Document:

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                                                                   Exhibit 10.13

                         REGISTRATION RIGHTS AGREEMENT
                         -----------------------------

    REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of August 10,
2000, between e-commerce group, Inc., a Nevada company (the "Company"), and S.C.
Management Ltd., a Bahamian corporation (the "Investor").

                                   RECITALS:

    WHEREAS, the Investor has executed and delivered a Subscription Agreement,
dated as of the date hereof (the "Subscription Agreement"), by and among the
Company and the Investor providing for the issuance to the Investor of 300,000
shares (the "Subscription Shares") of the Company's common stock, par value
$.001 per share (the "Common Stock"); and

    WHEREAS, the Company has executed and delivered to the Investor an Amended
and Restated Convertible Promissory Note, dated as of the date hereof (the "the
Convertible Note"), providing for the issuance to the Investor of Units (the
"Units") upon conversion of the outstanding principal and accrued interest, each
Unit consisting of one share of Common Stock (the "Conversion Shares") and a
warrant (the "Warrant") to purchase one share of Common Stock (the "Warrant
Shares"); and

    WHEREAS, the Investor has executed and delivered a Consulting Agreement,
dated as of the date hereof (the "Consulting Agreement"), by and among the
Company and the Investor providing for the issuance to the Investor of options
(the "Options") to purchase up to 200,000 shares of Common Stock (the "Option
Shares");

    WHEREAS, among the conditions to the consummation of the transactions
contemplated by each of the Subscription Agreement, the Convertible Note and the
Consulting Agreement is the execution and delivery of a Registration Rights
Agreement providing certain registration rights for the Investor; and

    WHEREAS, each of the parties hereto desires to set forth in a single
document the registration rights of the Investor relating to the Subscription
Shares, the Conversion Shares, the Warrant Shares and the Option Shares
(together, the "Shares");

    NOW, THEREFORE, in consideration of the mutual promises, covenants and
conditions hereinafter set forth and for other good and valuable consideration
the Company and the Investor hereby agree as follows:
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1.  Definitions

    For purposes of this Agreement, the following terms have the meanings
indicated below.

    Commission.  The Securities and Exchange Commission or any other federal
    ----------
agency at the time administering the Securities Act.

    Exchange Act.  The Securities Exchange Act of 1934, as amended, and the
    ------------
rules and regulations promulgated thereunder.

    OTCBB. The non-NASDAQ Over the Counter Bulletin Board.
    -----

    Registration statement.  A registration statement filed with the Commission
    ----------------------
under the Securities Act.

    Register, registration and registered.  A registration effected by preparing
    -------------------------------------
and filing a Registration Statement or similar document with the Commission in
compliance with the Securities Act, and the declaration or ordering of
effectiveness of such Registration Statement or document.

    Registrable Securities.  The Subscription Shares, the Conversion Shares, the
    ----------------------
Warrant Shares and the Option Shares; provided, however, that those Shares as to
                                      --------  -------
which any of the following apply shall cease to be Registrable Securities: (a) a
registration statement with respect to the sale of such Shares shall have become
effective under the Securities Act and such Shares shall have been disposed of
under such registration statement; (b) such Shares shall have been transferred
pursuant to Rule 144 or any successor rule or provision promulgated under the
Securities Act ("Rule 144"); (c) such Shares shall have been transferred by the
Investor; or (d) the termination of this Agreement.

    Securities Act.  The Securities Act of 1933, as amended, and the rules and
    --------------
regulations promulgated thereunder.

    Shares. The Subscription Shares, the Conversion Shares, the Warrant Shares
    ------
and the Option Shares and, including, without limitation, Common Stock issued as
a stock dividend or pursuant to a stock split.

    2.  Demand Registration Rights

        2.1    Shares

        The Company shall prepare and file with the Commission  a registration
statement under the Securities  Act  in such form as is available for such a
registration, registering the Shares (the "Share Registration Statement") for
resale by the Investor in the United States and shall have same declared
effective by the Commission no later than April 30, 2001 (the "Share
Registration Deadline"). The date on which the Share Registration Statement is
declared effective by the Commission shall be referred to herein as the "Share
Effective Date." Subject to Section 5.1(b) herein, the Company shall keep the
Subscription Share Registration Statement

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effective pursuant to Rule 415 under the Securities Act at all times until the
later of (i) the date as of which the Investor may sell all of the Shares,
without restriction pursuant to Rule 144(k) promulgated under the Securities Act
(or successor thereto) or (ii) the date on which the Investor shall have sold
all the Shares. If the Share Registration Statement is not effective by the
Share Registration Deadline, the Company shall be liable to the Investor for
damages for the period from May 1, 2001 until the Share Effective Date at a per
diem amount equal to $10,000 per day for each of the first 30 days following May
1, 2001; $15,000 per day for each of the next 30 days; and $20,000 per day for
each day thereafter.

        2.2    Limitations on Registration Obligation

        The Company's obligations under Section 2.1, shall be subject to the
following limitations:

        (a)    the Company shall not be obligated to effect more than one
registration with respect to the Shares, and

        (b)    in the event of an underwritten offering, the Investor shall
enter into an underwriting agreement in customary form and shall be entitled to
select the managing underwriters; provided, however, that if the Company
                                  --------  -------
participates in the registration pursuant to Section 2.3, it shall be entitled
to select the managing underwriters; and provided, further, that each managing
                                         --------  -------
underwriter selected shall be reasonably acceptable to the other party.

        2.3    Inclusion of the Company's Securities in Registration

        The Company, on its own behalf or on the behalf of its securityholders,
shall have the right to include any of the Company's securities in any
registration initiated by Investor relating to the Registrable Securities
pursuant to Section 2.1; provided, however, that if the managing underwriters of
                         --------  -------
such underwritten offering shall advise the Company in writing that, in their
judgment, the distribution of all or a specified portion of the securities to be
registered on behalf of the Company or securityholders pursuant to this Section
2.3 concurrently with the Registrable Securities being distributed by such
underwriters will materially and adversely affect the distribution of such
Registrable Securities by such underwriters, then the Company will exclude all
or such specified portion of such securities (other than the Registrable
Securities) to be registered on behalf of the Company or its securityholders
from such underwritten offering and will select, in its sole discretion, the
securities (other than the Registrable Securities) to be so excluded from such
offering.  Notwithstanding the foregoing, the right of the underwriters to
exclude Registrable Securities from the registration and underwriting as
described above shall be restricted such that all shares that are not
Registrable Securities and all shares that are held by persons who are employees
or directors of the Company (or any subsidiary of the Company) shall first be
excluded from such registration and underwriting before any Registrable
Securities are so excluded.

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    3.  Incidental Registration

        3.1    Company Registration

        In addition to the rights provided pursuant to Section 2 and subject to
the limitations set forth in Section 3.2, if the Company at any time proposes to
register any of its Common Stock under the Securities Act  (other than on Form
S-4 or Form S-8 or their then equivalents relating to securities to be issued
solely in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other employee benefit
plans), whether or not for sale for its own account, on a form and in a manner
that would permit registration of Registrable Securities for sale to the public
under the Securities Act, it will each such time give prompt written notice to
the Investor of its intention to do so, describing such securities and
specifying the form and manner and the other relevant facts involved in such
proposed registration and, upon the written request of Investor delivered to the
Company within 20 days after the Company has given written notice to the
Investor pursuant to this Section 3.1, the Company will use commercially
reasonable efforts to effect the registration under the Securities Act of all
Registrable Securities that the Company has been so requested to register by the
Investor, to the extent requisite to permit the disposition (in accordance with
the intended method thereof specified in such notice from the Company as
aforesaid) of the Registrable  Securities so to be registered. No rights to
registration of the Shares under this Section 3.1 shall be construed to limit
any registration required under Section 2.  The obligations of the Company under
this Section 3.1 may be waived by the Investor.

