Document:

Exhibit 10.1 2Q 2003 FORM 10-Q NSE

Consulting Agreement 

Nu Skin Enterprises,
Inc. 

Revised April 23, 2003 

Our Mission 

Identifying
the right solutions for our clients 
 and working with them, side by side, to help them
achieve their goals. 

Woodclyffe 

Improving performance.
Creating value. 

Our Understanding of
Your Objectives 

Observations 

	  	
Nu
Skin Enterprises, Inc. is committed to growing geographically with an immediate focus on
China and the emerging markets of Latin America and Eastern Europe. 

Objectives 

	  	
In
China, the company needs to establish a “retail” business model that is viewed
as such by the government. This market is and will be an excellent market for direct
sellers. However, government restrictions and attitudes need to be respected. Foreign Nu
Skin distributors/directors need to be managed. 

	  	
In
Latin America and Eastern Europe, the company is reevaluating its strategy to find the
best approach to achieve success in these emerging markets. The approach needs to be
locally competitive while also providing an attractive role and earnings opportunity for
the company’s international distributors. 

Page 2 

Our Deliverables and
Methodology 

Deliverables 

	  	
Bill
Pryor will work with Corey Lindley and his team in China. The role will be to leverage his
experience and to provide advice and support to the development of Nu Skin’s
business. Specifically he will work toward helping Nu Skin develop a legal and competitive
retail model, a model that can quickly be transformed and used as a spring board for
direct selling in a post ban market, and work with Nu Skin to demonstrate to the
government that Nu Skin follows good business practices and is a “model” for how
the government wants direct sellers to behave in their market. 

	  	
Joe
Ferreira will work with the Nu Skin Latin America team to provide advice and support to
develop a strategy and business model for Latin America. 

	  	
Woodclyffe
shall perform the services in a professional manner and in conformity with the standards
generally applicable to professionals in Woodclyffe’s area of practice. 

Time Table 

        April
1

	  	
Effective
start date of consulting engagement. 

        April 

	  	
Bill
Pryor will arrive in Shanghai, participate in the company’s business review meetings
on the 8th and 9th, in PR meetings in Shanghai and Beijing on the 10th and
11th, stay the weekend, then work on the 14th and 15th,
and return to the U.S. on the 16th. Joe
Ferreira will be contacted to schedule his involvement with Latin America.  

        May
to September 

	  	
Bill
and Joe will work with their respective contact person within Nu Skin to schedule
meetings, calls and review information.  

        October
and beyond  

	  	
This Agreement will end September 30, 2003. Our relationship can be
expanded and/or extended, or ended, at anytime with 30 days notice.  

Page 3 

Project Team Structure 

Woodclyffe 

	  	
Woodclyffe
is a unique international consulting and interim management firm. The firm’s
associates are senior executives with broad and deep capabilities attained over the past
30 years through hands-on experiences growing some of the worlds most recognized brands.
Areas of focus include: performance improvement; foreign market entry and development;
marketing, brand building and advertising; growth strategies; and management advisory
work. 

Project Team 

	  	
This
project will involve Bill Pryor, EVP, and Joe Ferreira, President and CEO of the
Woodclyffe Group. Bill will support the company’s effort with regard to China and Joe
will support the company’s effort in Latin America. 

	  	
Nu
Skin has contracted for specifically the services of J. Ferreira and C. W. Pryor and no
other persons shall be engaged or delegated to perform any services without the prior
written consent of Nu Skin. 

	  	
Their
biographies are below:  

Joe Ferreira 

	  	
Joe
Ferreira is President and CEO of the Woodclyffe Group,
LLC. He has twenty-five years of business experience, most of which was accumulated at
Avon Products, Inc. 

	  	
He
began his career in retail and after 2 years moved to Avon. During the first part of his
career at Avon he worked mainly in Finance rising to become the head of finance and
operations for the Avon Division, reporting to the company president. Then in 1990 he was
given the opportunity to run Avon’s business in Latin America. Over the next 10 years
he moved around the world improving the performance of existing companies, opening new
markets and businesses, and growing Avon’s international business to $3.5 billion. In
1999 he was promoted to the position of Co-COO and a director of the company. 

Page 4 

Project Team Structure
(continued) 

	  	
As
Co-Chief Operating Officer and a member of the Board of Directors, Mr. Ferreira had full
responsibility for all international business ($3.5 billion in sales) encompassing over 40
subsidiaries and close to 100 distributorships in Latin America, Europe, Asia and Africa
(2/3rds of the corporation). Mr. Ferreira also was responsible for global strategic
planning, market research, new business development and new markets. 

	  	
During
his tenure as Co-COO, every international region increased local currency sales at
double-digit rates, increased gross margin and increased operating margin; a new wellness
business was successfully developed for 19 markets (including the U.S.) and delivered
sales of $150 million in the first year, well over expectations; and Avon’s stock
price increased 45% in 2000. 

C. William Pryor 

	  	
Bill
Pryor is an Executive Vice President of the Woodclyffe Group. Bill has over 40
years of international direct selling experience including 20 years of expatriate
assignments in Australia, Japan and China. 

	  	
His
employment experience has been predominately with Avon Products, but also includes
Nutri-Metics International and Cutco International. 

	  	
He
is an Accounting graduate of New York University with experience in Finance, Marketing,
Sales, New Markets Entry and General Management. The General Management experience
includes line responsibility at the area and country levels. 

Page 5 

Project Team Structure
(continued) 

	  	
As
President and CEO of Avon-China, he guided that subsidiary to profitability. Avon-China
was the first Avon subsidiary to introduce a multi-level sales plan. A $40MM manufacturing
facility was constructed and most products were converted to in-country manufacturing and
materials procurement. An ethical reputation for Avon was established through appropriate
business practices and government negotiations and relationships. Avon-China became the
first direct selling company to receive government approval of an alternative business
plan for market re-entry after the ban on direct selling. 

