amount of the funds that would have otherwise been deposited.
7. Integrated Agreement
This PPA is an integrated agreement which consists of the terms in this Section B, the Mandatory and Binding Arbitration Agreement (Section D), the Miscellaneous Provisions (Section E), and the Policies and Procedures, each may be amended by Nu Skin New Zealand from time to time upon notification, and are incorporated herein by reference.

C. DISTRIBUTOR AND INTERNATIONAL SPONSOR AGREEMENT

This Distributor and International Sponsor Agreement is between Nu Skin International, Inc., a Utah corporation, 75 West Center Street, Provo, Utah 84601, USA (“NSI”) and me. NSI and I agree and understand that the Distributor Agreement constitutes a distinct and separate agreement from my agreements with Nu Skin New Zealand.
1. Right to Market Nu Skin Products and Sponsor in my Resident Country.
Subject to the terms and conditions of the Distributor Agreement, NSI grants to me (a) the right to be a Distributor and market Nu Skin Products in my Resident Country through person-to-person sales, and (b) sponsor new Distributors in my Resident Country. I agree that the Distributor Agreement will be accepted in Utah, USA.
2. Independent Contractor
(a) I acknowledge and agree that as a Distributor, I am an independent contractor and not an employee of Nu Skin. As an independent contractor, I will:
• be self-employed, and determine in my sole discretion, when I work and the number of hours I work;
• be paid Bonuses based on purchases and sales and not the number of hours that I work;
• be subject to entrepreneurial risk and responsible for all losses that I incur as a Distributor;
• if required, obtain a Goods and Services Tax (GST) Number;
• pay my own license fees, any insurance premiums and superannuation contributions (if applicable);
• be responsible for all costs of my business including, but not limited to, travel, entertainment, office, clerical, legal, equipment, accounting, and general expenses, without advances, reimbursement, or guarantee from Nu Skin;
• not be treated as an employee for any tax purposes; and
• pay any self-employment taxes required by any statutes, and regulations.
(b) I am not an employee, agent, or legal representative of Nu Skin, and except as permitted by the Contract, I am not authorised to act on behalf of Nu Skin. Nothing in the Contract is intended or will be deemed to constitute a partnership, agency, employer-employee, or a joint venture relationship between Nu Skin and me.
3. Bonuses
(a) I will be paid Bonuses for the sale of Nu Skin Products. I understand and agree that, in order to be eligible to receive Bonuses, I must meet all requirements outlined in the Sales Compensation Plan, including retail sales, and not be in violation of the terms of the Contract.
(b) I will not purchase any Nu Skin Product solely for the purpose of qualifying for Bonuses. I agree that prior to placing a subsequent product order, I will have resold previously ordered Nu Skin Products and documented the sales to at least five retail customers each month, and sold or consumed at least 80% of any previous orders.
(c) I agree that part of the consideration for me to receive Bonuses and recognition is based on my agreement to spend considerable time to (i) train, encourage, supervise and assist my Downline Organisation in its efforts to sell
Nu Skin Products to retail customers, (ii) personally sell Nu Skin Products, and (iii) promote the business.
4. International Sponsor Agreement for Sponsoring in Non-Resident Countries (“ISA”)
(a) Right to Sponsor in Non-Resident Countries
NSI grants to me the right to Sponsor new Distributors in Non-Resident Countries. This ISA does not grant me the right to market Nu Skin Products in Non-Resident Countries.
(b) Laws of Non-Resident Countries
I acknowledge that every Non-Resident Country may have specific laws and requirements applicable to me as a sponsor of Distributors in that Non-Resident Country, and I agree to comply with all laws, statutes and regulations of that Non-Resident Country, including but not limited to, all immigration, visa, and registration requirements.
5. Purchase of Nu Skin Products in Non-Resident Countries
I agree that I may purchase Nu Skin Products in a Non-Resident Country only from NSI’s affiliated company designated as the exclusive wholesale Distributor in that Non-Resident Country. I further agree that (i) I may only purchase Nu Skin Products in a Non-Resident Country for personal use or to demonstrate to potential new Distributors, and that I will not resell them, (ii) I have not, and will not, either directly or indirectly, sell or distribute any Nu Skin Products in a Non-Resident Country, and (iii) I will comply with all applicable laws regarding the purchase of Nu Skin Products in a Non-Resident Country.
6. Integrated Agreement
This Distributor and International Sponsor Agreement is an integrated agreement which consists of the terms in this Section C, the Mandatory and Binding Arbitration Agreement (Section D), the Miscellaneous Provisions (Section E), the Policies and Procedures, the Sales Compensation Plan, and materials pertaining to optional programs, as each may be amended from time to time by NSI upon notification, and are incorporated herein by reference.
7. Inactive Account
I agree that NSI may terminate my Distributorship without notice if I have not engaged in any Business Activity on my account for a period of 12 or more consecutive months. After termination, I may apply to become a Distributor again by submitting a new Distributor Agreement.

D. MANDATORY AND BINDING ARBITRATION AGREEMENT

This is a mandatory and binding arbitration agreement between NSI, Nu Skin New Zealand, and me.
1. THIS CONTRACT IS SUBJECT TO ARBITRATION. UTAH WILL BE THE EXCLUSIVE VENUE FOR ARBITRATION OR ANY OTHER RESOLUTION OF ANY DISPUTES ARISING UNDER OR RELATED TO THIS CONTRACT. The place of origin of this Contract is the State of Utah, USA, and it will be governed by, construed in accordance with, and interpreted pursuant to the laws of Utah, without giving effect to its rules regarding choice of laws. The exclusive venue for any and all Disputes and jurisdiction will be in Salt Lake County, Utah. I consent to the personal jurisdiction of any court within the State of Utah and waive any objection to improper venue.