        3.2    Limitations on Incidental Registration Rights

        The Company's obligations under Section 3.1 shall be subject to the
following limitations:

        (a)    if, at any time after giving such written notice of its intention
to register any of such securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register such securities, the Company may,
at its election, give written notice of such determination to the Investor and
thereupon the Company shall be relieved of its obligation to register any
Registrable Securities in connection with such registration;

        (b)    if (i) the registration so proposed by the Company (either on
behalf of its own account or on behalf of another shareholder) involves a firm
commitment underwritten offering and (ii) the managing underwriters of such
underwritten offering shall advise the Company in writing that, in their
judgment, the distribution of all or a specified portion of such Registrable
Securities concurrently with the securities being distributed by such
underwriters will materially and adversely affect the distribution of such
securities by such underwriters, then the Company will promptly advise the
Investor thereof and may require, by written notice to the Investor accompanying
such advice, that all or a specified portion of such Registrable Securities be
excluded from such underwritten offering;

        (c)    the Company shall not be obligated to effect any registration of
Registrable Securities under this Section 3 incidental to the registration of
any of its securities in connection

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with mergers, acquisitions, exchange offers, distributions to its investors,
dividend reinvestment plans or stock option or other employee benefit plans; and

        (d)    if the registration so proposed by the Company (either on behalf
of its own account or on behalf of another shareholder) involves an underwritten
offering, the right of the Investor to include any or all of the Registrable
Securities in such registration shall be conditioned upon the following: (i) the
Investor shall participate in such underwriting and only such Registrable
Securities that are to be distributed pursuant to the underwriting shall be
included in such registration and (ii) the Investor shall enter into an
underwriting agreement in customary form with the underwriter or underwriters.

    4.  Registration Expenses

        The Company will pay in connection with each of the registrations of
Registrable Securities effected by the Company pursuant to Section 2 or 3 all
expenses incident to the Company's performance of or compliance with Sections 2
and 3 (the "Registration Expenses"), including, without limitation, all
registration and filing fees (including filing fees with respect to the
Commission and to the National Association of Securities Dealers, Inc.), all
fees and expenses of complying with state securities or "blue sky" laws
(including fees and disbursements of underwriters' counsel in connection with
any "blue sky" memorandum or survey), all printing expenses, all registrars' and
transfer agents' fees, and all fees and disbursements of the Company's counsel
and independent public accountants. In all cases Registration Expenses shall
exclude (a) underwriting discounts and commissions and applicable transfer
taxes, if any, which shall be borne by the Investor in all cases, (b) any fees
and disbursements of counsel for the Investor, and  (c) any fees and
disbursements of counsel for any underwriter of any Registrable Securities being
registered (other than as described above), including such fees and
disbursements of counsel which the parties expect to be paid by the underwriter.

    5.  Registration Procedures

        5.1    The Company's Obligations

        Whenever the Company is required to effect the registration of any
Registrable Securities under this Agreement,  the Company will as expeditiously
as is reasonable:

        (a)    prepare and file with the Commission, on any appropriate form, a
registration statement with respect to such Registrable Securities and use
commercially reasonable efforts to cause such registration statement to become
effective;

        (b)    prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective and
to comply with the provisions of the Securities Act with respect to the
disposition of all Registrable Securities and other securities covered by such
registration statement until the expiration of one year after such registration
statement first becomes effective or, if sooner, such time as all such
Registrable Securities have been disposed of in accordance with the intended
method of disposition by the Investor as set forth in such registration
statement;

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        (c)    furnish to the Investor such number of copies of the prospectus
and any supplements thereto included in such registration statement (including a
preliminary prospectus) and other documents such seller may reasonably request
in order to facilitate the sale or disposition of such Registrable Securities;

        (d)    use commercially reasonable efforts to register or qualify all
securities covered by such registration statement under such other securities or
"blue sky" laws of such jurisdictions as each seller or underwriter shall
reasonably  request, and do any and all other acts and things that may be
necessary to enable the Investor or underwriter to consummate the disposition in
such jurisdictions of its Registrable Securities covered by such registration
statement, except that the Company shall not for any such purpose be required to
qualify generally to do business as a foreign corporation in any jurisdiction
wherein it is not so qualified, or to subject itself to taxation in respect of
doing business in any such jurisdiction, or to consent to general service of
process in any such jurisdiction;

        (e)    notify the Investor, at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of the happening
of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing or if it is necessary to amend or supplement such prospectus to comply
with the law, and at the request of any such seller, prepare and furnish to such
seller a reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such Registrable Securities or securities, such prospectus, as
amended or supplemented, will comply with the law; and

        (f)    issue to any underwriter to which Investor may sell such
Registrable Securities in connection with any such registrations (and to any
direct or indirect transferee of any such underwriter or to such holder, if such
registered offering is not underwritten) certificates evidencing such
Registrable Securities without any legend restricting the transferability of the
Registrable Securities.

        5.2    Underwriting Requirements

        If requested by the underwriters for any underwritten offering of
Registrable Securities on behalf of the Investor pursuant to a registration
requested under Section 2 or 3, the Company will enter into an underwriting
agreement with such underwriters for such offering, such agreement to contain
such representations and warranties by the Company and such other terms and
conditions as are customarily contained in underwriting agreements relating to
securities comparable to the Common Stock and with respect to secondary
distributions including, without limitation, opinions of counsel, "cold comfort"
letters signed by the independent public accountants who have issued a report on
the Company's financial statements included in such registration statement and
indemnities to the effect and to the extent provided in Section 8.  The Investor
shall also enter into and perform its own obligations under such underwriting
agreement.

                                       6
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    6.  Preparation; Reasonable Investigation

    In connection with the preparation and filing of a registration statement
registering Registrable Securities under the Securities Act, the Company shall
give the Investor and its underwriters, if any, and their respective counsel and
accountants, the opportunity to participate in the preparation of such
registration statement, each prospectus included therein or filed with the
Commission, and each amendment thereof or supplement thereto, and shall afford
the Investor, underwriters, counsel and accountants reasonable access to the
Company's records and personnel.

    7.  Furnish Information

    It is a condition precedent to the obligations of the Company to take any
action pursuant to this Agreement that the Investor furnishes to the Company
such information regarding itself, the Registrable Securities held by it and the
intended method of disposition of such securities as may be reasonably required
to effect the registration of its Registrable Securities and to execute such
documents in connection with such registration as the Company may reasonably
request.

