Document:

Exhibit 10.8 to NSE FORM 10-K Collateral Agency and Intercreditor Agreement

COLLATERAL AGENCY AND
INTERCREDITOR AGREEMENT 

        This
COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT (this “Agreement”), dated
as of October 12, 2000, is entered into among the Senior Noteholder listed on the
signature pages hereof (together with assignees of such Senior Noteholder, the
“Senior Noteholders”), the Senior Lender listed on the signature pages
hereof (together with any assignees of such Senior Lender, the “Senior
Lenders”), any Additional Creditors that may become parties to this Agreement
(either directly or through their agent), and State Street Bank and Trust Company of
California, N.A., in its capacity as collateral agent for the Senior Noteholders, the
Senior Lenders and the Additional Creditors (the “Collateral Agent”). 

R E C I T A L S 

             A.       
          Nu Skin Enterprises, Inc., a Delaware corporation (the
          “Company”), will issue and sell to the Senior Noteholder its
          3.03% Senior Notes due October 12, 2010 in the aggregate principal amount of
          JP¥9,706,500,000 (the “Senior Noteholder Notes”) pursuant
          to that certain Note Purchase Agreement, dated as of October 12, 2000 (as the
          same may be amended, supplemented or otherwise modified from time to time, the
          “Note Purchase Agreement”), between the Company and the Senior
          Noteholder. 

             B.       
          The Senior Lender (i) has made and may from time to time make loans up to an
          aggregate principal amount of US$10,000,000 to the Company pursuant to that
          certain Grid Note, dated May 24, 2000, executed by the Company in favor of the
          Senior Lender, and (ii) may from time to time issue letters of credit for the
          account of the Company pursuant to that certain Master Letter of Credit
          Agreement and Addendum, each dated as of August 4, 2000, between the Company and
          the Senior Lender (such Grid Note and Master Letter of Credit Agreement and
          Addendum, as the same may be amended, supplemented or otherwise modified or
          renewed or replaced from time to time, including any increase in the amount of
          the obligations thereunder, the “Credit Documents”). 

             C.       
          Each of the Material Domestic Subsidiaries of the Company (together with any
          future Material Domestic Subsidiaries entering into a guaranty agreement with
          respect to the Obligations (as defined below), the “Subsidiary
          Guarantors”) have entered into a guaranty agreement pursuant to which
          the Subsidiary Guarantors guarantee to the Senior Lenders the payment and
          performance of all of the Company’s obligations under the Credit Documents
          (as such guaranty agreement may be modified, amended, renewed or replaced,
          including any increase in the amount guaranteed thereunder, the “Bank
          Obligation Guaranty”). 

             D.       
          Pursuant to the Note Purchase Agreement, the Subsidiary Guarantors will enter
          into a guaranty agreement pursuant to which the Subsidiary Guarantors will
          guarantee to the Senior Noteholders the payment of the Noteholder Obligations
          and the payment and performance of all of the Company’s obligations under
          the Note Purchase Agreement and the Senior Notes (as such guaranty agreement may
          be modified, amended, renewed or replaced, including any increase in the amount
          guaranteed thereunder, the “Note Obligation Guaranty”). 

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             E.       
          The Company may enter into additional note purchase agreements and/or credit
          agreements with investors and/or lenders which become party to this Agreement
          (such investors and lenders, together with the lenders referred to in the next
          sentence, the “Additional Creditors”) the obligations under
          which (the “Additional Company Obligations”) will be guaranteed
          by one or more of the Subsidiary Guarantors (the “Additional Subsidiary
          Guaranties”). In addition, one or more Subsidiary Guarantors may become
          direct obligors to lenders which become party to this Agreement and therefore
          are Additional Creditors, and the obligations of such Subsidiary Guarantors to
          such lenders (the “Direct Subsidiary Obligations” and together
          with the Additional Company Obligations, the “Additional
          Obligations”) will be guaranteed by the Company and the other
          Subsidiary Guarantors. 

             F.       
          The Bank Obligation Guaranty, the Note Obligation Guaranty, any Additional
          Subsidiary Guaranty and any Direct Subsidiary Obligation are each hereinafter
          referred to as a “Subsidiary Guaranty.” The Credit Documents,
          the Note Purchase Agreement and any additional note purchase agreements and/or
          credit agreements with investors and/or lenders which become party to this
          Agreement are hereinafter referred to, collectively, as the “Senior Loan
          Documents.” 

             G.       
          The Company has secured all present and future obligations to the Senior
          Noteholders under the Senior Noteholder Notes and the Note Purchase Agreement
          (all such obligations, including, without limitation, principal, interest,
          Make-Whole Amounts, fees and indemnities, being referred to herein as the
          “Senior Noteholder Obligations”) and all present and future
          obligations to the Senior Lenders, including, without limitation, principal,
          interest, letter of credit obligations (including Contingent L/C Obligations),
          break-funding amounts, fees and indemnities (the “Senior Lender
          Obligations”) and may secure all Additional Obligations, pursuant to
          the terms of that certain Pledge Agreement dated as of the date hereof between
          the Company and the Collateral Agent (the “Pledge Agreement”)
          and any similar documents executed after the date hereof, as the same may be
          amended, supplemented or modified from time to time (the “Security
          Documents”). The Senior Noteholder Obligations, the Senior Lender
          Obligations and the Additional Obligations are collectively referred to as the
          “Obligations”). The Senior Noteholders, the Senior Lenders and
          the Additional Creditors are sometimes collectively referred to as the
          “Benefitted Parties” and individually referred to as a
          “Benefitted Party.” The Pledge Agreement grants to the
          Collateral Agent, for the ratable benefit of the Benefitted Parties, a valid,
          perfected and enforceable first priority lien on and a security interest in 65%
          of the equity securities of certain foreign subsidiaries of the Company
          (hereinafter all of such collateral, together with all rights to payment under
          any Subsidiary Guaranty, shall be referred to collectively as the
          “Collateral”). 

             H.       
          The Senior Noteholders, the Senior Lenders and the Additional Creditors wish to
          set forth their understandings and agreements regarding their respective rights
          and priorities with respect to amounts recovered through the exercise of any
          right of set off, payments received after a Triggering Event (as defined in
          Section 2(a), below) and proceeds of the Collateral. 

             I.       
          Capitalized terms used herein without being defined shall have the meanings set
          forth in the Note Purchase Agreement. 

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        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and the mutual covenants and promises set forth herein, each of the
parties to this Agreement agrees as follows: 

             1.    
          Sharing. 

             (a)       
          The liens of the Collateral Agent relating to the Collateral shall be held by
          the Collateral Agent for the benefit of the Benefitted Parties, and any proceeds
          realized in respect thereof shall be shared by the Benefitted Parties and
          distributed in accordance with the rights and priorities set forth in this
          Agreement. Any Collateral Proceeds, Triggering Event Balances, Triggering Event
          Payments or Setoff Proceeds (as such terms are defined in Section 2(b)) shall be
          shared by the Benefitted Parties and distributed in accordance with the rights
          and priorities set forth in this Agreement. As used herein, the term
          “Triggering Event” means (a) the occurrence and continuation of
          a Bankruptcy Proceeding (as defined below) with respect to the Company, any
          Subsidiary Guarantor or any Material Foreign Subsidiary, (b) the Collateral
          Agent’s receipt of a written notice that the unpaid principal amount of any
          of the Obligations has been declared to be then due and payable by the holder or
          holders thereof prior to the due date as a result of an event of default, or (c)
          any exercise of any right of setoff or banker’s lien by any Benefitted
          Party. As used herein, the term “Bankruptcy Proceeding” means,
          with respect to any Person, a general assignment of such Person for the benefit
          of its creditors, or the institution by or against such Person of any proceeding
          seeking relief as debtor, or seeking to adjudicate such Person as bankrupt or
          insolvent, or seeking reorganization, arrangement, adjustment or composition of
          such Person or its debts, under any law relating to bankruptcy, insolvency,
          reorganization or relief of debtors, or seeking appointment of a receiver,
          trustee, custodian or other similar official for such Person or for any
          substantial part of its property. 

             (b)       
          Notwithstanding anything to the contrary set forth herein, any Collateral
          Proceeds, Triggering Event Balances, Triggering Event Payments or Setoff
          Proceeds which are to be remitted to any Benefitted Party on account of
          Obligations which are Contingent L/C Obligations (as defined below) shall be
          remitted to the Collateral Agent to be held in a separate cash collateral
          account (the “L/C Account”) by the Collateral Agent and
          distributed by the Collateral Agent only in accordance with this Section 1(b).
          In the event, and upon the condition that, any Contingent L/C Obligation becomes
          an absolute obligation of the Company upon the honoring of a draw under any
          Letter of Credit (as defined below), upon receipt of written direction from the
          applicable Benefitted Party, the Collateral Agent shall withdraw from the L/C
          Account and shall pay over to the Benefitted Party (or issuing bank on behalf of
          such Benefitted Party) that honored such draw an amount equal to the Withdrawal
          Amount (as defined below) with respect to the amount of such draw together with
          interest on such Withdrawal Amount at the rate earned while on deposit in the
          L/C Account. In the event that the Collateral Agent receives written notice that
          any Contingent L/C Obligation lapses on account of the expiration or other
          termination of the applicable Letter of Credit, an amount equal to the
          Withdrawal Amount with respect to such lapsed Contingent L/C Obligation,
          together with interest on account of such amount at the rate earned while on
          deposit in the L/C Account, shall be released from the L/C Account and shall be
          distributed by the Collateral Agent to the Benefitted Parties in accordance with
          clause “third” of Section 2(c). As used herein
          “Withdrawal Amount” means the product of (a) the quotient of
          (i) the amount of a Contingent L/C Obligation which has then become an absolute
          obligation on account of a draw or the amount of a Contingent L/C Obligation
          which

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      has lapsed on account of the expiration or termination of the applicable
          Letter of Credit, as the case may be, over (ii) the total amount of all
          Contingent L/C Obligations, and (b) the total amount then deposited in the L/C
          Account. 

