Document:

Master Stock Option Agreement

NU SKIN ENTERPRISES,
INC. 
MASTER 
STOCK OPTION AGREEMENT 

(Director Option
Agreement) 

        This
Master Option Agreement (the “Agreement”) is made effective as of ____________
(the “Effective Date”), to __________________________ (the “Optionee”)
under the Nu Skin Enterprises, Inc. 2006 Stock Incentive Plan (the “Plan”) by Nu
Skin Enterprises, Inc., a Delaware corporation (“Nu Skin Enterprises”), under
authority of the Plan Committee (the “Committee”). Capitalized terms used herein
without definition and defined in the Plan have the same meanings as provided in the Plan. 

     	1. 	
          MASTER AGREEMENT. This Agreement is a Master Agreement and
          the terms of each stock option grant set forth in any Stock Option Schedule
          hereto shall be subject to any and all conditions and provisions set forth
          herein as this Agreement may be amended from time to time. Each Stock Option
          Schedule shall incorporate all of the terms and conditions of this Agreement and
          shall contain such other terms and conditions that the Committee shall establish
          for the grant of options covered by such Stock Option Schedule. In the event of
          a conflict between the language of this Master Agreement and any Stock Option
          Schedule, the language of the Stock Option Schedule shall prevail with respect
          to that Stock Option Schedule. In order to be effective, the Stock Option
          Schedule must be executed by a duly authorized executive officer of the Company.
          No signature of the Optionee shall be required and the Optionee’s
          acceptance of the Stock Option Schedule shall be deemed to be his or her
          acceptance of all the terms and conditions set forth therein. Optionee shall be
          deemed to have accepted the Stock Option Schedule (and all of the terms and
          conditions set forth therein) unless Optionee provides written notice of his or
          her rejection of the Stock Option Schedule and all of the Options granted
          thereunder within 20 days after receipt of the Stock Option Schedule. 

          

     	2. 	
          OPTION GRANTs. Each Stock Option Schedule shall set forth
          the number of options (the “Options”) that the Committee has granted
          to Optionee and the effective date of such grant. Such Options are granted as an
          incentive to work to increase the value of the Company for its stockholders.
          Each Option shall entitle the Optionee to purchase, on the terms and conditions
          of this Agreement, the respective Stock Option Schedule and the Plan, one fully
          paid and non-assessable share of Class A Common Stock, par value $ .001 per
          share (the “Class A Common Stock”), of Nu Skin Enterprises at the
          option price set forth in the Stock Option Schedule. The Options are subject to
          all the terms and conditions of the Plan, the Stock Option Schedule and this
          Agreement. 

          

     	3. 	
          NATURE OF OPTION. The Stock Option Schedule shall designate
          whether the options are Nonqualifed Stock Options or Incentive Stock Options. 

          

     	4. 	
          TERMS AND EXERCISE PERIOD. 

          

     	(a) 	
          Options awarded under this Agreement may not be exercised at any time until such
          Options are vested as provided in the Stock Option Schedule governing such
          Options. 

          

     	(b) 	
          Except as otherwise provided in a Stock Option Schedule or this Agreement, the
          Options granted hereunder shall terminate on the earlier of (i) the tenth
          anniversary of the date of this Agreement, or (ii) the date such Options are
          fully exercised. 

          

     	5. 	
          VESTING. Unless expressly provided otherwise in a Stock
          Option Schedule, Options granted hereunder shall vest on the date preceding the
          next annual meeting of stockholders. 

          

     	6. 	
          TERMINATION OF SERVICE. 

          

     	(a) 	
          In the event the Optionee’s service as a director is terminated for any
          reason, all Options that are not vested at the time of termination of service as
          a Director shall terminate and be forfeited immediately upon termination of
          service as a director. 