    8.  Indemnification and Contribution

    In the event any Registrable Securities are included in a registration
statement under Section 2 or 3:

        (a)    To the extent permitted by law, the Company will indemnify and
hold harmless the Investor, the officers, directors, partners, agents and
employees of the Investor, any underwriter (as defined in the Securities Act)
for the Investor and each person, if any, who controls the Investor or
underwriter within the meaning of the Securities Act or the Exchange Act,
against any losses, claims, damages or liabilities (joint or several) to which
they may become subject under the Securities Act, the Exchange Act or other
federal or state law, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively, a "Violation"): (i) any
untrue statement or alleged untrue statement of a material fact contained in
such registration statement, including any preliminary prospectus or final
prospectus contained therein, or any amendments or supplements thereto, incident
to any such registration, qualification or compliance, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein. in light of the circumstances under
which they were made, not misleading, or (iii) any violation or alleged
violation by the Company of the Securities Act, the Exchange Act, any state
securities law or any rule or regulation promulgated under the Securities Act,
the Exchange Act or any state securities law; and the Company shall pay for any
legal or other expenses reasonably incurred by the Investor, officer, director,
partner, agent, employee, underwriter or controlling person, as incurred, in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained
                     --------  -------
in this Section 8(a) will not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Company (which consent may not be unreasonably withheld), nor
will the Company be liable to the Investor, underwriter or

                                       7
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controlling person in any such case for any such loss, claim, damage, liability
or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by the Investor,
underwriter or controlling person; provided, further, that the indemnity
                                   --------  -------
agreement contained in this Section 8(a) with respect to any preliminary
prospectus shall not inure to the benefit of any underwriter from whom the
person asserting any such losses, claims, damages, liabilities or expenses
purchased Common Shares, or any person controlling such underwriter, if a copy
of the final prospectus (as then amended or supplemented, if the Company shall
have furnished any such amendments or supplements thereto) was not sent or given
by or on behalf of such underwriter to such person, if such is required by law,
at or prior to the written confirmation of the sale of such shares to such
person and if the final prospectus (as so amended or supplemented) would have
corrected the defect giving rise to such loss, claim, damage, liability or
expense.

    (b)   To the extent permitted by law, the Investor will indemnify and hold
harmless the Company, and each of its officers and directors, , who, against any
losses, claims, damages or liabilities (joint or several) to which the Company
or any such director or officer, may become subject, under the Securities Act,
the Exchange Act or other federal or state law, insofar as such losses, claims,
damages or liabilities (or actions in respect thereto) arise out of or are based
upon any Violation, in each case to the extent (and only to the extent) that
such Violation occurs in reliance upon and in conformity with written
information furnished by the Investor expressly for use in connection with such
registration, and the Investor shall pay any legal or other expenses reasonably
incurred by the Company or any such director or officer, , as incurred, in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity agreement contained
                     --------  -------
in this Section 8(b) will not apply to amounts paid in settlement of any such
loss, claim, damage, liability or action if such settlement is effected without
the consent of the Investor, which consent may not be unreasonably withheld;
provided, further, that in no event shall any indemnity under this Section 8(b)
--------  -------
exceed the net proceeds from the offering received by the Investor upon its sale
of Registrable Securities included in the registration.

        (c)    Promptly after receipt by an indemnified party under this Section
8 of notice of the commencement of any action (including any governmental
action), such indemnified party will, if a claim in respect thereof is to be
made against any indemnifying party under this Section 8, deliver to the
indemnifying party a written notice of the commencement thereof and the
indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
                             --------  -------
have the right to retain its own counsel (together with appropriate local
counsel) with the fees and expenses to be paid by the indemnifying party, if the
indemnifying party fails to assume the defense within 20 days following notice
of a claim or if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate due to actual or
potential differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action will not relieve such indemnifying party of any liability to the
indemnified party under this Section 8 unless such failure is prejudicial to the
indemnifying party's ability to defend such action, but the

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omission so to deliver written notice to the indemnifying party will not relieve
it of any liability that it may have to any indemnified party otherwise than
under this Section 8.

    9.  Transferability; Legend

        (a)    The rights to cause the Company to register Registrable
  Securities pursuant to this Agreement may not be assigned by the Investor.

        (b)    The Investor understands and agrees that the certificates
  evidencing the Shares will bear a legend in substantially the following form:

               "The shares represented by this certificate have not
               been registered under the United States Securities Act
               of 1933, as amended (the "Act"), and may not be
               offered, sold or otherwise transferred, pledged or
               hypothecated unless and until such shares are
               registered under the Act or, except as otherwise
               permitted pursuant to Rule 144 under the Act or another
               exemption from registration under the Act or an opinion
               of counsel reasonably satisfactory to the issuer is
               obtained to the effect that such registration is not
               required. The Securities are also subject to transfer
               restrictions as set forth in a [Subscription Agreement]
               [Convertible Note] [Consulting Agreement] dated August
               , 2000 and other operative documents entered into in
               connection therewith, copies of which may be obtained
               from the issuer."

    10. Termination of Registration Rights

    The registration rights granted pursuant to this Agreement shall terminate
at such time as all Registrable Securities may be sold within a three-month
period pursuant to Rule 144.

    11. Miscellaneous

        11.1  Amendment and Waivers

        Any provision of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company and
the Investor.

        11.2  Notices

        Unless otherwise provided, any notice or other communication required or
permitted to be given or effected under this Agreement shall be in writing and
shall be deemed effective upon personal or facsimile delivery to the party to be
notified or three business days after deposit with an internationally recognized
courier service, delivery fees prepaid, and addressed to the party to be
notified at the following respective addresses, or at such other addresses as
may be

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designated by written notice; provided, however, that any notice of change of
address shall be deemed effective only upon receipt:

               If to the Company:   302 Regent Street, Suite 401
                                    London W1R 6HHUnited Kingdom

               With a copy to:      Brown Rudnick Freed & Gesmer
                                    29-30 St. James's Street
                                    London SW1A 1HB
                                    United Kingdom
                                    Attn: Colin Buckley

               If to the Investor:  Suite L, King's Court
                                    Nassau, Bahamas

               With a copy to:      Clarke, Wilson, Barristers and Solicitors
                                    800-885 West Georgia Street
                                    Vancouver, B.C.
                                    Canada V6C 3H1
                                    Attn: Bernard Pinsky

        11.3   Governing Law

        This Agreement shall be governed by and construed in accordance with the
laws of the State of Nevada applicable to contracts made and to be performed
entirely within such State, excluding the body of law relating to choice of
laws, and the federal laws of the United States applicable herein and the
parties agree to attorn to the jurisdiction of the courts thereof.

        11.4  Counterparts

        This Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original and all of which together constitute one
and the same instrument.

        11.5  Successors and Assigns

        Subject to the restrictions set forth herein, this Agreement will inure
to the benefit of, and be binding upon, the respective successors and assigns of
the parties.

        11.6  Waiver of Jury Trial

        Each party hereto hereby waives its rights to a jury trial of any claim
or cause of action based upon or arising out of this Agreement, the Common Stock
or the subject matter hereof.  The scope of this waiver is intended to be all-
encompassing of any and all disputes that may be filed in any court and that
relate to the subject matter of this transaction, including,

                                      10
<PAGE>

without limitation, contract claims, tort claims, breach of duty claims, and all
other common law and statutory claims. This section 11.6 has been fully
discussed by each of the parties hereto and these provisions shall not be
subject to any exceptions. Each party hereto hereby further warrants and
represents that such party has reviewed this waiver with its legal counsel, and
that such party knowingly and voluntarily waives its jury trial rights following
consultation with legal counsel. This waiver shall apply to any subsequent
amendments, supplements or modifications to (or assignments of) this Agreement.
In the event of litigation, this Agreement may be filed as a written consent to
a trial (without a jury) by the court.

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

e-commerce group, Inc..             S.C. Management Ltd.

By:                                 By:
   -------------------------           ----------------------------
    Name:                               Name:
    Title:                              Title:

                                   E-commerce/SC Mgt/Registration Rights Act
----------------------------------------------------------------------------

                                      11AMENDED AND RESTATED
                                 JOSEPH Y. CHANG
                              EMPLOYMENT AGREEMENT

     EMPLOYMENT  AGREEMENT (the "Agreement")  dated as of April 1, 2000, between
PHARMANEX,  INC.,  a  Delaware  corporation  ("Company"),  and  JOSEPH Y.  CHANG
("Executive").