        As
used herein, the term “Contingent L/C Obligations” means any and all
contingent obligations of the Company to reimburse the issuers of Letters of Credit for
drawings under such Letters of Credit. 

        As
used herein, the term “Letter of Credit” means a letter of credit issued
by a Benefitted Party, or an issuing bank on behalf of a Benefitted Party, for the account
of the Company or any of the Subsidiary Guarantors pursuant to the Credit Documents or any
additional credit agreements with lenders which become party to this Agreement. 

          	2. 	  	
               Cash Collateral Account; Application of Proceeds 

               

          	(a) 	  	
               The Collateral Agent has established an interest-bearing demand deposit cash
               collateral account subject to the lien and security interest created by the
               Security Documents (the “Cash Collateral Account”) in the name
               of the Collateral Agent into which the proceeds, payments and amounts described
               in subsections (b)(i), (b)(ii), (b)(iii) and (b)(iv) below shall be deposited
               and from which only the Collateral Agent may effect withdrawals. Such amounts
               shall be held by the Collateral Agent in the Cash Collateral Account and shall
               be distributed from time to time by the Collateral Agent in accordance with
               Section 2(c) below. 

               

          	(b) 	  	
               The following proceeds, payments and amounts shall be deposited and held by the
               Collateral Agent in the Cash Collateral Account and shall be distributed from
               time to time by the Collateral Agent in accordance with Section 2(c) below: 

               

          	(i) 	  	
               any proceeds of any collection, recovery, receipt, appropriation, realization or
               sale of any or all of the Collateral or the enforcement of the Security
               Documents (the “Collateral Proceeds”) received by the
               Collateral Agent or any Benefitted Party; 

               

          	(ii) 	  	
               any amounts held in the Cash Collateral Account at the time a Triggering Event
               occurs (the “Triggering Event Balances”); 

               

          	(iii) 	  	
               any payments received or otherwise realized by any Benefitted Party in respect
               of any Obligations on or after the date on which a Triggering Event has occurred
               (the “Triggering Event Payments”); and 

               

          	(iv) 	  	
               any amounts received or recovered by any Benefitted Party through any exercise
               of any right of setoff or banker’s lien at any time on or after the
               occurrence of a Triggering Event (whether by law, contract or otherwise) (the
               “Setoff Proceeds”). 

               

          Each Benefitted Party agrees to deliver any Collateral Proceeds, any Triggering Event Balances, any Triggering Event Payments and
any Setoff Proceeds to the Collateral
Agent within two (2) Business Days after receipt (other than pursuant to subsection (c)
below) of such Collateral Proceeds, Triggering Event Balances, Triggering Event Payments
or Setoff Proceeds. 

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             (c)    
          The Collateral Agent shall distribute the proceeds described in subsections
          (b)(i), (b)(ii), (b)(iii) and (b)(iv) above which are held in the Cash
          Collateral Account to the Collateral Agent and the Benefitted Parties in
          accordance with the following priorities: 

	  	        first,
to the reasonable costs and expenses of the Collateral Agent incurred in connection with
the maintenance of the Cash Collateral Account and any collection, recovery, receipt,
appropriation, legal proceeding (whether by or against any such party), realization or
sale of any or all of the Collateral or the enforcement of the Security Documents; 

	  	        second,
after payment in full of all amounts set forth in item first, to the Benefitted
Parties in payment of any and all amounts owed to the Benefitted Parties for reimbursement
of amounts paid by them to the Collateral Agent in accordance with Section 4(g) pro
rata in proportion to such amounts owed to such Benefitted Parties; 

	  	        third,
after payment in full of all amounts set forth in item second, to the payment and
permanent reduction of the principal amount of the outstanding Obligations and the
Contingent L/C Obligations, pro rata, based on the proportion that the
principal amount of such outstanding Obligations and Contingent L/C Obligations held by
each Benefitted Party at such time bears to the sum of the principal amount of all such
Obligations and Contingent L/C Obligations; 

	  	        fourth,
after payment in full of all amounts set forth in item third, to the payment and
permanent reduction of the amount of the outstanding Obligations representing interest,
pro rata, based on the proportion that such outstanding Obligations representing interest
held by each Benefitted Party at such time bears to the sum of all such Obligations
representing interest; 

	  	        fifth,
after payment in full of all amounts set forth in item fourth, to the payment and
permanent reduction of all other outstanding Obligations not representing principal,
Contingent L/C Obligations or interest, pro rata, based on the proportion that such
outstanding Obligations not representing principal, Contingent L/C Obligations or interest
held by each Benefitted Party at such time bears to the sum of all such Obligations not
representing principal, Contingent L/C Obligations or interest; and 

	  	        sixth,
after payment in full of all amounts set forth in item fifth, to or at the
direction of the Company or as a court of competent jurisdiction may otherwise direct. 

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        The
Collateral Agent shall make such distributions promptly after the deposit of any
Collateral Proceeds, Triggering Event Balances, Triggering Event Payments or Setoff
Proceeds into the Cash Collateral Account. A Benefitted Party’s pro rata share of the
Obligations on any distribution date shall be determined by assuming that all Obligations
are denominated in U.S. Dollars based upon the quoted spot rate at which the Collateral
Agent’s principal office offers to exchange any applicable currency for U.S. Dollars
at 11:00 A.M. (local time at such principal office) on the Business Day preceding such
distribution date (the “Applicable Exchange Rate”). For any distribution,
the Collateral Agent shall exchange the relevant portion of such distribution into the
applicable currency and make each such distribution in the applicable currency. 

             3.    
          Payment of Obligations; Distributions Recovered. 

             (a)    
          The Company and each of the Subsidiary Guarantors agree that any amounts
          received by a Benefitted Party and delivered by such Benefitted Party to the
          Collateral Agent pursuant to the terms of this Agreement will not be deemed to
          be a payment in respect of any Obligations owing to such Benefitted Party until
          such Benefitted Party receives its pro rata share of such amount from the
          Collateral Agent and then only to the extent of the actual payment and receipt
          of such pro rata share. 

             (b)    
          Notwithstanding anything to the contrary contained in this Agreement, in each
          case in which any proceeds (or the value thereof) or payments are recovered as a
          preferential or otherwise voidable payment (whether by a trustee in bankruptcy
          or otherwise) from the party (the “Distributor”) which
          distributed those proceeds to another party or parties under this Agreement,
          each party (a “Distributee”) to whom any of those proceeds were
          ultimately distributed shall, upon the Distributor’s notice of the recovery
          to the Distributee, return to the Distributor an amount equal to the
          Distributee’s ratable share of the amount recovered, together with a
          ratable share of interest thereon to the extent the Distributor is required to
          pay interest thereon computed on the amount to be returned from the date of the
          recovery. For purposes of this Agreement, “proceeds” means any
          payment (whether made voluntarily or involuntary) from any source, including,
          without limitation, any offset of any deposit or other indebtedness, any
          security (including, without limitation, any guaranty or any collateral) or
          otherwise. 

             4.    
          The Collateral Agent. 

             (a)    
          By execution and delivery hereof, each Benefitted Party hereby appoints State
          Street Bank and Trust Company of California, N.A. as Collateral Agent and its
          representative hereunder and under the Security Documents and authorizes the
          Collateral Agent to act as such hereunder and thereunder on behalf of each such
          Benefitted Party. The Collateral Agent agrees to act as such upon the express
          conditions contained in this Agreement. In performing its functions and duties
          under this Agreement and the Security Documents, the Collateral Agent shall act
          solely as agent of the Benefitted Parties to the extent, but only to the extent,
          provided in this Agreement and does not assume, and shall not be deemed to have
          assumed, any obligation towards or relationship of agency, fiduciary or trust
          with or for any other Person, other than as set forth in the Security Documents. 

             (b)    
          The Collateral Agent shall take any action with respect to the Collateral and/or
          the Security Documents only as directed in accordance with Section 5(a) hereof;
          provided that the  

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     Collateral Agent shall not be obligated to follow any
          directions given in accordance with Section 5(a) hereof to the extent that the
          Collateral Agent has received advice from its counsel to the effect that such
          directions are in conflict with any provisions of law, this Agreement, the
          Security Documents or any order of any court or administrative agency;
          provided further that the Collateral Agent shall not, under any
          circumstances, be liable to any Benefitted Party or any other person for
          following the written directions received in accordance with Section 5(a)
          hereof. Any directions given pursuant to Section 5(a) hereof may be withdrawn or
          modified by the party or parties who originally gave such directions by
          delivering written notice of withdrawal or modification to the Collateral Agent
          prior to the time when the Collateral Agent takes any action pursuant to such
          directions. 

             (c)    
          Each Benefitted Party authorizes the Collateral Agent to take such action on
          such Benefitted Party’s behalf and to exercise such powers hereunder as are
          specifically delegated to the Collateral Agent by the terms hereof and of the
          Security Documents, together with such powers as are reasonably incidental
          thereto. The Collateral Agent shall have only those duties and responsibilities
          that are expressly specified in this Agreement and the Security Documents, and
          it may perform such duties by or through its agents or employees. Nothing in
          this Agreement or the Security Documents, express or implied, is intended to or
          shall be construed as imposing upon the Collateral Agent any obligations in
          respect of this Agreement or such Security Documents except as expressly set
          forth herein. 