          

     	(b) 	
          In the event the Optionee’s service as a director is terminated for any
          reason, all Options granted hereunder that are vested but unexercised at the
          time of termination of service as director shall terminate upon the earliest to
          occur of the following: (i) the full exercise of the Options, (ii) the
          expiration of the Options by their terms, or (iii) [one (for options granted
          before January 1, 2007)] [three (for options granted on or after January 1,
          2007)] year following the date of termination of the Optionee’s service as
          a director. Until such Options have been terminated pursuant to the preceding
          sentence, the vested Options at the time of termination of service shall be
          exercisable by the Optionee, the estate of the Optionee, or the person or
          persons to whom the Options may have been transferred by will or by the laws of
          descent and distribution for the period set forth in this Section 5(b), as the
          case may be. 

          

     	(c) 	
          In the event that the Optionee (a) commits an act of fraud or intentional
          misrepresentation related to his or her services as a director, (b) discloses or
          uses confidential information in a manner detrimental to the Company, (c)
          competes with the Company, or (d) takes any other actions that are harmful to
          the interests of the Company, then the Committee shall have the right to
          terminate this Agreement at their discretion, in which case all Options granted
          hereunder shall terminate and be forfeited. 

          

     	7. 	
          STOCK CERTIFICATES. Within a reasonable time after the
          exercise of an Option, and the satisfaction of the Optionee’s obligations
          hereunder, the Company shall cause to be delivered to the person entitled
          thereto a certificate for the shares purchased pursuant to the exercise of such
          Option. 

          

     	8. 	
          TRANSFERABILITY OF OPTIONS. This Agreement and the Options
          granted hereunder shall not be transferable otherwise than by will or by the
          laws of descent and distribution, and shall be exercised, during the lifetime of
          the Optionee, only by the Optionee. 

          

     	9. 	
          EXERCISE OF OPTIONS. Options shall become exercisable at
          such time, as may be provided herein and shall be exercisable by written notice
          of such exercise, in the form prescribed by the Committee, to the person
          designated by the Committee at the corporate offices of Nu Skin Enterprises. The
          notice shall specify the number of Options that are being exercised. The Option
          Price shall be payable on the exercise of the Options and shall be paid in cash,
          in shares of Class A Common Stock, including shares of Class A Common Stock
          acquired pursuant to the Plan, part in cash and part in shares, or such other
          manner as may be approved by the Committee consistent with the terms of the Plan
          as it may be amended from time to time. Shares of Class A Common Stock
          transferred in payment of the Option Price shall be valued as of the date of
          transfer based on the Fair Market Value of the Company’s Class A Common
          Stock which for purposes hereof, shall be considered to be the average closing
          price of the Company’s Class A Common Stock as reported on the New York
          Stock Exchange for the ten (10) trading days just prior to the date of exercise.
          Only shares of the Company’s Class A Common Stock which have been held for
          at least six (6) months may be used to exercise the Option. 

          

     	10. 	
          NO RIGHTS AS SHAREHOLDER. This Agreement shall not entitle
          the Optionee to any rights as a stockholder of the Company until the date of the
          issuance of a stock certificate to the Optionee for shares pursuant to the
          exercise of Options covered hereby. 

          

     	11. 	
          GOVERNING PLAN DOCUMENT. This Agreement incorporates by
          reference all of the terms and conditions of the Plan as presently existing and
          as hereafter amended. The Optionee expressly acknowledges and agrees that the
          terms and provisions of this Agreement are subject in all respects to the
          provisions of the Plan. The Optionee also hereby expressly acknowledges, agrees
          and represents as follows: 

          

     	(a) 	
          Acknowledges receipt of a copy of the Plan and represents that the Optionee is
          familiar with the provisions of the Plan, and that the Optionee enters into this
          Agreement subject to all of the provisions of the Plan. 

          

     	(b) 	
          Recognizes that the Committee has been granted complete authority to administer
          the Plan in its sole discretion, and agrees to accept all decisions related to
          the Plan and all interpretations of the Plan made by the Committee as final and
          conclusive upon the Optionee and upon all persons at any time claiming any
          interest through the Optionee in any Option granted hereunder. 