     WHEREAS,  the Company is a wholly owned subsidiary of Nu Skin  Enterprises,
Inc. ("Parent");

     WHEREAS,  the  Executive  has  been  employed  by the  Company  in a senior
management  position  pursuant  to the terms of an  Employment  Agreement  dated
October 5, 1998, as amended (the "Original Employment Agreement");

     WHEREAS, the Company wishes to have Executive accept new  responsibilities,
and Executive wishes to accept those new responsibilities;

     WHEREAS,  the Company and Executive  wish to amend and restate the terms of
the Original Employment Agreement,

     NOW,   THEREFORE,   in   consideration  of  the  covenants  and  agreements
hereinafter set forth, the parties hereto agree as follows:

     1.   EFFECTIVENESS OF AGREEMENT

          1.1.  General.  This Agreement  shall become  effective as of the date
     hereof and shall replace in its entirety the Original Employment Agreement,
     recognizing the effectiveness of the Original Employment Agreement from the
     date of its execution until the date hereof.

     2.   EMPLOYMENT AND DUTIES

          2.1.  General.  The  Company  hereby  employs the  Executive,  and the
     Executive agrees to serve, as President of the Company,  upon the terms and
     conditions  herein  contained.  In such  capacity,  Executive  shall report
     directly to the Chief Executive Officer of the Parent.  The Executive shall
     perform  such other  duties and  services for the Company and the Parent as
     may be  reasonably  designated  from time to time by the  Parent and as are
     consistent  with  Executive's  title.  The  Executive  agrees  to serve the
     Company  faithfully  and to the best of his ability  under the direction of
     the Parent.

                                       1

<PAGE>

          2.2.  Exclusive  Services.  Except as may  otherwise  be  approved  in
     advance by the Board of  Directors  of the  Company  ("Board"),  and except
     during vacation periods and reasonable  periods of absence due to sickness,
     personal  injury or other  disability,  the Executive shall devote his full
     working  time  throughout  the  Employment  Term (as defined  below) to the
     services required of him hereunder. The Executive shall render his services
     exclusively to the Company  during the  Employment  Term, and shall use his
     best  efforts,  judgment and energy to improve and advance the business and
     interests  of the  Company  in a manner  consistent  with the duties of his
     position.   Executive  may  participate  in  charitable  and  philanthropic
     activities so long as they don't interfere with his duties hereunder.

          2.3.  Term  of  Employment.  The  Executive's  employment  under  this
     Agreement  shall  commence  as of  the  effective  date  hereof  and  shall
     terminate on the earlier of (a) December 31, 2004,  or (b) the  termination
     of the  Executive's  employment  pursuant  to this  Agreement.  The  period
     commencing as of the Effective Time and ending on December 31, 2004 or such
     earlier date on which Executive's  employment with the Company  terminates,
     is  hereinafter  referred  to  as  the  "Employment  Term".  Executive  may
     terminate  his  employment  with the Company at any time and for any reason
     upon twelve (12) months prior written notice to the Company.

          2.4.  Reimbursement  of  Expenses.  The Company  shall  reimburse  the
     Executive for reasonable travel and other business expenses incurred by him
     in the  fulfillment  of  his  duties  hereunder  upon  presentation  by the
     Executive of an itemized account of such  expenditures,  in accordance with
     the Parent's policies and procedures.

          2.5.   Termination   of  Prior   Agreements.   Executive   agrees  and
     acknowledges  that,  upon the effective date hereof,  all prior  employment
     agreements,  compensation and incentive  arrangements and rights to acquire
     equity of the Company are cancelled in their entirety and are of no further
     force or effect.

     3.   SALARY

          3.1.  Base  Salary.  From  the date  hereof,  the  Executive  shall be
     entitled to receive a base salary ("Base Salary") at a rate of $245,000 per
     annum, payable twice monthly in arrears in equal installments in accordance
     with the Parent's payroll practices.  In the event Executive  relocates his
     household to either the San Francisco or the Provo areas,  the Company will
     augment Executive's Base Salary by $30,000 per annum.

          3.2. Annual Review.  The Executive's Base Salary shall be reviewed for
     potential increase by the Parent,  based upon the Executive's  performance,
     not less often than  annually.  Any  positive  adjustments  in Base  Salary
     effected as a result of such review shall be made by the Parent in its sole
     discretion;  provided,  however,  that during the Employment Term only, the
     Executive shall receive a minimum increase of ten percent (10%) per annum.

                                       2

<PAGE>

          3.3. Cash  Incentives.  During his  employment  under this  Agreement,
     Executive  shall be entitled to participate in the Company's  standard cash
     incentive  plan  ("Cash  Incentive  Plan")  at  the  same  level  as  other
     Presidents of Parent's divisions. In addition,  Executive shall participate
     in a cash bonus program  designed to incent the  development  of successful
     products within the Parent's Pharmanex  division (the "Product  Development
     Bonus Plan"). Provided Executive is continuously employed by the Company or
     by  Parent,  the  Company  will pay a cash  bonus  of .5% of gross  product
     revenue to Executive and Dr. Michael Chang (in equal  allocations)  for (a)
     any  products  not yet  offered by the Company  that  generate at least $20
     million of global,  annual  sales,  and (b) any products not yet offered by
     the Company but based largely on product  ingredients  that the Company has
     already  developed,  such as the  primary  ingredients  found in  CordyMax,
     Tegreen or Gingko,  provided  that such products  generate  global sales in
     excess of $25 million, and (c) reformulated  versions of LifePak,  provided
     that the  bonus  shall  only be paid on  LifePak  sales in  excess  of $175
     million per year. Payments under the Product Development Bonus Plan will be
     calculated and paid within sixty (60) days of the end of each calendar year
     and will be capped at no more than $1 million per year. Bonus payments paid
     pursuant  to the Product  Development  Bonus Plan will be  subtracted  from
     bonuses otherwise payable pursuant to the Cash Incentive Plan.

     4.   LONG-TERM INCENTIVE COMPENSATION.

          The Company will provide the Executive  with the  following  long-term
     incentive compensation arrangement in accordance with the terms of Parent's
     1996 Incentive Stock Option Plan ("Stock Option Plan").

          (a) As soon as  practicable  after the date hereof,  Parent will grant
     the  Executive  nonqualified  stock  options to acquire  150,000  shares of
     Parent common stock  ("Shares")  with an exercise  price equal to $8.00 per
     share (the "Series A Options").

          (b) Provided the Executive is continuously  employed by the Company or
     Parent  after the date  hereof  and until the  vesting  date,  the Series A
     Options shall vest and become exercisable as follows:  33,333 of the Series
     A Options  will vest as of October 16,  1999,  October 16, 2000 and October
     16,  2001;  25,000 of the Series A Options  will vest on October 16,  2002,
     with the remaining 25,000 Series A Options vesting on October 16, 2004.

          (c) In addition,  Parent will grant the Executive  nonqualified  stock
     options to acquire 25,000 Shares with an exercise price equal to $12.94 per
     share (the "Series B  Options").  Provided  the  Executive is  continuously
     employed by the  Company or the Parent  after the date hereof and until the
     vesting date, the Series B Options will vest and become exercisable in four
     equal installments of 6,250 Series B Options on August 31, 2000, 2001, 2002
     and 2003.

          (d) In  addition,  Executive  will be entitled to  participate  in the
     annual,  standard  employee and executive stock incentive plan at a rate of
     no less than 25,000  options per

                                       3

<PAGE>

     year,  on the same terms and  conditions as other  employees of Parent.  In
     addition, the options to acquire Shares that Executive received at the time
     the  Company  was  acquired  by  Parent,  based on  previously  issued  and
     outstanding  options  issued by the Company or its parent prior to Parent's
     acquisition of the Company shall be fully vested and  exercisable as of the
     date hereof.