             (d)    
          The Collateral Agent shall not be responsible to any Benefitted Party for the
          execution, effectiveness, genuineness, validity, perfection, enforceability,
          collectibility, value or sufficiency of the Collateral or the Security Documents
          or for any representations, warranties, recitals or statements made in any
          document executed in connection with the Obligations or made in any written or
          oral statement or in any financial or other statements, instruments, reports,
          certificates or any other documents in connection herewith or therewith
          furnished or made by or on behalf of the Company and its subsidiaries to any
          Benefitted Party or be required to ascertain or inquire as to the performance or
          observance by the Company or any of its subsidiaries or any other pledgor or
          guarantor of any of the terms, conditions, provisions, covenants or agreements
          contained in any document executed in connection with the Obligations or of the
          existence or possible existence of any Triggering Event. 

             (e)    
          The Collateral Agent shall not be liable to any Benefitted Party for any action
          taken or omitted hereunder or under the Security Documents or in connection
          herewith or therewith except to the extent caused by the Collateral Agent’s
          gross negligence or willful misconduct. The Collateral Agent shall be entitled
          to rely, and shall be fully protected in relying, upon any written statement,
          instrument or document believed by it to be genuine and correct and to have been
          signed or sent by the proper person or persons and, except as otherwise
          specifically provided in this Agreement, shall be entitled to rely upon the
          written direction of the Required Creditors (as defined in Section 5(a))
          certifying that the persons signing such direction constitute the “Required
          Creditors,” and shall be entitled to rely and shall be fully protected in
          relying on opinions and judgments of counsel, accountants, experts and other
          professional advisors selected by it in good faith and with due care. The
          Collateral Agent shall be entitled to refrain from exercising any power,
          discretion or authority vested in it under this Agreement or the Security
          Documents unless and until it has obtained the directions in accordance with
          Section 5(a) hereof with respect to the matters covered thereby. The Collateral
          Agent shall be entitled to request  

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     from each Benefitted Party a certificate
          setting out the amount of the respective Obligations held by it (including,
          without limitation, amounts representing principal, Contingent L/C Obligations
          or interest of such Obligations for purposes of calculating distributions
          pursuant to Section 2(c)). 

             (f)    
          Each Benefitted Party agrees not to take any action whatsoever to enforce any
          term or provision of the Security Documents or to enforce any of its rights in
          respect of the Collateral, in each case except through the Collateral Agent
          acting in accordance with this Agreement. 

             (g)    
          The Company and each of its subsidiaries which is party to this Agreement, by
          its execution of the signature page of this Agreement, agrees to pay and save
          the Collateral Agent harmless from liability for payment of all costs and
          expenses of the Collateral Agent in connection with this Agreement and the
          Security Documents, other than liabilities, costs and expenses resulting from
          the Collateral Agent’s gross negligence or willful misconduct. Each
          Benefitted Party severally agrees to indemnify the Collateral Agent, pro
          rata (to the extent set forth in the penultimate sentence of this Section
          4(g)), to the extent the Collateral Agent shall not have been reimbursed by or
          on behalf of the Company or from proceeds of the Collateral or otherwise, from
          and against any and all liabilities, obligations, losses, damages, penalties,
          actions, judgments, suits, costs, reasonable expenses (including, without
          limitation, reasonable counsel fees and disbursements) or disbursements of any
          kind or nature whatsoever which may be imposed on, incurred by or asserted
          against the Collateral Agent in performing its duties hereunder or under the
          Security Documents in its capacity as the Collateral Agent in any way relating
          to or arising out of this Agreement, the Security Documents and/or the
          Collateral; provided that no Benefitted Party shall be liable for any
          portion of such liabilities, obligations, losses, damages, penalties, actions,
          judgments, suits, costs, expenses or disbursements resulting from the Collateral
          Agent’s gross negligence, willful misconduct or breach of the express terms
          of this Agreement. For purposes of this Section 4(g), any pro rata
          calculation shall be on the basis of the outstanding principal amount of the
          Obligations (determined by assuming that all Obligations are denominated in U.S.
          Dollars based upon the Applicable Exchange Rate) held by or for each Benefitted
          Party at the time of the act, omission or transaction giving rise to the
          reimbursement or indemnity required by this Section 4(g). The provisions of this
          Section 4(g) shall survive the payment in full of all the Obligations and the
          termination of this Agreement and all other documents executed in connection
          with the Obligations. 

             (h)    
          The Collateral Agent may resign at any time by giving sixty (60) days’
          prior written notice thereof to the Benefitted Parties and the Company, subject
          to the acceptance of its appointment by a successor Collateral Agent
          simultaneously with or prior to any resignation of the Collateral Agent. Upon
          any such notice of resignation, the Required Creditors (as defined in Section
          5(a) below) shall have the right to appoint a successor Collateral Agent. The
          Collateral Agent may be removed at any time with or without cause, by an
          instrument in writing delivered to the Collateral Agent, the Company and the
          other Benefitted Parties by the Required Creditors (as defined in Section 5(a)
          below). Upon the acceptance of any appointment as Collateral Agent hereunder by
          a successor Collateral Agent, such successor Collateral Agent shall thereupon
          succeed to and become vested with all the rights, powers, privileges and duties
          of the retiring or removed Collateral Agent, and the retiring or removed
          Collateral Agent shall be discharged from its duties and obligations under this
          Agreement and the Security Documents; provided, however, that the
          retiring or removed Collateral Agent will continue to remain liable for all acts
          of, or the omission to act by, such retiring or removed Collateral Agent which
          occurred prior to such  

 -8-

     retirement or removal. If no successor Collateral Agent
          shall have been so appointed and shall have accepted such appointment within
          forty-five (45) days after the retiring Collateral Agent’s giving of notice
          of resignation, then, upon five days’ prior written notice to the Company
          and the Benefitted Parties, the retiring Collateral Agent may, on behalf of the
          Benefitted Parties, appoint a successor Collateral Agent, which shall be a bank
          or trust company organized under the laws of the United States or any state
          thereof (or under the laws of a foreign country and having a branch or agency
          located in the United States) having a combined capital and surplus of at least
          $500,000,000, and the short term unsecured debt obligations of which are rated
          at least P-1 by Moody’s Investors Service or A-1 by Standard &
          Poor’s, or any affiliate of such bank. After any retiring or removed
          Collateral Agent’s resignation or removal hereunder as Collateral Agent,
          the provisions of this Agreement shall inure to its benefit as to any actions
          taken or omitted to be taken by it while it was the Collateral Agent under this
          Agreement and the Security Documents. 

             (i)    
          Except as expressly set forth herein, the Collateral Agent and each of its
          affiliates may accept deposits from, lend money to and generally engage in any
          kind of banking, trust, financial advisory or other business with the Company or
          any affiliate thereof, and may accept fees and other consideration from the
          Company or any affiliate thereof for services in connection with this Agreement
          and otherwise without having to account for the same to any Benefitted Party. 

             (j)    
          The Collateral Agent shall not be liable for or by reason of (i) any failure or
          defect in the registration, filing or recording of any of the Security
          Documents, or any notice, caveat or financing statement with respect to the
          foregoing, or (ii) any failure to do any act necessary to constitute, perfect
          and maintain the priority of the security interest created by the Security
          Documents. 

             (k)    
          Notwithstanding anything to the contrary contained in this Agreement or any
          document executed in connection with any of the Obligations, the Collateral
          Agent, unless it shall have actual knowledge thereof, shall not be deemed to
          have any knowledge of any Triggering Event unless and until it shall have
          received written notice from the Company or any Benefitted Party describing such
          Triggering Event in reasonable detail (including, to the extent known, the date
          of occurrence of the same). 

             (l)    
          Upon receipt by the Collateral Agent of any direction by the Required Creditors,
          all of the Benefitted Parties will be bound by such direction. 

             5.    
          Relating to Defaults and Remedies. 

             (a)    
          The Required Creditors may, after any Triggering Event (other than an
          Involuntary Proceeding) has occurred (or upon the occurrence and continuation of
          an Involuntary Proceeding for at least 60 consecutive days) and by giving the
          Collateral Agent written notice of such election, instruct and cause the
          Collateral Agent to exercise its rights and remedies under the Security
          Documents. The Collateral Agent shall follow the instructions of the Required
          Creditors with respect to the enforcement action to be taken. For purposes of
          this Agreement, the term “Required Creditors” shall mean the
          Benefitted Parties holding, in the aggregate, more than 50% of the sum of (a)
          the face amount of any commitments for undrawn Letters of Credit plus (b)
          the outstanding funded principal amount of the Obligations (such amounts to be
          determined by assuming that all such commitments and Obligations are denominated
          in U.S.  

 -9-

      Dollars based upon the Applicable Exchange Rate). For purposes of the
          foregoing definitions, any Benefitted Party that has purchased a participation
          in the Obligations owing to another Benefitted Party shall be deemed to be the
          holder of the amount of such Obligations which are the subject of such
          participation. 

             (b)    
          Notwithstanding anything to the contrary contained in this Agreement, the
          Collateral Agent shall not commence or otherwise take any action or proceeding
          to enforce any Collateral Document or to realize upon any or all of the
          Collateral unless and until the Collateral Agent has received instructions in
          accordance with Section 5(a) above. Upon receipt by the Collateral Agent of any
          such instructions, the Collateral Agent shall seek to enforce the Security
          Documents and to realize upon the Collateral in accordance with such
          instructions; provided that the Collateral Agent shall not be obligated
          to follow any such directions as to which the Collateral Agent has received a
          written opinion of its counsel to the effect that such directions are in
          conflict with any provisions of law, this Agreement, the Security Documents or
          any order of any court or administrative agency, and the Collateral Agent shall
          not, under any circumstances, be liable to any Benefitted Party or any other
          Person for following the written directions received in accordance with Section
          5(a) above. 