2. I agree that any Dispute will be resolved and settled in accordance with and pursuant to the terms and conditions of this Contract, and by the rules and procedures set forth in Chapter 7 (Arbitration) of the Policies and Procedures or may be viewed online on the company website. The arbitration proceedings will be conducted in Salt Lake City, Utah. The arbitration will be conducted in the English language, but at the request and expense of a party, documents and testimony will be translated into another language. One arbitrator will be appointed to hear and decide disputes, which arbitrator will be selected by consent of all parties. The parties will each bear their own costs and expenses and an equal share of the (i) cost of the arbitrator and (ii) administrative fees of arbitration. Neither the parties nor the arbitrator may disclose the existence, content, or results of any arbitration without the prior written consent of both parties. Judgment on any award rendered by the arbitrator may be entered in any court having jurisdiction.

3. A “Dispute” is defined as “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 other Distributors and me arising out of or related to a Distributorship, or our business relationships as independent contractors of NSI, (iii) between Nu Skin and me, (iv) related to Nu Skin or its past or present affiliated entities, their owners, directors, officers, employees, investors, or vendors, (v) related to the Nu Skin Products, (vi) regarding Nu Skin’s resolution of any other matter that impacts my Distributorship, or that arises out of or is related to Nu Skin’s business, including my disagreement with Nu Skin’s disciplinary actions or interpretation of the Contract.”

4. I AGREE TO ACCEPT AND BE BOUND BY THIS ARBITRATION AGREEMENT IF I ACCESS ANY NU SKIN WEBSITE, AND USE THE INFORMATION THEREIN, OR BY THE PURCHASE OF ANY NU SKIN PRODUCTS MADE AVAILABLE THROUGH THE SAID WEBSITES, OR THE PURCHASE OF ANY PRODUCTS FROM NU SKIN NEW ZEALAND, OR IF I RECEIVE BONUSES.

E. MISCELLANEOUS PROVISIONS

1. Representations and Warranties
I represent and warrant that I am authorised to enter this Contract, that I have met all legal requirements to enter a valid contract in my Resident Country, and when executed and delivered by me and accepted by NSI and Nu Skin New Zealand as described herein, the Contract constitutes a legal, valid and binding obligation. I also represent and warrant that: (a) the information that I provided in the Contract is accurate and complete and if I have provided any false or misleading information, NSI or Nu Skin New Zealand shall have rights, at its election, to declare their respective parts of the Contract void from its inception; (b) the GST Number that I provided is the correct tax payer identification number for my Nu Skin business in my Resident Country; (c) if an individual, I am a citizen or a legal resident of my Resident Country; (d) if a Business Entity, such as a corporation, partnership, limited liability company, or any other form of business organisation, it is legally formed under the laws of my Resident Country, and that each member of the Business Entity has proper legal authorisation to conduct business in the Resident Country; and (e) if an individual adding other individual(s) to participate jointly, but not through a Business Entity, all such Participants are citizens or lawful residents of my Resident Country. I represent and warrant that neither I nor my partner/Spouse/Co-habitant (or if a corporation or other business organisations, any participant therein who is or should be listed on the Business Entity Form; or in case of joint participation, any participant therein who is or should be listed in the Joint Participation Form) have been engaged in Business Activity in another company distributorship in the six months (one year in the case of those having held an executive equivalent or higher pin- title under the Sales Compensation Plan) immediately preceding my sign up under my Sponsor as I identified in the Distributor Agreement.
2. Authorisation to Transfer Personal Information
In order for NSI or Nu Skin New Zealand to provide support for my Nu Skin Distributorship, I authorise them to transfer and disclose personal and/or confidential information, which (a) I have provided to either NSI or Nu Skin New Zealand in connection with my Distributorship and Downline Organisation, or (b) that has been developed as a result of my activity as a Distributor, to (i) its parent and affiliated companies wherever located, (ii) and to my Nu Skin independent upline Distributors when Nu Skin determines it is appropriate or necessary to ensure proper upline support, and (iii) to applicable government agencies or regulatory bodies if required by law. I further authorise NSI or
Nu Skin New Zealand to use my personal information for Distributor recognition and marketing materials and for other purposes set out in the Nu Skin New Zealand’s Privacy Policy and Section 2, Chapter 1 of the Nu Skin New Zealand’s Policies and Procedures.
3. Acceptance of Contract
(a) Acceptance by NSI The effective date of the Distributor Agreement will be the date it is accepted by NSI, which will be (i) the date that I execute the Distributor Agreement electronically via Nu Skin’s Internet sign-up procedure and it is received and accepted by NSI, (ii) the date that an original hard copy of the Distributor Agreement is received and accepted by NSI and a computer record is made of my Distributorship account by NSI, or (iii) the date a temporary account is set up, and in NSI’s discretion, my subsequent actions indicate an ongoing intent to pursue the business. The temporary account may be terminated by NSI, at its discretion, if an original hard copy of this agreement is not received and accepted by NSI within ninety (90) days from the date a temporary account is set up.
(b) Acceptance by Nu Skin New Zealand I agree that Nu Skin New Zealand’s acceptance of the PPA will occur when it accepts my first order of Nu Skin Products, which is placed after I have signed this Contract of which the PPA forms a part and forwarded this Contract to Nu Skin New Zealand.
4. Indemnity and Limitation of Liability
(a) Indemnity To the fullest extent permitted by law, I will indemnify and hold Nu Skin, and each of their shareholders, officers, directors and employees harmless from and against any claim, demand, liability, loss, action, causes of action, costs, or expenses, including, but not limited to, reasonable attorney’s fees, resulting or arising from, directly or indirectly, any acts or omissions by me in conducting my independent Distributor business, including without limitation, breach of representations and warranties, material breach of the Contract and other agreements between the parties, or any other claims or causes of action.
(b) Limitation of Liability To the fullest extent permitted by law, I agree that Nu Skin will not be liable for any special, indirect, direct, incidental, punitive, or consequential damages, including loss of profits, arising from or related to the breach of the Contract or other agreements between the parties. I agree that, to the fullest extent permitted by law, the entire liability of Nu Skin for any claim whatsoever related to my relationship with Nu Skin, including but not limited to any cause of action arising in contract, tort, or equity, will be limited to the cost of Nu Skin Products that I have purchased from Nu Skin New Zealand.
5. Inconsistency
In the event of any conflict between any terms in this document and the Policies and Procedures, the Policies and Procedures will prevail to the extent of the inconsistency.