	  	
During
his assignment as President and CEO of Avon-Japan, that subsidiary became the highest
profit contributor of all Avon subsidiaries outside the U.S.. Avon-Japan’s product
line was completely upgraded to meet the standards of the Japanese market. Innovative
concepts were introduced such as Sales Representatives segmentation with targeted
marketing plans and direct mail as a supplement to direct selling communications. 

	  	
As
Executive Vice President of Cutco International, he established international expansion
strategies, methods and market entry activities. 

	  	
As
Senior Vice President and COO of Nutri-Metics International, he managed the international
subsidiaries and accomplished market entry into several countries. 

	  	
His
initial work experience was as an Accountant with the International Division of Ford
Motor Company.  

Page 6 

Fee Summary 

Fee Summary 

	  	
Monthly
retainer: $22,500.  This retainer will cover up to 6 days for Bill
                                    Pryor and up to 3 days for Joe Ferreira. 

	  	
If
more than the above number of days is required in any given month, the charges will be as
follows: $2,500 per day for Bill Pryor and $3,700 per day for Joe Ferreira. 

	  	
The
use of our China government relation’s consultant may be deemed useful and necessary
by Nu Skin. If so we will discuss and agree on the additional costs at that time. 

	  	
Travel
time will be split. Therefore, Nu Skin will only be charged for approximately fifty
percent of travel time. 

	  	
Nu
Skin agrees to reimburse Woodclyffe for reasonable and necessary out-of-pocket expenses,
including travel expenses, incurred by Woodclyffe in providing services under this
Agreement, consistent with the guidelines customarily used by Nu Skin for reimbursement of
its employees for business expenses, including proper documentation of expenses. All
travel must be pre-approved by Nu Skin. 

	  	
Woodclyffe
will invoice Nu Skin on the 1st of each month for the retainer, out of pocket
costs and any additional days. Payment is due by the 15th of each month. 

Page 7 

Terms and Conditions 

Client Responsibilities 

	  	
Nu
Skin shall provide complete, timely information and data to meet the requirements of the
engagement. Nu Skin shall furnish the required information and data as expeditiously as is
necessary for the orderly progress of the work. Woodclyffe will rely on its accuracy and
completeness. Nu Skin shall designate people to work with us on specific aspects of the
project. 

Confidentiality 

	  	
Woodclyffe
will comply with the Nu Skin’s confidentiality agreement which was previously signed
and which is attached as Exhibit A. 

Indemnification 

	  	
Nu
Skin Enterprises, Inc. shall indemnify, defend, and hold the Woodclyffe Group, LLC, its
employees, officers, and agents, (“Indemnities”) harmless from all expenses,
damages, costs, penalties, liabilities, and amounts incurred in judgments or settlements,
including attorneys’ fees (collectively “Damages”) suffered by Indemnities,
or any of them, as a result of threatened, pending, or completed investigations,
enforcement actions, claims, demands or any and all lawsuits (collectively, the
“Actions”) against Indemnities or Nu Skin Enterprises, Inc. as a result of
services performed, provided that the Indemnities acted in good faith and in a manner
reasonably believed to be in or not opposed to the best interests of Nu Skin and in
conformity with standards generally applicable to professionals in Indemnities’ area
of practice, and provided further that the Indemnities had no reasonable cause to believe
their conduct was unlawful. The forgoing indemnification provisions shall not apply to any
Action (i) by or in the right of Nu Skin or any of its affiliates against any of the
Indemnities, (ii) arising out of a breach of any covenant, warranty or other provision of
this Agreement by any of the Indemnities, (iii) arising out of the negligent or reckless
acts of any of the Indemnities, or (iv) arising out of any relationship
that any of the Indemnities has with a third party (e.g., a claim that the services
provided here under violate or conflict with another consulting arrangement or that any of
the Indemnities has violated a contractual or legal duty to a third party). 

Page 8 

Terms and Conditions
(continued) 

        Indemnification
(cont.) 

	  	
Woodclyffe
shall indemnify, defend and hold Nu Skin and its affiliates, and each                of
their employees, directors, officers and agents (the “Nu Skin
               Indemnities”) harmless from all Damages suffered by the Nu Skin
               Indemnities, or any of them, as a result of any breach of Woodclyffe’s
               obligations under this Agreement or their negligent or reckless conduct.  

Termination 

	  	
If
either party materially breaches a material provision of this Agreement, the other party
may terminate this Agreement upon fifteen (15) days’ notice unless the breach is
cured within the notice period. 

	  	
Either
party may also terminate this Agreement at any time, with or without cause, upon thirty
(30) days’ notice. 

	  	
Woodclyffe
will be entitled to full payment for services performed and expenses incurred prior to the
effective date of termination. 

Work Product 

	  	
All
information and data developed, received or furnished by Woodclyffe during the term of
this Agreement in the performance of the services shall be the property of Nu Skin. All
such information shall be delivered to Nu Skin, and Nu Skin shall have the unrestricted
right to use and disclose such information in any manner and for any purpose without
payment or any further compensation. Such information shall be considered confidential
information. Woodclyffe agrees that it will not disclose to Nu Skin any information that
is the confidential or proprietary information of any other party and that any and all
information
disclosed to Nu Skin may be utilized by Nu Skin without restriction. Woodclyffe agrees to
indemnify, defend and hold the Nu Skin Indemnities harmless from any Damages arising from
any act or alleged act of infringement of any intellectual property rights or proprietary
information of another party related to the services of Woodclyffe hereunder.

Page 9 

Terms and Conditions
(continued) 

Independent Contractor 

	  	
In
the performance of this Agreement, Woodclyffe is an independent contractor and neither
Woodclyffe nor any of its employees, agents or subcontractors shall be considered an
employee or agent of Nu Skin. It is not the purpose or intention of this Agreement to
create, and the same shall not be construed as creating a joint venture or partnership of
any nature. Woodclyffe shall be responsible for reporting and paying all local, state and
federal employment and related taxes and further agrees to indemnify the Nu Skin
Indemnities from and against any and all Damages related to the withholding and payment of
local, state and federal taxes related to Woodclyffe’s performance of services. In
the event the taxing authorities in any jurisdiction require Nu Skin to withhold any taxes
or other payments related to the services performed hereunder, Nu Skin may withhold such
taxes, and the payments required to be paid by Nu Skin to Woodclyffe under this Agreement
shall be made net of such withholding amounts. 

