Document:

SECOND

                              AMENDED AND RESTATED

                            NU SKIN ENTERPRISES, INC.

                            1996 STOCK INCENTIVE PLAN

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                                TABLE OF CONTENTS

                                                                           PAGE

1.       PURPOSE ........................................................... 1

2.       DEFINITIONS ....................................................... 1

3.       ADMINISTRATION .................................................... 4

4.       SHARES SUBJECT TO THE PLAN ........................................ 5

5.       PARTICIPANTS ...................................................... 5

6.       AWARDS UNDER THE PLAN ............................................. 5

7.       STOCK OPTIONS ..................................................... 5

8.       STOCK APPRECIATION RIGHTS ......................................... 8

9.       CONTINGENT STOCK AWARDS ...........................................10

10.      RESTRICTED STOCK AWARDS ...........................................11

11.      GENERAL RESTRICTIONS ..............................................12

12.      RIGHTS OF A SHAREHOLDER ...........................................12

13.      RIGHTS TO TERMINATE EMPLOYMENT ....................................13

14.      WITHHOLDING OF TAXES ..............................................13

15.      NON-ASSIGNABILITY .................................................13

16.      NON-UNIFORM DETERMINATIONS ........................................13

17.      ADJUSTMENTS .......................................................13

18.      AMENDMENT .........................................................14

19.      EFFECT ON OTHER PLAN ..............................................15

20.      DURATION OF PLAN ..................................................15

21.      FUNDING OF THE PLAN ...............................................15

22.      PLAN STATUS .......................................................15

23.      GOVERNING LAW .....................................................16

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                                     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.

          (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

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               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.

               (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

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                    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.

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          (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.

          (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

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

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.

     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

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          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

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               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  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,

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               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.

          (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

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                                      -8-

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

          (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.

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     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.

     9.3    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.

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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.

     10.3    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-

<PAGE>

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.  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.

                                      -12-

<PAGE>

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.

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.

                                      -13-

<PAGE>

     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.

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

                                      -14-

<PAGE>

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.

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.

                                      -15-

<PAGE>

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.

                                       By:      /s/ Steven J. Lund
                                       Its:     President

ATTEST:

/s/ Keith R. Halls
Its Secretary

                                      -16-SERVICE AGREEMENT

     This Service  Agreement (the "Agreement") is entered into as of the ___ day
of  __________ , 1997 by and between Nu Skin Asia  Pacific,  Inc., a corporation
organized and existing under the laws of the State of Delaware, U.S.A., with its
principal  office located at 75 West Center Street,  Provo,  Utah 84601,  or its
successor  (hereinafter  referred to as "NSAP"),  and Mr.  Grant F. Pace, a U.S.
citizen residing at #3 Dapdap Street, Makati,  Philippines (hereinafter referred
to as "Pace").

                                   WITNESSETH:

         WHEREAS,  Pace  wishes  to  provide  certain  services  to NSAP as Vice
President,  Southeast Asia and Greater China,  upon the terms and conditions set
forth hereinafter;

         WHEREAS,  NSAP wishes to obtain the services of Pace as Vice President,
Southeast Asia and Greater China;

         NOW, THEREFORE,  in consideration of the mutual promises,  undertakings
and  covenants  set forth  hereinafter,  the parties  hereto  mutually  agree as
follows:

1.   Appointment  - NSAP  hereby  agrees  to  appoint  Pace as  Vice  President,
     Southeast  Asia  and  Greater  China,   and  Pace  hereby  agrees  to  such
     appointment  to  perform  the  functions  and  carry  out  the  duties  and
     responsibilities as the Vice President, Southeast Asia and Greater China on
     the terms and conditions set forth hereinafter.

     The duties and  responsibilities  of Pace's  positions will include but are
     not limited to the Position  Specifications  attached  hereto as Exhibit A.
     Pace will be notified verbally or in writing of changes or additions in his
     responsibilities during the course of this Agreement.

     In the event Pace is asked to assume responsibilities with NSAP that differ
     materially  from  those  set forth on  Exhibit A hereto,  the terms of this
     Agreement may be renegotiated at the election of either party.