I agree that:
I have previously reviewed the Contract, including the Policies and Procedures, or agree, before conducting any Distributor activity, to do so online at nuskin.co.nz.
I understand and agree that the Contract, including the Policies and Procedures, are enforceable against me. In particular, I agree that NSI and/or Nu Skin New Zealand may collect, use, process and disclose my personal information given in this document and given pursuant to the Nu Skin New Zealand’s Privacy Policy as well as Section 2, Chapter 1 of the Nu Skin New Zealand’s Policies and Procedures. If I refuse to follow any provision of the Contract, I agree to notify NSI or Nu Skin New Zealand, in writing, and cancel my Distributorship. If cancelled within the next 30 days, I will receive a 100% refund for the required Business Portfolio and a 90% refund, less any Bonuses paid to me on any unopened and resalable Products I purchased from Nu Skin New Zealand. Refunds or returns after 30 days are set forth in the Resident Country Product Purchase Agreement.
I understand that if I have provided my email address, telephone or mobile number, I agree that NSI and Nu Skin New Zealand, its subsidiaries, affiliates or business partners may email, call, fax and send me text messages at the contact particulars provided by me for promotional and marketing purposes.
By ticking this box, I confirm that I want to opt out of receiving such promotional and marketing materials from NSI and Nu Skin New Zealand, its subsidiaries, affiliates or business partners. I understand that if I tick this box, I will not be able to receive updated information on Nu Skin’s Products and services (and this may affect my ability to develop business with Nu Skin) as well as information on Products and services of Nu Skin’s subsidiaries, affiliates or business partners.
I understand that the only required purchase to become a Distributor is the non-commissionable, not-for-profit Business Portfolio not exceeding $40, which contains information about the opportunity, Nu Skin Products and forms. I understand that the purchase of any Nu Skin Products, including the product packages (Step 2) and Automatic Delivery Rewards (Step 3), is optional and is not required to become a Distributor. I understand that if I purchase a product package (in Step 2) or purchase a minimum of 100PSV worth of products in a single invoice, or enrol an ADR order with a minimum of 50PSV, then I will receive a free Business Portfolio and need not purchase it.
I have reached the legal age of 18 and am legally able to enter into the Contract, and agree to be bound by the terms and conditions of the Contract.
THIS CONTRACT IS SUBJECT TO THE MANDATORY AND BINDING ARBITRATION AGREEMENT (SEE SECTION D). UTAH WILL BE THE EXCLUSIVE VENUE FOR ARBITRATION OR ANY OTHER RESOLUTION OF ANY DISPUTES ARISING UNDER OR RELATED TO THIS CONTRACT.

I hereby confirm that I have read and fully understand the provisions set out in Nu Skin New Zealand’s Privacy Policy and Section 2, Chapter 1 of Nu Skin New Zealand’s Policies and Procedures (“Privacy Procedures”) posted on nuskin.co.nz and paragraph 2, Section E of this Agreement relating to the transfer and disclosure of personal information provided or to be provided by me. I hereby consent to Nu Skin’s collection, use, processing and disclosure of my personal information in the manner set out in the Privacy Procedures. I also agree to abide by the Privacy Procedures to the extent that obligations are placed on me.

Policies and Procedures

Nu Skin Enterprises Australia and New Zealand

Chapter 1 - Your Distributorship

1 Becoming a Distributor

1.1 Applying 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, 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

1.4 Minors

1.5 Legal Residency

1.6 Former Distributors

1.7 Spouses and Co-habitants

1.8 Acceptance of your Distributor Agreement

1.9 Australian Business Number, New Zealand IRD Number and Goods and Services Tax

NEW ZEALAND
If an applicant or Distributorship is registered for the New Zealand taxation system, it must:
1. provide the Company with its IRD number; and
2. notify the Company if it is registered for Goods and Services Tax (GST).
With respect to income tax and withholding and reporting: The Company does not withhold upon, or report, distributor income to the Inland Revenue Department (IRD) Pay-As-You-Earn (PAYE) system. It is your responsibility to disclose income from Company activities to the IRD.
With respect to GST: GST registration is required where a Distributor’s business turnover exceeds $60,000. Total sales turnover includes gross receipts from Bonuses and commissions and gross receipts from activities that are not related to the Company. You may choose to register for GST where your sales turnover is less than $60,000. You agree to accept a buyer created tax invoice from the Company in relation to Bonuses and commissions, and will not issue any separate GST invoice to the Company. If you are registered or required to be registered for GST, it is your responsibility to account for all GST for which you are liable in relation to the activities relating to the Company and otherwise comply with the New Zealand tax laws.