Conflicts of Interest 

	  	
Woodclyffe
hereby represents and warrants that neither it, nor any of its employees, agents or
subcontractors, is prohibited, encumbered or restricted (whether by contractual, legal or
fiduciary obligations) from performing the services contracted for pursuant to this
Agreement by, and that its engagement and the performance of the services hereunder will
not conflict with, any prior or existing contract, agreement or arrangement with any other
party. Woodclyffe further represents that its engagement will not result in any conflict
of interest on its part with any other previous contract, agreement or arrangement.
Woodclyffe hereby agrees that it will not enter into any contract, agreement or
arrangement while engaged by Nu Skin that would result in a conflict of interest with
respect to its engagement by Nu Skin or otherwise conflict with the services hereunder.
Woodclyffe further agrees to indemnify and hold the Nu Skin Indemnities harmless from and
against any and all Damages in the event another party alleges the existence of any such 

Page 10 

Terms and Conditions
(continued) 

Conflicts of
Interest(cont.) 

	  	
contract,
agreement or arrangement restricting Woodclyffe’s performance under this Agreement.
In the event any employee or agent of Woodclyffe accepts an appointment to serve as a
member of the Board of Directors of Nu Skin, Woodclyffe agrees that it will clear with the
Board of Directors of Nu Skin any potential conflicts of interest from proposed consulting
arrangements, with Nu Skin’s presumption that the person serving on the Board of
Directors would be precluded from performing, directly or indirectly, any consulting
assignments with Amway, Herbalife, Usana, Morinda, Nature’s Sunshine, Excel, Prepaid
Legal, Melaleucca and Unicity. 

Insurance 

	  	
Woodclyffe
hereby agrees to apply for and maintain general comprehensive liability insurance in such
amounts as is commercially reasonable. Such insurance shall be maintained with reputable
insurance carriers with coverage broad enough to cover Woodclyffe on the premises of Nu
Skin and its affiliates. Woodclyffe shall provide a certificate of insurance to Nu Skin
evidencing such insurance once it is obtained. 

Non Solicitation 

	  	
Nu
Skin agrees, for the period through January 31, 2004, not to hire any
managerial/professional level or more senior level associate from Avon (or of an Avon
affiliate) or solicit any managerial/professional level or more senior level associate of
Avon (or of an Avon affiliate) to leave his or her employment with Avon (or of an Avon
affiliate). 

Page 11 

Agreed and Accepted 

If the arrangements and terms
outlined in this proposal are satisfactory, please sign both copies of this proposal and
return one to us.  

This proposal correctly sets forth
our understanding and acceptance of the Nu Skin Enterprises, Inc. consulting engagement.  

Approved by:  

	Nu Skin Enterprises, Inc.

/s/ M. Truman Hunt

Mr. M. Truman Hunt

President and CEO	  	
 Woodclyffe Group, LLC 

/s/  Joe Ferreira

Mr. Joe Ferreira

President and CEOExhibit 10.2 Early Retirement Plan and Related Documents

NU SKIN INTERNATIONAL,
INC.  

VOLUNTARY EARLY
RETIREMENT INCENTIVE PLAN  
 AND
 SUMMARY PLAN DESCRIPTION

TABLE OF CONTENTS 

			Page No.
	 	 	 	 	 	 
	1.	 	Definitions	 	1	 
	2.	 	Eligibility for Benefits	 	2	 
	 	 	A.        Eligible Employee	 	2	 
	 	 	B.        Timely Return Election Form	 	2	 
	 	 	C.        Timely Return Release and Separation Agreement	 	2	 
	3.	 	Benefits	 	3	 
	 	 	A.        Basic Benefit	 	3	 
	 	 	B.        Bonus Benefit	 	3	 
	4.	 	Payment of Benefits	 	3	 
	 	 	A.        Lump-sum Payment	 	3	 
	 	 	B.        Lump-sum Payment at Future Date	 	3	 
	 	 	C.        Installment Payments	 	3	 
	5.	 	Committee	 	3	 
	6.	 	Amendment or Termination	 	4	 
	7.	 	No Oral Representations; Consultation with Attorney	 	4	 
	8.	 	Severability	 	4	 
	9.	 	Construction	 	4	 
	10.	 	Headings	 	4	 
	11.	 	Governing Law	 	4	 
	12.	 	ERISA Rights	 	4	 
	 	 	A.        Examine Documents	 	4	 
	 	 	B.        Obtaining Copies	 	5	 
	 	 	C.        Financial Statements	 	5	 
	 	 	D.        Fiduciary Duties	 	5	 
	 	 	E.        Claims Rights	 	5	 
	 	 	F.        U.S. Department of Labor	 	5	 
	 	 	G.        Contact Information	 	6	 
	 	 	H.        Type of Plan	 	6	 
	 	 	I.        Source of Plan Funding	 	6	 
	 	 	J.        Service of Process	 	6	 
	 	 	K.        Plan Year	 	6	 
	13.	 	Effective Date	 	6	 

i 

NU SKIN INTERNATIONAL,
INC. 

                                     VOLUNTARY EARLY RETIREMENT INCENTIVE PLAN

                                                        AND

                                             SUMMARY PLAN DESCRIPTION

        This
Voluntary Early Retirement Incentive Plan (the “Plan”) was adopted by Nu Skin
International, Inc. on June 4, 2003. The Company reserves the right to amend or terminate
this Plan at any time and from time to time. Unless sooner amended or terminated, this
Plan shall apply only to Eligible Employees who voluntarily retire from service with the
Company, which retirement occurs between June 4, 2003 and July 25, 2003, and who meet the
conditions and requirements set forth below. 