          (e) Notwithstanding the foregoing,  upon the occurrence of a change of
     control of the Parent (as defined in the Stock Option Plan) or in the event
     Parent  engages in a transaction  that  effectively  works to eliminate the
     possibility of trading publicly Parent's securities,  all unvested Series A
     and Series B Options,  and any other options issued by Parent to Executive,
     will become immediately  vested and exercisable;  provided the Executive is
     employed by the Company or an affiliate on such date.

          (f ) Unless the Company  determines  otherwise,  the  Executive  shall
     forfeit  all  outstanding  stock  options,  whether or not  vested,  if the
     Executive's  employment  with  the  Company  or any of  its  affiliates  is
     terminated  for Cause  or,  if  following  termination  of the  Executive's
     employment  with the Company or any of its affiliates for any other reason,
     the  Company   determines  that,  during  the  period  of  the  Executive's
     employment,  circumstances existed which would have entitled the Company or
     any such  affiliate to terminate the  Executive's  employment for Cause and
     the Company  notifies  Executive of such  determination in writing no later
     than ninety (90) days after termination of Executive's  employment with the
     Company.

          (g) In connection  with the grant of any options,  the Company and the
     Executive shall enter into an award document which shall set forth the term
     of the options,  the  procedures  for exercising the options and such other
     terms as the Company  may  determine,  in its  reasonable  discretion,  are
     necessary and appropriate;  provided,  however,  that  notwithstanding  the
     foregoing  the options  shall have the longest term  permissible  under the
     Stock Option Plan.

     5.   EMPLOYEE BENEFITS

          The Executive shall,  during his employment  under this Agreement,  be
     included to the extent eligible  thereunder in all employee  benefit plans,
     programs  or  arrangements  (including,   without  limitation,  any  plans,
     programs or arrangements providing for retirement benefits, profit sharing,
     disability  benefits,  health  and life  insurance,  or  vacation  and paid
     holidays) that shall be established or adopted by the Company or the Parent
     for, or made available to, the Company's or the Parent's senior executives.
     In addition,  the Company shall  furnish the  Executive  with the following
     benefits during his employment under this Agreement:

     (a)  Executive  shall  continue to be entitled  to receive  relocation  and
          housing  assistance on the terms previously  agreed upon and set forth
          in a letter agreement dated _________________, 2000; and

     (b)  Four (4) weeks vacation per annum.

                                       4

<PAGE>

     6.   TERMINATION OF EMPLOYMENT

          6.1. Termination Without Cause.

          6.1.1. General. Subject to the provisions of Sections 6.1.3 and 6.1.4,
     if,  prior  to the  expiration  of the  Employment  Term,  the  Executive's
     employment is terminated by the Company  without Cause (as defined  below),
     the Company  shall  continue to pay the  Executive  the Base Salary (at the
     rate in effect on the date of such  termination)  for  twelve  (12)  months
     (such period being referred to hereinafter as the "Severance  Period"),  at
     such intervals as the same would have been paid had the Executive  remained
     in the active service of the Company.  The Executive  shall have no further
     right to receive any other  compensation or benefits after such termination
     or resignation of employment,  except as determined in accordance  with the
     terms of the  employee  benefit  plans or  programs  of the  Company  or as
     provided in this Agreement. In addition, the Executive may, but only within
     twelve (12) months after he ceases to be an employee,  exercise his Options
     to the extent they have  vested.  To the extent that the  Executive  is not
     otherwise entitled to exercise the Options at the date of such termination,
     or if he fails to exercise  the Options  within the time  specified  in the
     preceding sentence, such Options will terminate.

          6.1.2 To the extent that any of the  Options  would have vested at the
     end of the fiscal year in which Executive is terminated  under Section 4 of
     this Agreement but for the termination of the Executive without Cause, then
     notwithstanding  Section  6.1.1  hereof,  such Options  shall vest when the
     necessary  calculations under Section 4 have been completed,  and Executive
     shall have twelve (12) months from such  determination date to exercise the
     Options.  The  Company  shall  notify  Executive  within ten days after the
     necessary   calculations   under  Section  4  have  been  completed  (which
     calculations  shall be made no later than ninety (90) days after the fiscal
     year in  question)  as to whether  any of the  Options  have  vested.  This
     provision shall survive termination of the Agreement.

          6.1.3.  Conditions  Applicable to the Severance Period. If, during the
     Severance  Period,  the  Executive  breaches any of his  obligations  under
     Section 8, the Company may, upon written notice to the Executive, terminate
     the Severance  Period and cease to make any further payments or provide any
     benefits described in Section 6.1.1.

          6.1.4.  Death During Severance Period. In the event of the Executive's
     death during the  Severance  Period,  payments of Base Salary under Section
     6.1.1  shall  continue  to be made during the  remainder  of the  Severance
     Period to the  beneficiary  designated  in writing for this  purpose by the
     Executive or, if no such  beneficiary is  specifically  designated,  to the
     Executive's estate.

                                       5

<PAGE>

          6.1.5.  Date of  Termination.  The date of  termination  of employment
     without  Cause  shall  be  the  date  specified  in  a  written  notice  of
     termination to the Executive as the last day of the Executive's employment.

          6.1.6. Constructive Termination.  The term "Constructive  Termination"
     means:

               (a)  the  continued  assignment to Executive of any duties or the
                    continued material reduction in Executive's  duties,  either
                    of  which  is  materially   inconsistent   with  Executive's
                    position  with the Company,  for thirty (30)  calendar  days
                    after Executive's  delivery of written notice to the Company
                    objecting to such assignment or reduction; or

               (b)  the  relocation of the principal  place for the rendering of
                    Executive's  services  hereunder  to a  location  more  than
                    thirty (30) miles from the Company's business offices in the
                    San Francisco Area; or

               (c)  a material reduction in compensation and benefits under this
                    Agreement,  which remains in effect for thirty (30) calendar
                    days after Executive  delivers written notice to the company
                    of such material reduction.

          None of the foregoing will  constitute a  Constructive  Termination to
     the extent mutually agreed upon in advance of the occurrence thereof by the
     Executive and the Company. A Constructive  Termination will be treated as a
     termination of the Executive by the Company without Cause.

          6.2. Termination for Cause; Resignation.

          6.2.1.  General.  If, prior to the expiration of the Employment  Term,
     the  Executive's  employment is terminated by the Company for Cause, or the
     Executive  resigns from his employment  hereunder,  the Executive  shall be
     entitled  only to payment of his Base Salary as then in effect  through and
     including  the  date  of  termination  or  resignation.  In the  event  the
     Executive  resigns  Executive may, but only within twelve (12) months after
     he ceases to be an  employee,  exercise his Options to the extent they have
     vested.  The  Executive  shall have no further  right to receive  any other
     compensation   or  benefits  after  such   termination  or  resignation  of
     employment,  except  as  determined  in  accordance  with the  terms of the
     employee  benefit  plans or  programs of the Company or as provided in this
     Agreement.

          6.2.2. Date of Termination. The date of termination for Cause shall be
     the date  specified in a written  notice of termination to the Executive as
     the last day of the Executive's  employment.  The date of resignation shall
     be the  date  specified  in the  written  notice  of  resignation  from the
     Executive to the Company as the last day of the Executive's employment,  or

                                       6

<PAGE>

     if no date is specified  therein,  twelve (12) months after  receipt by the
     Company of written notice of resignation from the Executive.