1.10 Business Entities

1.10A Distributorship with Joint Participation

1.11 Changing to a Business Entity

1.12 Temporary Accounts

2 Personal Information

2.1 Collection of Personal Information

2.2 Disclosure to Third Parties (including overseas recipients)

2.3 Access and Correction

You may contact the Company and make inquiries, and/or request, in writing, for access to or correction of, your personal information held by the Company or to limit the processing of your personal information. You may also make a complaint, in writing, relating to a breach of the Australian Privacy Act 1988, Australian Privacy Principles, or the New Zealand Privacy Act 1993 as the case may be, by writing to the Personal Data Protection Officer at the following address/email address:

For Australia Distributors
Personal Data Protection Officer
Postal Address: Nu Skin Enterprises Australia, Inc.
PO Box 116, North Ryde BC, NSW 1670
Telephone No: (02) 9491 0900
Email address: dsaustralia@nuskin.com

For New Zealand Distributors
Personal Data Protection Officer
Postal Address: Nu Skin Enterprises New Zealand, Inc.
PO Box 107145, Auckland Airport, Auckland, 2150
Telephone No: (09) 254 4180
Email address: dsnewzealand@nuskin.com

The Company may charge a reasonable fee for responding to and carrying out your request. Any request for access or correction of your personal information is subject to the requirements, restrictions and provisions of the Australian Privacy Act 1988, Australian Privacy Principles, or the New Zealand Privacy Act 1993 as the case may be, and any regulations, orders, codes and the Company’s rights thereunder.

2.4 Authorisation to Use Your Personal Information

By providing the personal information and/or documents to the Company or continuing to act as a Distributor or purchase Products from the Company, you agree, consent and authorise the Company to:
(A) collect, record and process (which includes verifying, holding, storing, organising, adapting, retrieving, altering, modifying, correcting, erasing, deleting and/or destroying) personal information and/or documents:
(i) which you have provided or will be providing to the Company in connection with your application to become a Distributor, your Distributorship and Downline Organisation; and
(ii) that has been developed as a result of your activity as a Distributor.
(B) transfer and/or disclose personal information and/or documents, which you have provided or will be providing to the Company in connection with your application to become a Distributor, your Distributorship and Downline Organisation and any of the other Purposes, and that have been developed as a result of your activity as a Distributor, to:
(i) its parent and affiliated companies wherever located;
(ii) your upline Distributors and/or other party when the Company determines it is appropriate or necessary to ensure proper
upline support or for Distributor education purposes;
(iii) any applicable regulatory, statutory, governmental or other relevant authorities, agencies or bodies and industry regulators,
and any other person to whom the Company is compelled, required or permitted to do so by law, rules or regulations,
legal process or litigation;
(iv) a third party vendor or service provider if necessary to provide you with the Products that you have requested;
(v) to a potential or actual purchaser in connection with any acquisition or proposed acquisition of the Company or any part
of the Company or all or any part of its assets or liability or in connection with a merger; and
(vi) to any agent, contractor, vendor, advisers, consultants or other third party (including but not limited to financial institutions,
courier companies, printing companies) (whether in or outside your Resident Country) who provide administrative or
other related services to the Company (such as warehousing and delivery, marketing and advertising, information technology
and software development, website hosting and management, office services, legal, accounting, audit and other
professional services).
In addition to those disclosures permitted by law, the Company may also disclose your personal information and/or documents to others if it has a good faith belief that it is required to do so by law or legal process, to respond to claims, or to protect the rights of the Company, if the Company reasonably believes that there is a serious threat to public health or public safety or to your life or health or to life or health of others. You may request the Company in writing, at the end of such period as the Company deems reasonable in the circumstances, to cease the disclosure of personal information that may be provided to your upline Distributors but without prejudice to the Company’s rights hereunder or in any contract between you and the Company.
(C) use your personal information and/or documents for Distributor recognition and the Company’s Business Support Materials and Services unless you request in writing that the Company not do so.
(D) collect, process, retain, use, disclose and share your personal information and/or documents for any of the Purposes, and you further agree that any other processing or disclosure of your personal information and/or documents will be governed by the Company’s Privacy Policy, as it may be published and modified from time to time.
You shall promptly notify the Company of any incorrect or any change of personal information provided to the Company whenever such error or change comes to your knowledge. Where personal information about another person is provided by you, such as the contact details of referees or information about your sponsor, spouse or co-habitant, it is your obligation to notify that person and that, by your providing the personal information and/or documents of that person to the Company, you confirm and acknowledge that you have notified that person and that that person has appointed you to act on his/her/its behalf and that you have obtained that person’s consent and authorisation to your collecting, processing, using, sharing and disclosing on his/her/its behalf of his/her/its personal information (including the transfer of his/her/its personal information abroad). You agree and undertake to comply with the Australian Privacy Act 1988 and the Australian Privacy Principles (for Australia Distributors) or the New Zealand Privacy Act 1993 (for New Zealand Distributors) with respect to the treatment of such personal information and documents and shall further comply with such reasonable directives and/or requests of the Company for the purposes of complying with the Australian Privacy Act 1988 and Australian Privacy Principles (for Australia Distributors) or the New Zealand Privacy Act 1993 (for New Zealand Distributors).
The Company may also use your personal information and/or documents for promotional and marketing purposes including sending you advertising or marketing materials and conducting direct marketing in relation to the Products and services of the Company, promotional offers and charitable programs, co-branded products/services, and related products or services offered by the Company’s business partners. You may, at any time, by notice in writing to the Company, require the Company at the end of such period as is reasonable in the circumstances to cease or not to begin processing your personal information for purposes of direct marketing.