             (c)    
          The duties and responsibilities of the Collateral Agent hereunder shall consist
          of and be limited to (i) selling, releasing, surrendering, realizing upon or
          otherwise dealing with, in any manner and in any order, all or any portion of
          the Collateral, (ii) exercising or refraining from exercising any rights,
          remedies or powers of the Collateral Agent under this Agreement or the Security
          Documents or under applicable law in respect of all or any portion of the
          Collateral, (iii) making any demands or giving any notices under the Security
          Documents, (iv) effecting amendments to and granting waivers under the Security
          Documents in accordance with the terms hereof, and (v) maintaining the Cash
          Collateral Account under its exclusive dominion and control for the benefit of
          the Benefitted Parties and making deposits therein and withdrawals therefrom as
          necessary to effect the provisions of this Agreement. 

             (d)    
          In the event that the Collateral Agent proceeds to foreclose upon, collect, sell
          or otherwise dispose of or take any other action with respect to any or all of
          the Collateral or to enforce any provisions of the Security Documents or takes
          any other action pursuant to this Agreement or any provision of the Security
          Documents or requests directions from the Required Creditors as provided herein,
          upon the request of the Collateral Agent or any Benefitted Party, each of the
          Benefitted Parties agrees that such Benefitted Party (or any agent of or
          representative for such Benefitted Party) shall promptly notify the Collateral
          Agent in writing, as of any time that the Collateral Agent may specify in such
          request, (i) of the aggregate amount of the respective Obligations then owing to
          such Benefitted Party as of such date and (ii) such other information as the
          Collateral Agent may reasonably request. 

             (e)    
          Promptly after the Collateral Agent receives written notice of the occurrence of
          any Triggering Event pursuant to Section 2(a), it shall promptly send copies of
          such notice to each of the Benefitted Parties. 

             (f)    
          The Collateral Agent shall not be obliged to expend its own funds in performing
          its obligations under this Agreement and shall be entitled to require that the
          Benefitted Parties provide it with sufficient funds prior to taking any action
          required under this Agreement. 

 -10-

             6.       
          Third Party Beneficiaries. This Agreement is solely for the benefit of
          the parties hereto and their respective successors and assigns, and neither the
          Company nor any other person or entity, including, without limitation, any
          guarantor of the obligations of the Company, are intended to be third party
          beneficiaries hereunder or to have any right, benefit, priority or interest
          under, or shall have any right to enforce this Agreement. 

             7.    
          Relation of Creditors. This Agreement is entered into solely for the
          purposes set forth herein, and no Benefitted Party assumes any responsibility to
          any other party hereto to advise such other party of information known to such
          other party regarding the financial condition of the Company or any of its
          subsidiaries or of any other circumstances bearing upon the risk of nonpayment
          of any Obligation. Each Benefitted Party specifically acknowledges and agrees
          that nothing contained in this Agreement is or is intended to be for the benefit
          of the Company or any of its subsidiaries and nothing contained herein shall
          limit or in any way modify any of the obligations of the Company or any
          Subsidiary Guarantor to the Benefitted Parties. 

             8.    
          Acknowledgment of Guaranties. Each party expressly acknowledges the
          existence and validity of the Note Obligation Guaranty and the Bank Obligation
          Guaranty, agrees not to contest or challenge the validity of the Note Obligation
          Guaranty or the Bank Obligation Guaranty and agrees that the judicial or other
          determination of the invalidity of the Note Obligation Guaranty or the Bank
          Obligation Guaranty shall not affect the provisions of this Agreement. 

             9.    
          Notice of Certain Events. Each Benefitted Party agrees that upon the
          occurrence of a Triggering Event, it shall promptly notify the Collateral Agent
          of the occurrence of such Triggering Event. In addition, each Benefitted Party
          agrees to provide to the Collateral Agent the amount and currency of its
          Obligations at such reasonable times as may be necessary to determine such
          Benefitted Party’s pro rata share of the outstanding principal amount of
          the Obligations. 

             10.    
          Miscellaneous. 

             (a)    
          Notices. All notices and other communications provided for herein,
          (including, without limitation, any modifications of, or waivers or consents
          under this Agreement) shall be sent (i) by telecopy if the sender on the same
          day sends a confirming copy of such notice by a recognized overnight delivery
          service (charges prepaid), or (ii) by registered or certified mail with return
          receipt requested (postage prepaid), or (iii) by a recognized overnight delivery
          service (with charges prepaid) to the intended recipient at the address for
          notices specified beneath the signature of such party hereto; or as to any party
          at such other address as shall be designated by such party in a notice to each
          other party. Except as otherwise provided in this Agreement, all such
          communication shall be deemed to have been duly given when actually received. 

             (b)    
          Amendments, Waivers, Consents. All amendments, waivers or consents of any
          provision of this Agreement shall be effective only if the same shall be in
          writing and signed by all of the Benefitted Parties. 

 -11-

             (c)    
          Releases of Collateral. The parties hereto agree that the Collateral
          Agent shall release all or any portion of the Collateral (other than in
          connection with the exercise of its rights and remedies pursuant to Section 5)
          only upon the receipt by the Collateral Agent of (i) a written approval from the
          Required Creditors, or (ii) so long as no event of default exists under any
          Senior Loan Document and releasing such Collateral is not prohibited by any
          Senior Loan Document, an Officers’ Certificates of the Company and any
          applicable Subsidiary Guarantor, which shall be true and correct, (x) stating
          that the Collateral subject to such disposition is being sold, transferred or
          otherwise disposed of in compliance with the terms of each of the Senior Loan
          Documents, and (y) specifying the Collateral being sold, transferred or
          otherwise disposed of in the proposed transaction. Upon the receipt of such
          written approval or Officers’ Certificates (so long as the Collateral Agent
          has no reason to believe that the Officers’ Certificates delivered with
          respect to such disposition are not true and correct), the Collateral Agent
          shall, at the Company’s expense, execute and deliver such releases of its
          security interest in such Collateral to be released, and provide a copy of such
          releases to each of the Benefitted Parties. In connection therewith, the
          Benefitted Parties hereby irrevocably authorize the Collateral Agent from time
          to time to release such Collateral or consent to such release in accordance with
          the terms of this Agreement. Notwithstanding anything provided herein to the
          contrary, no release of security shall in any way affect the guaranties by the
          Material Domestic Subsidiaries of the Obligations, which guaranties shall
          continue to remain in full force and effect after any such release. 

        Upon
the receipt of such Officers’ Certificate, Secured Party shall, at such
Pledgor’s expense, execute and deliver such releases of its security interest in such
Collateral which is to be so sold, transferred or disposed of, as may be reasonably
requested by such Pledgor. 

             (d)    
          Successors and Assigns. This Agreement shall be binding upon and inure to
          the benefit of the parties hereto and their respective successors and assigns.
          At the time of any assignment of all or any portion of the Senior Noteholder
          Obligations by a Senior Noteholder or of all or any portion of the Senior Lender
          Obligations by a Senior Lender or of all or any portion of the Additional
          Obligations by any Additional Creditor, such assigning Senior Noteholder, Senior
          Lender or Additional Creditor, as the case may be, shall cause its assignee
          (each an “Additional Benefitted Party”) to execute a
          Counterpart Collateral Agency and Intercreditor Agreement substantially in the
          form attached hereto as Exhibit A (a “Counterpart”) and
          become a party to this Agreement. 

             (e)    
          Additional Creditors. Upon the execution of a Counterpart by any
          Additional Creditors (either directly or through their agents) and delivery of
          such Counterpart to the other parties hereto, such entity or entities shall be
          as fully a party to this Agreement as a Benefitted Party as if such entity or
          entities were an original signatory hereof without any action required to be
          taken by any other party hereto, provided that each such entity or entities
          shall execute this Agreement simultaneously with the Subsidiary Guarantors’
          execution and delivery to it or them of a Subsidiary Guaranty. Each other party
          to this Agreement expressly agrees that its rights and obligations arising
          hereunder shall continue after giving effect to the addition of such Additional
          Creditors as parties to this Agreement. 

 -13-

             (f)    
          Captions. The captions and Section headings appearing herein are included
          solely for convenience of reference and are not intended to affect the
          interpretation of any provision of this Agreement. 

             (g)    
          Conflicts. In the event of a conflict between the terms of this Agreement
          and the terms of any of the Security Documents, the terms of this Agreement
          shall control. 

             (h)    
          Counterparts. This Agreement may be executed in any number of
          counterparts, all of which taken together will constitute one and the same
          instrument and any of the parties hereto may execute this Agreement by signing
          any such counterpart. 

             (i)    
          GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
          ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
          AND PERFORMED IN THE STATE OF NEW YORK. 

             (j)    
          Merger. This Agreement and the Security Documents supersede all prior
          agreements, written or oral, among the parties with respect to the subject
          matter of such agreements. 

             (k)    
          Independent Investigation. None of the Collateral Agent or any of the
          Benefitted Parties, nor any of their respective directors, officers, agents or
          employees, shall be responsible to any of the others for the solvency or
          financial condition of the Company or the ability of the Company to repay any of
          the Obligations, or for the value, sufficiency, existence or ownership of any of
          the Collateral, or the statements of the Company, oral or written, or for the
          validity, sufficiency or enforceability of any of the Obligations or any
          document or agreement executed or delivered in connection with or pursuant to
          any of the foregoing. Each Benefitted Party has entered into its respective
          financial agreements with the Company based upon its own independent
          investigation, and makes no warranty or representation to the other, nor does it
          rely upon any representation by any of the others, with respect to the matters
          identified or referred to in this Section. 

             (l)    
          Severability. In case any one or more of the provisions contained in this
          Agreement shall be invalid, illegal or unenforceable in any respect, the
          validity, legality and enforceability of the remaining provisions of this
          Agreement shall not in any way be affected or impaired thereby. 

             (m)    
          Effect of Bankruptcy or Insolvency. This Agreement shall continue in
          effect notwithstanding the bankruptcy or insolvency of any party hereto or the
          Company or any of its Subsidiaries. 

[Remainder of page
intentionally left blank] 

 -13-

        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
set forth above. 

