Nu Skin Malaysia Key Info Update (as at November 7, 2001) A. REGULARITY. A.1. Direct Sales License

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Sybil Blankenship
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1 Nu Skin Malaysia Key Info Update (as at November 7, 2001) A. REGULARITY A.1. Direct Sales License For all new direct selling companies in Malaysia, the Direct Sales License is subject to annual renewal for at least the first 3 years. It is crucial that both the company and its distributor force are in compliance with the Direct Sales Act. A.2. Display of Direct Sales License As requested by the Ministry of Domestic Trade and agreed by Nu Skin (Malaysia) Sdn Bhd, a copy of the Direct Sales License must be displayed at both the company s public facilities and at the training centers run by independent Nu Skin distributors. An official copy of the Direct Sales License will be made available to the Blue Diamonds attending the November 8 Blue Diamond Reception. A copy of Nu Skin Malaysia s Direct Sales License may also be found in each business portfolio. A.3. No Front Loading and High Pressure Selling In order to ensure that Nu Skin (Malaysia) Sdn Bhd fully complies with all the conditions of our license, Distributors will be limited to purchasing no more than 3 units of the same product packages in the same month, unless they can offer retail verification for subsequent purchases. A.4. Training Fee Both the company and its distributor force are not allowed to charge any training fee for basic training nor is it allowed to charge fees for mandatory advancement training. A WORKING DAY COOLING OFF PERIOD In order not to violate the Malaysian Direct Sales Act, Distributors are required to practice the Malaysia 10-working-day cooling off period. Distributors are required to use the company s retail order form for their retail sales. Retail Order Forms will be available from the November 8 Blue Diamond Reception onwards. A.6. No Retail Sales by Foreigners Foreign Distributors are not allowed to retail in Malaysia. In addition to the restrictions by the Nu Skin International Ordering Policy, foreign distributors are allowed to purchase one sample of each product package per month for demonstration, training or display purposes. Blue Diamonds will be allowed to purchase products for this purpose at the Blue Diamond Reception on November 8.

2 A.7. No Un-Approved Products All products sold in Malaysia and their prices have to be pre-approved by the Ministry before offering to our Distributors in Malaysia. Imports from other Nu Skin markets are strictly prohibited, and violators will be seriously penalized. A.8. Friday Prayer On a weekly basis, Friday afternoon from Noon to 2.00pm is the prayer time for Muslim employees. The waiting time for Orders and DAs processing will be lengthened for that period due to the availability of less workstations temporarily. A.9. Halal Nu Skin respects the beliefs of Islam and wishes to provide the most information possible to help Muslim customers and distributors feel comfortable with their Nu Skin products. All products marketed in Malaysia are free of porcine derived ingredients, gelatin, placenta and umbilical cord derived ingredients, alcohol, and forbidden fats. Table 1 provides a list of Nu Skin products that are free of animal-derived ingredients. Additionally, in order to provide our distributors and customers with the most information possible we have included another table, which lists Nu Skin products containing animal-derived ingredients. This table explains which products contain animal-derived ingredients, the animal source of the ingredient, and the official ingredient name. (Please see enclosed Table 1 & 2) B. HOW TO SIGN UP B.1. Proof of Residence Only residents of Malaysia are allowed to sign up as Distributors in Malaysia. When individuals or partnerships sign up, they are required to submit their Distributor Agreement/Product Purchase Agreement with copy of Malaysia Resident Identity Card (s) of all applicants. The same rule applies to all Directors/Shareholders of a Corporation/Company to sign up as a Distributor. For foreigners who own a work permit, they are required to submit a copy of the work permit and personal particulars that includes picture in their passport. B.2. Submission of Distributor Agreement(DA) / Product Purchase Agreement (PPA) Distributor Agreement / Product Purchase Agreement can be submitted in person or by mail. Orders placed in-person, can be done so by using cash or credit-card (VISA or MasterCard). For mail-in orders, only credit-cards will be accepted as payment.

3 Starting November 12, new distributors can fax in their DA/PPA along with a copy of their Identity Card(s) to to set up a temporary account. Original copies of the DA/PPA and Identity Card(s) MUST be received by the company within 30 days, or the temporary account will be terminated. C. HOW TO ORDER C.1. Modes of Order 2 Starting from November 12, Monday. 1) Distributors can place orders in person at our Darby Park Showcase. 2) the order to order_malaysia@nuskin.com, 3) Fax to our toll-free fax order line at , 4) Call our toll-free order line at C.2. Modes of Payment Walk-In Orders can be paid by cash or credit card (VISA or MasterCard). E- mail/fax/call-in Orders can be paid by credit card (VISA or MasterCard). C.3. Delivery Services Orders will be received within 5 working days after payment is cleared. Delivery charges are as follows 2 Order Amount RM$1,000 or below RM$1,001 to 2,000 RM$2,001 or above Delivery Charges West Malaysia: RM$20, East Malaysia: RM$30 West Malaysia: RM$10, East Malaysia: RM$15 Free of Charge

4 Appendix Face Care Clay Pack Exfoliant Scrub Extra Gentle Celltrex Ultra Recovery Fluid Skin Brightening Complex Face Lift Powder Sensitive Formula Lift Activator Sensitive Formula NaPCA Moisture Mist ph Balance Facial Toner Enhancer Skin Conditioning Gel Cleansing Gel Table 1 Products With No Animal-Derived Ingredients Body Care Hand Lotion Body Cleansing Gel Liquid Body Lufra Hair 4-in-1 Shampoo, Condition, Hydrate, Protect DailyKind Mild Shampoo DailyKind Mild Conditioner HydraKind Moisturizing Shampoo HydraKind Moisturizing Conditioner Sunright Sunright BodyBlock SPF 45 Sunright BodyBlock SPF 35 Sunright Lip Balm SPF 15 Sunright Aloe Gel Nu Skin White Nu Skin White White Essence Nu Skin White White Milk Lotion Nu Skin White White Skin Lotion Nu Skin White White Masque

5 Table 2 Product Ingredient Source Rejuvenating Cream Hydrolyzed Elastin Bovine Cleansing Lotion, Facial Cleansing Bar, NaPCA Moisturizer, Body Smoother Glyceryl Stearate SE Bovine White UV Base PEG 100-Stearate, Glycerol Stearate Bovine Tru Face Line Corrector Glycerin Bovine

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