     The  parties  agree  that if Pace is asked to  assume a role  with  NSAP or
     another Nu Skin affiliate  outside the scope of his role as Vice President,
     Southeast  Asia and Greater  China,  then this Agreement will be terminated
     and renegotiated.

2.   Direction  - Pace  will  be  subject  to and  act in  accordance  with  the
     directions, rules, regulations and instructions issued from time to time by
     the Board of Directors and the  President,  Chief  Executive  Officer,  and
     Chief Operating Officer of NSAP.

<PAGE>

3.   Compensation  - Pace will receive the following  compensation  and benefits
     for services rendered to NSAP. No other compensation or benefit,  direct or
     indirect,  other than allowances  specifically mentioned in this Agreement,
     will be paid to or received by Pace.

     a.   Base Salary:  Pace will receive a gross  annual  salary of  US$200,000
          divided into twenty-six (26) equal bi-weekly  installments,  effective
          September 22, 1997.

     b.   Foreign  Service  Supplement.  Pace will  receive  a  foreign  service
          supplement  of  US$100,000  divided into twelve (12) equal  monthly or
          bi-weekly  installments,  effective  September  22, 1997.  The foreign
          service  supplement  will be paid  simultaneously  with payment of the
          base salary.

     c.   Adjustments to Base Salary and Foreign  Service  Supplement.  The base
          salary and foreign  service  supplement  will be  increased by no less
          than twelve percent (12%) per year for calendar  years 1999,  2000 and
          2001.  The  increases  will be  effective  on  January 1 of each year.
          Thereafter,  the base salary and foreign  service  supplement  will be
          reviewed and adjusted annually by the NSAP Board of Directors.

     d.   Incentive  Bonus:  Pace will be  eligible  to  participate  in a Bonus
          Incentive  Plan (based on  profitability,  cost  efficiencies,  sales,
          etc.),  as such  plan may be  employed  by NSAP from time to time (the
          "Bonus Plan").  The extent of the incentive  bonus and the factors and
          measurements  used to determine the incentive bonus will be determined
          from time to time by the Board of  Directors of NSAP and will be based
          upon the  performance of those  operations  which Pace  oversees,  the
          attainment  of  specified  goals within each such  operation,  and the
          attainment of specified  bonus levels for the country general managers
          supervised by Pace under the general manager Long-Term Incentive Bonus
          Plan.  The Bonus  Plan will  enable  Pace to qualify  for annual  cash
          bonuses of up to 50% of his then  applicable  combined base salary and
          foreign service supplement, with no deferred bonuses.

     e.   Signing Bonus. Upon execution of this Agreement, NSAP will pay to Pace
          the sum of $55,250 in lieu of any other bonus  payments  for  calendar
          year 1997.

     f.   Stock  Grant.  NSAP hereby  agrees to make a stock bonus award of that
          number  of shares of NSAP  Class A Common  Stock as has a fair  market
          value (as quoted on the New York Stock  Exchange)  of $50,000 per year
          for three years,  with the shares being awarded on September 22, 1998,
          1999 and 2000.

     g.   Stock Option Plan.  Pace shall be eligible to  participate  in a Stock
          Option Plan  implemented  for key employees of NSAP. The initial stock
          option shall be to

                                       2

<PAGE>

          acquire  19,000 shares of Class A Common Stock at a purchase  price of
          $20.875/share,  which  option  shall  vest  over a  four-year  period.
          Although  it is  intended  that a similar  option  grant shall be made
          annually,  additional  stock  option  grants  shall  be  made  in  the
          discretion of the NSAP Board of Directors.

     h.   International Assignment Policy for Expatriates. Pace will participate
          in  NSAP's  standard   benefits   available  under  its  International
          Assignment Policy for Expatriates ("IAPE"). The standard IAPE shall be
          modified for Pace,  however, in accordance with the terms set forth on
          Exhibit B hereto, which shall supersede NSAP's standard IAPE.