STATE
STREET BANK AND TRUST COMPANY OF CALIFORNIA, N.A., 

         as
Collateral Agent

By:      /s/ /s/Stephen Rivero

Name:  Stephen Rivero

Title:  Vice President

Address
for Notices:

	  	
State Street Bank and Trust

Company of California, N.A.

633 West 5th Street, 12th Floor 

Los Angeles, California 90071

Attention:     Corporate Trust Department

Facsimile:     (213) 362-7357 

 -S-1-

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, 

as Senior Noteholder

                                                                           By: 

                                                                                Name:

                                                                                Title:

Address
for Notices: 

	  	
The
Prudential Insurance Company of America

 c/o Prudential Capital Group – Corporate Finance

 Four Embarcadero Center, Suite 2700

 San Francisco, California 94111 

Attention:    Managing Director

 Facsimile:     (415) 421-6233 

 -S-2-

ABN AMRO BANK N.V., 

as Senior Lender 

                                                                           By:

                                                                                Name:

                                                                                Title:

                                                                           By: 

                                                                                Name:

                                                                                Title:

Address
for Notices:

ABN
AMRO Bank N.V. 

208 South LaSalle Street, Suite 1500

Chicago, IL 60604-1003

Attention:     Credit Administration

Facsimile:     (312) 992-5111

with
a copy to: 

ABN
AMRO Bank N.V. 

101 California Street, Suite 4550

San Francisco, CA 94111-5812

Attention:    Gina Brusatori

Facsimile:    (415) 362-3524

 -S-3-

EACH OF THE UNDERSIGNED HEREBY
ACKNOWLEDGES AND CONSENTS TO THE FOREGOING, INCLUDING, WITHOUT LIMITATION, SECTION 3. EACH
OF THE UNDERSIGNED HEREBY CONSENTS TO THE RELEASE BY THE COLLATERAL AGENT TO THE
BENEFITTED PARTIES OF ANY INFORMATION PROVIDED TO OR OBTAINED BY THE COLLATERAL AGENT
UNDER OR IN CONNECTION WITH THE SECURITY DOCUMENTS. EACH OF THE UNDERSIGNED HEREBY
COVENANTS TO PAY TO THE COLLATERAL AGENT FROM TIME TO TIME REASONABLE REMUNERATION FOR ITS
SERVICES HEREUNDER AND WILL PAY OR REIMBURSE THE COLLATERAL AGENT UPON ITS REQUEST FOR ALL
REASONABLE EXPENSES, DISBURSEMENTS AND ADVANCES INCURRED OR MADE BY THE COLLATERAL AGENT
IN THE ADMINISTRATION OR EXECUTION OF THE COLLATERAL AGENCY HEREBY CREATED (INCLUDING THE
REASONABLE COMPENSATION AND THE DISBURSEMENTS OF ITS COUNSEL AND ALL OTHER ADVISERS AND
ASSISTANTS NOT REGULARLY IN ITS EMPLOY) BOTH BEFORE ANY DEFAULT HEREUNDER AND THEREAFTER
UNTIL ALL DUTIES OF THE COLLATERAL AGENT HEREUNDER SHALL BE FINALLY AND FULLY PERFORMED
EXCEPT ANY SUCH EXPENSE, DISBURSEMENT OR ADVANCE AS MAY ARISE OUT OF OR RESULT FROM THE
COLLATERAL AGENT’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. THE UNDERSIGNED HEREBY
AGREES TO PROVIDE TO EACH OF THE BENEFITTED PARTIES TRUE AND CORRECT COPIES OF ALL
NOTICES, CERTIFICATES, SCHEDULES AND OTHER INFORMATION PROVIDED TO THE COLLATERAL AGENT
PURSUANT TO THIS AGREEMENT AND THE SECURITY DOCUMENTS. 

NU SKIN ENTERPRISES, INC. 

By:          /s/ Corey B. Lindley

     Name:      Corey B. Lindley

     Title:        Executive Vice President and

                Chief Financial Officer

NU SKIN INTERNATIONAL,
INC.
NU SKIN HONG KONG, INC.
NU SKIN TAIWAN, INC.
NU SKIN UNITED STATES, INC.

By:      /s/ Corey B. Lindley 

     Name:  Corey B. Lindley

     Title:    Vice President

Address for Notices:

 One
Nu Skin Plaza 

75
West Center Street

Provo, Utah 84601

Attention: General Counsel

Facsimile:(801) 345-6099 

 -S-4-

EXHIBIT A 

Counterpart Collateral
Agency and Intercreditor Agreement 

        IN
WITNESS WHEREOF, the undersigned has caused this Counterpart Collateral Agency and
Intercreditor Agreement, dated as of ________, 20__ (this “Counterpart”), to be
duly executed and delivered by its duly authorized officer. Upon execution and delivery of
this Counterpart to Collateral Agent, the undersigned shall be an Additional Benefitted
Party under the Collateral Agency and Intercreditor Agreement [and shall be as fully a
party to the Collateral Agency and Intercreditor Agreement as if such Additional
Benefitted Party were an original signatory to the Collateral Agency and Intercreditor
Agreement]. 

[Name
of Additional Benefitted Party]  

                                                                              By: 

                                                                                   Name:

                                                                                   Title:

 
-A-1-Exhibit 10.28 to NSE 2005 FORM 10-K Second Amended and Restated NSE 1996 Stock Incentive Plan

SECOND 

AMENDED AND RESTATED 

NU SKIN ENTERPRISES,
INC. 

1996 STOCK INCENTIVE PLAN 

1.         PURPOSE 

        1.1        
The purpose of the Second Amended and Restated Nu Skin Enterprises, Inc. 1996 Stock
Incentive Plan (the “Plan”) is to provide incentives to specified individuals
whose performance, contributions and skills add to the value of Nu Skin Enterprises, Inc.
(the “Company”) and its affiliated companies. The Company also believes that the
Plan will facilitate attracting, retaining and motivating employees, directors and
consultants of high caliber and potential. This Second Amended and Restated Nu Skin
Enterprises, Inc. 1996 Stock Incentive Plan amends and restates the Amended and Restated
Nu Skin Asia Pacific, Inc. 1996 Stock Incentive Plan dated December 9, 1996 and includes
amendments previously adopted by the Board of Directors on February 11, 1999. 

        1.2        
Plan participants shall include those officers, directors, employees and consultants of
the Company and subsidiaries who, in the opinion of the Committee, are making or are in a
position to make substantial contributions to the Company by their ability and efforts. 

2.         DEFINITIONS 

        2.1        
For purposes of the Plan, the following terms shall have the following meanings, unless
the context clearly indicates to the contrary. 

                     (a)       
          “Award” means a grant of Restricted Stock, Contingent Stock, an
          Option, or an SAR. 

                     (b)       
          “Award Agreement” means the agreement approved by the Committee
          evidencing an Award to a Grantee. 

                     (c)       
          “Board” means the Company’s Board of Directors. 

                     (d)       
          “Code” means the Internal Revenue Code of 1986, as amended. 

-1- 

                     (e)       
          “Committee” means the members of the Board until the Compensation
          Committee of the Board is appointed, and after the Compensation Committee is
          appointed means the members of the Compensation Committee of the Board, who are
          “outside directors” (within the meaning of Section 162(m) of the Code
          and any regulations or rulings promulgated thereunder) to the extent required
          for purposes of compliance with such Code Section, and “disinterested
          persons” (within the meaning of Rule 16b-3 of the Exchange Act), to the
          extent required for compliance with such Rule. 

                     (f)       
          “Company” means Nu Skin Enterprises, Inc. 

                     (g)       
          “Consultant” means any individual who provides services to the Company
          as an independent contractor and not as an Employee or Director. 

                     (h)       
          “Contingent Stock” means stock which will be issued to a Grantee upon
          the attainment of certain conditions pursuant to Section 9 hereof. 

                     (i)       
          “Director(s)” means a member or the members of the Board. 

                     (j)       
          “Employee” means any individual who is an employee of the Company, a
          Parent or Subsidiary. 

                     (k)       
          “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

                     (l)       
          “Fair Market Value” of a Share means on, or with respect to, any given
          date: 

                             (i)       
          If the Shares are listed on a national stock exchange, the closing market price
          of such Shares as reported on the composite tape for issues listed on such
          exchange on such date or, if no trade shall have been reported for such date, on
          the next preceding date on which there were trades reported; provided, that if
          no such quotation shall have been made within the ten business days preceding
          such date, Fair Market Value shall be determined under (iii) below. 

                             (ii)       
          If the Shares are not listed on a national stock exchange but are traded on the
          over-the-counter market, the mean between the closing dealer bid and asked price
          of such Shares as reported by the National Association of Securities Dealers
          through their Automated Quotation System for such date, or if no quotations
          shall have been made on such date, on the next preceding date on which there
          were quotations; provided, that, if such quotations shall have been made within
          the ten business days preceding such date, Fair Market Value shall be determined
          under (iii) below. 

-2- 

                             (iii)       
          If (i) and (ii) do not apply, the Fair Market Value of a Share shall be
          determined without regard to any control premium or discount for lack of control
          (except as otherwise required by Section 422 of the Code) by the Committee in
          good faith consistent with the valuation of the Company as provided by a third
          party appraiser for other corporate purposes before adjustments or any discounts
          applied due to lack of marketability. The Committee may rely upon the most
          recent valuation (if it is based on a date within 3 months of the valuation
          date) and there shall be no requirement to cause a more recent valuation to be
          made (except as may be required for purposes of Section 422 of the Code). If no
          such valuation exists, the Committee may engage a third party appraiser to
          prepare the valuation. 

                     (m)       
          “Grantee” means an Employee, Director of the Company, a Parent or any
          Subsidiary or Consultant who has received an Award. 

                     (n)       
          “Incentive Stock Option” shall have the same meaning as given to the
          term by Section 422 of the Code and any regulations or rulings promulgated
          thereunder. 