     

         1    Definitions.
       
          For purposes of this Plan, the following terms shall have the meanings set forth
          below: 

          		    A.       
               “Benefits” shall mean those benefits provided under this Plan as set
               forth in Section 3 below. 

               

          		    B.       
               “Company” shall mean Nu Skin International, Inc. and its USA
               affiliates. 

               

          		    C.       
               “Election Form” shall mean the election form the Company provides the
               Employee to elect a voluntary retirement through the Plan. 

               

          		    D.       
               “Eligible Employee” or “Employee” shall mean an employee who
               has satisfied all of the conditions and requirements set forth in Section 2
               below. 

               

          		    E.       
               “Final Monthly Salary” shall mean an Employee’s taxable wages for
               the last full calendar month of employment with the Company prior to retirement,
               as determined by the Company. 

               

		    F.                            “Release
and Separation Agreement” shall mean the release and           separation agreement
the Company provides an Employee as part of this Plan.  

-1- 

          		    G.       
               “Years of Service” shall mean consecutive twelve (12) calendar month
               periods during which the Employee has been continuously employed by the Company
               full-time (at least 40 hours per week), as determined by the Company. A
               full-time Employee shall be given credit for a full Year of Service for the last
               year of service with the Company, regardless of the actual time employed with
               the Company during that last year. For example, an Eligible Employee who has
               consecutively worked five (5) years and three (3) months for the Company will be
               given credit for six (6) Years of Service. In addition, an Eligible Employee who
               has worked less than one (1) year with the Company will be given credit for one
               (1) Year of Service. For example, an Eligible Employee who has worked three (3)
               months for the Company will be given credit for one (1) Year of Service. 

               

    2.        
Eligibility for Benefits.  In order for an Employee to qualify for Benefits, all of the following
conditions must have been met: 

          		    A.
       
               Eligible Employee. The Employee must have reached the age of fifty-nine and
               one-half (591/2) years and be employed with the Company full-time (at least
               forty (40) hours per week) as of the date he or she receives the Election Form
               from the Company. 

               

          		
    B.       
               Timely Return Election Form. The Employee must affirmatively elect to
               participant in the Plan and retire from service with the Company by returning to
               the Company’s human resource department the signed and completed Election
               Form by no later than the close of business on July 25, 2003. 

               

          		
    C.       
               Timely Return Release and Separation Agreement. The Employee must sign and
               return to the Company’s human resource department the completed Release and
               Separation Agreement by no later than close of business on July 25, 2003. The
               Employee must submit the signed Release and Separation Agreement to the Company
               at the same time he or she signs and submits the Election Form to the Company.
               The Employee’s resignation from the Company will be effective the date the
               Employee signs the Release and Separation Agreement and Election Form. An
               Employee shall have a minimum of forty-five (45) days after receipt of the
               Release and Separation Agreement to consider the execution of the same, but may
               sign and return the Election Form and the Release and Waiver Agreement to the
               Company at any time after receipt. The Release and Separation Agreement is
               effective and enforceable seven (7) days after the date the Employee executes
               it. The Employee may revoke the Release and Separation Agreement by providing
               written notice of such revocation to the Company at any time during the seven
               (7)-day period following the date he or she executes the Release and Separation
               Agreement. If the Employee revokes the Release and Separation Agreement, the
               Employee will have no right to Benefits specified in this Plan, and the
               Employee’s resignation from the Company will be rescinded effective as of
               the original date of revocation, with no break in service having occurred. 

               

-2- 

         3    Benefits.       
          Benefits under this Plan will be paid only if the Company decides in its
          discretion that the Employee is entitled to them. 

          		    
A.       
               Basic Benefit. Under this Plan, an Employee shall receive Benefits equal to one
               (1) times Final Monthly Salary for every Year of Service, subject to the
               following minimum and maximum. An Eligible Employee will receive a minimum of
               six (6) times Final Monthly Salary under this basic Benefits option, regardless
               of his or her Years of Service. For example, an Eligible Employee who has only
               one (1) Year of Service will still receive six (6) months of Final Monthly
               Salary under this basic Benefits option. Notwithstanding the above, an Eligible
               Employee will receive a maximum of twenty-four (24) times Final Monthly Salary
               under this basic Benefits option, regardless of his or her Years of Service, 

               

          		    
B.       
               Bonus Benefit. Under this plan, an Eligible Employee shall receive any bonus
               earned but not yet paid under the Company Bonus Plan at such time as any bonus
               is paid to Company employees. This bonus payment will be paid to each Eligible
               Employee even though not a Company employee at the time of actual payment. 

               

        4.
    Payment of Benefits. An Employee must choose on the Election Form a Benefits payment option. This
election will be irrevocable and must be made before the Employee signs the Release and
Separation Agreement. The Employee must choose one of the following three payment options: 

          		    A.       
               Lump-sum Payment. The Employee may elect to receive a single, lump-sum payment
               of his or her Benefits as soon as administratively feasible after the
               Employee’s retirement, but no sooner than seven (7) days after the Employee
               returns to the Company the Election Form, Release and Separation Agreement, and
               Non-Compete Agreement (for enhanced Benefits). 

               

          		    B.       
               Lump-Sum Payment at Future Date. The Employee may elect to receive a single,
               lump-sum payment of his or her Benefits at a date the Employee designates on the
               Election Form, but no later than twelve (12) months after his or her retirement
               date from the Company. The Company will not pay interest on this lump-sum
               amount. 

               

          		    C.       
               Installment Payments. The Employee may elect to receive his or her Benefits in
               equal, monthly installments over a period of months the Employee chooses. This
               period may not extend beyond twelve (12) months after the Employee’s
               retirement date from the Company. The Company will not pay interest on these
               installment payments. 

               

All payments made under this Plan are
subject to applicable income, employment and other taxes as may be required under any law
or regulation. 