          6.3.  Cause.  Termination  for "Cause" shall mean  termination  of the
     Executive's employment because of:

          (a) any act or  omission  that  constitutes  a material  breach by the
     Executive of any of his obligations  under this Agreement,  which breach is
     materially injurious to the Company;

          (b) the willful and  continued  failure or refusal of the Executive to
     substantially  perform the duties  required of him in his position with the
     Company,  which  failure is not cured  within  twenty  (20) days  following
     written notice of such failure;

          (c) any willful  violation  by the  Executive  of any  material law or
     regulation  applicable  to  the  business  of  the  Company  or  any of its
     subsidiaries or affiliates,  or the Executive's conviction of, or a plea of
     nolo contendre to, a felony,  or any willful  perpetration by the Executive
     of a common law fraud; or

          (d) any other willful  misconduct by the Executive  that is materially
     injurious  to the  financial  condition  or business  reputation  of, or is
     otherwise  materially  injurious to, the Company or any of its subsidiaries
     or affiliates.

                                       7

<PAGE>

     7.   DEATH OR DISABILITY

          In the  event of  termination  of  employment  by  reason  of death or
     Disability  (as  hereinafter  defined),  the Executive  (or his estate,  as
     applicable)   shall  be  entitled  to  Base  Salary  through  the  date  of
     termination.  Other  benefits  shall be determined  in accordance  with the
     terms of the benefit plans maintained by the Company, and the Company shall
     have no further obligation  hereunder.  In addition,  the Executive (or his
     estate  or the  person  or  persons  to whom  the  Options  may  have  been
     transferred  by  will  or by  the  laws  of  decent  and  distribution,  as
     applicable) may, but only within twelve months after Executive ceases to be
     an  employee,  exercise  Executive's  Options to the extent  Executive  was
     entitled to exercise  such  Options on the date of his death or on the date
     he is terminated by the Company by reason of Disability (all of which shall
     be terminations  without  Cause).  To the extent that the Executive was not
     otherwise  entitled to exercise the Options on such date,  or if he (or his
     estate  or the  person  or  persons  to whom  the  Options  may  have  been
     transferred  by  will  or by  the  laws  of  decent  and  distribution,  as
     applicable)  fails to exercise the Options within the time specified in the
     preceding  sentence,  such  Options  will  terminate.  For purposes of this
     Agreement,  "Disability" means a physical or mental disability or infirmity
     of the  Executive,  as  determined  by a physician of  recognized  standing
     selected  by the  Company,  that  prevents  (or,  in the  opinion  of  such
     physician, is reasonably expected to prevent) the normal performance of his
     duties as an employee of the Company for any continuous period of 180 days,
     or for 180 days during any one 12-month period.

     8.   CONFIDENTIALITY; NONCOMPETITION; NONSOLICITATION

          8.1. Key-Employee Covenants. The Executive agrees to perform
his  obligations  and  duties  and to be bound by the terms of the  Key-Employee
Covenants  attached hereto as Appendix B which are incorporated by reference and
which shall be in force unless otherwise expressly modified by this Agreement.

          (a) Executive agrees that the period of  non-competition  set forth in
     Section 8 of the  Key-Employee  Covenants is lengthened  from six months to
     one  year.   The   Company,   or  the  Parent  may  extend  the  period  of
     non-competition set forth in Section 8 of the Key-Employee Covenants for up
     to an  additional  two  (2)  years  thereafter,  provided  that  (i)  where
     Executive has either  voluntarily  resigned his employment with the Company
     or his employment is terminated  for Cause,  within thirty (30) days of the
     termination  of the  applicable  non-competition  period the Company or the
     Parent  notifies  the  Executive in writing that it wishes to so extend the
     period of  non-competition  for an additional  one-year period,  (ii) where
     Executive's employment with the Company is terminated without Cause or as a
     result of the  expiration of the term of this  Agreement  (where  Executive
     does not continue in the employ of the Company),  the Company  notifies the
     Executive  in  writing  within  sixty  (60)  days  of  the  termination  of
     Executive's employment hereunder, that it wishes to so extend the period of
     non-competition and specifies therein whether such extension shall be for a
     one (1) or two (2) year period,  and

                                       8

<PAGE>

     (iii) the Company  pays  Executive  for each year that it decides to extend
     the period of  non-competition  an amount equal to fifty  percent  (50%) of
     Executive's  most recent Base Salary,  which amount shall be payable by the
     Company twice monthly over the period in question.

          8.2.  Certain  Remedies.  Without  intending  to  limit  the  remedies
     available to the Company,  the Executive agrees that a breach of any of the
     covenants  contained in the  Key-Employee  Covenants may result in material
     and irreparable injury to the Company or its subsidiaries or affiliates for
     which there is no adequate  remedy at law,  that it will not be possible to
     measure damages for such injuries  precisely and that, in the event of such
     a breach  or  threat  thereof,  the  Company  shall be  entitled  to seek a
     temporary  restraining order or a preliminary or permanent  injunction,  or
     both,  without  bond or other  security,  restraining  the  Executive  from
     engaging in  activities  prohibited by the  Key-Employee  Covenants or such
     other  relief  as  may  be  required  specifically  to  enforce  any of the
     covenants in the  Key-Employee  Covenants.  Such  injunctive  relief in any
     court shall be  available to the Company in lieu of, or prior to or pending
     determination in, any arbitration proceeding.

     9.   ARBITRATION

          Any dispute or  controversy  arising under or in connection  with this
     Agreement  that cannot be mutually  resolved by the parties hereto shall be
     settled  exclusively by  arbitration  pursuant to the rules of the American
     Arbitration Association in Salt Lake City, Utah before three arbitrators of
     exemplary  qualifications  and  stature.  Each party hereto shall choose an
     independent arbitrator meeting such qualifications within ten (10) business
     days after demand for arbitration is made and such independent  arbitrators
     shall mutually agree as to the third arbitrator meeting such qualifications
     within twenty (20) business days after demand for  arbitration  is made. If
     such arbitrators  cannot come to an agreement as to the third arbitrator by
     such date,  the American  Arbitration  Association  shall appoint the third
     arbitrator in accordance with its rules and the qualification  requirements
     set forth in this  section.  Judgment  may be entered  on the  arbitrator's
     award in any court having  jurisdiction.  The parties hereby agree that the
     arbitrators  shall be  empowered  to enter an  equitable  decree  mandating
     specific  enforcement  of the  terms  of this  Agreement.  The  party  that
     prevails in any  arbitration  hereunder  shall be  reimbursed  by the other
     party  hereto  for any  reasonable  legal fees and  out-of-pocket  expenses
     directly attributable to such arbitration,  and such other party shall bear
     all  expenses  of  the  arbitrators.  Upon  the  request  of a  party,  the
     arbitration award shall specify the factual and legal basis for the award.

     10.  MISCELLANEOUS

          10.1.  Communications.  All notices and other  communications given or
     made  pursuant  hereto shall be in writing and shall be deemed to have been
     duly given or made as of

                                       9

<PAGE>

     the date  delivered  or on the fifth  business day
     after mailed if delivered  personally  or mailed by registered or certified
     mail  (postage  prepaid,  return  receipt  requested)  to the  party at the
     following  addresses  (or at such  other  address  for a party  as shall be
     specified by like notice,  except that notices of changes of address  shall
     be effective upon receipt):

                  (a)      if to the Company:

                           c/o Nu Skin Enterprises, Inc.
                           75 West Center Street
                           Provo, Utah  84601
                           Tel:  (801) 345-6100
                           Fax:  (801) 345-3099
                           Attention:  Truman Hunt, Esq.