                     (o)       
          “Non-qualified Stock Option” means any Option granted pursuant to
          Section 7 which when awarded by the Committee was not intended to be, or does
          not qualify as, an Incentive Stock Option. 

                     (p)       
          “Option” means the right to purchase from the Company a stated number
          of Shares at a specified Option Price. The Option may be granted to an Employee,
          Director or Consultant subject to the terms of this Plan, and such other
          conditions and restrictions as the Committee deems appropriate. Each Option
          shall be designated by the Committee to be either an Incentive Stock Option or a
          Non-qualified Stock Option. Only Employees may be granted Incentive Stock
          Options. 

                     (q)       
          “Option Agreement” means the Award Agreement pursuant to which an
          Option is granted under Section 7. 

                     (r)       
          “Option Price” means the purchase price per Share under an Option, as
          described in Section 7. 

                     (s)       
          “Parent” means any corporation (other than the Company) in an unbroken
          chain of corporations ending with the Company if, at the time of the granting of
          an Option, each of the corporations (other than the Company) owns stock
          possessing 50% or more of the total combined voting power of all classes of
          stock in one of the other corporations in such chain within the meaning of
          Section 424(e) of the Code and any regulations or rulings promulgated
          thereunder. 

                     (t)       
          “Plan” means Amended and Restated Nu Skin Asia Pacific, Inc. 1996
          Stock Incentive Plan, as evidenced herein and as amended from time to time. 

-3- 

                     (u)       
          “Restricted Stock” means Shares issued, subject to restrictions, to a
          Grantee pursuant to Section 10. 

                     (v)       
          “SAR” means a stock appreciation right which provides a Grantee a
          potential right to a payment based on the appreciation in the fair market value
          of a Share granted pursuant to Section 8. 

                     (w)       
          “SEC” means the U.S. Securities and Exchange Commission. 

                     (x)       
          “Section 16 Person” means a person who is an “insider”
          within the meaning of Section 16(b) of the Exchange Act with respect to
          transactions involving equity securities of the Company, including the Shares. 

                     (y)       
          “Share” means one share of the Company’s Class A common stock,
          $.001 par value. 

                     (z)       
          “Subsidiary” means any corporation in an unbroken chain of
          corporations beginning with the Company if, at the time of the granting of the
          Option, each of the corporations (other than the last corporation) in the
          unbroken chain owns stock possessing 50% or more of the total combined voting
          power of all classes of stock in one of the other corporations in such chain,
          within the meaning of Section 424(f) of the Code and any regulations or rulings
          promulgated thereunder. 

3.         ADMINISTRATION 

             3.1                The Plan shall be administered by the Committee.  The Committee shall have full and final authority in its discretion to: 

                     (a)       
          conclusively interpret the provisions of the Plan and to decide all questions of
          fact arising in its application; 

                     (b)       
          determine the individuals to whom Awards shall be made under the Plan; 

                     (c)       
          determine the type of Award to be made to such individuals and the amount, size
          and terms of each Award; 

                     (d)       
          determine the time when Awards will be granted to such individuals; and 

                     (e)       
          make all other determinations necessary or advisable for the administration of
          the Plan. 

-4- 

4.         SHARES SUBJECT TO THE
PLAN 

              4.1                 The Shares subject to Awards under the Plan shall not exceed in the aggregate 8,000,000 Shares. 

              4.2                 Shares may be authorized and unissued Shares or treasury Shares. 

        4.3        
Except as provided herein, any Shares subject to an Award, which Award for any reason
expires or is terminated unexercised as to such Shares shall again be available under the
Plan. 

5.         PARTICIPANTS 

        5.1        
Awards permitted pursuant to this Plan which are Incentive Stock Options may only be made
to Employees (including Directors who are also Employees). All other Awards permitted
pursuant to the Plan may only be made to Employees, Directors or Consultants. 

6.         AWARDS UNDER THE PLAN 

        6.1        
Awards under the Plan may be in the form of Options (both Non-qualified Stock Options and
Incentive Stock Options), Contingent Stock, Restricted Stock, and SARs and any combination
of the above. 

        6.2        
The maximum number of Awards that may be awarded to any one Employee, Director or
Consultant during the life of the Plan shall be 10% of the total Shares reserved for
issuance under the Plan. 

7.         STOCK OPTIONS 

        7.1        
The Committee in its sole discretion shall designate whether an Option is to be an
Incentive Stock Option or a Non-qualified Stock Option. The Committee may grant both
Incentive Stock Options and Non-qualified Stock Options to the same individual. However,
where both an Incentive Stock Option and a Non-qualified Stock Option are awarded at one
time, such Options shall be deemed to have been awarded in separate grants, shall be
clearly identified, and in no event will the exercise of one such Option affect the right
to exercise the other such Option except to the extent so provided in the Award Agreement
as determined by the Committee. 

-5- 

        7.2        
Options granted pursuant to the Plan shall be authorized by the Committee under terms and
conditions approved by the Committee, not inconsistent with this Plan or Exchange Act Rule
16b-3(c), and shall be evidenced by Option Agreements in such form as the Committee shall
from time to time approve, which Option Agreements shall contain or shall be subject to
the following terms and conditions, whether or not such terms and conditions are
specifically included therein: 

                     (a)       
          The Option Price of an Incentive Stock Option shall not be less than 100% of the
          Fair Market Value of a Share on the day the Option is granted, as determined by
          the Committee. The Option Price of a Non-qualified Stock Option shall be such
          price as determined by the Committee in its discretion, which price may be more
          or less than the Fair Market Value of a Share on the day the Option is granted.
          Notwithstanding the immediately preceding sentence, the Award Agreement for a
          Non-qualified Stock Option at the Committee’s sole discretion, may, but
          need not, provide for a reduction of the Option Price by dividends paid on a
          Share during the period the Option is outstanding and unexercised, but in no
          event shall the Option Price be less than the par value of such Share. 

                     (b)       
          Each Option Agreement shall state the period or periods of time, as determined
          by the Committee, within which the Option may be exercised by the Grantee, in
          whole or in part, provided such period shall not commence earlier than six
          months after the date of the grant of the Option and not later than ten years
          after the date of the grant of the Option. The Committee shall have the power to
          permit in its discretion an acceleration of previously determined exercise
          terms, subject to the terms of this Plan, to the extent permitted by Exchange
          Act Rule 16b-3(c), and under such circumstances and upon such terms and
          conditions as deemed appropriate and which are not inconsistent with Exchange
          Act Rule 16b-3(c)(1). 

                     (c)       
          An Option may be exercised, in whole or in part, by giving written notice of
          exercise to the Company specifying the number of Shares to be purchased. Shares
          purchased upon exercise of an Option shall be paid for in full at the time of
          purchase in the form of cash unless the Committee has adopted rules authorizing
          a different method of exercise as set forth below that have not been rescinded
          and that apply to the Options being exercised. The Committee shall have the
          authority, as it may determine to be appropriate from time to time, to adopt
          rules governing the exercise of Options that may provide for payment to be made
          (i) in Shares already owned by the Grantee having a Fair Market Value equal to
          the purchase price, (ii) by delivery (on a form prescribed by the Committee) of
          an irrevocable direction to a securities broker approved by the Committee to
          sell Shares and to deliver all or part of the sales proceeds to the Company in
          payment of all or part of the purchase price and any withholding taxes, (iii) by
          the delivery (on a form prescribed by the Committee) of an irrevocable direction
          to pledge Shares to a securities broker or lender approved by the Committee as
          security for a loan and to deliver all or part of the loan proceeds to the
          Company in payment of all or part of the purchase price and any withholding
          taxes, or (iv) such other method or form of consideration as may be determined
          to be appropriate by the Committee  

-7- 

      consistent with applicable laws, rules and
          regulations, including a true cashless or net exercise procedure. The adoption
          of such rules by the Committee shall not provide any Grantee with any vested
          right to exercise Options pursuant to the methods or form of consideration set
          forth in such rules. The Committee may rescind any rule governing the exercise
          of Options at any time, and upon such rescission, no Grantee shall have any
          further rights to exercise Options pursuant to the methods or form of
          consideration set forth in such rule. In addition, the Committee shall have the
          right to provide in any rule adopted pursuant hereto that (i) such rule shall
          only apply to designated Options or grants of Options, (ii) such rule shall
          apply to all Options generally, or (iii) prior Committee approval, which may be
          granted or withheld in its sole discretion, shall be required with respect to
          such exercise method or form of consideration. The Committee shall have no
          obligation to make the rules applicable to all Grantees or to all Options. The
          Committee shall have no obligation to adopt rules providing for any of the above
          methods of exercise or forms of consideration. 

                     (d)       
          Notwithstanding anything herein to the contrary, the aggregate Fair Market Value
          (determined as of the time the Option is granted) of Incentive Stock Options for
          any Employee which may become first exercisable in any calendar year shall not
          exceed $100,000. 

                     (e)       
          Notwithstanding anything herein to the contrary, no Incentive Stock Option shall
          be granted to any individual if, at the time the Option is to be granted, the
          individual owns stock possessing more than 10% of the total combined voting
          power of all classes of stock of the Company unless at the time such Option is
          granted the Option Price is at least 110% of the Fair Market Value of the stock
          subject to the Option and such Option by its terms is not exercisable after the
          expiration of five years from the date such Option is granted. 

                     (f)       
          Each Option Agreement for an Incentive Stock Option shall contain such other
          terms, conditions and provisions as the Committee may determine to be necessary
          or desirable in order to qualify such Option as an incentive stock option within
          the meaning of Section 422 of the Code, or any amendment thereof, substitute
          therefor, or regulation thereunder. Subject to the limitations of Section 18,
          and without limiting any provisions hereof, the Committee shall have the power
          without further approval to amend the terms of any Option for Grantees. 