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. 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 at the Company’s sole discretion.
(b) You must submit a new Distributor Agreement, Business Entity Form or Joint Participation Form and tick the “Amended” box on the top right hand corner 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 Authorised Representative of the Business Entity. An amended Business Entity Form must be signed by the Authorised 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

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:

When the Company 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 the Company may, in its sole discretion, pursue any of the other remedies listed in Chapter 6.

3.4 One Distributorship per Individual

3.5 Acquisition of Beneficial Interest in and Merger of Distributorships

4 Transferring and Terminating your Distributorship

4.1 Transferring Distributorships

4.2 Transfers Upon Death

(a) 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 Distributors (Blue Diamond has the meaning as described in the Sales Compensation Plan) or above will be responsible for operating this Distributorship. As payment for their services, the upline Blue Diamond Distributors or above will be entitled to a service fee. This fee will be a dollar amount equal to 15 percent of the Distributorship’s net Bonuses.

AUSTRALIA
(b) Individuals. Upon your death, your Distributorship may be passed on to your heirs, or other beneficiaries whether by will, intestate succession, or otherwise. The transfer will be recognised by the Company when a certified copy of the grant of probate or of Letters of Administration, depending on whether there is a will or not, and other legal documents addressing the transfer to a qualified transferee are submitted to the Company. The Company encourages you to make appropriate arrangements in consultation with an estate-planning attorney for the transfer of your Distributorship.
(c) 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 recognised by the Company when a certified copy of the grant of probate or of Letters of Administration, depending on whether there is a will or not, and other legal documents addressing the transfer to a qualified transferee are submitted to the Company.

NEW ZEALAND
(d) Upon your death, your rights to commissions, Bonuses, and Downline Organisation, together with all your responsibilities, shall pass to your designated beneficiary(s) upon the receipt of a written application by the Company, compliance with these Policies and Procedures, and approval by the Company. Appropriate legal preparation must be completed to ensure that the transfer meets the Company’s requirements and applicable laws. Accordingly, you should consult a lawyer to assist you in the preparation of a will or trust. Whenever your Distributorship is transferred by a will, other testamentary process, trust, court order or some other legal document, the designated beneficiary(s) acquires the right to collect all Bonuses and commissions of your Downline Organisation, provided the minimum qualifications are met. The designated beneficiary(s) must (i) execute a Distributor Agreement, and (ii) comply with these Policies and Procedures.
(e) In order to effect the testamentary transfer of your Distributorship, the successor must provide the following to the Company: (i) a certified copy of the death certificate; (ii) a certified copy of the probate or certified copy of the grant of the letters of administration if there is no will; (iii) written instructions from the executor/administrator with respect to the transfer/sale of business (stamp duty may be payable); (iv) an indemnity from the executor/administrator agreeing to indemnify and forever keep indemnified the Company, its directors, employees and officers from and against all claims, actions, proceedings, losses, demands, costs and expenses whatsoever which may be made or brought against them in respect of their compliance with such written instructions; and (v) a completed and executed Distributor Agreement.

4.3 Divorce

Chapter 2 - Operating Your Business

1 Business Ethics

1.1 DSA Code of Ethics

1.2 Purpose of Your Business

1.3 General Ethics

1.4 Non Disparagement

1.5 Harassment

1.6 No Contact of Vendors or Scientific Advisory Board Members

1.7 Anti-Corruption

1.8 Maintaining the Company’s Reputation

1.9 Records Review

2 Independent Contractor

2.1 Distributors are Independent Contractors

2.2 Taxes

2.3 No Authority to Act on Behalf of Company

2.4 Designation as Employer Prohibited

3 Ordering Products or Services

3.1 Ordering

You may order Products directly from the Company or its Product centres. There is no minimum order; however, shipping and handling costs may vary depending on the amount of Products ordered or how the products were ordered.

3.2 Transfer of Title

3.3 Inventory and the 80 Percent Rule

3.4 Methods of Ordering

3.5 Issuing Credits

3.6 Pricing Changes

3.7 Submitting Orders in the Name of Another Distributor

3.8 Payments without Sufficient Funds

3.9 Use of another Individual’s Credit Card

3.10 Automatic Delivery Rewards Program

3.11 Retailing of Products

4 Product Refunds and Exchanges

4.1 Refund Policy

4.2 Exchange Policy for Products Purchased Directly from the Company

4.3 Procedures for Obtaining a Refund or Exchange

5 Retail Sales and Customer Returns

5.1 Retail Sales

5.2 No Wholesaling of Products

5.3 Purchase Agreements

Addendum C sets out further detail concerning the requirements for Purchase Agreements.

AUSTRALIA
You must keep a copy of all Purchase Agreements for your records for at least five years.

NEW ZEALAND
You must provide Purchase Agreement to your retail customers in accordance with the following requirements:
(a) You must provide the customer with two copies of the completed Purchase Agreement at the time of the sale. All blanks in the section referring to the 10 day refund policy on the back of the receipt must be completed. The Purchase Agreement 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 tenth business day after sale, your name, business address, and business telephone number.
(b) You must keep a copy of the Purchase Agreement for your records. You must keep copies of all Purchase Agreements on file for at least four years.

5.4 Money-back Guarantees, Customer Refunds, and Exchanges for your Retail Customers

NEW ZEALAND
You must offer a ten 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 retail customer, less shipping and handling expenses (if applicable). The only requirement is that the retail customer must request the refund within 10 business days of the date of purchase and return the unused portion of the Product(s) to you. You must make a refund to the retail customer for returned Product(s) within 10 days of the retail customer’s request. The Company encourages you to honour your retail customers’ requests for refunds or Product exchanges, even if made more than ten days after the date of sale.