         5.
    Committee.       
          The Company may form a committee (the “Committee”) that shall have the
          discretionary authority to interpret and modify this Plan. The Committee shall
          have authority and discretion to adopt rules and regulations applicable to this
          Plan, including rules that define and interpret any provision of this Plan. 

-3- 

        
6.    Amendment
or Termination. This Plan may be adopted, modified or terminated, in whole or in part, at
any time, and from time to time, by the Company acting through a resolution of its Board
of Directors, provided that no such amendment, modification or termination of this Plan
shall affect the rights of an Employee who has executed and delivered to the Company a
Release and Separation Agreement pursuant to the provisions of this Plan prior to the date
of such amendment to this Plan. 

        7.
    No Oral Representations; Consultation with Attorney. The Company does not guarantee any
particular result under this Plan. Except for providing copies of this Plan to an
Employee, neither the Company, the Committee nor any employee or agent of same shall be
authorized to advise an Employee on any aspects of this Plan, including the legal and
other effects of the Release and Separation Agreement to be signed by the Employee or the
tax consequence of payments or benefits under this Plan. No representation of the tax or
other legal effects of the Release and Separation Agreement against the Company or
consideration for the Release and Separation Agreement against the Company or the scope of
the Release and Separation Agreement against the Company have been made by the Company.
The Employee agrees as a condition to receiving Benefits under this Plan that he or she
will consult with his or her own advisor or legal counsel with respect to such matters. 

         
8.    Severability.       
          In the event any section, subsection, paragraph, subparagraph or specific
          provision is found to be illegal or invalid for any reason, such illegality or
          invalidity shall not affect the remaining provisions of the Plan, and the Plan
          shall be construed and enforced as if such illegal and invalid provision had
          never been set forth in the Plan. 

         9.
    Construction.       
          Where applicable, the masculine includes the feminine and vice versa. Where
          applicable, the singular includes the plural and vice versa. Where a word or
          phrase is defined in Section 1 of the Plan and appears in capitalized form in
          another Section of the Plan, such word or phrase shall have the meaning set
          forth in Section 1 unless the context clearly requires otherwise. A word or
          phrase in non-capitalized form shall retain its plain meaning taken in the
          context in which it appears, regardless of whether said word or phrase is
          defined in Section 1. Nothing herein shall be construed to permit a duplication
          of benefits. 

         10.
    Headings.       
          The headings are for reference only. In the event of a conflict between a
          heading and the content of a Section, the content of the Section shall control. 

    11.
    Governing
Law. This Plan is created in the State of Utah, and shall be construed, administered and
enforced according to the laws of the State of Utah, except to the extent preempted by
valid provisions of applicable federal law. 

    12.    
ERISA Rights. As a participant in this Plan you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all
plan participants shall be entitled to those rights outlined below. 

          		    A.       
               Examine Documents. You are entitled to examine, without charge, at the
               Company’s office and at other specified locations, such as worksites, all
               documents governing the Plan and a copy of the latest annual report (Form 5500
               Series), if any, filed by the Plan with the U.S. Department of Labor. 

               

-4- 

          		    B.       
               Obtaining Copies. You are entitled to obtain, upon written request to the
               Company, copies of documents governing the operation of the Plan, including
               copies of the latest annual report (Form 5500 Series), if any, and an updated
               summary plan description. The Company may make a reasonable charge for the
               copies. 

               

          		    C.       
               Financial Statements. You are entitled to obtain a summary of the Plan’s
               annual financial report, if any. The Company is required by law to furnish each
               participant with a copy of this summary annual report. 

               

          		    D.       
               Fiduciary Duties. In addition to creating rights for Plan participants, ERISA
               imposes duties upon the people who are responsible for the operation of this
               Plan. The people who operate this Plan — called “fiduciaries” of
               the Plan — have a duty to do so prudently and in the interest of you and
               other Plan participants and beneficiaries. No one, including the Company or any
               other person, may fire you or otherwise discriminate against you in any way to
               prevent you from obtaining benefits under the Plan or exercising your rights
               under ERISA. 

               

          		    E.       
               Claims Rights. If your claim for a benefit under this Plan is denied in whole or
               in part you must receive a written explanation of the reason for the denial. You
               have the right to have the Committee review and reconsider your claim. Under
               ERISA, there are steps you can take to enforce the above rights. For instance,
               if you request materials from the Plan and do not receive them within 30 days,
               you may file suit in a federal court. In such a case, the court may require the
               Company to provide the materials and pay you up to $110 a day until you receive
               the materials, unless the materials were not sent because of reasons beyond the
               control of the Company. 

               

            
If you have a claim for benefits
that is denied or ignored, in whole or in part, you may file suit in a state or federal
court. If it should happen that the Plan’s fiduciaries misuse the Plan’s money,
or if you are discriminated against for asserting your rights, you may seek assistance
from the U.S. Department of Labor, or you may file suit in a federal court. The court
will decide who should pay court costs and legal fees. If you are successful the court
may order the person you have sued to pay these costs and fees. If you lose, the court
may order you to pay these costs and fees, for example, if it finds your claim is
frivolous.  

          		    F.       
               U.S. Department of Labor. If you have any questions about this Plan, you should
               contact the Company. If you have any questions about this statement or about
               your rights under ERISA, you should contact the nearest office of the Pension
               and Welfare Benefits Administration, U.S. Department of Labor, listed in your
               telephone directory or the Division of Technical Assistance and Inquiries,
               Pension and Welfare Benefits Administrator, U.S. Department of Labor, 200
               Constitution Avenue N.W., Washington, D.C. 20210. 

               

-5- 

          	G.	
               Contact Information. Nu Skin International, Inc. administers the Plan. You can
               contact the administrator at: 

               

     	  	Nu Skin International, Inc.

75 W. Center Street
 Provo, Utan 84601

           801-345-8607
 EIN: 87-0416910 

          

     	H. 	       

           Type of Plan. This plan is a welfare benefit plan under ERISA designed to
          provide monetary incentives for voluntary early retirement to certain Employees. 

