NU SKIN ENTERPRISES

Executive Incentive Plan

July 2001 (Updated July 1, 2003)

NU SKIN ENTERPRISES, INC. 2

PURPOSE

      Nu Skin Enterprises, Inc. (“Nu Skin”) believes that sound compensation
programs are essential to the retention, attractionand
motivation of personnel. The purpose of the Plan is to focus employees on
excellent, sustained performance that leads tolong-term
growth, profitability and stability.

OBJECTIVES

      The objectives of the Incentive Plan include:

• Focusing employees on the achievement of Nu Skin Enterprise business and
strategic objectives;

• Enhancing operational efficiency and teamwork within each division and country
and across divisions and countries;

• Increasing revenue and operating income; and

• Attracting, retaining and motivating employees by emphasizing “pay for
performance” compensation programs that offer competitive total compensation
(base salary + incentives) opportunities upon achievement of Nu Skin
Enterprises’ (NSE) financial and strategic objectives; and Division,
Country/Region, Department and Individual objectives

NU SKIN ENTERPRISES, INC. 3

EFFECTIVE PLAN DATE, DURATION AND PERFORMANCE CYCLES

         Effective Plan Date

  The effective Plan date is July 1, 2001. The Plan is in effect until further
notice and can be cancelled or changed by notification to plan participants
prior to the start of any performance cycle.

         Performance Cycles

  The Plan has two six-month performance cycles. Each cycle is based on the
specific results of each period. The six-month periods are January through June
and July through December. Within each six-month period, the results of each
quarter are calculated.

• Employees are eligible to earn 25% of their potential semi-annual incentive
award each fiscal quarter.

• 50% of the semi-annual incentive is dependant on the combined results of both
quarters.

Six-month Period         50%

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25%  25%  

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Quarter  Quarter  

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• The quarter and six-month period results are based upon the Company, Division
or Country/Region, Department, and Individual performance during the quarters
and the six-month period. and,

• The calculation is based upon the Individual’s base salary at the time of the
payment.

         Constant Currency Basis

  The Operating Profit and Revenue targets will be set based on budgets and
projections converted on a constant currency basis and the results for each
fiscal quarter will be converted to constant currency amounts for use in
computing performance bonuses.

  Constant Currency means using the same currency exchange rate used to
translate the financial results for the corresponding period of the prior year,
thus eliminating the impact of currency fluctuations. These amounts will be
computed by the Nu Skin Enterprises’ Finance Department.

INCENTIVES AND PARTICIPANTS

      Incentive Plan Participants have target award opportunities designed to
reward superior NSE, Division, Country/Region, Department and Individual
performance and maintain externally competitive total cash compensation
commensurate with NSE’s performance:

• Participants’ incentive awards will be based upon the areas of the Company in
which they contribute and,

• Participants are assigned a target incentive award opportunity expressed as a
percentage of their base salary. The following chart summarizes the percentages
used to calculate the bonus for each executive group.

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Incentives

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Operating Profit

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Revenue

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Position

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Total Target
Incentive

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NSE Portion

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Country/Region

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NSE Portion

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Division/Country/Region

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Chairman & CEO   60%   60%       40%      

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Senior Vice Presidents  60%   60%       40%      

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Executive Committee  60%   60%       40%      

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CFO, CIO, CAO, CLO  60%   60%       40%      

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Division Presidents  50%   60%       10%   30%  

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Corp. Regional Vice Presidents, US  50%   20%   40%   10%   30%  

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US Country Vice Presidents  30-40%   20%   40%   10%   30%  

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Division Vice Presidents  30-40%   60%       10%   30%  

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Vice Presidents  30-40%   60%       40%      

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NU SKIN ENTERPRISES, INC. 6

CRITICAL SUCCESS FACTORS (“CSF’S”)

• The Company will use operating profit and revenue as Critical Success Factors
(“CSF’s”).

• The incentive bonus will be weighted 60% to operating profit and 40% to
revenue.

• The revenue portion directly related the area of responsibility, NSE,
Country/Region or Division, is the revenue CSF for that area.

PERFORMANCE THRESHOLDS

• Threshold levels represent the minimum acceptable performance levels required
for incentive pay-out in each category.

  The Operating Profit threshold is 90%

  The Revenue threshold is 90%

  The Department Goals threshold is 80%

  The Individual Goals threshold is 80%

•  If the Operating Profit threshold is not met, no Revenue incentive will be
paid. If the Operating Profit threshold is met and the Revenue threshold if not
met, the Operating Profit portion will be paid but the Revenue portion will not
be paid. If Department objectives or Individual objectives are below the
threshold level at the end of the Plan performance cycle, no incentive will be
paid. Payout of the Region portion of the incentive bonus is not dependant on
first attaining Corporate results.

NU SKIN ENTERPRISES, INC. 7

Targets

Target levels are established by NSE’s Executive Committee and represent
achievement of 100% of budgeted revenue andoperating
profit, adjusted for currency fluctuations.

•  At achievement of 90% of the CSFs and achievement of “Pass” for Department
and Individual Goals,one-half of the cash incentive will be paid out. The
pay-out amount is increased linearly up to full payment at 100% achievement of
CSFs.

• Outstanding levels represent performance levels that exceed the target
objectives.

• At the Outstanding performance level, target cash incentives will be increased
linearly.

      Department Targets

• Departments set objectives that align with CSFs and the priorities of NSE and
the Division/Country/Region they support.

• A Department must achieve 80% of its respective Goals to earn a “pass” (P) to
be eligible for any payment under the incentive plan;

• A Department is defined as a cost- center or group of cost- centers as
determined by the employee’s vice president;

• The approved budget must account for 25% of Department Goals. If a Department
exceeds their approved budget by 5% or more, the employees in the Department are
not eligible for the incentive unless such overruns are approved in advance by
the NSE Executive Committee.

NU SKIN ENTERPRISES, INC. 8

      Individual Targets

• Target incentive award levels are determined by the Individual’s level of job
responsibility, reflecting that job’s ability to impact NSE’s financial
performance, as well as competitive total compensation practices (base salary
plus incentives) for comparable jobs within organizations similar in size and
scope.

•  Individual performance objectives for each participant are established prior
to the start of the performance period. Some Individual objectives may stretch
for the entire fiscal year. Performance levels for Individual objectives are
negotiated with each manager.

• The cost center of the participant determines which CSFs relate to the
participant's incentive payout;

• A participant must achieve at least 80% of Individual Goals to earn a “pass”
(P) to be eligible for any payment under the incentive plan; and

• A participant’s job performance must be at least at “competent” level.

INCENTIVE AWARD PAY-OUT GUIDELINES AND ELIGIBILITY

• Incentive awards, if earned, will be distributed to Plan participants at the
end of each performance cycle;

• All participants must be on the payroll at the time of the payment;

• Participants must be actively employed (not on a leave-of-absence) a minimum
of six weeks to participate in the plan. The award amount will be prorated based
on the number of days actively employed during the bonus period;

• Participants will receive their awards, when earned, by separate check;

• Award payments shall be subject to any State and/or Federal tax withholdings;
and

• Award payments will be made within 45 days of the close of each quarter or 6
month period.

• The actual incentive pay-out may be smaller or larger, depending on overall
NSE, Country and Division performance results.