NOTE N – RELATED-PARTY TRANSACTIONS

The Company’s Founder and Chairman of the Board, Myron W. Wentz, PhD is the sole beneficial owner of the largest shareholder of the Company, Gull Global, Ltd. As of December 30, 2017, Gull Global, Ltd. owned 48.68% of the Company’s issued and outstanding shares.  Dr. Wentz devotes much of his personal time, expertise, and resources to a number of business and professional activities outside of USANA. The most significant of these is the Sanoviv Medical Institute, which is a unique, fully integrated health and wellness center located near Rosarito, Mexico that Dr. Wentz founded in 1998.  Dr. Wentz’s private entity, Sanoviv S.A. de C.V. (“Sanoviv”), contracts with Amarevita S DE RL DE CV (formerly Medicis, S.C.) (“Amarevita”), an entity that is owned and operated independently of Dr. Wentz, to conduct the operations of the Sanoviv Medical Institute.  Sanoviv leases the medical building to Amarevita and Amarevita carries out all of the operations of the medical institute, which include employing all of the medical and healthcare professionals who provide services at the medical institute. The Amarevita medical and healthcare professionals possess expertise in the fields of human health, digestive health, nutritional medicine, lifestyle medicine and other medical fields that are important to USANA.



Amarevita performs research and development of novel product formulations for future development and production by USANA, and they also perform research and development of improvements in existing USANA product formulations.  In addition to providing contract research services, Amarevita provides physicians and other medical staff to speak at USANA Associate events.  Finally, Amarevita performs health assessments and physical examinations for the Company’s Executives.  In consideration for these services, USANA paid Amarevita $383,  $322,  and $337 in 2015, 2016, and 2017, respectively.  The Company’s agreements with Amarevita were approved by the Audit Committee in advance of the Company’s entry into the agreements.  USANA’s collaboration with Amarevita is terminable at will by USANA at any time, without any continuing commitment by USANA. 



The Company has had a long-standing relationship with Drive Marketing, a promotional product distributor located in Sandy, Utah.  Drive Marketing provides the Company with customized products for Associate recognition.  The Company paid Drive Marketing $420,  $523,  and $781 in 2015, 2016 and 2017, respectively.  During 2016, Drive Marketing hired Nathan Guest as a sales representative for its various network marketing accounts, including the Company’s account.  Nathan Guest is the son of Kevin Guest, the Company’s CEO.  Drive Marketing is one of many promotional product distributors utilized by the Company.  The Company’s relationship with Drive Marketing is terminable at will by the Company at any time without any continuing commitment.



The Company has had a long standing contractual relationship with Shane Farmer, the sole owner of Dark Horse Rowing, LLC located in San Diego, California.  Mr. Farmer provides consulting and other advisory services to the Company related to its development of nutritional products.  The Company paid Dark Horse Rowing, LLC $129,  $136, and $135 in 2015, 2016 and 2017, respectively.  During 2017, Shane Farmer became the stepson of Dr. Wentz, the Company’s founder and Chairman of the Board.  Mr. Farmer is one of many consultants and experts utilized by the Company to advise on nutrition.  The Company’s relationship with Dark Horse Rowing is terminable at will by the Company at any time without any continuing commitment.