        7.3        
If any Option is not granted, exercised, or held pursuant to the provisions of the Plan or
Section 422 of the Code applicable to an Incentive Stock Option, it will be considered to
be a Non-qualified Stock Option to the extent that any or all of the grant is in conflict
with such provisions. 

        7.4        
An Option may be terminated (subject to any shorter periods set forth in an individual
Option Agreement by the Committee, in its sole discretion) as follows: 

                     (a)       
          During the period of continuous employment or service as a Consultant with the
          Company or Subsidiary, an Option will be terminated only if it has been fully
          exercised or it has expired by its terms. 

-8- 

                     (b)       
          In the event of termination of employment as an Employee or service as a
          Director or Consultant for any reason, the Option will terminate upon the
          earlier of (i) the full exercise of the Option, (ii) the expiration of the
          Option by its terms, or (iii) except as provided in Section 7.4(c), no more than
          one year (three months for Incentive Stock Options) following the date of
          employment termination (or termination of service as a Director or Consultant)
          for Non-qualified Stock Options. For purposes of the Plan, a leave of absence
          approved by the Company shall not be deemed to be termination of employment
          except with respect to an Incentive Stock Option as required to comply with
          Section 422 of the Code and the regulations issued thereunder. 

                     (c)       
          If a Grantee’s employment as an Employee, or service as a Director or
          Consultant, terminates by reason of death or disability prior to the termination
          of an Option, such Option may be exercised to the extent that the Grantee shall
          have been entitled to exercise it at the time of death or disability, as the
          case may be, by the Grantee, the estate of the Grantee or the person or persons
          to whom the Option may have been transferred by will or by the laws of descent
          and distribution for the period set forth in the Option Agreement, but no more
          than three years following the date of such death or disability, provided,
          however, with respect to an Incentive Stock Option, such right must be
          exercised, if at all, within one year after the date of such death or
          disability. 

8.         STOCK APPRECIATION
RIGHTS 

        8.1        
SARs shall be evidenced by Award Agreements for SARs in such form, and not inconsistent
with this Plan or Exchange Act Rule 16b-3(c)(1), as the Committee shall approve from time
to time, which Award Agreements shall contain in substance the following terms and
conditions as discussed in Sections 8.2 through 8.4. 

        8.2        
An SAR may be, but is not required to be, granted in connection with an Option. An SAR
shall entitle the Grantee, subject to such terms and conditions determined by the
Committee, to receive, upon surrender of the SAR, all or a portion of the excess of (i)
the Fair Market Value of a specified number of Shares at the time of the surrender, as
determined by the Committee, over (ii) 100% of the Fair Market Value of such Shares at the
time the SAR was granted less any dividends paid on such Shares while the SAR was
outstanding but unexercised. 

        8.3        
SARs shall be granted for a period of not less than one year nor more than ten years, and
shall be exercisable in whole or in part, at such time or times and subject to such other
terms and conditions as shall be prescribed by the Committee at the time of grant, subject
to the following: 

                     (a)       
          No SAR shall be exercisable, in whole or in part, during the one year period
          starting with the date of grant; and 

-8- 

                     (b)       
          SARs will be exercisable only during a Grantee’s employment by, or service
          as a Consultant for, the Company or a Subsidiary, except that in the discretion
          of the Committee an SAR may be made exercisable for up to three months after the
          Grantee’s employment, or service as a Director or Consultant, is terminated
          for any reason other than death, retirement or disability. In the event that a
          Grantee’s employment as an Employee, or service as a Director or
          Consultant, is terminated as a result of death, retirement or disability without
          having fully exercised such Grantee’s SARs, the Grantee or such
          Grantee’s beneficiary may have the right to exercise the SARs during their
          term within a period of 6 months after the date of such termination to the
          extent that the right was exercisable at the date of such termination, or during
          such other period and subject to such terms as may be determined by the
          Committee. Subject to the limitations of Section 18, the Committee in its sole
          discretion may reserve the right to accelerate previously determined exercised
          terms, within the terms of the Plan, under such circumstances and upon such
          terms and conditions as it deems appropriate. 

                     (c)       
          The Committee shall establish such additional terms and conditions, without
          limiting the foregoing, as it determines to be necessary or desirable to avoid
          “short-swing” trading liability in connection with an SAR within the
          meaning of Section 16(b) of the Exchange Act. 

                     (d)       
          The Committee, in its sole discretion, may establish different time periods than
          specified above for any individual or group of individual Awards. 

        8.4        
Upon exercise of an SAR, payment shall be made within ninety days in the form of common
stock of the Company (at Fair Market Value on the date of exercise), cash, or a
combination thereof, as the Committee may determine. 

9.         CONTINGENT STOCK
AWARDS 

        9.1        
Contingent Stock Awards under the Plan shall be evidenced by Award Agreements for
Contingent Stock in such form and not inconsistent with this Plan as the Committee shall
approve from time to time, which Award Agreements shall contain in substance the terms and
conditions described in Sections 9.2 through 9.5. 

        9.2        
The Committee shall determine the number of Shares subject to a Contingent Stock Award to
be granted to an Employee, Director or Consultant based on the past or expected impact the
Employee, Director or Consultant has had or can have on the financial well-being of the
Company and other factors deemed by the Committee to be appropriate. 

-9- 

        9.3        
Contingent Stock Awards made pursuant to this Plan shall be subject to such terms,
conditions, and restrictions, including without limitation, substantial risks of
forfeiture and/or attainment of performance objectives, and for such period or periods as
shall be set forth in the Award Agreement as determined by the Committee at the time of
grant. The Committee shall have the power to permit, in its discretion, an acceleration of
the expiration of the applicable restriction period with respect to any part or all of the
Award to any Grantee. The Committee shall have the power to make a Contingent Stock Award
that is not subject to vesting or any other contingencies in recognition of an
Employee’s, Director’s or Consultant’s prior service and financial impact
on the Company. During the restriction period, the Grantee shall not have the rights of a
shareholder. 

        9.4        
The Award Agreement for the Contingent Stock Award shall specify the terms and conditions
upon which any restrictions on the right to receive Shares representing Contingent Stock
Awards under the Plan shall lapse, as determined by the Committee. Upon the lapse of such
restrictions, Shares shall be issued to the Grantee or such Grantee’s legal
representative. 

        9.5        
In the event of a Grantee’s termination of employment as an Employee, or service as a
Director or Consultant, whichever is applicable, for any reason prior to the lapse of
restrictions applicable to a Contingent Stock Award made to such Grantee and unless
otherwise provided for herein by this Plan or as provided for in the Award Agreement for
Contingent Stock, all rights to Shares as to which there still remain unlapsed
restrictions shall be forfeited by such Grantee to the Company without payment or any
consideration by the Company, and neither the Grantee nor any successors, heirs, assigns
or personal representatives of such Grantees shall thereafter have any further rights or
interest in such Shares. 

10.         RESTRICTED STOCK
AWARDS 

        10.1        
Restricted Stock Awards under the Plan shall be evidenced by Award Agreements for
Restricted Stock in such form, and not inconsistent with this Plan, as the Committee shall
approve from time to time, which Award Agreements shall contain in substance the terms and
conditions described in Sections 10.2 through 10.6. 

        10.2        
The Committee shall determine the number of Shares subject to a Restricted Stock Award to
be granted to an Employee, Director or Consultant based on the past or expected impact the
Employee, Director or Consultant has had or can have on the financial well-being of the
Company and other factors deemed by the Committee to be appropriate. 

-10- 

        10.3        
Restricted Stock Awards made pursuant to this Plan shall be subject to such terms,
conditions, and restrictions, including without limitation, substantial risks of
forfeiture and/or attainment of performance objectives, and for such period or periods as
set forth in the Award Agreement as determined by the Committee at the time of grant. The
Committee shall have the power to permit, in its discretion, an acceleration of the
expiration of the applicable restriction period with respect to any part or all of the
Award to any Grantee. Upon issuance of a Restricted Stock Award, Shares will be issued in
the name of the Grantee. During the restriction period, Grantee shall have the rights of a
shareholder for all such Shares of Restricted Stock, including the right to vote and the
right to receive dividends thereon as paid. 

        10.4        
Each certificate evidencing stock subject to Restricted Stock Awards shall bear an
appropriate legend referring to the terms, conditions and restrictions applicable to such
Shares. Any attempt to dispose of Shares of Restricted Stock in contravention of such
terms, conditions and restrictions shall be ineffective. The Committee may adopt rules
which provide that the certificates evidencing such Shares may be held in custody by a
bank or other institution, or that the Company may itself hold such Shares in custody,
until the restrictions thereon shall have lapsed and may require as a condition of any
Award that the Grantee shall have delivered a stock power endorsed in blank relating to
the Shares of Restricted Stock covered by such Award. 

        10.5        
The Award Agreement for Restricted Stock shall specify the terms and conditions upon which
any restrictions on the right to receive shares representing Restricted Stock awarded
under the Plan shall lapse as determined by the Committee. Upon the lapse of such
restrictions, Shares which have not been delivered to the Grantee or such Grantee’s
legal representative shall be delivered to such Grantee or such Grantee’s legal
representative. 

        10.6        
In the event of a Grantee’s termination of employment as an Employee, or service as a
Director or Consultant, whichever is applicable, for any reason prior to the lapse of
restrictions applicable to a Restricted Stock Award made to such Grantee and unless
otherwise provided for herein by this Plan or as provided for in the Award Agreement for
Restricted Stock, all rights to Shares as to which there remain unlapsed restrictions
shall be forfeited by such Grantee to the Company without payment or any consideration by
the Company, and neither the Grantee nor any successors, heirs, assigns or personal
representatives of such Grantee shall thereafter have any further rights or interest in
such Shares. 

