Bonus: Sales compensation paid through Velocity, including the Sharing Bonus, Retailing Bonus, Building Bonus, and Leading Bonus. Bonuses do not include any retail profit you can earn on Products that you purchase and resell directly to unregistered customers (for France and Italy, see note 1 on p. 18), or any other cash or non-cash incentives.

Brand Affiliate: A Person who signs up with Nu Skin as a Brand Affiliate and can purchase Products at the Member Price, sell Products to customers, sign up Registered Customers, and is not in Qualification. Brand Affiliate will also be used as a general reference to all Brand Affiliates and Brand Representatives. For example, a Brand Partner or Brand Director will be referred to as a Brand Affiliate as a general reference when talking about all Brand Affiliates.

Brand Affiliate Account: A Brand Affiliate’s Nu Skin account.

Brand Affiliate Agreement: An agreement between a Brand Affiliate and Nu Skin and sets forth certain rights and obligations related to a Brand Affiliate’s business.

Brand Director: A general category including all Brand Representatives with a Title of Emerald Director, Diamond Director, Blue Diamond Director, or Presidential Director.

Brand Partner: A general category including all Brand Representatives with a Title of Gold Partner, Lapis Partner, or Ruby Partner.

Brand Representative: A Brand Affiliate who has successfully completed Qualification and who has not lost their Brand Representative status. The term Brand Representative will also be used as a general reference for all Titles of Brand Representative and above. For example, a Ruby Partner or Diamond Director will be referred to as a Brand Representative as a general reference when talking about all Brand Representatives.

Brand Representative Date: The first day of the month that a Qualifying Brand Representative completes Qualification. For a Qualifying Brand Representative that completes Qualification in week 1, 2 or 3 of a month, the Brand Representative Date will be the first day of that month. For Qualifying Brand Representatives that complete Qualification in week 4 of a month, the Brand Representative Date will be the first day of the following month. See Addendum A for details.

Brand Representative Promotion Date: The first day of the weekly period following a Brand Representative’s completion of Qualification and advancement to Brand Representative. For a Qualifying Brand Representative that completes Qualification in week 1, 2 or 3 of a month, the Brand Representative Promotion Date will be the 8th, 15th and 22nd of that month, respectively. For a Qualifying Brand Representative that completes Qualification in week 4 of a month, the Brand Representative Promotion Date will be the first day of the following month. See Addendum A for details.

Brand Representative Qualification Date: The first day of the month in which a Qualifying Brand Representative submits a Letter of Intent and completes the monthly requirement of 2 Building Blocks. See Addendum A for details.

Building Block: A measurement of Sales Volume. A Building Block is only considered complete when it has 500 points of Sales Volume. A Building Block with less than 500 points of Sales Volume is referred to as incomplete. See Section 2.2.

Building Bonus: A Bonus earned weekly and paid weekly or monthly to Brand Representatives based on the Commissionable Sales Value of Products purchased by Registered Customers in the Brand Representative’s Consumer Group. See Section 2.2.

Building Bonus Percentage: A percentage used to calculate the Building Bonus for each Building Block which ranges from 5% to 40% depending on the number of Building Blocks completed in a month. See Section 2.2.

Business Builder Position (BBP): A position placed directly below you on your first Generation that is awarded to you after the first month you achieve the Title of Blue Diamond Director. See Addendum D for details.

Business Development Activity: Any activity that benefits, promotes, assists, or supports in any way the business, development, sales, or sponsorship of another Direct Sales Company, including but not limited to, selling products or services, promoting the business opportunity, appearing on behalf of the Direct Sales Company or one of its representatives, allowing your name to be used to market the Direct Sales Company, its products, services or opportunity, sponsoring or recruiting on behalf of the Direct Sales Company, acting as a member of the board of directors as an officer, or a representative or distributor of the Direct Sales Company, an ownership interest, or any other beneficial interest, whether the interest is direct or indirect.

Commissionable Sales Value: A currency value set for each Product, used to calculate the Building Bonus and Leading Bonus. Commissionable Sales Value is adjusted from time to time due to a variety of factors, including changes in pricing, currency fluctuations, promotions, etc. Commissionable Sales Value is different from Sales Volume and generally does not equal the Sales Volume of a Product. You can obtain information regarding the Commissionable Sales Value and other sales compensation related information for each Product by signing in to your market’s Brand Affiliate website.

Company: Nu Skin, “we” or “us.”

Consumer Group: A group consisting of (1) you, (2) any of your Registered Customers, and (3) any Registered Customers they register and so on. Your Consumer Group will include the Consumer Groups of your Qualifying Brand Representatives. As a Qualifying Brand Representative or Brand Representative, you are expected to service and support your Qualifying Brand Representatives and their Consumer Groups. A Brand Representative and their Consumer Group become part of your Team when they complete Qualification and their Consumer Group will no longer be part of your Consumer Group.

Direct Sales Company: A company that uses a sales force of independent contractors who sell products and services and that compensates the independent contractors through a single-level or multi-level compensation plan for (1) their own sales, and/or (2) the sales of other independent contractors who have signed up under the independent contractors to distribute the same products and services.