     i.   Employee  Benefit Plans. As an employee of NSAP, Pace will be entitled
          to  participate  in any employee  benefit plans made available to NSAP
          employees  generally,  including health,  dental,  life and disability
          insurance,   and  401(k)  profit  sharing  plans.  Pace  acknowledges,
          however,  that as an expatriate employee,  his right to participate in
          such plans may be limited.  The benefits made  available to Pace under
          the IAPE are intended to offset any  limitation  on Pace's  ability to
          participate in any other standard employee benefit plan.

     j.   Severance.  In the event Pace's  employment  hereunder  is  terminated
          "without cause," as defined in Section 8b. below, he shall be entitled
          to the severance benefits set forth in Section 8c. below.

4.   Service Hours - Pace's  regular  service hours are 40 hours per week Monday
     through Friday.  It is understood  that in light of his positions,  he will
     likely be required to provide services or engage in travel that will extend
     well  beyond  normal  service  hours.  It is  further  agreed  that  Pace's
     remuneration has been set with this fact in mind and that Pace has no right
     to ask for additional compensation for such extra services.

5.   Confidentiality - Without the written approval of NSAP, Pace will not copy,
     use or disclose to others (or cause any copying,  use or  disclosure),  for
     Pace's own benefit or otherwise,  any  information,  knowledge or data that
     Pace  receives  or  develops  during  his  period  of  employment  which is
     proprietary  to NSAP or any of their  affiliates or which is  confidential,
     including  information  contained in formulas,  business  plans,  financial
     data,  vendor lists,  product and marketing  plans,  distributor  lists and
     other trade secrets or  information  that any of NSAP or its affiliates has
     generated  or  which  is  has  received  in  confidence  from  others.  The
     confidentiality  obligation  set forth herein shall survive  termination of
     this Agreement and shall therefore be applicable to Pace after  termination
     of his employment.  In addition to this  provision,  Pace agrees to execute
     and become bound by the terms of any Confidentiality Agreement used by NSAP
     with its employees generally. A copy of the current form of Confidentiality
     Agreement is attached hereto as Exhibit C.

                                       3

6.   Non-Competition  - Pace hereby agrees that he will not,  during the term of
     this Agreement, and until the earlier of (i) one year immediately after the
     termination of this Agreement,  or (ii) the date as of which NSAP ceases to
     pay to Pace,  either as an employee  or an  independent  contractor,  a sum
     equal to the monthly base salary and foreign service  supplement payable to
     Pace  hereunder  (unless  Pace is  terminated  "for  cause,"  as defined in
     Section  8b below,  in which  case only the  one-year  period  set forth in
     clause (i) above  shall  apply)  directly  or  indirectly,  by any means or
     device  whatsoever,  for himself or on behalf of or in conjunction with any
     person, partnership, or corporation, do any one or more of the following:

     a.   provide  services  to,  or be  affiliated  with any  enterprise  which
          provides  services or products  similar to NSA's services or products
          through multi-level marketing channels;

     b.   divert,  take away,  or attempt to take away any NSAP or other Nu Skin
          distributors,  employees  with whom NSAP or another Nu Skin  affiliate
          has a  non-competition  agreement,  or  accounts  which  Pace may have
          become aware of through information  furnished to or generated by Pace
          in  connection  with his  employment  or by any  employee  or agent or
          former employee or agent of NSAP or its affiliates; or

     c.   compete with NSAP or render services for a competitor of NSAP involved
          in multi-level marketing.

         This  non-competition  provision  shall not  relate to those  companies
         specifically  identified  on  Exhibit  D  hereto  within  the  scope of
         activities  described  for each  company.  Pace  acknowledges  that the
         one-year  period  during which he cannot be involved in any  activities
         which compete  directly or indirectly  with NSAP after  termination  of
         this Agreement is a justifiable and acceptable  period of time in light
         of the significance of the scope of Pace's  employment  hereunder,  and
         that the terms of this  Agreement  and the  remuneration  and  benefits
         payable  to  Pace  hereunder  are  sufficient  consideration  for  such
         agreement.  Should NSAP elect to enforce this non-competition provision
         following  termination,  it shall inform Pace of such  election  within
         thirty days of termination of Pace's employment.