          

     	I. 	       

           Source of Plan Funding. The Company pays the entire cost of this Plan from its
          general assets. 

          

     	J. 	       

           Service of Process. Service of process may be made on the Company at: 

          

     		Mr.
           Matthew Dorny
 Nu Skin International, Inc. 
75 W. Center Street
 Provo, Utah 84601 

          

     	K. 	       

           Plan Year. This Plan’s year-end is December 31st. 

          

         13.       
          Effective Date. This Plan is effective as of the 4th day of June, 2003. 

DATED this 4th day of June, 2003. 

/s/ M. Truman Hunt

President
Nu
Skin International, Inc. 

-6- 

ELECTION FORM 

FOR THE 

NU SKIN INTERNATIONAL,
INC. 

VOLUNTARY EARLY
RETIREMENT INCENTIVE PLAN 

I.         ELECTION TO
PARTICIPATE 

I hereby elect to participate in the Voluntary
Early Retirement Incentive Plan (the “Plan”) of Nu Skin International, Inc. (the
“Company”) and to be subject to the terms and conditions of the Plan. I
voluntarily resign my employment and retire from the Company effective as of the date this
Election Form and the Release and Separation Agreement are signed and returned to the
Company’s human resource department. 

II.        DISTRIBUTION ELECTION 

I irrevocably elect to receive my
Plan Benefits under one of the following three payment options (check and complete, as
appropriate, one of the following): 

	(a)  	  	                     The
entire amount in a lump sum.  

	(b)  	  	                     The
entire amount in a lump sum on                      (fill
in date, which can           be no later than twelve (12) months after your retirement
date from the           Company).  

	(c)  	  	                     Approximately
equal monthly installments for a period of                       months
          (not to exceed 12 months).  

I understand that my distribution
election will become irrevocable upon signing this Election Form. I also understand that
the Company will not pay interest on Plan benefits under any of the above options, and
that all payments are subject to applicable income, employment and other taxes as may be
required under any law or regulation. 

III.        DEATH AFTER ELECTION 

In the event of my death after my
distribution election, but prior to the distribution of my Benefits under the Plan, the
balance shall be paid to my designated beneficiary or beneficiaries, as follows (check one
of the following): 

	(a)  	  	                          In
a single lump sum payment, or  

	(b)  	  	                          By
continuing the election in Section II above.  

     IV.        
  BENEFICIARY DESIGNATION FORM

Your Name: 

First:                  
        Middle:                  
      Last:                  
   

Your
Address:                  
                     
                     
                     
                     
                     
                     
    

Your Social Security
No.:                  
                     
    

Your Date of
Birth:                  
                     
   

Your Date of Hire with
the Company:                  
                     
   

Pursuant to the provisions of the
Plan, I hereby designate the following as my beneficiary or beneficiaries to whom any
interest I may then have in the Plan shall be paid in the event of my death. 

Primary Beneficiary: 

Full 

Name:                  
                     
                     
                     
                     
                     
                     
   

Address:                  
                     
                     
                     
                     
                     
                     
   

Relationship:                  
                     
                     
                     
                     
                     
                     
   

Secondary Beneficiary
(If Any): 

Full 

Name:                  
                     
                     
                     
                     
                     
                     
   

Address:                  
                     
                     
                     
                     
                     
                     
   

Relationship:
                  
                     
                     
                     
                     
                     
                     
   

I certify that the above information
is correct,. The Company and any others concerned with the administration of the Plan are
entitled to rely on this beneficiary designation and each shall be fully protected in
taking or omitting any action under any provisions of the Plan in reliance on the above
information. 

I reserve such rights as may be
available to me under the Plan to change this beneficiary designation at any time by
signing a new beneficiary designation form and filing it with the Company. 

I acknowledge that nothing in the
Plan shall be deemed to create any fiduciary relationship between the Company and myself
or my Beneficiaries, and I hereby waive any claim to the contrary. I also acknowledge that
neither the Company nor any of its employees or agents has any fiduciary duty or
responsibility whatsoever for any elections I make in other personal areas or programs as
a result of my decision regarding this Plan and they are fully released to such extent. 

I also acknowledge that I have
reviewed the Plan, that I understand the Plan’s terms and provisions, and that I do
not rely upon any representations made about the Plan. I also acknowledge that I have been
given the opportunity to consult with professionals of my choice about the effects of the
Plan, including, but not limited to, any tax effects. I also acknowledge that the Company
may amend or terminate the Plan at any time. 

All other terms of this Election Form
shall be governed by the Plan (and any amendments) which is in effect at the time of this
election. All other terms and conditions of that Plan are incorporated herein by
reference. 

In witness whereof, I have executed
this Election Form as of the date below. 

Employee: 

Signature 

Type or Print Name 

Date 

RELEASE AND SEPARATION
AGREEMENT 

        This
Release and Separation Agreement (the “Agreement”) is entered into by
____________________ (the “Employee”) and NuSkin International, Inc. and
its affiliated companies and subsidiaries (the “Company”). 

RECITALS AND
ACKNOWLEDGMENTS 

             1.     The
          Company has adopted a Voluntary Early Retirement Incentive Plan (the
          “Incentive Plan”). 

             2.    
          The parties acknowledge and agree that Employee is eligible to receive the
          monetary incentive for voluntary early retirement according to the terms of the
          Incentive Plan. 

             3.    
          The Employee desires to obtain the monetary incentive and to voluntarily retire
          from the Company under the terms of the Incentive Plan and is willing to sign
          this Agreement. 

             4.    
          Employee resigns his/her employment with the Company and elects to retire
          effective the date he/she signs this Release and Separation Agreement. 

             5.    
          Employee acknowledges that participation in the Incentive Plan is strictly
          voluntary, that he/she is under no obligation to participate, and that he/she
          has freely chosen to participate therein and retire without any coercion. 