          

     	(c) 	
          Acknowledges and understands that the establishment of the Plan and the
          existence of this Agreement are not sufficient, in and of themselves, to exempt
          the Optionee from the requirements of Section 16(b) of the Exchange Act and any
          rules or regulations promulgated thereunder, and that the Optionee (to the
          extent Section 16(b) applies to Optionee) shall not be exempt from such
          requirements pursuant to Rule 16b-3 unless and until the Optionee shall comply
          with all applicable requirements of Rule 16b-3, including without limitation,
          the possible requirement that the Optionee must not sell or otherwise dispose of
          any share of Class A Common Stock acquired upon exercise of an Option unless and
          until a period of at least six months shall have elapsed between the date upon
          which such Option was granted to the Optionee and the date upon which the
          Optionee desires to sell or otherwise dispose of any share of Class A Common
          Stock acquired upon exercise of such Option. 

          

     	(d) 	
          Acknowledges and understands that the Optionee’s use of Class A Common
          Stock owned by the Optionee to pay the Option Price of an Option could have
          substantial adverse tax consequences to the Optionee, and that the Company
          recommends that the Optionee consult with a knowledgeable tax advisor before
          paying the Option Price of any Option with Class A Common Stock. 

          

     	12. 	
          REPRESENTATIONS AND WARRANTIES. As a condition to the
          exercise of any Option granted pursuant to the Plan, the Company may require the
          person exercising such Option to make any representations and warranties to the
          Company that legal counsel to the Company may determine to be required or
          advisable under any applicable law or regulation, including without limitation,
          representations and warranties that the shares of Class A Common Stock being
          acquired through the exercise of such Option are being acquired only for
          investment and without any present intention or view to sell or distribute any
          such shares. 

          

     	13. 	
          NO SERVICE CONTRACT. Nothing in this Agreement or in the
          Plan shall confer upon Optionee any right to be retained in the service of the
          Company, or to interfere in any way with the right of the Company at any time to
          discontinue using the services of the Optionee as an independent consultant or
          other capacity or to remove Optionee as a director. 

          

     	14. 	
          WITHHOLDING OF TAXES. The Optionee authorizes the Company
          to withhold, in accordance with applicable laws and regulations, from any
          compensation or other payment payable to the Optionee, all federal, state and
          other taxes attributable to taxable income realized by the Optionee as a result
          of the grant or exercise of any Options. As a condition to the exercise of any
          Option, Optionee shall remit to the Company the amount of cash necessary to pay
          any withholding taxes associated therewith or make other arrangements acceptable
          to the Company, in the Company’s sole discretion, for the payment of any
          withholding taxes. 

          

     	15. 	
          EFFECTIVE DATE OF GRANT. Each Option granted pursuant to
          this Agreement shall be effective as of the date first written above. 

          

     	16. 	
          COMPLIANCE WITH LAW AND REGULATIONS. The obligations of the
          Company hereunder are subject to all applicable federal and state laws and to
          the rules, regulations and other requirements of the Securities and Exchange
          Commission, any stock exchange upon which the Class A Common Stock is then
          listed and any other government or regulatory agency. 

          

     	17. 	
          SECTION REFERENCES. The references to Plan sections shall
          be to the sections as in existence on the date hereof unless an amendment to the
          Plan specifically provides otherwise. 

          

     	18. 	
          QUESTIONS. All questions regarding this Agreement shall be
          addressed to D. Matthew Dorny. 

          

        IN
WITNESS WHEREOF, these parties hereby execute this Agreement to be effective as of the
Effective Date. 

NU SKIN ENTERPRISES, INC., a
Delaware corporation 

By:    ______________________________
Its:

 ______________________________

Optionee

 ______________________________

 ______________________________

Optionee's Address2009 Performance Targets

The following summarizes the
relevant incentive periods, performance targets, and formulas established by the
Compensation Committee under the 2006 Senior Executive Plan for 2009.  

Incentive Periods. 

	  	(1)  	  	Annual
Incentive Period. There shall be one annual incentive period (the           “Annual
Incentive Period”) commencing on January 1st.  

	  	(2)  	  	Quarterly
Incentive Periods. In addition, there shall be four quarterly           incentive
periods (the “Quarterly Incentive Periods”)           commencing on the
first day of each of the Company’s fiscal quarters.  