7.   Assignment of Work Product.  Pace agrees to promptly  disclose to NSAP, and
     hereby assigns to NSAP, free from any obligation to Pace, all right,  title
     and   interest  in  and  to  any  and  all  ideas,   concepts,   processes,
     improvements,  and inventions made,  conceived or disclosed or developed by
     Pace during the term of this Agreement which relate to the business of NSAP
     or resulting from or suggested by any work Pace may do for NSAP. Pace shall
     have  the  right  to  retain  the  copyright  to  any  books,  articles  or
     publications   unrelated  to  NSAP's  business  of  multi-level   marketing
     generally.

                                       4

8.   Term of Agreement

     a.   This  Agreement  will be  effective  as of  September  22,  1997,  and
          continue in full force and effect  until  August 31, 2000 (with annual
          renewals  thereafter  prior to the  expiration of the previous term of
          the Agreement) or until terminated as set forth in section 8b below.

     b.   NSAP may terminate this Agreement for any reason at any time by giving
          Pace 60 days advance notice.  The Agreement may be terminated  without
          notice by NSAP "for  cause"  if Pace (1)  breaches  his  duties as set
          forth in this Agreement, or (2) has been negligent or dishonest in the
          discharge of his duties,  or (3) has become  incapable of carrying out
          his duties for any reason,  or (4) is subject to any event or activity
          outside the scope of his employment, which event or activity is not in
          keeping with the image and values of NSAP.  The decision as to whether
          to terminate Pace for cause will be made in the sole discretion of the
          NSAP Board of Directors.

     c.   In the event NSAP  terminates  this  Agreement  for cause,  it will be
          liable only for compensating Pace through the date of his termination,
          unless  termination  for cause is the result of an accident or illness
          that has rendered  Pace  incapable  of carrying out his duties  (i.e.,
          Pace  will  not be  eligible  to  receive  any  contractual  severance
          benefits  nor the  payments  that  might  otherwise  be payable to him
          hereunder during the one-year  non-competition  period).  In the event
          NSAP terminates this Agreement without cause, NSAP will be liable only
          for compensating Pace for remuneration  specified in Section 3a and 3b
          above, with additional monthly payments equal to the value of the IAPE
          benefits received by Pace (the "Additional  Severance  Payment") for a
          period of six months following the date of termination,  provided that
          NSAP may elect to continue to pay Pace the sums due under  Sections 3a
          and 3b above along with the  Additional  Severance  Payment to enforce
          the one-year  non-competition  provision set forth in Section 6 above.
          The Additional  Severance Payment is intended to replace  the IAPE and
          other  employee  benefits  generally.  Therefore,  Pace  shall  not be
          entitled  to  any  of  the  IAPE  or  other  employee  benefits  after
          termination.

     d.   This  Agreement  shall be  automatically  terminated in the event Pace
          accepts employment with a Nu Skin affiliate other than NSAP. The terms
          of  employment  with the Nu Skin  affiliate  shall be  negotiated  and
          confirmed in a replacement Service Agreement.

9.   Tax  Returns - Filing  annual  income tax  returns  with the  relevant  tax
     authorities,  and with any other  authorities to which Pace may be subject,
     shall be handled in the manner set forth in NSAP's  IAPE,  as  clarified in
     the attached Exhibit B.

                                       5

<PAGE>

10.  Entire Agreement - This Agreement contains the entire agreement between the
     parties relating to the subject matter hereof. No modification,  alteration
     or amendment of this Agreement and no waiver of any provision hereof may be
     made  unless such  modification,  alteration,  amendment,  or waiver is set
     forth in writing signed by the parties hereto.

11.  Governing Law - This  Agreement  will be construed in  accordance  with and
     governed by the laws of Utah. Any action brought hereunder shall be brought
     in an appropriate  state or federal court located within the State of Utah,
     to which both parties hereto consent to jurisdiction.

12.  Prevailing  Language - This Agreement may be executed in  counterparts,  in
     the English  language,  each of which will be deemed an original but which,
     taken together, will constitute one and the same instrument.