    NOW,THEREFORE,
in consideration of the foregoing Recitals and Acknowledgments, which are incorporated
herein by this reference, Employee and the Company agree to the following terms and
releases:  

          	 	1.	
               45 Days To Consider Agreement. Employee acknowledges and
               agrees that he/she has been given the opportunity to take at least forty-five
               (45) days (the “45-Day Period”) to consider this Agreement
               before signing it. 

               

          	  	2.  	
               Information Provided To Employee. Employee acknowledges and
               agrees that he/she has been given the following information at the commencement
               of the 45 Day Period, which information is attached hereto as Exhibit
               “A”: 

               

	 	a.	               the
class, unit or group of individuals covered by the Incentive Plan;  

	 	b.	               the
eligibility factors for participation in the Incentive Plan;  

	 	c.	the
time limits applicable to the Incentive Plan;  

	 	d.	             the
job titles and ages of all individuals eligible for the Incentive Plan;  

	 	e.	             the
ages of all individuals in the same job classification or organizational
               unit who are not eligible for the Incentive Plan.  

        Employee
also acknowledges that he/she received a copy of the Incentive Plan along with this Release and
Separation Agreement. 

          	 	3.	
               Advice To Consult A Lawyer. Employee acknowledges and
               agrees that he/she has been given the opportunity to consult with a lawyer or
               any other person or agency of his/her choice before signing this Agreement and
               that he/she understands the meaning and effect of each provision contained in
               this Agreement. The Company advises the Employee to consult with a lawyer before
               signing this Agreement. 

               

          	  	4. 	
               Voluntary Agreement. Employee agrees that he/she has
               voluntarily and knowingly entered into this Agreement, and has voluntarily
               elected to participate in the plan and retire from the Company without coercion. 

               

          	 	5.	
               Effective Date of Resignation. Employee voluntarily resigns
               his/her employment with the Company effective the date he/she signs this
               Agreement. 

               

          	  	6.  	
               No Admission by The Company. Employee and the Company agree
               that this Agreement is not an admission of any fault, liability or wrongdoing by
               the Company, and that the Company expressly denies any fault, liability or
               wrongdoing. 

               

          	  	7. 	
               No Other Representation or Promise. Employee and the
               Company represent and warrant that neither they nor any officer, director,
               shareholder, agent, servant, successor, heir, personal representative, assign,
               or attorney of or for each other has made any statement or representation to the
               other regarding any fact relied upon in executing this Agreement, and neither
               the Employee nor the Company rely upon any such statement, representation or
               promise in signing this Agreement. 

               

          	 	8.	
               Assumption of Risk if Facts are Different. Employee fully
               understands and agrees that if any of the facts concerning the claims referred
               to in this Agreement should be found in the future to be different or other than
               the facts now believed to be true, he/she expressly accepts and assumes the risk
               of such possible factual differences and agrees that this Agreement will remain
               in effect notwithstanding any differences in the facts. 

               

          	  	9.	
               Consideration. Employee acknowledges that the following
               consideration is good, sufficient and valuable consideration for the promises,
               releases and waivers contained herein, and Employee agrees that he/she is not
               otherwise entitled to this consideration and that this consideration is accepted
               as the full and final settlement of any and all claims that he/she has or may
               have against the Company, including but not limited to any claims growing out of
               or related in any way to his/her employment with the Company or his/her
               resignation therefrom. 

               

          	 	10. 	
               Employee Responsible for Taxes. Employee agrees that he/she
               is fully responsible for all his/her income, employment and other taxes and tax
               consequences to him/her resulting from the payment of the consideration pursuant
               to this Agreement, and that neither the Company nor its attorneys have made any
               representation to Employee regarding any tax  

               

2

	 	  	
                consequences. The Company reserves
               the right to withhold income, employment or other taxes from any payment to
               Employee as may be required under any law or regulation. The Company advises
               Employee to consult a lawyer concerning this Agreement, including the tax
               consequences resulting from the receipt of the above consideration. 

               

	 	a.  	                The
Company will pay Employee a total amount of__________________, less required
               withholdings. This amount will be paid in a lump sum or in installments
               according to the Employee’s election on the Election Form after the
               revocation period described in paragraph 12 below.  

	 	b.	                The
Company will pay any Employee earned bonus, if any, when such bonuses are
               paid to all employees of the Company.  

RELEASE AND WAIVER 

          	  	11. 	
               Release of Any and All Claims Against The Company. For the
               good and valuable consideration set forth above, the receipt and sufficiency of
               which is acknowledged, and in consideration of the foregoing Recitals and
               Acknowledgements, and with the intent of binding himself/herself and his/her
               successors, heirs and assigns, Employee hereby fully and forever releases and
               discharges the Company and its shareholders, officers, directors, agents,
               employees, predecessors, successors, assigns, affiliated companies, parent
               corporations, sister corporations and subsidiaries, from any and all claims,
               demands, actions, causes of action, judgments and liabilities of any kind or
               nature whatsoever in law, equity or otherwise, whether known or unknown,
               suspected or unsuspected, which have existed or may have existed or which do
               exist, including, but not limited to, all those which may be based in whole or
               in part on, or may arise from or are or may be related to Employee’s
               employment with the Company or termination thereof, from the beginning of time
               to the date of the signing of this Agreement, including, but not limited to, the
               following: 

               

	 	a.  	Any
claim by Employee that the Company discriminated against him/her on the
               basis of his/her age in violation of either state or federal law,
including the                Age Discrimination in Employment Act of 1967, as amended, 29
U.S.C.                § 621, et. seq. EMPLOYEE HEREBY WAIVES
ALL                RIGHTS AND CLAIMS UNDER ALL STATE AND FEDERAL ANTI-DISCRIMINATION LAWS,
               INCLUDING THE AFOREMENTIONED AGE DISCRIMINATION IN EMPLOYMENT ACT.  

	 	b.  	Any
claim by Employee that the Company discriminated against him/her on the
               basis of race, sex, religion, age, national origin or disability in
violation of                any state or federal law, including, but not limited to,
Title VII of the Civil                Rights Act of 1964, as amended, the Americans with
Disabilities Act, as amended,                or any state anti-discrimination laws, as
amended.  

