Summary of Selected Nu Skin Policies and Procedures The following is a brief description of the company and its opportunity, and a summary of those Policies and Procedures that distributors most often ask about. Please take the time to review both the description of Nu Skin and the summary. The Policies and Procedures describe your rights and obligations as an independent Nu Skin Distributor. To assist you in understanding your rights and guide you in your business, we have created this summary using the ever popular “Frequently Asked Questions” method for briefly describing some of our policies. Although the Policies and Procedures may appear as if we restricting your ability to do the business, please remember that they are intended to protect you, fellow distributors, customers and the company. These Policies and Procedures are based on existing laws and the “best practices” in the industry in turn providing you a long-term business opportunity.

Welcome to Nu Skin and Direct Selling Thank you for joining the Nu Skin Team. Nu Skin is a direct selling company that opened its doors in the United States in1984, and since then, has grown in to a world-wide business opportunity with operations in over 50 markets. As a direct selling company, we market high quality personal care and nutritional products, person-to-person, away from a fixed retail location, through independent sales representatives—you—the Nu Skin distributor! We pride ourselves on providing you and retail consumers with life enhancing products focused on anti-aging— which may also offer you a great way to earn supplemental income, or if you so choose, the option to focus on Nu Skin as a full-time career. Please remember that Nu Skin, like any other full-time business opportunity, requires hard work. It is not “easy money”, you will not “get rich quick” and there are no guarantees of success. For those who set realistic goals and enjoy working in a flexible, home-based business environment, our direct selling opportunity provides you with unlimited possibilities. Nu Skin offers choices, and you alone decide what kind of Nu Skin opportunity suits you. For some of you, this opportunity may mean working a few hours a week and earning a modest supplemental income to help pay your bills. On the other hand, some of you may see our business opportunity as a full-time career that requires a commitment of 40 or more hours a week with the goals of (i) retailing the product, and (ii) developing a downline organization that will need to be trained and mentored by you so they too can be successful. It’s also important to remember, that in most instances, Nu Skin distributors who are earning full-time incomes have worked for a long time—perhaps many years—to achieve a high level of success. Finally, for some, we may simply be the source of innovative products that you can purchase at a discount for your personal use. We offer a business opportunity regardless of age, sex, race, religion or level of education. Not all of you will find the success that you currently envision—some of you may discover that you do not enjoy selling products, or that being a Nu Skin distributor is not as easy as you thought. Not a problem. The beauty of Nu Skin is that it is open to all, it is easy to get started, and it is easy to go in a different direction if you decide that Nu Skin is not for you. But enjoy the journey, however long it may last, with our hope that you find it a very long and gratifying adventure.

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A Summary of Selected Policies and Procedures and Frequently Asked Questions About The Selected Policies For your convenience, the questions and answers have been separated into the following six categories. The summary will provide a brief answer to the question and then a reference to the chapter and section where the policy can be found. The meaning of capitalized terms not found in the answer may be found in the complete Policies and Procedures. Becoming a Distributor I am a Hong Kong citizen and am attending school in the United States on a student visa. May I sign-up as a Distributor in the United States? How many people may apply to become Distributors on a single Distributorship? What if my friend and I want to be Distributors on the same Distributorship, what must we submit to Nu Skin? I have formed a corporation and want to apply to become a Distributor in the name of the corporation. Can I do that? When must I submit a Business Entity Form? When must I submit a Joint Participation Form? What is an Authorized Representative, and why must that individual sign the Distributor Agreement and be designated as such on the Business Entity Form? What is a Principal Distributor in the Joint Participation Form? What type of Identification Number does Nu Skin require? May I change Sponsors whenever I want? What is a Beneficial Interest? May I have a Beneficial Interest in more than one Distributorship? May I merge my Distributorship with another Distributorship?

Conducting my Distributorship Does Nu Skin provide any general guidelines on how I should conduct my business? I have noticed that Distributors are referred to as “independent contractors”, what exactly does that mean? May I use another individual’s credit card to order Products? I have some Products that I have not been able to sell to retail customers. May I sell them on eBay or a similar Internet site? I know an individual who runs a website that is used to sell beauty products. May I sell him Products that he can then sell on his website? Does Nu Skin pay me a Bonus for sponsoring new Distributors?

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As a Distributor, may I also sign myself up as a Preferred Customer?

Product and Income Claims; Advertising What types of claims can I make about our Products? Can I tell people that if they become a Nu Skin Distributor, they will be earning a million dollars a year in five years? What are Business Support Materials and may any Distributor produce them? Our local newspaper would be perfect for placing an advertisement about the Anti-Aging Products—may I place an ad in the paper that describes the Products and the business opportunity? Can I appear on a local morning television program to promote Nu Skin and its Products? Can I be interviewed for our community newspaper? How can I use the Internet to promote my Nu Skin business? I filmed my Sponsor’s opportunity meeting. May I post it on YouTube?

Changing Sponsors I have a friend from school who just signed up as a Distributor. I ran into her at a meeting where we discovered that we are both Distributors. She would like to sign up under me. Can she do that immediately, after all, we are friends and would work well together?

Doing Business in Unopened Countries May I promote the Nu Skin business opportunity and sell Products in a country that has not been officially opened by Nu Skin (an “Unopened Country”)?

Sale of Third Party Products to my Downline Organization Do I own my Downline Organization, and can I market products (other than Nu Skin Products) to them?

BECOMING A DISTRIBUTOR I am a Hong Kong citizen and am attending school in the United States on a student visa. May I sign-up as a Distributor in the United States? No. Your Distributor Agreement must be filed and your Distributorship maintained in the country or market where you are a legal resident or citizen and where you have a legal right to do the Nu Skin business. Chapter 1, Section 1.5. How many people may apply to become Distributors on a single Distributorship? Only one individual may apply for a Distributorship and submit a Distributor Agreement to the Company. There is an exception for spouses and Co-habitants or as otherwise provided in a specific Authorized Country. If you want to include a spouse or Co-habitant on the Distributor Agreement, then information about the spouse or Co-habitant must be included on the Distributor Agreement. Chapter 1, Sections 1.2 and 1.7. What if my friend and I want to be Distributors on the same Distributorship, what must we submit to Nu Skin? Summary of Selected Nu Skin Policies and Procedures S:\Dist-Service\FAX\Link\Summary_P_and_P_Eng.docx

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If more than one Person wants to participate in a Distributorship, then the Persons must either apply as a Business Entity or as a Distributorship with joint participation. This means that, in the case of a Business Entity, you must submit both (i) a Distributor Agreement, signed by the Authorized Representative, and (ii) a Business Entity Form, signed by all the Participants; or in the case of Joint Participants, you must submit both (i) a Distributor Agreement, signed by you as the Principal Distributor, and (ii) a Joint Participation Form, signed by you as the Principal Distributor and each of the Additional Participants. Chapter 1, Sections 1.10 and 1.10A. I have formed a corporation and want to apply to become a Distributor in the name of the corporation. Can I do that? Yes, a Business Entity (e.g., a limited liability company, partnership, or corporation) may apply to become a Distributor by completing, signing, and returning a Business Entity Form, signed by all the Participants, together with a Distributor Agreement signed by the Authorized Representative. Chapter 1, Section 1.10. When must I submit a Business Entity Form? A Business Entity Form is required if an account is in the name of a Business Entity, e.g., a limited liability company, partnership, or corporation. You must submit both a Distributor Agreement and a Business Entity Form. If you are a Business Entity, then you must include a Hong Kong Business Registration Number (applicable to Hong Kong distributor)/ Macau Business Registration Number (applicable to Macau distributor) for the Business Entity. Furthermore, the names of the individuals associated with the Distributorship must be provided on the Business Entity Form under the “Names”, and the Hong Kong Identity Card Number (applicable to Hong Kong distributor)/ Macau Resident Identity Card Number (applicable to Macau distributor) of each must be provided. Please note that all the members of the Business Entity must be listed (e.g., members, directors, officers). Chapter 1, Section 1.10. When must I submit a Joint Participation Form? A Joint Participation Form is required if some other individual(s) are added as Additional Participant(s) to jointly participate in your Distributorship. When your friend and you are applying to become Distributors, you must submit both a Distributor Agreement and a Joint Participation Form. You and your friend have created an informal partnership, which is treated by Nu Skin as a Distributorship with joint participation. Therefore, additional information is required, which necessitates the submission of the Joint Participation Form. See Chapter 1, Sections 1.2 and 1.10A. What is an Authorized Representative, and why must that individual sign the Distributor Agreement and be designated as such on the Business Entity Form? The Authorized Representative is the designated agent of the Business Entity and the Distributorship. This individual is formally authorized by the Participants of the Distributorship to sign contracts on behalf of the Distributorship. Therefore, it is required that one Participant be designated as the Authorized Representative of the Business Entity. Chapter 1, Section 1.10. This designation is extremely important because Nu Skin will rely and act on any information provided by the Authorized Representative and will interact with this person regarding the account.

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What is a Principal Distributor in the Joint Participation Form? The Principal Distributor is the sole individual authorized to take any action on behalf of the Distributorship with respect to the Distributor Agreement (including the execution of any such agreements) or any other matter relating to the Company, and that the Company shall be entitled to rely on the authority and instructions of the Principal Distributor with respect to all matters pertaining to the Distributor Agreement (including amounts payable as Bonuses thereunder) or the Company; All Bonuses and other benefits generated by or attributable to the Distributorship (including through the efforts of the Additional Participants) shall be paid or provided directly to the Principal Distributor and none of the Additional Participants, whether individually or collectively, shall have any claim against the Company with respect to such Bonuses or other benefits. Chapter 1, Section 1.10A. What type of Identification Number does Nu Skin require? A Business Entity must provide a Hong Kong Business Registration Number (applicable to Hong Kong distributor)/ Macau Business Registration Number (applicable to Macau distributor). Individuals, including any Participant of a Business Entity (including but not limited to any shareholder, director, officer, member and partner of the Business Entity where applicable) must also provide a Hong Kong Identity Card Number (applicable to Hong Kong distributor)/ Macau Resident Identity Card Number (applicable to Macau distributor). See, e.g., Chapter 1, Section 1.9. May I change Sponsors whenever I want? Whether you are a current Distributor or if you are a former Distributor, you may establish a new Distributorship under a new Sponsor only if you have not engaged in any Business Activity (whether for your Distributorship or the Distributorship of another Person) for the indicated inactive period. See Chapter 1, Section 3.3 for the inactive periods. What is a Beneficial Interest? Nu Skin defines a “Beneficial Interest” as any interest whatsoever, whether it is direct or indirect, including but not limited to any ownership interest, rights to present or future benefits, financial or otherwise, rights to go on Nu Skin or Direct Sales Company sponsored trips and other events, rights to purchase Products or products of a Direct Sales Company at wholesale prices, recognition of any type or other tangible or intangible benefits associated with a Distributorship or a Direct Sales Company distributorship. See Addendum A of the Policies and Procedures. An individual has a Beneficial Interest in the Distributorship of a spouse or Co-habitant. Id. Those persons who are listed or should have been listed on the Business Entity Form of a Business Entity are also deemed to have a Beneficial Interest in such Business Entity’s Distributorship. If a Person is or should be listed as an Additional Participant in a Joint Participation Form, he is considered to have a Beneficial Interest in such Distributorship. An individual has a Beneficial Interest in a Direct Sales Company distributorship of (i) a spouse or Co-habitant, or (ii) a Business Entity if the individual has a Beneficial Interest in the Business Entity; or (iii) any other person if the individual shares in the benefits (financial or otherwise) of the distributorship of such other person. Id. May I have a Beneficial Interest in more than one Distributorship?

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No. You are not allowed to have a Beneficial Interest in more than one Distributorship except as follows: (i) marriage of two Distributors who each had a Distributorship prior to the marriage, (ii) inheritance of a Distributorship by an existing Distributor, or (iii) as otherwise approved in writing by the Company. Chapter 1, Section 3.4. May I merge my Distributorship with another Distributorship? Generally, the formation of a partnership between Distributors, the merger of Distributorships, or the acquisition of a Beneficial Interest in a Distributorship by a Distributor who has engaged in any Business Activity, is prohibited. However, Nu Skin may, in its sole discretion, consider mergers of Distributorships in limited cases. See Chapter 1, Section 3.5 for specific details. CONDUCTING MY DISTRIBUTORSHIP Does Nu Skin provide any general guidelines on how I should conduct my business? Because you are selling Nu Skin products and introducing the business opportunity to others, Nu Skin requires you to adhere to certain policies that protect you, the company, other Distributors and our customers. Therefore, Nu Skin asks that you operate your Distributorship in an ethical, professional, and courteous manner. See Chapter 2, Section 1.3. This means, among other things, that you be honest, do not make false or misleading claims, and indicate to prospective customers and Distributors who you are, why you have contacted them, and what Products you are selling. See Chapter 2, Section 1.3 for more specific guidelines. I have noticed that Distributors are referred to as “independent contractors”, what exactly does that mean? Generally, an independent contractor is a person hired to do work for another but who is not an employee or agent of the company. As an independent contractor, you are not an employee of Nu Skin. You are responsible for your own business decisions, when you work, the number of hours you will work, payment of taxes and all business costs. See Chapter 2, Section 2.1 for additional details. May I use another individual’s credit card to order Products? You should not use another individual’s credit card to order Products without the individual’s prior written approval. See Chapter 2, Section 3.9. I have some Products that I have not been able to sell to retail customers. May I sell them on eBay or a similar Internet site? No. Products may only be sold on the Internet through Nu Skin’s websites. You cannot use Distributor or third-party websites to sell Products that you have purchased from Nu Skin. See Chapter 3, Section 7.6 for more detailed information. Please remember that you always have the option of returning to Nu Skin for a refund any Product that you have purchased directly from the company. See Chapter 2, Section 4.1 for more details. Generally, Nu Skin will refund to you 90 percent of the purchase price, less applicable Bonuses, on any unopened and resalable Products and Business Support Material sold by Nu Skin, provided that you return the Products and Business Support Materials within 12 months of the order date. Id. I know an individual who runs a website that is used to sell beauty products. May I sell him Products that he can then sell on his website?

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No. You may only sell Products directly to retail customers. You may not sell or distribute Products to anyone who intends to resell the Products, or has resold Products in the past. See Chapter 2, Section 5.2. Does Nu Skin pay me a Bonus for sponsoring new Distributors? Absolutely not! You do not receive any compensation for sponsoring other Distributors. Your level of compensation will be based on your hard work, your sale of Products, and the sales of your Downline Organization. See Chapter 2, Section 6.3. As a Distributor, may I also sign myself up as a Preferred Customer? No. This is considered manipulation of the Sales Compensation Plan, which is a violation of the Policies and Procedures. See Chapter 2, Section 6.5. PRODUCT AND INCOME CLAIMS; ADVERTISING What types of claims can I make about our Products? You may only make the specific Product related claims and representations published in Nu Skin’s Business Support Materials, and its literature, and that have been approved by Nu Skin for use in Business Support Materials in the Authorized Country where you are making the claims. See Chapter 3, Section 2.1. You may not make medical claims, or state or imply that any Product is formulated, designed or approved by Nu Skin or any regulatory authority to treat any disease or medical condition. These representations imply that the Products are drugs rather than cosmetics or nutritionals. You also may not compare Products to drugs, or make drug or medical claims. See Chapter 3, Section 2.2. Can I tell people that if they become a Nu Skin Distributor, they will be earning a million dollars a year in five years? No. It is important that all Distributors are fully informed and have realistic expectations concerning the income opportunity associated with being a Distributor. Additionally, you may not make any claims, specific or implied, regarding the income opportunity that are false or misleading, including income guarantees of any kind. You may not exhibit actual or facsimile Bonus checks or other Bonus payment records. See Chapter 3, Section 3.1. Now, regarding that “million dollars” claim—you may only make lifestyle claims (e.g., my Nu Skin business allowed me to buy a boat, quit my job, purchase a new home, etc.) or claims regarding the level of Bonuses or income associated with your Nu Skin business if you meet strict conditions that are outlined in Chapter 3, Section 3.2. Please review them carefully to avoid any misunderstandings or misleading claims. This may seem onerous, but these restrictions protect you and Nu Skin, and more importantly, are consistent with Nu Skin’s principles—that we will conduct our business in an ethical and professional manner, which means we will provide accurate information about Nu Skin and its opportunity, and not do or say anything that would be misleading. See Chapter 3, Sections 3.1 and 3.2. What are Business Support Materials and may any Distributor produce them? Business Support Materials are defined as any electronic, printed, audio or video presentation or other material used in the offer or sale of Products, recruitment of prospective Distributors or training of Distributors, which makes reference to Nu Skin, its Products, the Sales Compensation Plan or its trade names. Examples include brochures, websites, videos, Summary of Selected Nu Skin Policies and Procedures S:\Dist-Service\FAX\Link\Summary_P_and_P_Eng.docx

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power point presentations, CD, DVDs, etc. In order to protect the integrity of the Network and to ensure that Business Support Materials and Services are only produced, utilized and distributed by Distributors with significant experience and knowledge relating to Nu Skin and its Products, only Blue Diamond Distributors may produce, utilize and distribute their own Business Support Materials and Services. See Chapter 3, Section 4.1. Our local newspaper would be perfect for placing an advertisement about the Anti-Aging Products—may I place an ad in the paper that describes the Products and the business opportunity? Remember that direct selling is person-to-person sales. You may not use any form of media or other mass communication advertising, including your local newspaper, to promote the Products. This also includes mass communication advertising on the Internet, news stories or promotional pieces on TV shows, newscasts, entertainment shows, internet ads, etc. See Chapter 3, Section 5.1. You may place generic opportunity advertisements in jurisdictions allowing that type of advertisement, but only in accordance with the Policies and Procedures. Can I appear on a local morning television program to promote Nu Skin and its Products? Can I be interviewed for our community newspaper? You may not promote the Products or opportunity through interviews with the media, articles in publications, news reports, or any other public information, trade, or industry information source, unless specifically authorized, in writing, by Nu Skin. All media contacts or inquiries should be immediately referred to Nu Skin Hong Kong (applicable to Hong Kong distributor) by calling (+852) 2837-7700 or Nu Skin Macau (applicable to Macau distributor) at (853) 2870 3655. See Chapter 3, Sections 5.1 and 5.2 for additional details. How can I use the Internet to promote my Nu Skin business? We agree that the Internet provides a great opportunity to present a positive image of Nu Skin and provide information about the company and its Products. Please review Section 7 of Chapter 3 regarding the promotion of Nu Skin and its Products on the Internet. Please note, however, that you may use the Internet, including social networking sites, blogs, social media and applications, and other sites that have content that is based on user participation and user generated content, forums, message boards, blogs, wikis and podcasts (e.g., Facebook, Twitter, Flickr, etc.) to (1) communicate preliminary information about Nu Skin or your involvement with Nu Skin, (2) direct users to a Nu Skin Internet Marketing Site or a registered Blue Diamond Internet Marketing Site and (3) post Nu Skin produced Business Support Materials that have been approved by Nu Skin for posting on personal blogs or social networking sites; provided, however, that such communication and use must be (i) incidental to the primary use of such forum, site, blog, board, wiki or podcast or other form of internet use, and (ii) may not be an Internet Marketing Site. See Chapter 3, Section 7.2. I filmed my Sponsor’s opportunity meeting. May I post it on YouTube? You may not post any video or audio content created by, produced by, belonging to or relating to (i) Nu Skin, its Products, Sales Compensation Plan or Distributors, or (ii) you or any third party, on any website unless you have received prior written authorization from Nu Skin or such posting is specifically permitted by Section 7.5 of Chapter 3. The reason for this rule is that sometimes things are said or presented that at the moment seem like a good idea, but are in fact, either misleading or a misstatement of the facts, and we do not want those published on the Internet before they Summary of Selected Nu Skin Policies and Procedures S:\Dist-Service\FAX\Link\Summary_P_and_P_Eng.docx

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can be reviewed and revised for accuracy. See Chapter 3, Section 7.5. CHANGING SPONSORS I have a friend from school who just signed up as a Distributor. I ran into her at a meeting where we discovered that we are both Distributors. She would like to sign up under me. Can she do that immediately, after all, we are friends and would work well together? You may not encourage, entice, or otherwise assist another Distributor to transfer to a different Sponsor. Chapter 4, Section 2.2. If she wishes to be sponsored by you, then she must terminate her current Distributorship, stop doing the business for the requisite time, and then sign up under you. See Chapter 1, Section 3.3. DOING BUSINESS IN AN UNOPENED COUNTRY May I promote the Nu Skin business opportunity and sell Products in a country that has not been officially opened by Nu Skin (an “Unopened Country”)? This is referred to as “pre-marketing activity”. If the country or market is an Unopened Country, then you are limited to providing business cards and conducting, organizing or participating in meetings where the number of attendees at any given meeting, including you, does not exceed five. Given the potential serious consequences to Nu Skin, there are additional important restrictions that can be found in Chapter 4, Section 3. SALE OF THIRD PARTY PRODUCTS TO MY DOWNLINE ORGANIZATION Do I own my Downline Organization, and can I market products (other than Nu Skin Products) to them? Your Downline Organization is an asset that is owned by Nu Skin. Therefore, you may not, in any manner, directly or indirectly, promote, market or sell the products or services of another Business Entity or individual to the Network unless you have a pre-existing business relationship with that Distributor prior to one of you becoming a Distributor. See Chapter 5, Section 1.

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