	  	(3)  	  	Base
Salary. Target bonuses shall be established by the Compensation           Committee
for each Participant. The target bonuses shall be expressed in terms           of a
percentage of base salary. Fifty percent of the target bonus shall be based           on
performance in the Annual Incentive Period and 12.5% of the target bonus           shall
be based on performance in each of the Quarterly Incentive Periods. Based           on
this allocation of target bonus, the calculation of bonuses for the Annual
          Incentive Period shall be based on 50% of annual base salary as defined below,
          and the calculation of bonuses for the Quarterly Incentive Periods shall be
          based on 12.5% of base salary as defined below. Base salary shall be the base
          salary that is in effect on the date the final Incentive Award is calculated
and           shall include foreign service premiums, but shall not include cost of
living           allowances or any other premiums.  

	  	(4)  	  	Incentive
Period. The Annual Incentive Period and the Quarterly Incentive           Periods are
collectively referred to as the “Incentive           Periods,” and
individually as an “Incentive Period.” 

Incentive Targets 

	  	(1)  	  	Critical
Success Factors. “Operating Income” and           “Revenue” shall
be the primary performance targets used to determine           whether an Incentive Award
shall be paid for an Incentive Period and the amount           of any such Incentive
Awards to be paid to a Participant under the Plan. The           Compensation Committee
has established individual performance targets to           determine the portion of an
Incentive Award that shall be paid.  

	  	(2)  	  	Establishment
of Incentive Targets. The Compensation Committee shall           approve minimum
level, budget level and stretch level operating income targets           (“Oper Inc
Targets”), and minimum level, budget level and           stretch level
revenue targets (the “Rev Targets”) for each           Incentive Period
for each Executive. The targets are referred to as the           “Targets.” The
Compensation Committee shall also approve           targets for the additional
performance targets (the “Additional Targets”).  

Incentive Award Thresholds 

	  	(1)  	  	 Threshold.
In the event that the Company’s operating income is less           than the minimum
Oper Inc Target for the applicable Incentive Period, no           Incentive Award shall
be paid to any Participant for such Incentive Period for           global results. In the
event operating income for a region is less than the           minimum Oper Inc Target
for the region, no Incentive Award shall be paid to the           applicable regional
executive Participant for such Incentive Period for regional           results.  

	  	(2)  	  	Other
Thresholds. If actual performance is less than the minimum Target           of
another specified Target for an Executive in any given Incentive Period, the
          portion of the Incentive Award tied to such Target shall not be paid for such
          Incentive Period, but this shall not affect the payment of the portion of the
          Incentive Award tied to other Targets in which performance is equal to or
          greater than the minimum Target of the applicable Target except as provided in
          Paragraph (1) above.  

	  	(3)  	  	Compensation
Committee Discretion. Notwithstanding anything to the           contrary, the
Compensation Committee may elect not to pay or reduce an Incentive           Award
otherwise payable to a Participant even if the applicable Targets have           been
met. Such determination may be made based on such factors that the           Compensation
Committee considers relevant including, without limitation, failure           of such
Participant to perform individual employment responsibilities at           acceptable
performance level or other performance related issues.  

Incentive Awards  

	  	(1)  	  	Incentive
Awards. In the event the relevant Oper Inc targets have been           satisfied, the
total Incentive Award for an Executive for any Incentive Period           shall be
determined by multiplying the applicable portion of Participant’s           base
salary (as set forth in “Incentive Periods” above) by the sum of           all
of the Adjusted Bonus Percentages applicable for such Incentive Period with
          respect to the Targets and Additional Targets where the required performance
          thresholds have been met.  

	  	(2)  	  	 Bonus
Percentages. The Committee has established a target bonus           percentage (the
“Bonus Percentage”) for each Participant           representing a
percentage of base salary. Such Bonus Percentage shall be           allocated to the
respective Targets as follows:  

				
	Regional Executives	 	 	 	 	 
	      Global Revenue	 	 	 	15	%
	      Global Oper Inc	 	 	 	15	%
	      Regional Revenue	 	 	 	49	%
	      Regional Oper Inc	 	 	 	21	%
	Corporate	 	 	 	 	 
	      Global Revenue	 	 	 	50	%
	      Global Oper Inc	 	 	 	50	%