3 

	 	c. 	Any
claim against the Company for violation of the Worker Adjustment and
               Retraining Notification Act, 29 U.S.C. § 2101, et. seq.,
               (“WARN”).  

	 	d. 	Any
claim that the Company negligently, intentionally, maliciously, or wantonly
               caused damage to Employee.  

	 	e.  	Any
claim that the Company inflicted emotional distress either intentionally or
               negligently on Employee.  

	 	f.  	Any
claim against the Company for breach of contract, whether oral or written,
               express or implied, or any other agreement or promise.  

        Employee
does not waive any rights or claims under the Age Discrimination in Employment Act that
may arise after the date this Agreement is executed. 

        Further,
notwithstanding anything which may be to the contrary herein, any confidentiality,
non-solicitation and/or non-compete agreements previously executed by Employee remain in
full force and effect and continue to bind Employee according to the terms of any such
agreement. 

        12.           Seven-Day
Revocation Period. This Agreement is effective and           enforceable seven
(7) days after the date it is executed by Employee. This           Agreement may be
revoked by Employee by providing written notice of such           revocation to Claire
Averett, Vice President of Human Resources for the Company,           at any time during
the seven-day period following the date he/she executes this           Agreement.
Employee understands that he/she has no right to the consideration           specified in
this Agreement if he/she revokes this Agreement.  

        13.           Choice
of Law. This Agreement shall be subject to and           governed by the
laws of the State of Utah.  

        14.            Severability:
Except as expressly provided to the contrary           herein, each paragraph, term and
provision of this Agreement, and any portion           thereof, shall be considered
severable and if, for any reason, any such           provision of this Agreement is held
to be invalid, such other portions of this           Agreement as may remain otherwise
intelligible, shall continue to be given full           force and effect and bind the
parties hereto.  

        15.            Attorneys’ Fees.
If any party to this Agreement brings           an action to enforce its rights
hereunder, the prevailing party shall be           entitled to recover its costs and
expenses, including court costs and           attorneys’ fees, if any, incurred in
connection with such suit.  

        16.            Entire
Agreement. Employee and the Company understand and           agree that
this Agreement shall constitute the entire agreement between the           Company and
Employee concerning the subject matter covered herein, and that both           have
carefully read the entire foregoing Agreement and know the contents thereof           and
sign the same of their own free will.  

4 

        17.            Facsimile
Signature. Any facsimile signature on this Agreement           shall be deemed to
be an original signature for all purposes and shall fully           bind the party whose
facsimile signature appears on this Agreement.  

	EMPLOYEE:

    
                 
                
                
                  

DATED:              
                
                 
           	NU SKIN INTERNATIONAL, INC.:

By:        
                 
                
                
                  

Its:        
                 
                
                
                  

DATED:        
         
                
                
                  

5 

EXHIBIT “A” 

NOTICE TO ELIGIBLE
EMPLOYEES 

COVERED BY THE AGE DISCRIMINATION
IN EMPLOYMENT ACT 

The following information is provided
in compliance with the waiver provisions of the federal Age Discrimination in Employment
Act, 29 U.S.C. Section 626 (f). 

     1.    
          The group or class of individuals covered by the Voluntary Early Retirement
          Incentive Plan (the “Plan”): 

	  	
The
group or class of individuals covered by the Plan are eligible to receive incentive
benefits as described in the Plan are employees of Nu Skin International, Inc. and any
affiliate or subsidiary (the “Company”) who meet the eligibility factors
identified in paragraph 2, below. 

          	2. 	  	
               Eligibility factors for participating in the Plan are as follows: 

               

	a.  	  	You
must be a full-time employee of the Company who is 59 1⁄2 years of age
               or older.  

	b.  	  	You
must voluntarily elect to participate in the Plan by resigning your
               employment and retiring from the Company on or before July 25, 2003.  

	c.  	  	You
must fill out and sign the Election Form provided to you by the Company, and
               submit the completed and signed Election Form to the Company no later than
July                25, 2003.  

	d.  	  	You
must sign and submit the Release and Separation Agreement provided to you by
               the Company in which you agree to release and waive any and all claims,
whether                known or unknown you have or may not have against the Company no
later than July                25, 2003. The Release and Separation Agreement must be
signed and submitted at                the same time you sign and submit the Election
Form, and both must be dated the                same day.  

          	3. 	  	
               Time limits applicable to the Plan: 

               

	  	
You
will have until July 25, 2003 to consider the Release and Separation Agreement, and decide
whether you wish to retire early and participate in the Plan. You may sign and submit the
Election Form and Release and Separation Agreement at any time on or before July 25, 2003.
If you fail to sign and submit the Election Form and the Release and Separation Agreement
on or before July 25, 2003, you will be deemed to have declined to participate in the
Plan, and you will not receive any incentive benefits. 

-6- 

	  	
The
Election Form and Release and Separation Agreement must be signed, dated, and submitted to
Nu Skin at the same time, on the same day. 

	  	
In
no event will you have less than a full 45 days to consider the Release and Separation
Agreement before signing it. 

	  	
You
will have seven (7) days to revoke the Release and Separation Agreement after you sign it,
if you so choose. If you do not revoke the Release and Separation Agreement within the
seven (7) day period, you will thereafter receive your incentive benefits according to the
terms of the Release and Separation Agreement. If you revoke the Release and Separation
Agreement, you will not be entitled to participate in the Plan and receive incentive
benefits, and your employment with Nu Skin will be reinstated. 

	  	
If
you choose to participate, your retirement and termination of employment with the Company
will be effective on the day you sign and submit your Election Form and Release and
Separation Agreement. 

     4.    
          Job titles and ages of individuals eligible to participate in the
          Plan. 

      See
attached form.

     	5. 	
          Ages of individuals in the same job classification or organizational
          unit not eligible to participate in  the Plan. 

          

      See
attached form.

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