Both Australia and New Zealand
(a) If your retail customer purchases a Product directly from the Company, then unless otherwise required by applicable law or a specific Product guarantee, the Company will provide your retail customer with (i) a 100% refund on the returned Product, if the Product is returned within 30 days from the purchase date, and regardless of whether the Product has been used, is re-stockable or re-saleable; and (ii) a Product exchange if the Product was incorrectly sent or is defective as provided in Section 4.2 of this Chapter 2. For the avoidance of doubt, shipping and handling charges incurred by the retail customer when the Products were purchased will not be refunded.
(b) 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, and the Company will only provide a replacement Product to you up to 90 days following the refund, provided that the unused portion of the Product and the Purchase Agreement is returned to the Company within 30 days following the refund. The Company encourages you to honour your retail customer’s request for refunds irrespective of when they are made.
(c) 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 to you up to 90 days following the Product exchange, provided that the unused portion of the Product and the Purchase Agreement is returned to the Company within 30 days following the exchange.
The terms set out in this Section 5.4 are in addition to the remedies to which retail customers are entitled under the Australian and New Zealand law (including those under the Consumer Guarantees Act 1993 (NZ)). Nothing in this Section 5.4 is designed to exclude, restrict or modify those consumer remedies. If you are in New Zealand and have purchased a Product from the Company for personal consumption, you will also be entitled the consumer remedies under the Consumer Guarantees Act 1993.
Please refer to Addendum C for details about the Australia Door-to Door Sales and Consumer Guarantees that are specific to Australia and New Zealand.

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 the Company at any time with 30 days prior notice. A current copy of the Sales Compensation Plan may be found at nuskin.com.au (Australia) or nuskin.co.nz (New Zealand).

6.2 Exceptions to Sales Compensation Plan

6.3 No Compensation for Sponsoring

6.4 No Guaranteed Income

6.5 Manipulation of Sales Compensation Plan

6.6 Bonuses

6.7 Required Retail Sales; Retail Sales Verification

6.8 Timing

6.9 Bonus Recovery

6.10 Payment Corrections

7 Product Liability Claims and Indemnification

7.1 Indemnification

7.2 Requirements for Indemnification

In order to be indemnified, you must notify the Company of the claim in writing within 10 days of your receiving notice of the claim. The Company 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 the Company’s current approved literature, warnings, or Product labels; or
(c) settled or attempted to settle a claim without the Company’s written approval. In addition, indemnification is conditional
upon you allowing the Company to assume the sole defence of the claim.

7.3 Indemnification by You

8 Sales Tax

8.1 Company Collection of Goods and Services Tax (GST)

8.2 Exemption from Company Collection of State Sales Tax

9 Associating Other Organisations with the Company

Chapter 3 - Advertising

1 Business Support Materials and Trade Mark Use

1.1 Use of Business Support Materials

1.2 Use of Trade Marks and Copyrights

2 Product Claims

2.1 General Limitation

2.2 No Medical Claims

2.3 Approved Claims

2.4 Before and After Photographs

2.5 Modifications to Product Packaging

3 Income Claims

3.1 No Misleading Income Claims

3.2 Requirements for Lifestyle and Income Claims

4 Blue Diamond Produced Business Support Materials

4.1 Blue Diamond Business Support Materials

4.2 No Endorsement or Approval by Company

4.3 License Agreement for Business Support Materials

4.4 Registration of Blue Diamond Business Support Materials and Services.

4.5 Sales by Blue Diamonds; Purpose

4.6 Distributor Organisations

5 Mass Media; General Advertising

5.1 Promotions Utilising Mass Media Prohibited

5.2 Media Interviews

5.3 Phone Book Advertising

5.4 Distributing Promotional Materials

6 Retail Store, Trade Show, and Service Establishment Sales Policy

6.1 Retail Stores

6.2 Trade Show Booths

6.3 Service Establishments

7 Internet

7.1 Use of the Internet in Distributor Business

You may use the Internet to promote the Company, including its Products, only if such use is specifically authorised 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. All other uses of the Internet to promote the Company or its Products or its Sales Compensation Plan are prohibited.

7.2 Permitted Internet Activities

7.3 Blue Diamond Internet Marketing Site

7.4 Additional Restrictions on Internet Use

7.5 Internet Video and Audio

7.6 Internet Selling

7.7 Spam

8 Lead Generation Services; No Speaking Fees

8.1 Lead Generation Services

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 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 Company Events or Employees

Chapter - 4 Sponsoring

1 Becoming a Sponsor

1.1 Requirements

1.2 The Placement of New Distributors

1.3 Business Portfolio

1.4 Distribution of Company Leads

2 Responsibilities of a Sponsor

2.1 Training of Downline Organisation

2.2 Line Switching

2.3 No Purchase of Products or Business Support Materials and Services Required

2.4 Correct Information on Company Forms

2.5 Your Downline Organisation’s Communication with the Company

3 International Business

3.1 International Business

3.2 Meetings in an Authorised Country with Attendees from an Unopened Country

3.3 The International Sponsor Agreement

3.4 China

3.5 Express Prohibition of Pre-Marketing in Certain Countries

3.6 Remedies

3.7 Petition for Permission to Participate

3.8 No Waiver

Chapter 5 - Restrictive Covenants

1 Ownership of Network

2 Restrictive Covenants

2.1 Non-Solicitation

2.2 Exclusivity

2.3 Confidential Information

2.4 Confidentiality of Distributorship Information

2.5 Non-Disparagement

2.6 Remedies

2.7 Enforceability

Chapter 6 - Enforcement of Contract

1 The Contract

2 Acts of Participants in a Distributorship

3 Procedures for Investigation, Discipline and Termination

3.1 Reports of Alleged Violations

3.2 Time Limit for Reports of Violations

3.3 Balance of Rights of Privacy

3.4 Procedure

3.5 Distributor Compliance Appeals Committee (DCAC)

3.6 Company Actions for Breach of Contract

3.7 Immediate Action

3.8 Remedies

3.9 Termination of Your Contract

Chapter 7 - Arbitration

1 What is Mandatory Arbitration

2 Arbitration is Mandatory and Binding as to all Disputes

3 Definition of a Dispute

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 the parties that participated in the DCRC proceeding agree to mediation, then the Company will facilitate a mediation that will be held in Salt Lake City, Utah in the United States at the offices of the Company’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