	  	(3)  	  	Adjusted
Bonus Percentages. The formulas described in parts (a) and (b)                below
are used to adjust the Bonus Percentage for the applicable Target. The
               formulas shall not apply to the Additional Targets.  

	  	  	a.  	  	In
the event that actual performance equals or exceeds the minimum level Target,
               but is less than the budget level Target, the Bonus Percentage for such
               Incentive Period and such Target shall be adjusted in accordance with the
               following formula:  

	  	  	  	  	  	Adjusted Bonus
Percentage = Bonus Percentage * [.50+ (.50* ((Actual Performance — Minimum Level
Target)/(Budget Level Target — Minimum Level Target))]  

	  	  	 	  	The formula
results in a 50% negative adjustment to the applicable Bonus Percentage at the minimum
level Target, with the adjusted bonus percentage increasing linearly to equal the
applicable Bonus Percentage at the budget level Target.  

	  	  	b.  	  	 In
the event that actual performance equals or is greater than the budget level
               Target, the Bonus Percentage for such Incentive Period and such Target
shall be                adjusted in accordance with the following formula:  

	  	  	  	    	  	Adjusted Bonus
 Percentage = Bonus  Percentage * [1+  ((Actual  Performance  -
                                    Budget Level Target)/(Stretch Level Target - Budget
Level Target))]   

	  	  	  	  	The formula
results in a linear adjustment to the applicable Bonus Percentage with the Adjusted Bonus
Percentage being equal to 200% of the applicable Bonus Percentage at the stretch level
Target.  

	  	  	c.  	  	In
the event that actual performance exceeds the stretch level Target, the Bonus
               Percentage for such Incentive Period and such Target shall be adjusted in
               accordance with the following formula:  

	  	  	  	   	  	Adjusted Bonus
   Percentage    =   Bonus    Percentage   *   [1+   ((Actual
                                    Performance)/(Stretch Level Target))]   

	  	(4)  	  	Additional
Targets. In the event the Additional Targets are not achieved,           the
Compensation Committee shall have the discretion to reduce the bonuses
          otherwise payable under this Plan by an amount equal to the Additional Target
          Percentage multiplied by the bonus otherwise earned. For regional executives,
          the reduction will only apply against bonuses attributable to regional results.
          The Compensation Committee may determine the method, if any, of adjusting the
          Bonus Percentage for Additional Targets. The Additional Target Percentages are
          as follows:

Regional Executives            20%

                 Corporate Executives           10%  

	  	  	  	In the
event an Additional Target is an annual performance measure rather than a quarterly
performance measure, the Compensation Committee shall have the discretion to make the
reduction against quarterly Incentive Awards based on projections, and make a true up
with respect to future awards.  

	  	(5)  	  	Cap.
Incentive Awards will be capped according to the following schedule:  

	  	  	a.  	  	For
markets which budget a loss and achieve a loss – 100%   

	  	  	b.  	  	For
markets           which budget a loss and achieve positive results – 150%   

	  	  	c.  	  	For
markets           which budget operating income less than 5% of revenue – 150%   

	  	  	d.  	  	There
is no           cap for markets which budget operating income exceeding 5% of total
revenue.   

	  	(6)  	  	Determination
of Incentive Award Payments. The Compensation Committee           shall make the
determination of whether a Target has been achieved and the level           of Incentive
Award that is payable with respect to each executive. In           determining whether a
performance target has been satisfied, the targets and           actual revenue and
operating income results shall be calculated on constant           currency basis to
eliminate the impact of foreign currency fluctuations. This           shall be
accomplished by using the same foreign currency exchange rates that           were used
in the equivalent prior-year period for purposes of establishing both           the
targets and actual results in order to provide clear comparison of the           targets
and actual results compared to prior-year results. Actual results shall           also be
calculated by eliminating any restructuring charges that were incurred           during
the Incentive Period in a restructuring that has been approved by the           Board of
Directors. In the event that the accrual of an Incentive Award would           result in
an Oper Inc Target not being achieved, but the Target would be           achieved without
the accrual, then the amount of bonus that will be payable           shall be reduced in
amount until the Oper Inc Target will be achieved.

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