                           with copies to:

                           Shearman & Sterling
                           555 California Street, Suite 2000
                           San Francisco, CA  94104
                           Attention:  Kevin Kennedy, Esq.
                           Telephone:  (415) 616-1100
                           Facsimile:  (415) 616-1199

                  (b)      if to the Executive:

                           2550 Sandycreek Drive
                           Westlake Village, CA 91361
                           Tel:  (818) 991-4139

          10.2. Waiver of Breach; Severability.  (a) The waiver by the Executive
     or the Company of a breach of any provision of this  Agreement by the other
     party  hereto  shall  not  operate  or be  construed  as a  waiver  or  any
     subsequent breach by either party.

          (b) The parties hereto  recognize that the laws and public policies of
     various  jurisdictions may differ as to the validity and  enforceability of
     covenants  similar to those set forth  herein.  It is the  intention of the
     parties  that the  provisions  hereof be  enforced  to the  fullest  extent
     permissible  under  the laws and  policies  of each  jurisdiction  in which
     enforcement  may  be  sought,  and  that  the   unenforceability   (or  the
     modification to conform to such laws or policies) of any provisions  hereof
     shall not render unenforceable,  or impair, the remainder of the provisions
     hereof. Accordingly, if at the time of enforcement of any provision hereof,
     a court of competent jurisdiction holds that the restrictions stated herein
     are  unreasonable  under  circumstances  then existing,  the parties hereto
     agree that the maximum period,  scope, or

                                       10

<PAGE>

     geographic area reasonable under such circumstances will be substituted for
     the stated period,  scope or geographical area and that such court shall be
     allowed to revise the  restrictions  contained  herein to cover the maximum
     period, scope and geographical area permitted by law.

          10.3. Assignment;  Successors. No right, benefit or interest hereunder
     shall be assigned, encumbered, charged, pledged, hypothecated or be subject
     to any setoff or recoupment by the Executive. This Agreement shall inure to
     the  benefit  of and be  binding  upon the  successors  and  assigns of the
     Company;  provided,  however that the Company may not assign this Agreement
     without Executive's consent.

          10.4.  Entire  Agreement.  This Agreement and the Appendices  attached
     hereto, which are incorporated herein by this reference, contain the entire
     agreement of the parties with respect to the subject matter hereof,  and on
     and after the  Effective  Time,  and except as otherwise  set forth herein,
     supersedes  all  prior  agreements,   promises,  covenants,   arrangements,
     communications,   representations  and  warranties  between  them,  whether
     written or oral, with respect to the subject matter hereof.

          10.5.  Withholding.  The  payment  of  any  amount  pursuant  to  this
     Agreement shall be subject to applicable withholding and payroll taxes, and
     such other  deductions  as may be  required  under the  Company's  employee
     benefit plans, if any.

          10.6.  Governing  Law.  This  Agreement  shall  be  governed  by,  and
     construed with, the law of the State of Utah.

          10.7.  Headings.  The headings in this  Agreement are for  convenience
     only and shall not be used to interpret or construe any of its provisions.

          10.8.  Counterparts.  This  Agreement  may be  executed in two or more
     counterparts,  each of which shall be deemed an  original  but all of which
     together shall constitute one and the same instrument.

                                       11

<PAGE>

                  IN WITNESS  WHEREOF,  the Company has caused this Agreement to
be duly  executed,  the Parent has agreed and  accepted  terms  hereof,  and the
Executive has hereunto set his hand, as of the day and year first above written.

                                 PHARMANEX, INC.

                                 By:
                                 Name:
                                 Title:

                                 ------------------------------
                                 [Executive]

Agreed and accepted as to its duties pursuant to this Agreement:

NU SKIN ENTERPRISES, INC.

By:
Name:
Title:

                                       12

<PAGE>

                                   APPENDIX A

                             KEY-EMPLOYEE COVENANTS

Nu Skin Enterprises,  Inc. and its affiliated companies ("Company") operate in a
highly  competitive  direct sales multilevel  marketplace  competing for product
market share as well as recruitment  and retention of independent  distributors.
The  success  of Company  depends  on  maintaining  a  competitive  edge in this
industry  through the  introduction  of innovative  products and  attracting and
retaining distributors.  Accordingly,  as a condition of and in consideration of
employment or continued  employment with Company, the parties hereby acknowledge
and agree as follows:

1.   Confidential  Information:  Employee  acknowledges  that during the term of
     employment  with  Company  he or she may  develop,  learn and be exposed to
     information  about Company and its  business,  including but not limited to
     formulas,  business  plans,   financial  data,  vendor  lists,  product and
     marketing  plans,   distributor   lists,  and  other  trade  secrets  which
     information is secret,  confidential and vital to the continued  success of
     Company (" Confidential Information").  The term "Confidential Information"
     shall not include,  and the obligations set forth in this Section shall not
     apply to, any  information  that (a) is  publicly  available,  (b)  becomes
     publicly  available  without  breach of this  Agreement  by  Employee,  (c)
     Employee  already  possess  without  obligation  of  confidentiality,   (d)
     Employee  develops  independently,  or  (e)  Employee  rightfully  receives
     without obligation of confidentiality  from a third party.  Employee agrees
     that he or she will not,  without the express written consent of Company or
     except as required by law or court order  disclose,  copy,  retain,  remove
     from Company's  premises or make any use of such  Confidential  Information
     except  as may be  required  in the  course of his or her  employment  with
     Company.

2.   Conflict of Interest:  During  employment with Company,  Employee shall not
     engage in any  transaction  which  involves a conflict of interest with the
     Company without the Company's  consent.  Employee must discharge his or her
     responsibility  solely  on the  basis  of what is in the best  interest  of
     Company  and  independent  of  personal  considerations  or  relationships.
     Although it is difficult to identify every activity that might give rise to
     a conflict of  interest,  and not by way of making an all  inclusive  list,
     some of the more common  circumstances  and practices  that might result in
     such  conflicts  are set forth below.  Should  Employee  have any questions
     regarding this matter,  Employee  should  consult with and receive  written
     permission from his or her director or supervisor.

     a.   While  employed by the  Company,  Employee  shall  maintain  impartial
          business relationships with vendors, suppliers and distributors.

                                       13

<PAGE>

     b.   While  employed by the  Company,  Employee  shall not have a direct or
          indirect  ownership  interest  in vendors of Company  nor any  company
          doing or seeking to do business  with  Company  unless such  ownership
          interest  is owned by  Employee  at the time his  employment  with the
          Company  commences  or  unless  such  ownership  is in the form of (a)
          securities in a company with publicly traded securities (provided that
          the  securities  held by Employee  represent less than 1% of the total
          outstanding  securities  of  the  company)  or  (b)  and  interest  in
          investment vehicles, limited partnerships,  hedge funds or stock funds
          were Employee is a passive investor.

     c.   While  employed by the  Company,  Employee  shall not have a direct or
          indirect  ownership in any company which  competes with company in any
          product  category or any multi-level  marketing  company,  unless such
          ownership  interest is owned by  Employee  at the time his  employment
          with the Company commences or unless (a) such company's securities are
          publicly traded and the Employee's  ownership interest is less than 1%
          of the total outstanding securities of such company, or (b) except for
          any ownership  interest held as of the date of this Agreement,  or (c)
          such company's  securities are held by an investment vehicle,  limited
          partnership,  hedge  fund or stock fund  where  Employee  is a passive
          investor in such funds.