-11- 

11.         GENERAL RESTRICTIONS 

        11.1        
The Plan and each Award under the Plan shall be subject to the requirement that, if at any
time the Committee shall determine that (i) the listing, registration or qualification of
the Shares subject or related thereto upon any securities exchange or under any state or
federal law, (ii) the consent or approval of any government regulatory body, or (iii) an
agreement by the Grantee of an Award with respect to the disposition of Shares, is
necessary or desirable as a condition of, or in connection with the Plan or the granting
of such Award or the issue or purchase of Shares thereunder, the Plan will not be
effective and/or the Award may not be consummated in whole or in part unless such listing,
registration, qualification, consent, approval or agreement shall have been effected or
obtained free of any conditions not acceptable to the Committee. 

        11.2        
The authority of the Committee under Section 3 to include “forfeiture
provisions” in Award Agreements is hereby confirmed. The Committee may provide in any
Award Agreement for the forfeiture of the Awards governed by such Award Agreement and the
benefits derived therefrom, in the event the Grantee takes actions or engages in conduct
that is harmful or contrary to, or not in the best interests of, the Company. Such
forfeiture may include, without limitation, (a) the cancellation of unexercised Options
and/or SARs and the forfeiture or repayment to the Company of any gain realized from the
exercise of any Options and/or SARs, and (b) forfeiture, or repayment of the value, of any
shares of stock granted as Restricted Stock or Contingent Stock or the forfeiture or
repayment to the Company of any proceeds received from the sale thereof. The Committee
shall have broad discretion in defining what actions and conduct constitute forfeiture
events which may include, without limitation, (i) conduct related to the Grantee’s
employment for which either criminal or civil penalties may be sought, (ii) the commission
of an act of fraud or intentional misrepresentation, (iii) embezzlement or
misappropriation or conversion of assets or opportunities of the Company, (iv) accepting
employment with or serving as a consultant, adviser or in any other capacity to, or having
any ownership interest in, a person or entity that is in competition with or acting
against the interest of the Company, or any solicitation of employees or distributors, (v)
disclosing or misusing any confidential or proprietary information of the Company in
violation of the Key Employee Covenants, or any other non-disclosure agreement with the
Company or other duty of confidentiality or the Company’s insider trading policy, or
(vi) any other actions or conduct of Grantee that the Committee determines in good faith
are harmful or contrary to, or not in the best interests of, the Company. The Committee
shall have broad discretion and authority to determine the scope, duration and terms of
any such forfeiture provisions. The Committee, or its duly appointed agent, may waive any
or all of the restrictions authorized under this subsection whenever it (or its duly
appointed agent) determines in its sole discretion that such action is in the best
interests of the Company. For purposes of this Section 11 references to the Company refers
collectively to the Company and all of its Subsidiaries. 

-12- 

12.         RIGHTS OF A
SHAREHOLDER 

        12.1        
The Grantee of any Award under the Plan shall have no rights as a shareholder with respect
thereto unless and until certificates for Shares of common stock are issued to such
Grantee, except for the rights provided in Section 10 as it pertains to Restricted Stock
Awards. 

13.         RIGHTS TO TERMINATE
EMPLOYMENT 

        13.1        
Nothing in the Plan or in any agreement entered into pursuant to the Plan shall confer
upon any Grantee the right to continue in the employment as an Employee, or service as a
Director or Consultant, of the Company or a Subsidiary or affect any right which the
Company or its Subsidiary may have to terminate the employment, or service as a Director
or Consultant, of such Grantee. 

14.         WITHHOLDING OF TAXES 

        14.1        
Whenever the Company proposes, or is required, to issue or transfer Shares under the Plan,
the Company shall have the right to require the Grantee to remit to the Company an amount,
or a number of shares, sufficient to satisfy any federal, state and/or local withholding
tax requirements prior to the delivery of any certificate or certificates for such Shares.
Whenever under the Plan payments are to be made in cash, such payments shall be net of an
amount sufficient to satisfy any federal, state and/or local withholding tax requirements. 

15.         NON-ASSIGNABILITY 

        15.1        
No Award or benefit under the Plan shall be assignable or transferable by the Grantee
thereof except by will or by the laws of descent and distribution. During the life of the
Grantee, such Award shall be exercisable only by such person or by such person’s
guardian or legal representative. 

16.         NON-UNIFORM
DETERMINATIONS 

        16.1        
The Committee’s determination under the Plan (including, without limitation,
determinations of the persons to receive Awards, the form, amount and timing of such
Awards, the terms and conditions of such Awards and the Award Agreements evidencing same,
and the establishment of values and performance targets) need not be uniform and may be
made by the Committee selectively among persons who receive, or are eligible to receive,
Awards under the Plan, whether or not such persons are similarly situated. 

-13- 

17.         ADJUSTMENTS 

        17.1        
If the Class A Common Stock of the Company is subdivided or combined into a greater or
smaller number of shares or if the Company shall issue any shares of Class A Common Stock
as a stock dividend on its outstanding Class A Common Stock, the number of shares
deliverable upon the exercise or vesting of any Awards granted hereunder shall be
appropriately increased or decreased proportionately, and appropriate adjustments shall be
made in the purchase price per share to reflect such subdivision, combination or stock
dividend. 

        17.2        
In the event of a consolidation of the Company, a merger in which the Company is not the
surviving entity, or the sale of all or substantially all of the Company assets, the
exercisability of any or all outstanding Awards shall automatically be accelerated so that
such Awards would be exercisable or vested in full immediately prior to the effective date
of such consolidation, merger or asset sale. However, no such acceleration shall occur if
and to the extent any outstanding Awards are, in connection with such consolidation,
merger, or asset sale, either to be assumed by the successor corporation (or parent
thereof or to be replaced with a comparable Award to purchase shares of the capital stock
of the successor corporation (or a parent thereof). The determination of such Award
comparability shall be made by the Committee, and such determination shall be final,
binding and conclusive. Immediately following any such consolidation, merger or asset,
sale, the Awards, to the extent not previously exercised or vested, shall terminate and
cease to be outstanding, except to the extent assumed by the successor corporation (or
parent thereof) in connection with such consolidation, merger or asset sale. If any
outstanding Award hereunder is assumed in connection with any such consolidation, merger
or asset sale, then such Award shall be appropriately adjusted, immediately after such
consolidation, merger or asset sale, to apply to the number and class of securities which
would have been issuable to the Grantee upon consummation of such consolidation, merger,
or asset sale if the Awards had been exercised or vested immediately prior to any such
transaction, and appropriate adjustment shall also be made to the exercise price for such
Awards, as applicable, provided the aggregate exercise price shall remain the same. This
Plan shall not in any way affect the right of the Company to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate, or sell or transfer any part of its business or assets. 

        17.3        
In the event of a recapitalization or reorganization of the Company (other than a
consolidation, merger or asset sale described in Section 17.2 above) pursuant to which
securities of the Company or of another entity are issued with respect to the outstanding
shares of the Company’s Class A Common Stock, a Grantee, upon exercising an Award or
an Award becoming vested, shall be entitled to receive for the purchase price paid upon
such exercise the securities the Grantee would have received if the Grantee had exercised
the Award or the Award had vested prior to such recapitalization or reorganization. 

-14- 

18.         AMENDMENT 

        18.1        
The Plan may be amended by the Board, without Shareholder approval, at any time in any
respect, unless Shareholder approval of the amendment in question is required under
Delaware law, the Code, any exemption from Section 16 of the Exchange Act (including
without limitation SEC Rule 16b-3) for which the Company intends Section 16 Persons to
qualify, any national securities exchange system on which the Shares are then listed or
reported, by any regulatory body having jurisdiction with respect to the Plan, or any
other applicable laws, rules or regulations. 

        18.2        
The termination or modification or amendment of the Plan shall not, without the consent of
a Grantee, affect a Grantee’s rights under an Award previously granted.
Notwithstanding the foregoing, however, the Company reserves the right to terminate the
Plan in whole or in part, at any time and for any reason, provided that appropriate
compensation, as determined in the sole and absolute discretion of the Committee, is made
to Grantees with respect to Awards previously granted. 

19.         EFFECT ON OTHER PLAN 

        19.1        
Participation in this Plan shall not affect a Grantee’s eligibility to participate in
any other benefit or incentive plan of the Company, and any Awards made pursuant to this
Plan shall not be used in determining the benefits provided under any other plan of the
Company unless specifically provided. 

20.         DURATION OF PLAN 

        20.1        
The Plan shall remain in effect until all Awards under the Plan have been satisfied by the
issuance of Shares or the payment of cash, but no Awards shall be granted more than ten
years after the date the Plan is adopted by the Company. The Second Amended and Restated
1996 Stock Incentive Plan amends and restates the Amended and Restated 1996 Stock
Incentive Plan, as previously amended, effective as of March 31, 1999 subject to
shareholders approval. 

21.         FUNDING OF THE PLAN 

        21.1        
This Plan shall be unfunded. The Company shall not be required to establish any special or
separate fund or to make any other segregation of assets to assure the payment of any
Award under this Plan, and payment of Awards shall be on the same basis as the claims of
the Company’s general creditors. In no event shall interest be paid or accrued on any
Award including unpaid installments of Awards. 

-15- 

22.         PLAN STATUS 

        22.1        
This Plan is intended to satisfy the requirements of a 16b-3 plan under the Exchange Act. 

        22.2         This
Plan is intended to qualify as a plan under Rule 701 issued pursuant to The Securities Act
of 1933, as amended. 

23.         GOVERNING LAW 

        23.1        
The laws of the State of Delaware shall govern, control and determine all questions
arising with respect to the Plan and the interpretation and validity of its respective
provisions. 

NU SKIN ENTERPRISES, INC. 

              /s/
Steven J. Lund

By:        Steven J. Lund

Its:         President 

ATTEST: 

        /s/ Keith R.
Halls

Its:         Secretary 

-16-

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