                     [This space intentionally left blank.]

                                       6

<PAGE>

IN  WITNESS   WHEREOF,   the  parties   hereto  and/or  their  duly   authorized
representatives have executed this Agreement as of the date first above written.

Nu Skin Asia Pacific, Inc.                           Grant F. Pace

By  /s/
    Name:                                             (Signature)
    Title:

                                       7

<PAGE>

                                   EXHIBIT A

DUTIES AND RESPONSIBILITIES AS VICE PRESIDENT, SOUTHEAST ASIA AND GREATER CHINA:

1.   Report to and assist the NSAP Chief Operating Officer and other appropriate
     personnel in developing  the strategic  and  operational  plans for Taiwan,
     Hong Kong,  Thailand,  the  Philippines,  the  People's  Republic of China,
     Indonesia, Malaysia, Singapore and Vietnam which, with other country plans,
     forms the basis of the NSAP operational strategy.

2.   Develop and implement the operating and capital budget necessary to support
     the NSAP strategic plan in the region.

3.   Oversee and support local GMs in their efforts to train, motivate, support,
     encourage and monitor the activities of all distributors working within the
     local markets.  Focus on developing  relationships with distributor leaders
     operating  in the local  country to engender  confidence  in the  company's
     commitment  to their  success.  Plan  distributor  activities  and training
     including  event time-line  calendars,  list of  participants,  activities,
     courtesy calls, open-houses, press conferences, etc.

4.   Proactively   manage  the  development  and   introduction  of  appropriate
     products,   sales  aids,  and  distributor  incentive  programs  for  local
     distributors.

5.   Direct the design and  implementation  of quality assurance and performance
     measurement standards for the region.

6.   Design and implement  methods and strategies for improving market share and
     profitability.

7.   Ensure that the strategic plan is implemented in the region in an efficient
     and effective manner which will maximize a return on investment.

8.   Ensure  that  all  aspects  of local  operations  comply  with  appropriate
     government regulations and all aspects of licensing, wholesale distribution
     and other intercompany agreements.

9.   Conduct quality assurance and personal performance appraisals as needed.

10.  Meet with  government  and senior  business or DSA  officials  and with the
     press  as  needed  with  a  view  to  maintaining   healthy  and  favorable
     relationships with regulators, the business community and the press.

11.  Keep COO informed at all time of trends.

12.  Oversee the hiring, training and performance of all GMs in the region.

                                       8

<PAGE>

13.  Follow established Nu Skin and regional policies and procedures in ensuring
     that  an  efficient,  profitable  and  service-oriented  company  is  being
     operated.

14.  Assist the General  Managers and Regional  Controller in the development of
     operating budgets for the region annually.

15.  Ensure that each  country  within the  Greater  China  Region is  following
     corporate policies and procedures. Where unclear, work with NSAP to develop
     necessary policies and procedures.

16.  Approve  all  non-capital  and  non-asset/liability  expenditures  for each
     country within the region that exceed the approved budget by less than 10%.
     For those expenses  exceeding 10% of the approved  amount,  seek COO or CFO
     approval.

17.  For  corporate  and regional  cash flow  concerns,  approve all capital and
     asset/liability  expenditures,  which may or may not have  been  previously
     budgeted  within the region up to  US$20,000,  insuring  that all corporate
     assets are properly  managed and proper turnover and  profitability  ratios
     are maintained.

18.  Ensure that the local  operations are properly  complying with all relevant
     government regulations.

19.  Report status, in a timely manner, of all relevant matters for each country
     entity,  the  regional  office  and  any  trends,   concerns,   changes  in
     regulations   or  operations   which  might  affect  Nu  Skin   operations,
     competitors, or significant others within the region to NSAP headquarters.

20.  Conduct  personal  performance  appraisals on at least an annual basis with
     all  general  managers  in  the  region  and  relevant  regional  staff  in
     connection with NSAP corporate.

                                       9

<PAGE>

                                   EXHIBIT B

ADDENDUM TO SERVICE AGREEMENT WITH GRANT F. PACE

             Modifications to the Nu Skin "International Assignment
                         Policy for Expatriates (IAPE)"

By mutual  agreement,  the following  take  precedent over the provisions in the
IAPE and  will  govern  in tone as well as in  enumerated  specifics.  [Numbered
section  headings are from relevant IAPE sections.  References in brackets refer
to changes, modifications, or enhancements of IAPE policies.]

I.       INTRODUCTION
Long Term  Assignment:  The full IAPE (as modified herein) will be available for
the duration of your time abroad.  (We recognize that your appointment  overseas
is open ended and is expected to be of an extended  duration,  possibly beyond 5
years, and that this differs from IAPE Introduction, page 2.)

5.       SHIPMENT AND STORAGE OF HOUSEHOLD GOODS
Storage of Household  Goods:  Nu Skin will  continue  storage of your  household
goods for so long as you remain overseas. Should you choose to remove these from
storage, Nu Skin will reimburse you the cost of their removal and transportation
to Salt Lake/Provo,  or arrange for their shipment to Salt Lake/Provo at Nu Skin
expense.  (Nu Skin  understands  and accepts  that some of the items  stored and
shipped may be among those listed on IAPE page 6 but will not include a car.)

Shipment of Goods:  Nu Skin agrees to ship,  at a time  convenient  to you,  one
container to the  Philippines for which Nu Skin will cover the cost of shipping,
handling,  and insurance charges.  You will use your best efforts to arrange for
duty free importation of these goods. (Nu Skin understands and accepts that some
of the items  shipped  may be among  those  listed on IAPE page 6 but that in no
event will it include a car.) This benefit will not foreclose the possibility of
a later  shipment as provided on IAPE page 9 to address  needs arising out of an
extended stay abroad or relocation  to another place of assignment  (e.g.  Latin
America).

9.       HOME COUNTRY HOUSING
Home  Management  Program:  Nu Skin will pay the usual fees of a home management
service  (PPH) for rental and other  management  of your home in Boston,  with a
stop  loss  provision  in the event the home  remains  unrented  for more than 2
months.  Please  arrange  to have  PPH  invoices  sent  directly  to Nu Skin for
payment.  As a result of direct  payment by Nu Skin,  there will be no  Property
Management Fee reimbursement to your paycheck.  (This differs from some items on
IAPE pages 12, 13, 16.)

Home Sale Assistance:  In addition to the Home Management Program, you may elect
at any time for Nu Skin assistance in selling your home through reimbursement of
customary seller's closing costs,  excluding  Realtor's fees. [This differs from
IAPE page 13.] Nu Skin

                                       10

<PAGE>

will pay no  repurchase  expenses  should  you wish to buy a  replacement  home.
However,  consistent with IAPE policy,  we encourage you to retain a home in the
U.S. and will apply the Home Management Program to a replacement home.

10.      PHYSICAL EXAMINATIONS/MEDICAL EXPENSES
Annual  Physical  Examinations:  In view of the  extended  nature  of your  stay
abroad,  Nu Skin will reimburse  reasonable  expenses (beyond medical  insurance
coverage) for you and each member of your family to have  complete  physical and
dental examinations annually,  during your annual home leave if feasible.  [This
is consistent with, but a modification of IAPE page 13.]

12.  INTERNATIONAL  SALARY
International   Salary  (U.S.  plus  Asian  Salary):  The  agreed  Asian  salary
(international  service premium) will be included with your U.S. base salary for
the purpose of determining  pension,  life insurance or other employee benefits.
(Page 2, 14, 15.) The  international  service premium will be discontinued  upon
your  repatriation  to  the  U.S.,  but  will  instead  be  replaced  through  a
renegotiated  base U.S.  salary  together  with  other  matters  related to your
compensation. [This differs from IAPE pages 15 & 24.]

13.      GOODS AND SERVICES (G&S) DIFFERENTIAL
Goods and Services  Differential:  This will be such percentage as determined by
ORC,  but will be paid on 100% of your  International  Salary  (U.S.  plus Asian
salary). [This differs from IAPE page 16.]

Method  of Pay:  You  will be paid out of Hong  Kong,  in U.S.  dollars  (or its
equivalent in any other  currency you may direct) to Citibank or such other bank
as you may direct. [This is an enlargement of IAPE page 17.]

14.      HOUSING DIFFERENTIAL
Housing:  Nu Skin will pay  directly  all rental and  related  fees (home  owner
association  dues,  etc.) At #3 Dapdap Street,  Makati,  Philippines,  including
utilities and air  conditioning  maintenance,  (and other repairs or maintenance
not  covered  by  the  landlord  in  the  Lease  Agreement.)  Utilities  include
charges/expenses  for electricity,  gas, telephone (except  non-business related
long distance calls), water and sewage, garbage removal,  water treatment,  yard
maintenance,  and pest control (as necessary).  [Nu Skin  acknowledges that this
differs from and is an  enlargement  upon IAPE pages 18-22,  and that the rental
paid  is  beyond  the  policies  of  Runzheimer.]  We  understand  that  in  the
Philippines  rent is generally paid two years in advance,  and that Nu Skin will
be expected to reimburse Sara Lee Philippines  Inc. for the remaining  period of
your  home  lease.  A  hypothetical  housing  deduction  will be  calculated  by
Runzheimer and withheld from your base pay.

Home  Appliances:  We understand  that many  appliances in the home at #3 Dapdap
were  purchased  for you by Sara Lee (or  previously  Avon).  Nu Skin  agrees to
purchase these from Sara Lee at a fair value recognizing the years of use, or to
replace them.  Please  provide a schedule of these items  recommending  purchase
from Sara Lee or elsewhere.

                                       11

<PAGE>

15.      INCOME TAX POLICIES
Tax Equalization: A hypothetical tax will be calculated as provided on IAPE page
23,  except  that Nu Skin will  assess you no state tax (zero) and  withhold  no
state tax.  Assumptions  used in the calculation of the hypothetical tax will be
shared with you and will include 7  dependents,  and at your request the payment
of a full 10% tithing and 2% fast  offering as charitable  contributions  to the
LDS church.  Actual tax  liability  will be paid by Nu Skin as  calculated by an
outside  accounting  firm  acceptable  to Nu Skin and me, which will prepare and
file  foreign and Federal  U.S.  returns at Nu Skin  expense.  Nu Skin will also
protect you from incremental taxes on any non-U.S.  NSAP income or benefits that
results from expatriation.

Medicare  and FICA:  These will be withheld  during the  expatriate  assignment,
except  that Nu Skin will  consider  legal  alternative  structures  which would
permit both Nu Skin and you to avoid this withholding.

16.      INCENTIVE PREMIUMS AND ALLOWANCES
Mobility  Premium:  Because you are  already  resident  in the  Philippines,  no
mobility premium will be paid,  however, a premium will be paid in the event you
are relocated to another assignment.

Hardship Allowance: This is to clarify that the hardship allowance calculated by
Runzheimer will be paid on the full  international  salary (U.S. plus Asian) and
will be net of taxes.

17.      TRAVEL EXPENSES
Travel Expenses: Travel for all trips will be at business class fare, except for
the Christmas  trip home of college  students  which will be economy class fare.
[This is a modification  from the economy class fare referred to on Pages 4 & 25
of the IAPE.] Business travel for Nu Skin in Asia is also at business class fare
and is pre-approved  with your  employment.  Travel outside the region should be
cleared with the Chief of International Operations in Provo.

19.      RELOCATION ALLOWANCE
Relocation  Allowance:  The relocation allowance specified in this section, IAPE
page 26 will not be paid since you are already settled in your home. However, Nu
Skin will cover any ancillary  expenses arising out of your settlement with Sara
Lee as adjustments are made in appliances, furnishings, etc.

20.      EDUCATION ASSISTANCE
Dependent Education: Nu Skin will pay for the elementary and secondary education
of your children at the International School Manila, and will reimburse tuition,
lab fees, textbooks,  uniforms,  supplies,  and other miscellaneous  educational
related  items.  Nu Skin will also pay directly or reimburse all school  related
transportation expenses.