6 Arbitration Procedure

6.1 Rules of Arbitration; Location

6.2 Discovery

6.3 Date of Arbitration

6.4 Language

6.5 No Class Actions

6.6 Permitted Attendees

6.7 Fees and Expenses of Arbitrator

6.8 Awards

6.9 Confidentiality

6.10 Enforcement of Award; Injunctive Relief

6.11 Survival

7 Third Party Claims

Chapter 8 General Terms

1 General Terms

1.1 Contract Changes

1.2 Waivers and Exceptions

1.3 Integrated Contract

1.4 Severability

1.5 Governing Law/Jurisdiction

1.6 Notices

1.7 Successors and Claims

1.8 Headings

1.9 Internal References

1.10 Plurality and Gender

1.11 Translations

Addendum A

Glossary of Defined Terms

Advertising Material

Application for Registration

Authorised Country

Authorised Representative

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 Company 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 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

Business Activity

Business Development Activity

Business Entity

Business Entity Form

Business Portfolio

Business Support Materials

Business Support Materials and Services

Business Support Services

Co-habitant

Commissionable Sales Value (CSV)

Company

Company Approved Business Support Materials

Confidential Information

Contract

DCAC

DCRC

Direct Sales Company

Dispute

Distributor

Distributor Agreement

Distributor Organisation

Distributorship

Downline Organisation

Executive

Group Sales Volume (GSV)

International Sponsor

Internet Marketing Site

License Agreement

Network

Non-Resident Country

Notice of Registration

Participant

Person

Personalised Advertising Material

Personal Sales Volume (PSV)

Policies and Procedures

Products

Purchase Agreement

Resident Country

Sales Compensation Plan

Sponsor

Unopened Country

URL

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

1.2 Identification of Publisher

1.3 Use of Company-Produced Content

2 Sale of Blue Diamond Produced Business Support Materials and Services

2.1 Registration Required Prior to Sale

2.2 Primary Focus is Selling Products

2.3 No Required Purchases; No Sale to Prospective Distributors

2.4 Refund Policy

2.5 Disclosure Statement

2.6 Receipt

2.7 Compliance with Laws

2.8 Affordability

2.9 No Selling Activity at Corporate Events

2.10 Websites

2.11 Company Retained Rights; Restrictive Covenants

2.12 Records

3 Registration of Blue Diamond Business Support Materials and Services

3.1 Application for Registration

3.2 Additional Documentation; Right of Review; Modifications

3.3 Application Fees

3.4 Notice of Registration

3.5 Renewal of Registration; Revocation

Addendum C

Australian and New Zealand Door-to-Door Sales and Consumer Guarantees

Australia:

I. Unsolicited Consumer Agreements (“UCA”)
The Australian Consumer Law (ACL) is a single consumer law largely modeled on the consumer protection provisions of the former Trade Practices Act and “best practice” under current State and Territory regulations that have been in place for over 30 years. The ACL retained and expanded upon existing State/Territory regulation of door-to-door selling and ‘non-store’ selling. The ACL has been created in order to protect consumers from unscrupulous practices. This type of regulation is not unique to Australia. Similar guidelines have been in place in countries like Malaysia, Indonesia, Korea and European Union countries for years. Direct Selling continues to thrive in these highly regulated markets.
The ACL commenced on 1st January 2011 (with point of sale requirements in effect since July 2011). We would like to make you aware of the relevant provisions of the ACL that became fully effective on 1st January 2012 that regulate how you, as Nu Skin distributors may conduct your business, when approaching and selling to retail customers and Preferred Customers in an unsolicited manner. While the ACL may slightly change the way you approach retail customers or Preferred Customers, it should not affect your business in a big way as approximately 95% of our sales in Nu Skin Australia will not fall under the concept of an unsolicited consumer agreement.
Specifically, the “unsolicited consumer agreement” regulations may impact not only how you approach potential customers, but when you may approach them, when you may supply the goods purchased and when you may accept payment for the products. Therefore, when doing the Nu Skin business you will need to consider two critical questions:
1) Will your contact with or sale to a customer result in an unsolicited consumer agreement (‘UCA’)?
If not, then the unsolicited selling provisions do not apply (see below for details).
2) If the sale IS unsolicited, is it regulated?
If it is not regulated, then the unsolicited selling provisions do not apply. If it is regulated, then the transaction must comply with the
ACL’s unsolicited selling provisions as outlined below.
EXCEPTIONS TO THE ACL
The ACL regulations regarding unsolicited consumer agreements contain several exceptions that may make the law inapplicable to you. The unsolicited consumer agreement requirements do NOT apply to the following selling arrangements between you and a customer:
• the sale is made to a Distributor for the purpose of resale;
• all discussions preceding the sale take place wholly at Nu Skin’s corporate premises, at the Distributor’s business or trade premises [if the Distributor is making a retail sale] or online;
• your approach to the consumer resulted from an invitation from the consumer;
• the value of the single transaction is less than $100;
• the sale of products is the result of a ‘party’ where you invited the customer to the party (there must be 3 or more invited people, however only 1 need attend) and you identified to the potential customer the purpose of the ‘party’. Please note that a ‘party’ can include any meeting, Business Opportunity Meeting (BOM) or an actual party plan event;
• your customer has enrolled in the Automatic Delivery Rewards (ADR) program and products are shipped monthly from Nu Skin directly to your customer;
• you have previously entered into an unsolicited consumer agreement with your customer and the products have been supplied, and within three months of the supply of the products, your customer orders more products of the same kind, and the total amount of all the additional products to be supplied is less than $500.
COMPLIANCE REQUIREMENTS FOR REGULATED UNSOLICITED CONSUMER AGREEMENTS
If your approach, sale or presentation does NOT fall within any of the exceptions described above, then the selling arrangement does constitute an unsolicited consumer agreement and you are subject to the following requirements:
• Required use of a Purchase Agreement, as provided by Nu Skin on our website. You must provide the customer with a completed copy of the Purchase Agreement (which has been signed by the customer) and keep an identical copy for your records. The customer may cancel the agreement either orally or in writing.
• Restricted calling hours
o Unless consent has been given by the customer, you cannot telephone or visit a customer for the purposes of discussing the business opportunity or product sales on Sundays and public holidays or outside the hours of 9:00 AM and 6:00 PM on weekdays, and 9:00 AM and 5:00 PM on Saturdays.
• Disclosure requirements when you contact a customer (“Disclosure Requirements at Contact”)
o Prior to presenting the business opportunity or discussing the products, you must disclose to the person your identity, your address
(a P.O. Box is not allowed), and the purpose of your contact, i.e., the Nu Skin opportunity and/or products; and
o You must disclose that you are required to leave their premises or presence immediately upon request.
• You must leave the premises immediately upon request and not contact the potential customer to negotiate an unsolicited consumer agreement for at least 30 days after the request.
• Disclosure requirements before you execute an unsolicited consumer agreement (“Disclosure Requirements at Execution”)
o You must disclose information to the customer about the cooling off period (note that these details are included on the Purchase Agreement supplied by Nu Skin).
• The customer has 10 business days to terminate the Purchase Agreement commencing from the first business day after the Purchase Agreement is signed or delivered to them.
• The customer has three months to terminate the Purchase Agreement if you do not provide the Disclosure Requirements at Contact which are described above or if you call on a customer outside the permitted hours without their consent.
• The customer has six months to terminate the Purchase Agreement if you do not provide the Disclosure Requirements at Execution described above or do not use the approved Purchase Agreement; if you accept or require payment during the 10 business day cooling-off period; or if you supply products during the 10 business day cooling-off period if the value of the Purchase Agreement is more than $500.
• Prohibition on the supply of products or services valued at $500 or more for 14 days (i.e. during the 10 business day cooling-off period).
• Prohibition on the acceptance of payment for products and services for 14 days (i.e. during the 10 business days cooling-off period).
There is no doubt that the ACL adds additional requirements to the way you do business if you do not fall within one of the exceptions outlined above. However, most of the new requirements are simply legislation by the Australian Government that parrots the current ethical and business practices of the Australian Direct Selling Association and by Nu Skin Policies and Procedures.
Thank you for your efforts to continue to promote your business ethically and with utmost integrity. Remember that this is a brief summary of the ACL. For more specific information and to read the Australian Consumer Law in full, please visit the following web site consumerlaw.gov.au.
II. Consumer Guarantees
The ACL also provides consumers with certain “consumer guarantees”. These guarantees cannot be excluded, restricted or modified from the sale of goods to consumers. You are solely responsible for becoming familiar and complying with the consumer guarantees found within ACL if you conduct your Nu Skin business in Australia.
You are solely responsible for becoming familiar and complying with the ACL. You release Nu Skin from any obligation or duty to ensure, advise on, or assist with, your compliance with the ACL. To the fullest extent permitted by law, you also release and indemnify Nu Skin from any liability arising from your failure to comply with any provision of the ACL.
Under the ACL, you as supplier are deemed to make the following guarantees to the consumer:
• You have the right to sell the goods.
• The consumer has a right to undisturbed possession of the goods (in other words, no one will try to repossess or take back the goods
from the consumer).
• The goods will be free of security interests (in other words, the goods are free of any hidden securities or charges).
• The goods will be of an acceptable quality (“acceptable quality” means that the goods must be fit for the purpose commonly acquired,
acceptable in appearance and finish, free from defects, safe and durable).
• The goods will be fit for any purpose which is disclosed to you by the consumer or fit for purposes which you represent the goods
are reasonably fit.
• Goods supplied by description will match their description.
• The goods supplied will correspond with any sample or demonstration product.
• The goods will comply with any express warranties given in relation to them.
Under the ACL, there is a distinction between a “major failure” and a “non-major failure” of goods.
A failure of the goods is a “major failure” if:
• a reasonable consumer would not have bought the goods if they had known about the problem;
• the goods are significantly different from the description, sample or demonstration model shown to the consumer;
• the goods are substantially unfit for their normal purpose and cannot easily be made fit, within a reasonable time; or
• the goods are unsafe.
When there is a “major failure” in the goods, the consumer can elect to (i) reject the goods and choose a refund or a replacement; or (ii) take an action against the supplier to recover compensation for any reduction in the value of the goods below the price paid by the consumer for the goods. Additionally, a consumer may take an action against the supplier for any reasonably foreseeable loss or damage arising from the major failure in the goods.
When the failure in the goods is not a “major failure”, the supplier can choose between providing a repair or offering the consumer a replacement or
a refund.
For these purposes “consumer” means the retail customer and any person the retail customer has given the goods to as a gift.
Where you replace faulty products, the replacement products will also be subject to the guarantees contained in the ACL.

New Zealand: