Posted tagged ‘Asset Purchase Agreement’

Nu Skin Enterprises Asset Purchase Agreement from RealDealDocs.com

June 6, 2008

Happy Friday everyone! To end the week I’ve brought you an Amlaw 2008 celebrated law firm’s draft of an Asset Purchase Agreement. Thank you to my friends over at RealDealDocs.com for letting me release this agreement for free. To search millions of legal docs for free, please visit www.RealDealDocs.com!

EX-10.52

                            ASSET PURCHASE AGREEMENT

                                  BY AND AMONG

                           NU SKIN ENTERPRISES, INC.,

                          NU SKIN UNITED STATES, INC.,

                                       AND

                                NU SKIN USA, INC.

                                  March 8, 1999

                            ASSET PURCHASE AGREEMENT

         This  Asset  Purchase  Agreement  (the  “Agreement”)  is  entered  into
effective  as of March  8,  1999,  by and  among Nu Skin  Enterprises,  Inc.,  a
Delaware  corporation (“Nu Skin  Enterprises”),  Nu Skin United States,  Inc., a
Delaware  corporation  (“Nu  Skin  United  States”),  and Nu Skin USA,  Inc.,  a
Delaware  corporation  (“Nu Skin USA”).  Nu Skin  Enterprises and Nu Skin United
States  are  sometimes  referred  to  herein,  collectively,  as  the  “Nu  Skin
Entities.”  Nu Skin  Enterprises,  Nu Skin  United  States,  and Nu Skin USA are
referred to herein,  collectively,  as the  “Parties”  and,  individually,  as a
“Party.”

                                    RECITALS

         WHEREAS, this Agreement contemplates a transaction in which (i) Nu Skin
United States will  purchase from Nu Skin USA certain of its assets  (defined in
this  Agreement  as the  “Non-Securities  Acquired  Assets”) in exchange for the
assumption  by Nu Skin  United  States of certain  of Nu Skin USA’s  liabilities
(defined in this Agreement,  collectively,  as the “Assumed Liabilities,” as set
forth in Section 2.2.1 below),  and (ii) Nu Skin  Enterprises  will purchase for
cash  from Nu Skin USA  certain  shares of Nu Skin  Enterprises’  Class A Common
Stock  (defined  in this  Agreement  as the  “Class A  Shares,”  as set forth in
Section 2.1.2 below) owned by Nu Skin USA.

         NOW THEREFORE,  in  consideration of the mutual premises and agreements
set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows.

1.       Definitions.

         “Acquired Assets” has the meaning set forth in Section 2.1.3 below.

         “Acquired Contracts” has the meaning set forth in Section 2.1.1 below.

         “Affiliates”  means (a) Merasoft LLC, a Utah limited liability company;
(b) Scrub Oak Ltd., a Utah limited  partnership;  (c) Aspen  Investments Ltd., a
Utah limited partnership, and (d) any other affiliated entity other than Nu Skin
Enterprises and its subsidiaries.

         “Affiliated  Group”  means any  affiliated  group within the meaning of
Code Section 1504(a).

         “Assumed Liabilities” has the meaning set forth in Section 2.2.1 below.

         “Basis”  means  any  past or  present  fact,  situation,  circumstance,
status,  condition,  activity,  practice,  plan,  occurrence,  event,  incident,
action,  failure to act, or  transaction  that forms or could form the basis for
any specified consequence.

         “Bill of Sale and Assignment”  means the Bill of Sale and Assignment in
the form attached hereto as Exhibit “D”.
<PAGE>
         “Cash” means cash and cash equivalents (including marketable securities
and short -term  investments)  calculated in accordance with generally  accepted
accounting principles applied on a consistent basis.

         “Class A Common  Stock”  has the  meaning  set forth in  Section  2.1.2
below.

         “Class A Purchase  Price” has the  meaning  set forth in Section  2.2.2
below.

         “Class A Shares” has the meaning set forth in Section 2.1.2 below.

         “Closing” has the meaning set forth in Section 2.3 below.

         “Closing  Date Balance  Sheet” has the meaning set forth in Section 3.2
below.

         “COBRA”  means the  requirements  of Part 6 of Subtitle B of Title I of
ERISA and Code Section 4980B.

         “Code” means the Internal Revenue Code of 1986, as amended.

         “Controlled Group” has the meaning set forth in Code Section 1563.

         “Damages” has the meaning set forth in Section 5.1 below.

         “Disclosure Schedule” has the meaning set forth in Section 3 below.

         “Employee   Benefit   Plan”  means  any  (a)   non-qualified   deferred
compensation  or  retirement  plan  or   arrangement,   (b)  qualified   defined
contribution  retirement plan or arrangement that is an Employee Pension Benefit
Plan, (c) qualified  defined benefit  retirement plan or arrangement  that is an
Employee  Pension  Benefit Plan  (including  any  Multi-employer  Plan),  or (d)
Employee  Welfare Benefit Plan or material  fringe benefit or other  retirement,
bonus, or incentive plan or program.

         “Employee  Pension  Benefit  Plan” has the  meaning  set forth in ERISA
Section 3(2).

         “Employee  Welfare  Benefit  Plan” has the  meaning  set forth in ERISA
Section 3(1).

         “Environmental,   Health,  and  Safety  Requirements”  shall  mean  all
federal, state, local, and foreign statutes, regulations,  ordinances, and other
provisions  having the force or effect of law, all  judicial and  administrative
orders  and  determinations,  all  contractual  obligations  and all  common law
concerning public health and safety,  worker health and safety, and pollution or
protection of the environment, including, without limitation, all those relating
to  the  presence,  use,  production,   generation,  handling,   transportation,
treatment,  storage,  disposal,  distribution,  labeling,  testing,  processing,
discharge,  release,  threatened  release,  control, or cleanup of any hazardous
materials,  substances or wastes,  chemical substances or mixtures,  pesticides,
pollutants,  contaminants,  toxic chemicals,  petroleum  products or byproducts,
asbestos, polychlorinated biphenyls, noise, or radiation, each as amended and as
now or hereafter in effect.
<PAGE>
         “ERISA” means the Employee  Retirement  Income Security Act of 1974, as
amended.

         “ERISA  Affiliate”  means  each  entity  that is  treated  as a  single
employer with Nu Skin USA for purposes of Code Section 414.

         “Escrow” has the meaning set forth in Section 3.2 below.

         “Escrow Agent” means U.S. Bank National Association, a national banking
association.

         “Escrow  Agreement”  means  the  Escrow  Agreement  dated of even  date
herewith  entered  into by an  among  Nu Skin  Enterprises,  Nu  Skin  USA,  the
stockholders who executed the signature page thereto, and the Escrow Agent.

         “Escrow Amount” has the meaning set forth in Section 3 below.

         “Excluded Assets” has the meaning set forth in Section 2.1.1 below.

         “Existing Agreements” has the meaning set forth in Section 2.2.1 below.

         “Fiduciary” has the meaning set forth in ERISA Section 3(21).

         “Indemnification   Limitation   Agreement”  means  the  Indemnification
Limitation  Agreement  entered  into by and among Nu Skin  Enterprises,  Nu Skin
United  States,  Nu Skin USA,  Big Planet,  Inc.,  a Utah  corporation,  and the
individuals  indicated therein,  the form of which is attached hereto as Exhibit
“F”.

         “Indemnitees” has the meaning set forth in Section 5.1 below.

         “Instrument  of  Assumption”  means the Instrument of Assumption in the
form attached hereto as Exhibit “E”.

         “Intellectual Property” means (a) all inventions (whether patentable or
unpatentable and whether or not reduced to practice),  all improvements thereto,
and all patents, patent applications, and patent disclosures,  together with all
reissuances,  continuations,  continuations-in-part,  revisions, extensions, and
reexaminations  thereof, (b) all trademarks,  service marks, trade dress, logos,
trade names, and corporate names,  together with all translations,  adaptations,
derivations,  and  combinations  thereof and including  all goodwill  associated
therewith,  and all  applications,  registrations,  and  renewals in  connection
therewith,  (c) all copyrightable  works, all copyrights,  and all applications,
registrations,  and renewals in connection therewith,  (d) all trade secrets and
confidential  business information  (including ideas,  research and development,
know-how,  formulas,  compositions,  manufacturing and production  processes and
techniques,  technical data,  designs,  drawings,  specifications,  customer and
supplier lists,  pricing and cost information,  and business and marketing plans
and  proposals),   (e)  all  computer  software   (including  data  and  related
documentation),  (f) all  other  proprietary  rights,  and (g)  all  copies  and
tangible embodiments thereof (in whatever form or medium).

         “Knowledge” means actual knowledge after reasonable investigation.
<PAGE>
         “Liability”  means any  liability  (whether  known or unknown,  whether
asserted or  unasserted,  whether  absolute or  contingent,  whether  accrued or
unaccrued,  whether  liquidated  or  unliquidated,  and whether due or to become
due), including any liability for Taxes.

         “Multi-employer Plan” has the meaning set forth in ERISA Section 3(37).

         “NSE Indemnitees” has the meaning set forth in Section 7.1 below.

         “NSUSA Indemnitees” has the meaning set forth in Section 7.2 below.

         “Net Liabilities” means the excess of the Assumed  Liabilities over the
book value of the  Non-Securities  Acquired  Assets,  as determined from Nu Skin
USA’s Closing Date Balance Sheet.

         “Non-Securities  Acquired  Assets” has the meaning set forth in Section
2.1.1 below.

         “Nu Skin Enterprises” has the meaning set forth in the preface above.

         “Nu Skin Entities” has the meaning set forth in the preface above.

         “Nu  Skin USA  Intellectual  Property”  has the  meaning  set  forth in
Section 5.8.1 below.

         “Nu Skin  International”  means  Nu Skin  International,  Inc.,  a Utah
corporation.

         “Nu Skin United States” has the meaning set forth in the preface above.

         “Nu Skin USA” has the meaning set forth in the preface above.

         “Ordinary  Course of Business”  means the  ordinary  course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

         “Parties” and “Party” have the meanings set forth in the preface above.

         “PBGC” means the Pension Benefit Guaranty Corporation.

         “Person” means an individual, a partnership,  a corporation,  a limited
liability  company,  an  association,  a joint stock  company,  a trust, a joint
venture,  an  unincorporated  organization,  or a  governmental  entity  (or any
department, agency, or political subdivision thereof).

         “Prohibited Transaction” has the meaning set forth in ERISA Section 406
and Code Section 4975.

         “Purchase Price” has the meaning set forth in Section 2.2.3 below.

         “Reportable Event” has the meaning set forth in ERISA Section 4043.

         “Security  Interest”  means any mortgage,  pledge,  lien,  encumbrance,
charge, or other security  interest,  other than (a) mechanic’s,  materialmen’s,
and similar liens, (b) liens for Taxes not yet due and payable or for Taxes that
the taxpayer is contesting in good faith through  appropriate  proceedings,  (c)
purchase  money liens and liens  securing  rental  payments  under capital lease
arrangements, and (d) other liens arising in the Ordinary Course of Business and
not incurred in connection with the borrowing of money.
<PAGE>
         “Tax”  means any  federal,  state,  local,  or  foreign  income,  gross
receipts,  license, payroll,  employment,  excise, severance, stamp, occupation,
premium,  windfall  profits,  environmental  (including taxes under Code Section
59A), customs duties, capital stock,  franchise,  profits,  withholding,  social
security  (or  similar),  unemployment,   disability,  real  property,  personal
property, sales, use, transfer, registration, value added, alternative or add-on
minimum, estimated, or other tax of any kind whatsoever, including any interest,
penalty, or addition thereto, whether disputed or not.

         “Tax Return” means any return,  declaration,  report, claim for refund,
or information return or statement relating to Taxes,  including any schedule or
attachment thereto, and including any amendment thereof.

2.       Basic Transaction.

         2.1      Purchase of the Acquired Assets.

                  2.1.1  Purchase  of the  Non-Securities  Acquired  Assets.  In
exchange  for the  assignment  and  assumption  by Nu Skin United  States of the
Assumed  Liabilities,  on and  subject  to the  terms  and  conditions  of  this
Agreement,  Nu Skin United  States  agrees to purchase  and acquire from Nu Skin
USA, and Nu Skin USA agrees to sell, transfer, convey, assign, and deliver to Nu
Skin United  States,  all of its right,  title and interest in and to all of the
assets of Nu Skin USA  (except  for the  excluded  assets  listed on Exhibit “A”
attached  hereto and the  contracts  not expressly  assumed  (collectively,  the
“Excluded  Assets”  and except for the Class A Shares,  which are  addressed  in
Section 2.1.2 below), of whatever kind or nature whatsoever,  including, but not
limited  to,  (a)  all  leasehold  improvements,  (b)  all  equipment,  (c)  all
inventory,  (d) the name “Nu Skin  USA”  and all  derivations  thereof,  (e) all
intellectual  property  used by Nu Skin USA in its business that is not licensed
to it by Nu Skin  International,  (f) all  promotional  and marketing  materials
related  to Nu  Skin  USA’s  business,  and  (g) the  contracts  and  agreements
specifically  listed on Exhibit “B” attached  hereto,  each of which is directly
related to Nu Skin USA’s business of network  marketing Nu Skin  International’s
personal care and nutritional products (collectively, the “Acquired Contracts”).
No other  contracts  or  agreements  of Nu Skin  USA  other  than  the  Acquired
Contracts  are  being  acquired  by Nu  Skin  United  States  (nor  is  Nu  Skin
Enterprises  acquiring any of Nu Skin USA’s contracts or agreements  pursuant to
this Agreement).  Furthermore,  the Parties understand and agree that neither Nu
Skin Enterprises nor Nu Skin United States is hereby acquiring any liability to,
for, or in connection with Big Planet, Inc. The Parties specifically  understand
and agree that all of Nu Skin USA’s  operating  assets are being  acquired by Nu
Skin United States pursuant to this Agreement,  except for the Excluded  Assets.
The assets being purchased and acquired by Nu Skin United States,  as identified
in  this  Section  2.1.1,   are  referred  to  herein,   collectively,   as  the
“Non-Securities Acquired Assets.”

                  2.1.2  Purchase  of the Class A Shares.  On and subject to the
terms and conditions of this Agreement,  Nu Skin Enterprises  agrees to purchase
at the  Closing  from Nu Skin USA,  and Nu Skin USA  agrees  to sell,  transfer,
convey, assign, and deliver to Nu Skin Enterprises,  in exchange for the Class A
Purchase Price (as that term is defined in Section 2.2.2 below),  all of Nu Skin
USA’s right,  title,  and interest in and to the six hundred twenty thousand one
hundred  fifty-eight  (620,158)  shares  of Nu Skin  Enterprises  Class A Common
Stock, $0.001 par value per share (“Class A Common Stock”), owned by Nu Skin USA
(the “Class A Shares”).
<PAGE>
                  2.1.3  Acquired Assets. The Non-Securities Acquired Assets and
the  Class  A  Shares  are  referred  to  herein, collectively, as the “Acquired
Assets.”

         2.2      Purchase Price Determination.

                  2.2.1 Purchase Price for the  Non-Securities  Acquired Assets.
On and subject to the terms and conditions of this Agreement and in exchange for
the Non-Securities  Acquired Assets, at the Closing Nu Skin United States agrees
to assume and become solely  responsible  for the categories of liabilities  and
the contractual obligations of Nu Skin USA specifically set forth on Exhibit “C”
attached hereto  (collectively,  the “Assumed  Liabilities”).  Under the heading
“Contractual  Obligations  Assumed by Nu Skin  United  States”  in  Exhibit  “C”
attached  hereto,  the  Parties  have  specifically  listed  each  contract  and
agreement  that is being  assumed  by Nu Skin  United  States  pursuant  to this
Agreement  (which  contractual  obligations are deemed to be part of the Assumed
Liabilities),  and no other  contractual  obligation  of Nu Skin USA of any type
whatsoever  is being  assumed by Nu Skin  United  States  except as so listed in
Exhibit “C” attached hereto.  Notwithstanding  the provisions of this Agreement,
the  Parties   hereby   acknowledge   and  reaffirm  (a)  the  Tax  Sharing  and
Indemnification  Agreement dated December 31, 1997 and entered into by and among
Nu Skin International,  Nu Skin USA, and their respective shareholders,  (b) the
Assumption of Liabilities  and  Indemnification  Agreement dated effective as of
December  31, 1997 and entered  into by and  between Nu Skin  International  and
252nd  Shelf  Corporation,  a Delaware  corporation  (now known as “Nu Skin USA,
Inc.”),  and (c) the Employee Benefits  Allocation  Agreement  (undated) entered
into by and between Nu Skin  International  and Nu Skin USA  (collectively,  the
“Existing Agreements”), and specifically acknowledge and agree that the Existing
Agreements  are not  included  within  the  Assumed  Liabilities.  The  Existing
Agreements shall remain in full force and effect as originally  executed and are
not being  terminated,  modified,  or amended  by this  Agreement.  The  Parties
understand and agree that, except for the Assumed  Liabilities,  neither Nu Skin
United States nor Nu Skin Enterprises (or any of their respective affiliates) is
or will become liable or responsible for any other Liabilities or obligations of
Nu Skin USA pursuant to this Agreement.  As set forth above,  the purchase price
for the Non-Securities Acquired Assets shall be the assumption by Nu Skin United
States of the Assumed  Liabilities.  The aggregate purchase price for all of the
Non-Securities  Acquired  Assets is  referred  to herein as the  “Non-Securities
Purchase Price.”

                  2.2.2  Purchase  Price for the Class A  Shares.  The  purchase
price for the  Class A Shares  shall be Eight  Million  Six  Hundred  Eighty-Two
Thousand Two Hundred Twelve Dollars ($8,682,212) (the “Class A Purchase Price”).
The Class A Purchase Price will be paid by Nu Skin  Enterprises by wire transfer
or delivery of other  immediately  available funds to Nu Skin USA at the Closing
as follows:  (a) Five Million Six Hundred Eighty-Two Thousand Two Hundred Twelve
($5,682,212)  to Nu Skin USA and (b) Three Million Dollars  ($3,000,000)  (which
amount is defined in Section 3 below as the “Escrow Amount”) to the Escrow Agent
pursuant to the Escrow Agreement.

                  2.2.3  Purchase Price. The Non-Securities Purchase  Price  and
the  Class  A  Purchase  Price  are  referred  to  herein,  collectively, as the
“Purchase Price.”
<PAGE>
                  2.2.4  Allocation of Purchase Price.  The Purchase Price shall
be  allocated  among  the  Acquired  Assets  as of the  date of the  Closing  in
accordance with Exhibit “H” attached hereto.  Any subsequent  adjustments to the
sum of the Purchase  Price shall be reflected in the  allocation  hereunder in a
manner consistent with Treasury  Regulation  Section  1.1060-1T(f).  For all Tax
purposes,  the Parties  agree to report the  transactions  contemplated  in this
Agreement in a manner consistent with the terms of this Agreement, including the
allocation set forth in Exhibit “H” attached hereto,  and that none of them will
take any position  inconsistent  therewith in any Tax return,  Tax refund claim,
litigation, or otherwise.

3. The Escrow Amount; Purchase Price Adjustments;  Net Liabilities. As set forth
in Section  2.2.2 above,  upon the  execution  of this  Agreement by each of the
Parties, Nu Skin Enterprises will deliver Three Million Dollars  ($3,000,000) of
the Class A Purchase Price (the “Escrow Amount”) to the Escrow Agent for deposit
into the  Escrow  pursuant  to the terms of the Escrow  Agreement.  As set forth
below in this Section 3 and in the Escrow Agreement, the Purchase Price shall be
subject to downward  adjustment  on a dollar for dollar  basis to the extent the
Net  Liabilities  of Nu Skin USA, as indicated in the Closing Date Balance Sheet
(as that term is defined in Section  3.2 below)  exceeded  One  Million  Dollars
($1,000,000).  Such downward  adjustment  shall be effected by  disbursements of
funds from the Escrow Amount in accordance with the Escrow Agreement. As further
provided in the Escrow Agreement,  the Purchase Price may further be adjusted by
the amount of any adjustments  provided for in the Foreign Entity Stock Purchase
Agreement(s) (as such term is defined in the Escrow Agreement).  If any conflict
exists between this Agreement and the Escrow Agreement  regarding the adjustment
of the  Purchase  Price  by  disbursements  from  the  Escrow  Amount  or  other
disbursements from the Escrow, the Escrow Agreement shall govern and control.
<PAGE>
         3.1 Draft Closing Date Balance Sheet.  Within sixty (60) days after the
date of the Closing, Nu Skin USA will prepare and deliver to Nu Skin Enterprises
and the Escrow Agent a draft  unaudited  consolidated  balance sheet (the “Draft
Closing  Date  Balance  Sheet”)  of Nu Skin  USA as of the  date of the  Closing
(determined on a pro forma basis as though the Parties had not  consummated  the
transactions contemplated by this Agreement). Nu Skin USA will prepare the Draft
Closing Date Balance  Sheet in accordance  with  generally  accepted  accounting
principles  applied on a basis  consistent with the preparation of Nu Skin USA’s
December 31, 1998 balance sheet;  provided,  however, that assets,  liabilities,
gains,  losses,  revenues,  and expenses in interim periods or as of dates other
than  year-end  (which  normally  are  determined  through  the  application  of
so-called interim accounting conventions or procedures) will be determined,  for
purposes of the Draft Closing Date Balance  Sheet,  through full  application of
the procedures used in preparing Nu Skin USA’s December 31, 1998 balance sheet.

         3.2 Objections to Draft Closing Date Balance Sheet; Appointment of “Big
5”  Accounting  Firm.  If Nu Skin  Enterprises  has any  objections to the Draft
Closing Date Balance Sheet, it shall deliver a detailed statement describing its
objections  to Nu Skin USA and the Escrow  Agent  within  thirty (30) days after
receiving the Draft Closing Date Balance Sheet. Nu Skin  Enterprises and Nu Skin
USA will then use reasonable efforts to resolve any such objections  themselves.
If Nu Skin  Enterprises  and Nu Skin USA do not agree on a final  resolution  of
such  objections  within  thirty  (30) days after Nu Skin USA  receives  Nu Skin
Enterprises’s  statement  describing its objections,  Nu Skin Enterprises  shall
appoint one of the so-called  “Big 5” national  accounting  firms to resolve any
remaining objections to the Draft Closing Date Balance Sheet; provided, however,
that the “Big 5” accounting  firm so appointed shall not at that time be engaged
by Nu Skin  Enterprises  to  provide  it with  auditing  services  (the “‘Big 5’
Accountant”).  The appointment of the “Big 5” Accountant by Nu Skin Enterprises,
as provided by this Section 3.2, and the  determinations  and conclusions of the
“Big 5” Accountant  pursuant  hereto,  shall be conclusive  and binding upon the
Parties.  Nu Skin USA will  revise the Draft  Closing  Date  Balance  Sheet,  as
appropriate,  to reflect the  resolution of any objections  thereto  pursuant to
this Section 3.2. For purposes of this Agreement, the term “Closing Date Balance
Sheet”  shall  mean the Draft  Closing  Date  Balance  Sheet  together  with any
revisions made thereto by Nu Skin USA pursuant to this Section 3.2. In the event
Nu Skin  Enterprises  and Nu Skin USA submit any  unresolved  objections  to the
Draft Closing Balance Sheet to the “Big 5” Accountant for resolution as provided
above in this  Section  3.2,  Nu Skin  Enterprises  and Nu Skin  USA will  share
equally the fees and expenses of the “Big 5” Accountant.
<PAGE>
         3.3 Work  Papers.  Nu Skin USA will make the work  papers  and  back-up
materials used in preparing the Draft Closing Date Balance Sheet available to Nu
Skin  Enterprises  and its  representatives  and to the  “Big 5”  Accountant  at
reasonable  times  and  upon  reasonable  notice  at any  time  during  (i)  the
preparation  by Nu Skin USA of the Draft  Closing Date Balance  Sheet,  (ii) the
review by Nu Skin Enterprises and its  representatives of the Draft Closing Date
Balance Sheet,  (iii) the discussion by Nu Skin  Enterprises  and Nu Skin USA of
any objections Nu Skin Enterprises may have thereto,  and (iv) the resolution by
the “Big 5”  Accountant of any  unresolved  objections to the Draft Closing Date
Balance Sheet as set forth in Section 3.2 above.

         3.4 Adjustment to Escrow Amount.  As set forth in the Escrow Agreement,
if the Net  Liabilities  are more than One  Million  Dollars  ($1,000,000),  the
Escrow Agent will promptly return to Nu Skin Enterprises the amount by which the
Net Liabilities exceeded One Million Dollars ($1,000,000) in accordance with the
provisions of the Escrow Agreement.  Any such amount payable by the Escrow Agent
to Nu Skin Enterprises  pursuant to this Section 3.4 shall be paid by the Escrow
Agent  pursuant  to the  terms  of  the  Escrow  Agreement.  There  shall  be no
adjustment to the Escrow Amount for any amount by which the Net  Liabilities are
less than One Million Dollars ($1,000,000).

4. Closing; Closing Deliveries.  The closing of the transactions contemplated by
this Agreement (the  “Closing”)  shall take place  effective as set forth in the
preface above. At the Closing, each Party shall make the following deliveries:

         4.1      Nu Skin USA Deliveries.

                  4.1.1 At the  Closing,  Nu Skin USA  will  deliver  to Nu Skin
Enterprises the following certificates, instruments, and documents:

                             4.1.1.1 the original certificate(s)  evidencing the
Class A Shares properly endorsed for transfer or accompanied by a stock power(s)
executed in blank and properly guaranteed with a Medallion guarantee;

                             4.1.1.2  an   originally   executed   copy  of  the
Indemnification Limitation Agreement;

                             4.1.1.3 a legal opinion of Holland & Hart,  L.L.P.,
counsel  to Nu Skin  USA,  substantially  in the form of  Exhibit  “G”  attached
hereto; and

                             4.1.1.5 such other  documents and instruments as Nu
Skin Enterprises or its counsel reasonably may request.
<PAGE>
                  4.1.2 At the  Closing,  Nu Skin USA  will  deliver  to Nu Skin
United States the following certificates, instruments, and documents:

                             4.1.2.1 a Bill of Sale and Assignment substantially
in the form of Exhibit “D” attached hereto; and

                             4.1.2.2 such other  documents and instruments as Nu
Skin Enterprises or its counsel reasonably may request.

         4.2      Nu Skin Enterprises Deliveries.

                  4.2.1 At the Closing,  Nu Skin  Enterprises will deliver to Nu
Skin USA the following certificates, instruments, and documents:

                             4.2.1.1 Five Million Six Hundred Eighty-Two Thouand
One Hundred  Ninety-Eight  Million Dollars  ($5,682,198) of the Class A Purchase
Price, as indicated in Section 2.2.2 above; and

                             4.2.1.2 such other  documents and instruments as Nu
Skin USA or its counsel reasonably may request.

                  4.2.1 At the Closing,  Nu Skin Enterprises will deliver to the
Escrow Agent the following certificates, instruments, and documents:

                             4.2.1.1 Three Million  Dollars  ($3,000,000) of the
Class A Purchase Price, as indicated in Section 2.2.2 above; and

                             4.2.1.2 such other  documents and instruments as Nu
Skin USA or its counsel reasonably may request.

         4.3      Nu Skin United States Deliveries.

                  4.3.1 At the Closing, Nu Skin United States will deliver to Nu
Skin USA the following certificates, instruments, and documents:

                             4.3.1.1  an   originally   executed   copy  of  the
Instrument  of  Assumption  substantially  in the form of Exhibit  “E”  attached
hereto; and

                             4.3.1.2 such other  documents and instruments as Nu
Skin USA or its counsel reasonably may request.

5.  Representations  and  Warranties of Nu Skin USA. Nu Skin USA  represents and
warrants to each of the Nu Skin Entities that the  statements  contained in this
Section 5 are correct and complete as of the effective  date of this  Agreement,
except  as set  forth in Nu Skin  USA’s  disclosure  schedule  attached  to this
Agreement  and  initialed  by  the  Parties  (the  “Disclosure  Schedule”).  The
Disclosure Schedule will be arranged in paragraphs corresponding to the numbered
paragraphs contained in this Section 5.
<PAGE>
         5.1  Organization  of Nu Skin USA.  Nu Skin USA is a  corporation  duly
organized, validly existing, and in good standing under the laws of the State of
Delaware,  and to our knowledge,  is duly qualified to do business in all states
where its activities or assets would require such qualification.

         5.2  Authorization  of  Transaction.  Nu Skin  USA has full  power  and
authority  (including full corporate power and authority) to execute and deliver
this Agreement and to perform its obligations  hereunder.  Without  limiting the
generality  of the  foregoing,  the Board of Directors  of Nu Skin USA,  and, if
required,  Nu Skin  USA’s  stockholders,  have duly  authorized  the  execution,
delivery,  and  performance  of this  Agreement by Nu Skin USA.  This  Agreement
constitutes the valid and legally binding obligation of Nu Skin USA, enforceable
in accordance with its terms and conditions.

         5.3  Non-contravention.  Neither the execution and the delivery of this
Agreement,  nor  the  consummation  of  the  transactions   contemplated  hereby
(including the assignments and assumptions referred to in Section 2 above), will
(i) violate any constitution,  statute, regulation, rule, injunction,  judgment,
order,  decree,   ruling,  charge,  or  other  restriction  of  any  government,
governmental  agency,  or court to which Nu Skin USA is subject or any provision
of the  charter  or bylaws  of Nu Skin USA or (ii)  conflict  with,  result in a
breach of, constitute a default under,  result in the acceleration of, create in
any party the right to accelerate,  terminate, modify, or cancel, or require any
notice under any  agreement,  contract,  lease,  license,  instrument,  or other
arrangement  to which Nu Skin USA is a party or by which it is bound or to which
any of its  assets is  subject  (or  result in the  imposition  of any  Security
Interest upon any of its assets). Nu Skin USA is not required to give any notice
to, make any filing with, or obtain any authorization,  consent,  or approval of
any government or governmental agency in order for the Parties to consummate the
transactions  contemplated  by this  Agreement  (including the  assignments  and
assumptions referred to in Section 2 above).

         5.4 Brokers’  Fees.  Nu Skin USA has no Liability or  obligation to pay
any fees or  commissions  to any broker,  finder,  or agent with  respect to the
transactions  contemplated  by this  Agreement  for which  either of the Nu Skin
Entities could become liable or obligated.

         5.5 Title to Acquired Assets. Nu Skin USA has good and marketable title
to, or a valid leasehold interest in, the Acquired Assets, free and clear of all
Security  Interests or  restrictions  on  transfer,  except  restrictions  under
applicable federal and state securities laws, rules, and regulations.

         5.6 Undisclosed  Liabilities;  Subsequent  Events. Nu Skin USA does not
have any  Liability  (and there is no Basis for any  present  or future  action,
suit, proceeding,  hearing,  investigation,  charge, complaint, claim, or demand
against any of them giving rise to any  Liability),  except for (i)  Liabilities
set forth on the face of Nu Skin USA’s  December 31, 1998 balance  sheet (rather
than in any notes thereto) and (ii)  Liabilities that have arisen after December
31, 1998 in the Ordinary Course of Business (none of which results from,  arises
out of,  relates  to,  is in the  nature  of,  or was  caused  by any  breach of
contract,  breach of warranty, tort,  infringement,  or violation of law). Since
December  31,  1998,  there  has not been any  material  adverse  change  in the
business,  financial  condition,  operations,  results of operations,  or future
prospects of Nu Skin USA.  Without  limiting the  generality  of the  foregoing,
since that date:

                  5.6.1  Nu Skin  USA  has not  sold,  leased,  transferred,  or
assigned  any of its  assets,  tangible  or  intangible,  other  than for a fair
consideration in the Ordinary Course of Business;

                  5.6.2 Nu Skin USA has not issued any note, bond, or other debt
security or created,  incurred,  assumed,  or guaranteed  any  indebtedness  for
borrowed money or capitalized lease  obligations  either involving more than Ten
Thousand  Dollars  ($10,000)  singly or Ten  Thousand  Dollars  ($10,000) in the
aggregate;
<PAGE>
                  5.6.3 Nu Skin USA has not delayed or postponed  the payment of
accounts payable and other liabilities or incurred any accounts payable or other
liabilities outside the Ordinary Course of Business;

                  5.6.4 Nu Skin USA has not granted any license or sublicense of
any rights under or with respect to any Intellectual Property or the Nu Skin USA
Intellectual Property;

                  5.6.5 Nu Skin USA has not  experienced  any  material  damage,
destruction, or loss (whether or not covered by insurance) to its property;

                  5.6.6 Nu Skin USA has not made any loan to,  or  entered  into
any other  transaction  with,  any of its  directors,  officers,  and  employees
outside the Ordinary Course of Business;

                  5.6.7  Nu Skin  USA  has  not  made  or  pledged  to make  any
charitable  or  other  capital  contribution  outside  the  Ordinary  Course  of
Business;

                  5.6.8 there has not been any other material occurrence, event,
incident,  action, failure to act, or transaction outside the Ordinary Course of
Business involving Nu Skin USA; and

                  5.6.9 Nu Skin USA has not committed to any of the foregoing.

         5.7 Legal Compliance.  Except for any failures to comply that would not
have a material adverse effect on the business of the Nu Skin Entities, taken as
a whole, Nu Skin USA and its predecessors have complied with all applicable laws
(including rules,  regulations,  codes, plans, injunctions,  judgments,  orders,
decrees,  rulings, and charges thereunder) of federal, state, local, and foreign
governments  (and  all  agencies  thereof),  and no  action,  suit,  proceeding,
hearing,  investigation,  charge,  complaint,  claim, demand, or notice has been
filed or commenced against any of them alleging any failure so to comply.
<PAGE>
         5.8      Intellectual Property.

                  5.8.1 Nu Skin USA Intellectual  Property.  Nu Skin USA owns or
has the right to use pursuant to license,  sublicense,  agreement, or permission
all Intellectual  Property not owned or licensed to it by Nu Skin  International
that is necessary or  desirable  for the  operation of its business as presently
conducted and as presently proposed to be conducted (collectively,  the “Nu Skin
USA Intellectual  Property”).  Each such item of Intellectual  Property owned or
used by Nu Skin USA immediately  prior to the Closing will be owned or available
for use by the Nu Skin Entities on identical  terms and  conditions  immediately
subsequent  to the Closing.  Nu Skin USA has taken all  necessary  and desirable
action to maintain and protect each such item of  Intellectual  Property that it
owns or uses.

                  5.8.2 No  Interference.  None of the Nu Skin USA  Intellectual
Property has interfered with, infringed upon, or misappropriated,  and currently
does not interfere with,  infringe upon,  misappropriate,  or otherwise conflict
with any  Intellectual  Property  rights of any third  parties,  and none of the
directors and officers  (and  employees  with  responsibility  for  Intellectual
Property  matters)  of Nu Skin USA have ever  received  any  charge,  complaint,
claim,   demand,  or  notice  alleging  any  such  interference,   infringement,
misappropriation,  or  violation  (including  any  claim  that Nu Skin  USA must
license or  refrain  from using any  Intellectual  Property  rights of any third
party). In addition,  to the Knowledge of any of the directors and officers (and
employees with responsibility for Intellectual Property matters) of Nu Skin USA,
(a) no third party has ever interfered with, infringed upon, misappropriated, or
otherwise come into conflict with any  Intellectual  Property  rights of Nu Skin
<PAGE>
USA, including, but not limited to, the Intellectual Property rights licenced to
it by Nu Skin International,  (b) no third party is currently  interfering with,
infringing   upon,   misappropriating,   or  otherwise   conflicting   with  any
Intellectual Property rights of Nu Skin USA, including,  but not limited to, the
Intellectual  Property rights licenced to it by Nu Skin  International,  and (c)
none of the Intellectual Property owned by or licensed to Nu Skin USA by Nu Skin
International  infringes the Intellectual  Property rights of any third-party or
any of the Nu Skin Intellectual Property.

                  5.8.3   Intellectual   Property   Owned   or   Licensed   from
Third-Parties.  Section 5.8.3 of the Disclosure Schedule identifies each item of
Intellectual  Property (other than  Intellectual  Property that is or previously
was licensed from Nu Skin  International)  owned by,  licensed to, or used by Nu
Skin USA in its  business  and,  except as  identified  on Section  5.8.3 of the
Disclosure  Schedule,  Nu Skin  USA  does not  own,  license,  or use any  other
Intellectual Property in its business.  Section 5.8.3 of the Disclosure Schedule
also identifies each pending  application or registration with respect to any of
the Intellectual Property identified on Section 5.8.3 of the Disclosure Schedule
and  identifies  each  license,  agreement,  or other  permission  that has been
granted to Nu Skin USA with respect to any of its  Intellectual  Property (other
than  Intellectual  Property  that is or  previously  was licenced  from Nu Skin
International).  Nu Skin USA has delivered to the Nu Skin  Entities  correct and
complete copies of all documentation  evidencing all such Intellectual  Property
and all such applications,  registrations, licenses, agreements, and permissions
(as amended to date) and has made available to the Nu Skin Entities  correct and
complete  copies of all other  written  documentation  evidencing  ownership and
prosecution (if  applicable) of each such item.  Section 5.8.3 of the Disclosure
Schedule also identifies  each trade name or  unregistered  trademark used by Nu
Skin USA in connection with any of its businesses.  With respect to each item of
Intellectual  Property  required  to be  identified  in  Section  5.8.3  of  the
Disclosure Schedule:

                             5.8.3.1 Nu Skin USA possesses all right, title, and
interest in and to the item,  free and clear of any  Security  Interest or other
restriction (other than any license regarding such Intellectual  Property from a
third-party);

                             5.8.3.2 the item is not subject to any  outstanding
injunction, judgment, order, decree, ruling, or charge;

                             5.8.3.3  no  action,  suit,  proceeding,   hearing,
investigation,  charge,  complaint,  claim,  or  demand  is  pending  or, to the
Knowledge  of  any  of  the   directors  and  officers   (and   employees   with
responsibility for Intellectual  Property matters) of Nu Skin USA, is threatened
that challenges the legality, validity, enforceability, use, or ownership of the
item; and

                             5.8.3.4 Nu Skin USA has never  agreed to  indemnify
any Person for or against any interference,  infringement,  misappropriation, or
other conflict with respect to the item.

                  5.8.4 No Intellectual  Property Licensed to Third-Parties.  Nu
Skin USA  does not  license  or  sublicense  any  Intellectual  Property  to any
third-party.
<PAGE>
                  5.8.5 No Knowledge of Obsolescence.  None of the directors and
officers (and employees with  responsibility for Intellectual  Property matters)
of Nu Skin USA has any Knowledge of any new products, inventions, procedures, or
methods of  manufacturing  or  processing  that any  competitors  or other third
parties have  developed that  reasonably  could be expected to supersede or make
obsolete any product or process of Nu Skin USA.

         5.9  Tangible  Assets.  Nu Skin USA owns or leases all of the  tangible
assets  used in its  business.  Each such  tangible  asset is free from  defects
(patent and latent),  has been  maintained  in accordance  with normal  industry
practice,  is in good operating condition and repair (subject to normal wear and
tear), and is suitable for the purposes for which it presently is used.

         5.10 Inventory.  All of the inventory is  merchantable  and fit for the
purpose for which it was procured or manufactured,  and none of the inventory is
slow-moving, obsolete, damaged, or defective.

         5.11  Acquired  Contracts.  Nu Skin USA has delivered to Nu Skin United
States a correct  and  complete  copy of each of the  Acquired  Contracts.  With
respect to each Acquired Contract:  (i) the agreement is legal, valid,  binding,
enforceable,  and in full force and effect;  (ii) the agreement will continue to
be legal, valid, binding, enforceable, and in full force and effect on identical
terms  following  the  consummation  of  the  transactions  contemplated  hereby
(including  the  assignments  and  assumptions  referred to in Section 2 above);
(iii) no party is in breach or  default,  and no event  has  occurred  that with
notice  or  lapse of time  would  constitute  a breach  or  default,  or  permit
termination, modification, or acceleration, under any of the Acquired Contracts;
and (iv) no party has repudiated any provision of any of the Acquired Contracts.

         5.12 Insurance. Each of Nu Skin USA’s insurance policies: (i) is legal,
valid, binding, enforceable, and in full force and effect; (ii) will continue to
be legal, valid, binding, enforceable, and in full force and effect on identical
terms  following  the  consummation  of  the  transactions  contemplated  hereby
(including  the  assignments  and  assumptions  referred to in Section 2 above);
(iii) is not in default,  nor is any party thereto in breach thereof  (including
with respect to the payment of premiums or the giving of notices),  and no event
has occurred that,  with notice or the lapse of time,  would  constitute  such a
breach or default, or permit termination,  modification, or acceleration,  under
the policy; and (iv) has never been repudiated by any party thereto. Nu Skin USA
has been  covered  during the past one (1) year by insurance in scope and amount
customary and  reasonable  for the businesses in which it has engaged during the
aforementioned period.

         5.13  Litigation.  Section 5.13 of the  Disclosure  Schedule sets forth
each instance in which Nu Skin USA (i) is subject to any outstanding injunction,
judgment,  order,  decree,  ruling,  or  charge  or (ii) is a party  or,  to the
Knowledge  of  any  of  the   directors  and  officers   (and   employees   with
responsibility for litigation  matters) of Nu Skin USA, is threatened to be made
a party to any action,  suit,  proceeding,  hearing, or investigation of, in, or
before any court or  quasi-judicial  or  administrative  agency of any  federal,
state,  local, or foreign  jurisdiction  or before any  arbitrator.  None of the
actions, suits,  proceedings,  hearings, and investigations set forth in Section
5.13 of the Disclosure  Schedule could result in any material  adverse change in
the business, financial condition,  operations, results of operations, or future
prospects of Nu Skin USA. None of the directors and officers (and employees with
responsibility for litigation  matters) of Nu Skin USA has any reason to believe
that any such action, suit, proceeding, hearing, or investigation may be brought
or threatened against Nu Skin USA.
<PAGE>
         5.14 Product  Warranty.  Nu Skin USA has not made any  warranties  with
respect to any product sold or distributed by it other than the  warranties,  if
any, allowed under the applicable license agreement with Nu Skin  International.
Nu Skin USA does not have any  Liability  (and there is no Basis for any present
or future action, suit, proceeding, hearing,  investigation,  charge, complaint,
claim,  or demand  against  it giving  rise to any  Liability)  for  damages  in
connection  with any products it has sold or distributed  that were not acquired
from Nu Skin International.  In addition, as to products acquired by Nu Skin USA
from  Nu  Skin  International,  to the  Knowledge  of any of the  directors  and
officers (and employees with  responsibility for product warranty matters) of Nu
Skin USA, Nu Skin USA does not have any Liability (and there is no Basis for any
present or future action,  suit,  proceeding,  hearing,  investigation,  charge,
complaint, claim, or demand against it giving rise to any Liability) for damages
in connection with any such Nu Skin  International  product.  No product sold or
distributed by Nu Skin USA is subject to any guaranty or other indemnity.

         5.15 Product  Liability.  Other than products sold to Nu Skin USA by Nu
Skin  International,  to the Knowledge of any of the directors or officers of Nu
Skin USA, Nu Skin USA does not have any Liability (and there is no Basis for any
present or future action,  suit,  proceeding,  hearing,  investigation,  charge,
complaint, claim, or demand against it giving rise to any Liability) arising out
of any  injury  to  individuals  or  property  as a  result  of  the  ownership,
possession, or use of any product sold or distributed by Nu Skin USA.

         5.16  Employees.  To the  Knowledge of any of the directors or officers
(and employees with  responsibility  for employment  matters) of Nu Skin USA, no
executive,  key  employee,  or group of  employees  has any  plans to  terminate
employment  with Nu Skin  USA.  Nu Skin  USA is not a party  to or  bound by any
collective bargaining agreement, nor has it experienced any strikes, grievances,
claims of unfair labor practices,  or other collective  bargaining disputes.  Nu
Skin USA has not committed any unfair labor  practice.  None of the directors or
officers (and employees with  responsibility for employment  matters) of Nu Skin
USA have any  Knowledge of any  organizational  effort  presently  being made or
threatened  by or on behalf of any labor union with  respect to  employees of Nu
Skin USA or of any violation of any anti-discrimination or harassment laws.

         5.17     Employee Benefits.

                  5.17.1  Section  5.17 of the  Disclosure  Schedule  lists each
Employee  Benefit Plan that Nu Skin USA maintains or to which it  contributes or
has any obligation to contribute.

                  5.17.2  Each such  Employee  Benefit  Plan  (and each  related
trust,  insurance  contract,  or fund)  complies in form and in operation in all
respects  with the  applicable  requirements  of  ERISA,  the  Code,  and  other
applicable laws.

                  5.17.3 All required reports and  descriptions  (including Form
5500  Annual  Reports,  summary  annual  reports,  PBGC-1’s,  and  summary  plan
descriptions) have been timely filed and distributed  appropriately with respect
to each such Employee Benefit Plan. The requirements of COBRA have been met with
respect to each such Employee  Benefit Plan that is an Employee  Welfare Benefit
Plan.

                  5.17.4 All contributions (including all employer contributions
and employee salary reduction contributions) that are due have been paid to each
such  Employee  Benefit  Plan that is an Employee  Pension  Benefit Plan and all
contributions  for any period  ending on or before the date of the Closing  that
are not yet due have been paid to each such  Employee  Pension  Benefit  Plan or
accrued in  accordance  with the past custom and  practice  of Nu Skin USA.  All
premiums or other  payments for all periods  ending on or before the date of the
Closing have been paid with respect to each such  Employee  Benefit Plan that is
an Employee Welfare Benefit Plan.
<PAGE>
                  5.17.5 With respect to each Employee Benefit Plan that Nu Skin
USA or any ERISA  Affiliate  maintains or ever has maintained or to which any of
them contributes, ever has contributed, or ever has been required to contribute:

                             5.17.5.1 There have been no Prohibited Transactions
with respect to any such  Employee  Benefit Plan. No Fiduciary has any Liability
for breach of fiduciary duty or any other failure to act or comply in connection
with the administration or investment of the assets of any such Employee Benefit
Plan. No action, suit, proceeding, hearing, or investigation with respect to the
administration or the investment of the assets of any such Employee Benefit Plan
(other than routine  claims for benefits) is pending or, to the Knowledge of any
of the directors and officers (and  employees with  responsibility  for employee
benefits matters) of Nu Skin USA, threatened. None of the directors and officers
(and employees with responsibility for employee benefits matters) of Nu Skin USA
has any Knowledge of any Basis for any such action, suit,  proceeding,  hearing,
or investigation.

                  5.17.6 Nu Skin USA does not maintain  and does not  contribute
to, nor has it ever  maintained or contributed  to, or ever has been required to
contribute to, any Employee Welfare Benefit Plan providing  medical,  health, or
life insurance or other  welfare-type  benefits for current or future retired or
terminated  employees,  their  spouses,  or  their  dependents  (other  than  in
accordance with Code Section 4980B).

         5.18     Environmental, Health, and Safety Matters.

                  5.18.1 Nu Skin USA and its predecessors  have complied and are
in compliance with all Environmental, Health, and Safety Requirements.

                  5.18.2 Without limiting the generality of the foregoing,  each
of Nu Skin USA and its  predecessors  have obtained and complied with, and is in
compliance  with,  all  permits,  licenses  and  other  authorizations  that are
required  pursuant to  Environmental,  Health,  and Safety  Requirements for the
occupation of its facilities and the operation of its business.

                  5.18.3  Neither Nu Skin USA nor any of its  predecessors  have
received any written or oral notice,  report or other information  regarding any
actual or alleged violation of Environmental,  Health, and Safety  Requirements,
or any Liability or potential Liability (whether accrued, absolute,  contingent,
unliquidated or otherwise), including any investigatory,  remedial or corrective
obligations,   relating  to  any  of  them  or  its  facilities   arising  under
Environmental, Health, and Safety Requirements.

                  5.18.4  Neither Nu Skin USA nor any of its  predecessors  have
either  expressly or by operation of law,  assumed or undertaken  any liability,
including, without limitation, any obligation for corrective or remedial action,
of any other Person relating to Environmental, Health, and Safety Requirements.
<PAGE>
         5.19 Disclosure.  The representations and warranties  contained in this
Section 5 do not  contain  any untrue  statement  of a material  fact or omit to
state  any  material  fact  necessary  in  order  to  make  the  statements  and
information contained in this Section 5 not misleading.

6.  Representations and Warranties of the Nu Skin Entities.  Each of the Nu Skin
Entities represents and warrants to Nu Skin USA that the statements contained in
this  Section  6 are  correct  and  complete  as of the  effective  date of this
Agreement.

         6.1 Organization of the Nu Skin Entities.  Each of the Nu Skin Entities
is a corporation duly organized,  validly  existing,  and in good standing under
the laws of the jurisdiction of its incorporation.

         6.2  Authorization  of  Transaction.  Both of the Nu Skin Entities have
full power and  authority  (including  full  corporate  power and  authority) to
execute and deliver this  Agreement  and to perform its  respective  obligations
hereunder.  This Agreement  constitutes the valid and legally binding obligation
of each of the Nu Skin Entities,  enforceable  in accordance  with its terms and
conditions.

         6.3  Non-contravention.  Neither the execution and the delivery of this
Agreement,  nor  the  consummation  of  the  transactions   contemplated  hereby
(including the assignments and assumptions referred to in Section 2 above), will
(i) violate any constitution,  statute, regulation, rule, injunction,  judgment,
order,  decree,   ruling,  charge,  or  other  restriction  of  any  government,
governmental agency, or court to which either of the Nu Skin Entities is subject
or any provision of its charter or bylaws,  or (ii) conflict  with,  result in a
breach of, constitute a default under,  result in the acceleration of, create in
any party the right to accelerate,  terminate, modify, or cancel, or require any
notice under any  agreement,  contract,  lease,  license,  instrument,  or other
arrangement  to  which  either  of the Nu Skin  Entities  is a party or by which
either of them is bound or to which any of their  respective  assets is subject.
Neither of the Nu Skin  Entities  needs to give any  notice to,  make any filing
with, or obtain any  authorization,  consent,  or approval of any  government or
governmental  agency in order for the  Parties to  consummate  the  transactions
contemplated  by this  Agreement  (including  the  assignments  and  assumptions
referred to in Section 2 above).

         6.4 Brokers’ Fees. Neither of the Nu Skin Entities has any Liability or
obligation to pay any fees or commissions to any broker,  finder,  or agent with
respect to the transactions contemplated by this Agreement for which Nu Skin USA
could become liable or obligated.

         6.5 Disclosure.  The representations  and warranties  contained in this
Section 6 do not  contain  any untrue  statement  of a material  fact or omit to
state  any  material  fact  necessary  in  order  to  make  the  statements  and
information contained in this Section 6 not misleading.

7.       Indemnification.

         7.1  Nu  Skin   USA’s   Indemnification   Obligation;   Indemnification
Limitation  Agreement.  Nu Skin USA hereby agrees to indemnify and hold harmless
each  of the Nu Skin  Entities  and  their  respective  shareholders,  officers,
directors,   employees,   agents,   representatives,   successors,  and  assigns
(collectively,  the “NSE  Indemnitees”)  at all times from and after the date of
the  Closing  against  and in  respect of any and all  Damages  (as that term is
defined  in  Section  7.3  below),  subject,  however,  to the  limitations  and
restrictions   set   forth   in  the   Indemnification   Limitation   Agreement.
Notwithstanding  the  foregoing,  the obligation of Nu Skin USA to indemnify the
NSE Indemnitees for breaches of its  representations and warranties set forth in
Section 5 hereof,  shall terminate on the second anniversary of the date of this
Agreement unless a claim for  indemnification  has been brought within such time
by any of the NSE Indemnitees.
<PAGE>
         7.2 Nu Skin Entities’  Indemnification  Obligations.  The Skin Entities
hereby agree to indemnify  and hold  harmless Nu Skin USA and its  shareholders,
officers, directors, employees, agents, representatives, successors, and assigns
(collectively,  the “NSUSA Indemnitees”) at all times from and after the date of
the  Closing  against  and in  respect of any and all  Damages  (as that term is
defined  in  Section  7.3  below);  provided,  however,  the Nu  Skin  Entities’
obligation  to  indemnify  the NSUSA  Indemnitees  for  breaches  of the Nu Skin
Entities’  representations and warranties set forth in Section 6 shall terminate
on the  second  anniversary  of the date of this  Agreement  unless a claim  for
indemnification  has  been  brought  within  such  time  by  any  of  the  NSUSA
Indemnitees.

         7.3 Damages.  “Damages”  shall  include any claims,  actions,  demands,
losses, costs, expenses,  liabilities (whether joint or several), penalties, and
damages,  including  counsel fees and expenses,  incurred in investigating or in
attempting to avoid the same or oppose the imposition  thereof  resulting to any
of the NSE Indemnitees or the NSUSA Indemnitees,  as applicable, from any of the
following: (i) any misrepresentation or breach of any representation or warranty
made by Nu Skin USA or the Nu Skin  Entities,  as  applicable,  in or under this
Agreement or any other agreement  executed in connection  with the  transactions
contemplated  hereby;  (ii) any breach or default in the  performance by Nu Skin
USA or the Nu Skin Entities, as applicable, of any of their respective covenants
to be  performed  by them under this  Agreement  or any  agreement  executed  in
connection with the transactions  contemplated hereby; (iii) with respect to the
NSE Indemnitees,  any debts, liabilities, or obligations of Nu Skin USA, whether
accrued,  absolute,  contingent,  or otherwise, due or to become due, except for
the Assumed  Liabilities;  (iv) with respect to the NSE  Indemnitees,  any claim
affecting the Acquired  Assets or any  Liability of Nu Skin USA,  other than the
Assumed Liabilities, or any expense that is allowable against or incurred by any
NSE Indemnitee because of Nu Skin USA’s  non-compliance with any applicable bulk
sales or  transfer  law;  or (v) with  respect  to the  NSUSA  Indemnitees,  any
liability accruing to any NSUSA Indemnitees relating to any Assumed Liabilities.
In addition,  Damages shall also include any amount by which the Net Liabilities
of Nu Skin USA are in excess of One Million Dollars ($1,000,000),  to the extent
the Purchase  Price has not been adjusted by the amount of such excess  pursuant
to Section 3 above.

                  7.3.1 Tax  Indemnification.  In addition to the  provisions of
Section 7.3 above, Nu Skin USA specifically  agrees to indemnify each of the NSE
Indemnitees  from and  against the  entirety of any Damages  that any of the NSE
Indemnitees  may suffer  resulting  from,  arising out of,  relating  to, in the
nature  of,  or caused  by any  Liability  of Nu Skin USA for any Tax or any Tax
Liability of Nu Skin USA that is not  specifically  included  within the Assumed
Liabilities.

        7.4 Notice of Claim.  Promptly  upon  receipt  of notice of any  demand,
assertion,  claim,  action, or proceeding (whether judicial or otherwise),  with
respect to any matter as to which Nu Skin USA has  agreed to  indemnify  the NSE
Indemnitees  under the provisions of this Section 7 or the Nu Skin Entities have
agreed to  indemnify  the NSUSA  Indemnitees  under  this  Section  7, the party
entitled to indemnification will give prompt written notice thereof to the party
owing the  indemnification,  together  with the  statement  of such  information
respecting such demand, assertion, claim, action, or proceeding as such entitled
to indemnification shall then have; provided,  however, that neither party shall
be relieved of  liability  hereunder  for failure by the other party to promptly
give such  written  notice,  unless the party  entitled to notice is  materially
prejudiced by such failure, in which case the party entitled to notice shall not
be liable for any indemnification  obligation under this Section 7 to the extent
so prejudiced.  If either party acknowledges any liability under this Section 7,
that  party  shall  contest  and  defend  by  all  appropriate  legal  or  other
proceedings any demand, assertion,  claim, action, or proceeding with respect to
which it has been called upon to indemnify any persons  under the  provisions of
<PAGE>
this Section 7; provided,  however,  that: (i) notice of intention so to contest
shall be delivered to the  appropriate  party within  twenty (20)  calendar days
after the receipt by the  indemnifying  party of notice of the assertion of such
demand,  assertion,  claim,  action, or proceeding;  (ii) the indemnifying party
will pay all costs and expenses of such contest, including,  without limitation,
all  attorneys’  and  accountants’  fees,  and the cost of any bond  required by
applicable law to be posted in connection with such contest;  (iii) such contest
shall be conducted by reputable  attorneys  employed by the  indemnifying  party
(with the reasonable  approval of the appropriate  persons being  indemnified at
the  indemnifying   party’s  sole  cost  and  expense,  but  the  persons  being
indemnified  shall have the right to participate in such  proceedings  and to be
represented by attorneys of such person’s own choosing, at its or their own cost
and expense;  (iv) if after such  opportunity,  the indemnifying  party does not
elect to assume the defense of any such proceeding, the indemnifying party shall
be bound by the results obtained by the indemnified  party,  including,  without
limitation,  any out-of-court settlement or compromise; and (v) the indemnifying
party will not settle any claim without the prior written consent of the persons
being indemnified,  unless the settlement  contains a complete and unconditional
release of such persons being  indemnified,  and the settlement does not involve
the imposition of any non-monetary relief on such persons.

8.       Miscellaneous.

         8.1   Survival  of   Representations   and   Warranties.   All  of  the
representations  and warranties of the Parties contained in this Agreement shall
survive the Closing.

         8.2 Press Releases and Public Announcements. Either Nu Skin Enterprises
or  Nu  Skin  United  States  may  issue  press  releases  or  make  any  public
announcements relating to the subject matter of this Agreement after the Closing
without the prior written  approval of the other Parties.  Nu Skin USA shall not
issue  any press  releases  or make any  public  announcements  relating  to the
subject matter of this Agreement without the prior written approval of the other
Parties.

         8.3 No Third-Party  Beneficiaries.  This Agreement shall not confer any
rights or remedies  upon any Person other than the Parties and their  respective
successors and permitted assigns.

         8.4 Entire Agreement.  This Agreement (including the documents referred
to herein)  constitutes the entire  agreement  between and among the Parties and
supersedes any prior understandings, agreements, or representations by, between,
or among the Parties, whether written or oral, to the extent they related in any
way to the subject matter hereof.

         8.5  Assignment.  Except as  provided  below,  no Party may  assign (by
operation of law,  merger,  or  otherwise),  license,  sublicense,  or otherwise
transfer  any of its rights or  obligations  under this  Agreement  to any other
Person  without  obtaining  the prior  written  consent  of the  other  Parties;
provided,  however, that Nu Skin Enterprise and Nu Skin United States shall each
be allowed to assign  this  Agreement  or its rights and  obligations  hereunder
without any prior consent of the other Parties.

         8.6  Counterparts.  This  Agreement may be executed by facsimile and in
one or more counterparts,  each of which shall be deemed an original, but all of
which, when taken together, shall constitute one and the same instrument.
<PAGE>
         8.7 Headings.  The Section and  subsection  headings  contained in this
Agreement are inserted for convenience  only and shall not affect in any way the
meaning or interpretation of this Agreement.

         8.8  Notices.  All  notices,  requests,   demands,  claims,  and  other
communications  hereunder  shall be in  writing.  Any notice,  request,  demand,
claim, or other communication  hereunder shall be deemed duly given if given (i)
personally,  (ii) two business  days after being sent by registered or certified
mail, return receipt requested,  postage prepaid,  and addressed to the intended
recipient as set forth below,  (iii) telecopied to the intended recipient at the
telecopy set forth below, or (iv) one business day after being sent by overnight
courier and addressed to the intended recipient as set forth below:

    If to Nu Skin USA, to:             with a copy to:

    Nu Skin USA, Inc.                  Holland & Hart, L.L.P.
    75 West Center Street              215 South State Street, Suite 500
    Provo, Utah  84601                 Salt Lake City, Utah  84111
    Attention: Keith R. Halls          Attention: David R. Rudd, Esq.
    Fax No.: (801) 345-5999            Fax No.: (801) 364-9124

    If to Nu Skin Enterprises, to:     with a copy to:

    Nu Skin Enterprises, Inc.          LeBoeuf, Lamb, Greene & MacRae, L.L.P.
    75 West Center Street              1000 Kearns Building
    Provo, Utah  84601                 136 South Main Street
    Attention: M. Truman Hunt, Esq.    Salt Lake City, Utah 84101
    Fax No.: (801) 345-3099            Attention: Nolan S. Taylor, Esq.
                                       Fax No.: (801) 359-8256

    If to Nu Skin United States, to:   with a copy to:

    Nu Skin United States, Inc.        LeBoeuf, Lamb, Greene & MacRae, L.L.P.
    75 West Center Street              1000 Kearns Building
    Provo, Utah  84601                 136 South Main Street
    Attention: M. Truman Hunt, Esq.    Salt Lake City, Utah 84101
    Fax No.: (801) 345-3099            Attention: Nolan S. Taylor, Esq.
                                       Fax No.: (801) 359-8256

Any Party may send any notice,  request,  demand,  claim, or other communication
hereunder  to the  intended  recipient  at the address set forth above using any
other means (including  messenger service,  telex,  ordinary mail, or electronic
mail), but no such notice, request,  demand, claim, or other communication shall
be deemed to have been duly given  unless and until it  actually  is received by
the  intended  recipient.  Any Party may  change the  address to which  notices,
requests,  demands,  claims,  and  other  communications  hereunder  are  to  be
delivered by giving the other Parties notice in the manner herein set forth.

         8.9 Governing Law. This Agreement shall be governed by and construed in
accordance  with the domestic laws of the State of Utah without giving effect to
any choice or conflict of law provision or rule (whether of the State of Utah or
any other  jurisdiction)  that would  cause the  application  of the laws of any
jurisdiction other than the State of Utah.
<PAGE>
         8.10  Amendments  and Waivers.  No  amendment of any  provision of this
Agreement  shall be valid unless the same shall be in writing and signed by each
of the  Parties.  No waiver by any Party of any default,  misrepresentation,  or
breach of warranty or covenant  hereunder,  whether intentional or not, shall be
deemed  to  extend to any prior or  subsequent  default,  misrepresentation,  or
breach of warranty or covenant hereunder or affect in any way any rights arising
by virtue of any prior or subsequent such occurrence.

         8.11  Severability.  Any term or  provision of this  Agreement  that is
invalid or unenforceable  in any situation in any jurisdiction  shall not affect
the validity or  enforceability  of the remaining terms and provisions hereof or
the validity or  enforceability  of the offending term or provision in any other
situation or in any other jurisdiction.

         8.12  Expenses.  Each of the Nu Skin Entities and Nu Skin USA will bear
its own costs and  expenses  (including  legal fees and  expenses)  incurred  in
connection with this Agreement and the transactions contemplated hereby.

         8.13  Construction.  The  Parties  have  participated  jointly  in  the
negotiation  and  drafting  of this  Agreement.  In the  event an  ambiguity  or
question of intent or interpretation  arises,  this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise  favoring or  disfavoring  any Party by virtue of the authorship of any of
the provisions of this Agreement Any reference to any federal,  state, local, or
foreign  statute  or law  shall  be  deemed  also  to  refer  to all  rules  and
regulations promulgated thereunder,  unless the context requires otherwise.  The
word  “including”  shall  mean  including  without  limitation.  Nothing  in the
Disclosure  Schedule  shall be deemed  adequate to disclose  an  exception  to a
representation or warranty made herein unless the Disclosure Schedule identifies
the exception  with  particularity  and describes the relevant  facts in detail.
Without limiting the generality of the foregoing, the mere listing (or inclusion
of a copy) of a document or other item shall not be deemed  adequate to disclose
an  exception  to  a   representation   or  warranty  made  herein  (unless  the
representation or warranty has to do with the existence of the document or other
item  itself).  The  Parties  intend  that each  representation,  warranty,  and
covenant contained herein shall have independent significance.  If any Party has
breached  any  representation,  warranty,  or covenant  contained  herein in any
respect,  the fact  that  there  exists  another  representation,  warranty,  or
covenant relating to the same subject matter  (regardless of the relative levels
of  specificity)  that the Party has not  breached  shall  not  detract  from or
mitigate  the fact that the  Party is in  breach  of the  first  representation,
warranty, or covenant.

         8.14  Incorporation  of Recitals,  Exhibits,  and Schedules.  The above
Recitals  and all  Exhibits  and  Schedules  identified  in this  Agreement  are
incorporated herein by reference and made a part hereof.

         8.15 Specific Performance.  Each of the Parties acknowledges and agrees
that the other  Parties  would be  damaged  irreparably  in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached.  Accordingly,  each of the Parties  agrees that
the other Parties shall be entitled to an injunction or  injunctions  to prevent
breaches of the  provisions of this Agreement and to enforce  specifically  this
Agreement and the terms and  provisions  hereof in any action  instituted in any
court of the United States or any state  thereof  having  jurisdiction  over the
Parties and the matter  (subject  to the  provisions  set forth in Section  8.16
below),  in addition to any other remedy to which it may be entitled,  at law or
in equity.
<PAGE>
         8.16  Submission to  Jurisdiction.  Each of the Parties  submits to the
exclusive  jurisdiction  of any state or federal court sitting in Salt Lake City
or Provo,  Utah, in any action or proceeding  arising out of or relating to this
Agreement  and agrees  that all  claims in  respect of the action or  proceeding
shall be heard and determined only in any such court. Each Party also agrees not
to bring any action or proceeding  arising out of or relating to this  Agreement
in any other court. Each of the Parties waives any defense of inconvenient forum
to the  maintenance  of any action or proceeding so brought and waives any bond,
surety, or other security that might be required of any other Party with respect
thereto.  Any  Party  may make  service  on the  other  Parties  by  sending  or
delivering  a copy of the  process  to the Party or  Parties to be served at the
address  and in the manner  provided  for the  giving of notices in Section  8.8
above.  Nothing in this  Section  8.16,  however,  shall affect the right of any
Party to serve legal process in any other manner  permitted by law or in equity.
Each Party agrees that a final  judgment in any action or  proceeding so brought
shall be conclusive  and may be enforced by suit on the judgment or in any other
manner provided by law or in equity.

         8.17 Bulk Sales and Transfer  Laws. Nu Skin United States  acknowledges
that Nu Skin USA will  not  comply  with  the  provisions  of any bulk  sales or
transfer laws of any state or jurisdiction  in connection with the  transactions
contemplated by this Agreement.
<PAGE>
         IN WITNESS  WHEREOF,  the Parties  have  executed  this Asset  Purchase
Agreement effective as of the date first above written.

                                   NU SKIN ENTERPRISES, INC.

                                   By:      /s/ Corey B. Lindley
                                   Name:    Corey B. Lindley
                                   Its:     Vice President

                                   NU SKIN UNITED STATES, INC.

                                   By:      /s/ Corey B. Lindley
                                   Name:    Corey B. Lindley
                                   Its:     Vice President

                                   NU SKIN USA, INC.

                                   By:      /s/ Keith Halls
                                   Name:    Keith Halls
                                   Its:     Vice President
<PAGE>
                                   EXHIBIT “A”

                                 EXCLUDED ASSETS

         1.       All of Nu  Skin  USA’s  accounts  receivable  from  any of the
                  Affiliates,  as  indicated on the face of its January 31, 1999
                  balance sheet.

         2.       All of Nu Skin USA’s investments in any of the Affiliates,  as
                  indicated on the face of its January 31, 1999 balance sheet.

         3.       All of Nu Skin  USA’s  cash as  indicated  on the  face of its
                  January 31, 1999 balance sheet in excess of $3,129,500.

         4.       All  contracts or  agreements  with,  and all loans made to or
                  guaranteed by, Nu Skin USA and any of its  subsidiaries or any
                  of the Affiliates.

         5.       All  tangible  personal  property of Nu Skin USA that is to be
                  retained for personal use by the  stockholders  of Nu Skin USA
                  as determined in good faith by Nu Skin United States,  Nu Skin
                  Enterprises and Nu Skin USA following the Closing.

         6.       Leasehold improvements relating to an operations center of Big
                  Planet, Inc.
<PAGE>
                                   EXHIBIT “B”

                               ACQUIRED CONTRACTS
<PAGE>
                               ACQUIRED CONTRACTS

         1.       Personal  Services  Agreement  dated  November  1, 1998 by and
                  between Nu Skin USA and Final Kick  Marketing  Group.  Expires
                  November 1, 2000.  Total  contract  amount is  $220,000,  plus
                  travel expenses.

         2.       Personal  Services  Agreement  dated  December  1, 1998 by and
                  between Nu Skin USA and Carmen Dominicci. Expires November 30,
                  2000. Total contact amount is $95,000, plus expenses

         3.       Personal  Services  Agreement  dated  August  25,  1998 by and
                  between Nu Skin USA and Isaac  Wilson  (Stray  Dogs).  Expires
                  August  9,  1999.  Total  contract  amount  is  $11,000,  plus
                  expenses.

         4.       Consulting  Agreement (undated) by and between Nu Skin USA and
                  Gibb Dyer. Contract amount is $4,000 per month through 1999.

         5.       Consulting  Agreement (undated) by and between Nu Skin USA and
                  Suzanne Barnes.  Contract amount is $500 per day in Utah, $750
                  per day  outside  of Utah , for  Demonstrations  at Nu  Colour
                  Application Workshops.

         6.       Consulting Agreement dated November 29, 1998 by and between Nu
                  Skin USA and Sherry  Drabner.  Contract amount is $500 per day
                  for Demonstrations at NU COLOUR Application Workshops.

         7.       Consulting Agreement dated November 27, 1998 by and between Nu
                  Skin USA and Susan Markey. Contract amount is $500 per day for
                  Demonstrations at NU COLOUR Application Workshops.

         8.       Consulting  Agreement dated December 3, 1998 by and between Nu
                  Skin USA and Marianne  Thompson.  Contract  amount is $500 per
                  day for Demonstrations at NU COLOUR Application Workshops.

         9.       Consulting Agreement dated November 28, 1998 by and between Nu
                  Skin USA and Kathy  Eckenbrecht.  Contract  amount is $500 per
                  day for Demonstrations at NU COLOUR Application Workshops.

         10.      Waiver of Objection to Use  Material  (undated)  granted by Nu
                  Skin USA, Inc. in favor of Lifetime  Productions,  Inc. Grants
                  Lifetime  Productions,  Inc. rights to use Nu Skin USA footage
                  of Christie Brinkley.

         11.      Sub Lease  Agreement  dated November 1, 1998 by and between Nu
                  Skin USA and  Franklin  Covey Co.  Expires  December 31, 1999.
                  Monthly payments are $7,661.
<PAGE>
                                   EXHIBIT “C”

                               ASSUMED LIABILITIES
<PAGE>
                               ASSUMED LIABILITIES

         In connection with the transactions  contemplated by this Agreement, Nu
Skin  United  States  will  assume  the  following  categories  of Nu Skin USA’s
liabilities:

         Trade A/R1*

         A/P Trade*

         Accrued Payables to Vendors*

         Accrued Payables – Consigned*

         Accrued Commissions

         Accrued Gallery of Gifts Liability

         Wages/Payroll Taxes Payable*

         Accrued Sales Tax*

         Other Accrued Liabilities*

         Deferred Shipping*

         Independent Warehouses*

         Attached  hereto is a balance  sheet of Nu Skin USA as of  January  31,
1999 showing the Nu Skin USA liabilities being assumed by Nu Skin United States.

         *  Specifically excluding all amounts that relate to the Affiliates.
<PAGE>
            CONTRACTUAL OBLIGATIONS ASSUMED BY NU SKIN UNITED STATES

         1.       Personal  Services  Agreement  dated  November  1, 1998 by and
                  between Nu Skin USA and Final Kick  Marketing  Group.  Expires
                  November 1, 2000.  Total  contract  amount is  $220,000,  plus
                  travel expenses.

         2.       Personal  Services  Agreement  dated  December  1, 1998 by and
                  between Nu Skin USA and Carmen Dominicci. Expires November 30,
                  2000. Total contact amount is $95,000, plus expenses

         3.       Personal  Services  Agreement  dated  August  25,  1998 by and
                  between Nu Skin USA and Isaac  Wilson  (Stray  Dogs).  Expires
                  August  9,  1999.  Total  contract  amount  is  $11,000,  plus
                  expenses.

         4.       Consulting  Agreement (undated) by and between Nu Skin USA and
                  Gibb Dyer. Contract amount is $4,000 per month through 1999.

         5.       Consulting  Agreement (undated) by and between Nu Skin USA and
                  Suzanne Barnes.  Contract amount is $500 per day in Utah, $750
                  per day  outside  of Utah , for  Demonstrations  at Nu  Colour
                  Application Workshops.

         6.       Consulting Agreement dated November 29, 1998 by and between Nu
                  Skin USA and Sherry  Drabner.  Contract amount is $500 per day
                  for Demonstrations at NU COLOUR Application Workshops.

         7.       Consulting Agreement dated November 27, 1998 by and between Nu
                  Skin USA and Susan Markey. Contract amount is $500 per day for
                  Demonstrations at NU COLOUR Application Workshops.

         8.       Consulting  Agreement dated December 3, 1998 by and between Nu
                  Skin USA and Marianne  Thompson.  Contract  amount is $500 per
                  day for Demonstrations at NU COLOUR Application Workshops.

         9.       Consulting Agreement dated November 28, 1998 by and between Nu
                  Skin USA and Kathy  Eckenbrecht.  Contract  amount is $500 per
                  day for Demonstrations at NU COLOUR Application Workshops.

         10.      Waiver of Objection to Use  Material  (undated)  granted by Nu
                  Skin USA, Inc. in favor of Lifetime  Productions,  Inc. Grants
                  Lifetime  Productions,  Inc. rights to use Nu Skin USA footage
                  of Christie Brinkley.

         11.      Sub Lease  Agreement  dated November 1, 1998 by and between Nu
                  Skin USA and  Franklin  Covey Co.  Expires  December 31, 1999.
                  Monthly payments are $7,661.
<PAGE>
                                   EXHIBIT “D”

                       FORM OF BILL OF SALE AND ASSIGNMENT
<PAGE>
                                   EXHIBIT “E”

                 FORM OF INSTRUMENT OF ASSUMPTION OF LIABILITIES
<PAGE>
                                   EXHIBIT “F”

                  FORM OR INDEMNIFICATION LIMITATION AGREEMENT
<PAGE>
                                   EXHIBIT “G”

                 FORM OF LEGAL OPINION OF HOLLAND & HART, L.L.P.
<PAGE>
                                   EXHIBIT “H”

                          ALLOCATION OF PURCHASE PRICE

         The  Allocation  of the Purchase  Price shall be agreed  upon,  in good
faith,  by Nu Skin  Enterprises,  Nu Skin United States,  and Nu Skin USA within
thirty (30) days after the Closing.

——–
         1 To the  extent any such trade  account  receivable  reflects a credit
balance  resulting  from the  issuance by Nu Skin USA of credit  vouchers to its
customers.

 

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