College Student Christmas Trip:  Dependent children attending school outside the
host country will be entitled to travel home for Christmas at Nu Skin expense at
economy  class fare.

                                       12

<PAGE>

Should the family  gather  elsewhere for  Christmas,  the  equivalent  amount in
airfare may be applied to travel expenses elsewhere.  [This is a modification of
the IAPE page 28.]

21.      PROVISION OF AN AUTOMOBILE
Automobile:  Nu Skin  will  lease (or  purchase  if lease is not  available)  an
automobile for my position (e.g. Mercedes, BMW, Toyota Crown, etc.) for business
related purposes.  The replacement period for the car will be 3 years,  although
you may opt to defer  replacement for an additional  year. Nu Skin will also pay
directly for insurance,  gasoline,  oil and all  maintenance.  Accordingly,  the
concept  of  "transportation   allowance"  will  not  be  applied.  [This  is  a
modification of IAPE pages 28, 29.]

Driver:  Instead  of a "Driver  Allowance"  (which  will not be paid to you),  a
driver of your  choosing  will be  employed  by Nu Skin in the  Philippines  and
assigned to you as your personal driver.

22.      CLUB MEMBERSHIPS
Club  Memberships:  In recognition of your position as a senior  executive of Nu
Skin, Nu Skin will pay the entrance fees and monthly  subscriptions/dues  to one
club of your  choosing.  As an  alternative,  you may elect to submit for direct
payment all reasonable fees,  dues, usage charges,  and purchases at any club or
clubs to which you belong in the Philippines, not to exceed an annual average of
$1500 per month  (adjusted  annually for local  inflation).  Business use of any
such clubs should of course be charged to the correct Nu Skin budget.

25.      HOME LEAVE AND VACATION
Home Leave:  Home leave will be provided  annually for all family  members,  the
first of which you will be entitled to beginning in June 1998. Home leave travel
will be at business  class airfare round trip from Manila to Boston,  which fare
may if you choose,  be used for travel related  expenses  elsewhere and at other
times. (This is a modification of IAPE pages 30-33.)

Vacation: By virtue of your seniority and position, you are formally entitled to
20 working days vacation  (inclusive  of home leave),  plus travel time. Nu Skin
understands,  however,  that the demands and  pressures of your  assignment  may
necessitate  other "time  off"  from  time to  time.  This  should  be  handled
informally with the Chief of International Operations.

34.      RETURN SHIPMENT OF GOODS
Return Shipment of Goods: Upon conclusion of your assignment abroad for whatever
reason,  (whether  voluntary  or  involuntary),  Nu Skin  will  ship all of your
household  goods and personal  belongings back to the U.S., or other location of
your choosing.  The only exception to this benefit is if you should  voluntarily
leave Nu Skin to work with another company, in which case you should expect that
your new employer would relocate your household  goods to the U.S. Since you are
now already resident in the Philippines, the weight and space limitations of the
IAPE will not apply.

                                       13

<PAGE>

                                   EXHIBIT C

CONFIDENTIALITY AGREEMENT

                                       14

<PAGE>

                                   EXHIBIT D

PRE-EXISTING RELATIONSHIPS AND IDEAS

The following are pre-existing ideas, concepts, and relationships that belong to
Grant F. Pace:

1.   All  products  or  concepts  or  sales  opportunities  arising  out  of the
     laboratories  of  independent  contractors  of  Cooke  Pharma  Inc.  or any
     affiliates or related companies.

2.   All  products  or  concepts  in  conjunction  with or  related to the Solex
     product of Bayer A.G.  laboratories wherever located, or any related insect
     termination products.

3.   All relationships or products opportunities arising from or in relationship
     with Cutco International,  or Vector Marketing, as long as no such products
     or  opportunities  compete  directly  with  Nu Skin  in Nu  Skin's  product
     categories or in multi-level marketing generally.

Nothing  herein  shall  relieve  Pace of his  fiduciary  duties of loyalty as an
officer of Nu Skin Asia Pacific.

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