     d.   While employed by the Company,  Employee shall not perform services of
          any kind for any entity doing or seeking to do business  with Company.
          As to employment  with or service to another company while employed by
          the  Company,  Employee  shall not allow any such  activity to detract
          from his or her job  performance,  use Company's time,  resources,  or
          personnel, or require such long hours to affect his or her physical or
          mental effectiveness.

     e.   While employed and except as permitted by paragraphs (b) or (c) above,
          and  for  a  period  of  three  (3)  months  after  termination  of an
          employment  relationship with Company,  Employee shall not directly or
          indirectly own any interest in a Company  distributorship or any other
          direct sales on multi-level marketing  distributorship.  Additionally,
          during the course of employment,  neither the Employee's spouse nor an
          immediate  family  member living in the same  household  shall own any
          interest  in  a  Company  distributorship  or  any  other  multi-level
          distributorship,  unless  Employee's  interest  would be  permitted by
          paragraphs (b) and (c) above.  Employee's  spouse or immediate  family
          member living in the same  household  will not,

                                       14

<PAGE>

          without  prior  written  consent of the  Company,  own any interest in
          another direct sales distributorship, unless Employee's interest would
          be  permitted  by  paragraphs  (b) and  (c)  above.  Any  pre-existing
          ownership interests covered in this paragraph must be disclosed to the
          Company at the time of the execution of this Agreement.

     f.   Employee  shall disclose to his/her  immediate  director or supervisor
          any and all areas posing a potential or actual  conflict of interests.
          Said  disclosure  shall be made as  promptly  as  possible  after such
          conflict arises.

3.   Work Product:  Company shall have the sole proprietary interest in the work
     product  of  Employee  during his or her  employment  with  Company  ("Work
     Product"),  and Employee  expressly  assigns to Company or its designee all
     rights,  title  and  interest  in  and to all  copyrights,  patents,  trade
     secrets,  improvements,  inventions,  sketches,  models  and all  documents
     related  thereto,   manufacturing   processes  and   innovations,   special
     calibration  techniques,  software,  service code,  systems designs and any
     other Work Product  developed by  Employee,  either  solely or jointly with
     others,  where  said Work  Product  relates  to any  business  activity  or
     research and development  activity in which Company is involved or plans to
     be  involved  at the time of or  prior to  Employee's  creating  such  Work
     Product and where such Work Product is developed  with the use of Company's
     time, material, or facilities;  and Employee further agrees to disclose any
     and all such Work Product to Company  without delay.  This provision  shall
     relate to Work Product created prior to the date of Employee's execution of
     this Agreement as well as Work Product  developed  after  execution of this
     agreement.

4.   Ethical Standards: Employee agrees to maintain the highest business ethical
     and legal standards in his or her conduct,  to be  scrupulously  honest and
     straight-forward in all of his or her business dealings and to use his best
     efforts to avoid all situations which might project the appearance of being
     unethical from a business standpoint or illegal.

5.   Product  Resale:  As an employee of Company,  Employee may receive  Company
     products and materials either at no charge or at discount as specified from
     time to time by Company in its sole  discretion.  Employee  agrees that the
     products received from Company are strictly limited to Employee's  personal
     use and that of Employee's immediate family and may not be resold, given or
     disposed of to any other person or entity in a manner inconsistent with the
     personal use herein described.

6.   Gratuities:  Employee  shall  neither  seek nor retain  gifts,  gratuities,
     entertainment or other forms of compensation,  benefit,  or persuasion from
     suppliers,  distributors,  vendors  or their  representatives  without  the
     consent of a Company Vice President with the exception of meals provided in
     the ordinary course of business on an infrequent basis.

7.   Non-Solicitation:   The  Employee  shall  not  in  any  way,   directly  or
     indirectly,  at any time

                                       15

<PAGE>

     during  employment  or within two (2) years  after  either a  voluntary  or
     involuntary  employment  termination:  (a)  solicit,  divert,  or take away
     Company's  distributors:  (b) solicit in any manner Company's  employees or
     (c)  assist  any other  person in any manner or persons in an attempt to do
     any of the foregoing.

8.   Non-Competition:  During  Employee's  employment  with  Company,  and for a
     period commencing with the date of termination of Employee's employment and
     continuing  for a period  of six (6)  months  thereafter,  and  except  for
     Employee's  ownership  of  securities  in a Company  with  publicly  traded
     securities (provided the securities held by Employee represent less than 1%
     of  the  total  outstanding  securities  of the  Company)  and  except  for
     Employee's interest in investment  vehicles,  limited  partnerships,  hedge
     funds or stock funds where Employee is a passive investor)  Employee agrees
     that he/she shall not accept  employment  with,  engage in or  participate,
     directly or indirectly,  individually or as an officer, director, employee,
     shareholder, consultant, partner, joint venturer, agent, equity owner or in
     any other capacity whatsoever, with any multi-level marketing venture which
     competes with the business of Company  whether for market share of products
     or for independent  distributors in any territory in which Company is doing
     business.  It is further recognized and agreed that the covenants set forth
     herein are for the  purpose of  restricting  Employee's  activities  to the
     extent necessary for the protection of the legitimate business interests of
     Company  and that  Employee  agrees  that  said  covenants  do and will not
     preclude him from  engaging in  activities  sufficient  for the purposes of
     earning a living.

9.   Acknowledgment:  Employee  acknowledges  that his or her  position and work
     activities with the Company are "key" and vital to the on-going  success of
     Company's  operation  in  each  product  category  and in  each  geographic
     location in which Company operates. In addition, Employee acknowledges that
     his or her employment or involvement with any other  multi-level  marketing
     company  would create the  impression  that Employee has left Company for a
     "better  opportunity," which could damage Company by this perception in the
     minds  of  Company's  employees  or  independent  distributors.  Therefore,
     Employee acknowledges that his or her confidentiality, non-solicitation and
     non-competition  covenants  hereunder are fair and reasonable and should be
     construed  to apply to the  fullest  extent  possible by  applicable  laws.
     Employee has carefully read this Agreement,  has consulted with independent
     legal  counsel  to the extent  Employee  deems  appropriate,  and has given
     careful consideration to the restraints imposed by the Agreement.  Employee
     acknowledges that the terms of his Agreement are enforceable  regardless of
     the manner in which Employee's employment is terminated,  whether voluntary
     or involuntary.

10.  Attorney's Fees: In the event of any dispute between the parties  regarding
     this Agreement, then the prevailing party (whether at arbitration, trial or
     on appeal)  shall be  entitled,  in addition to such other relief as may be
     granted,  to be  reimbursed  by the losing party for all costs and expenses
     incurred,  including,  but not limited to,  reasonable

                                       16

<PAGE>

     attorneys' fees and costs for services rendered to prevailing party.

11.  Court's Right to Modify  Restriction:  The parties agree that, if the scope
     or enforceability of the restrictive  covenants contained in this Agreement
     are in any way  disputed  at any time,  a court or other  trier of fact may
     modify and  enforce  the  covenants  to the extent  that it  believes to be
     reasonable and enforceable under the circumstances existing at that time.

12.  Severability:  If  any  provision,   paragraph,  or  subparagraph  of  this
     Agreement is adjudged by any court or  administrative  agency to be void or
     unenforceable in whole or in part, this adjudication  shall not affect that
     validity of the remainder of the Agreement,  including any other provision,
     paragraph, or subparagraph.  Each provision, paragraph, and subparagraph of
     this  Agreement is severable  from every other  provision,  paragraph,  and
     subparagraph and constitutes a separate and distinct covenant.

THESE COVENANTS HAVE BEEN READ, UNDERSTOOD AND FREELY ACCEPTED BY:

-----------------------
"Employee"

                                       17

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