Flex Block: A Flex Block is a Building Block substitute that we use to hold your status as a Brand Representative if you do not complete at least 4 Building Blocks in a month. See Section 3.3.

G1 Brand Representative: See Generation below.

Generation: The levels in a Brand Representative’s Team. Every Brand Representative you directly lead and who is the first Brand Representative below you in your Team is your G1 Brand Representative. Your G1Brand Representatives directly lead those Brand Representatives who are on the first level below them, and these Brand Representatives are your G2 Brand Representatives, and so forth.

Leadership Team: A G1 Brand Representative that meets certain Leadership Team Sales Volume benchmarks in a month.

Leadership Team Sales Volume: Leadership Team Sales Volume is the sum of Consumer Group Sales Volume in your G1-G6 for a given G1 Brand Representative.

Leading Bonus: A Bonus paid monthly to Brand Partners and Brand Directors based on the Commissionable Sales Value of Products purchased by the Consumer Groups in the Brand Partner’s or Brand Director’s Team. See Section 2.3.

Letter of Intent: A document or online notice that a Brand Affiliate submits to us to notify us of their intention to enter Qualification and become a Qualifying Brand Representative.

Maintenance: The requirement to complete at least four Building Blocks in a month to maintain your status as a Brand Representative for that month. See Section 3.2.

Member: A customer who signs up with Nu Skin as a Member and can purchase Products from Nu Skin at the Member Price. Members do not participate in Velocity and cannot resell Products or register other customers.

Member Price: The purchase price for Products for both Members and Brand Affiliates. The Member Price is set by the local market and may occasionally be adjusted for sales promotions and incentives.

Nu Skin: Nu Skin International, Inc., and its affiliates.

Person: An individual or business entity. A “business entity” is any business entity such as a corporation, partnership, limited liability company, trust, or other form of business organization legally formed under the laws of the jurisdiction in which it was organized.

Personally Registered Brand Affiliates: A Registered Customer who registered directly under you (level 1) as a Brand Affiliate. A Brand Affiliate is not your Personally Registered Brand Affiliate if they registered directly under another Brand Affiliate.

Personally Registered Customer: A Registered Customer who registered directly under you (level 1) as a Member or Retail Customer and purchases Products directly from the Company for personal consumption. A Member or Retail Customer is not your Personally Registered Customer if they registered directly under another Brand Affiliate. Personally Registered Customers do not participate in the Sales Performance Plan and cannot resell Products or register other customers or Brand Affiliates.

Personally Registered Customer Sales Volume: Sum of all points of Sales Volume from Product purchases by your Personally Registered Customers.

Policies and Procedures: A document that is part of the agreement between a Brand Affiliate and Nu Skin and sets forth certain policies and procedures related to a Brand Affiliate’s business.

Presidential Director Business Builder Position (Presidential Director BBP): An additional position placed directly below your BBP on your second Generation that is awarded to you after the first month you achieve the Title of Presidential Director. See Addendum D for details.

Products: All Nu Skin products and services.

Qualification: The process for a Brand Affiliate to become a Brand Representative. See Section 3.1.

Qualifying Brand Representative: A Brand Affiliate who (1) has submitted a Letter of Intent and has completed two Building Blocks (a Brand Affiliate is officially classified as a Qualifying Brand Representative after the next weekly Bonus calculation), and (2) is in the process of meeting the Qualification requirements. See Section 3.1.

Qualification Monthly Minimum: During the Qualification Period you must complete at least 2 Building Blocks each month, except the month you complete the Qualification Requirements. See Section 3.1.

Qualification Period: Your Qualification Period begins on the date you elect to qualify as a Brand Representative. Depending on the time you submit your LOI, the Qualification Period is up to 6 or 3 consecutive months, inclusive of the month you make your election. See Section 3.1..

Qualification Requirements: The requirements that must be completed to become a Brand Representative. See Section 3.1.

Registered Customer: A Person who purchases Products directly from the Company for personal consumption or resale. Bonuses are paid on a Registered Customer’s Product purchases. Your right to earn a specific Bonus on a Registered Customer’s Product purchase depends on the eligibility requirements of each Bonus, including whether they are a Personally Registered Customer or a Personally Registered Brand Affiliate. Every Registered Customer is supported by a Brand Affiliate. There are three types of Registered Customers:

(1) Retail Customers,

(2) Members, and

(3) Brand Affiliates.

Restart: The process that gives former Brand Representatives the opportunity to reclaim their sales network (as if they had not lost their Brand Representative status). See Section 3.4 and Addendum C.

Retailing Bonus: The difference between (1) the retail price paid by your Retail Customer after any discounts (excluding shipping costs and taxes) when they purchase Products directly from Nu Skin and (2) the Member Price. See Section 2.1.

Retail Customers: Any Registered Customers who purchase at a retail price. The Bonus on a Retail Customer’s Product purchase is paid to the Brand Affiliate who is identified as the seller at the time of the specific Product order. For purposes of this Plan, an unregistered customer is not included in the definition of Retail Customers. Retail Customers do not participate in Velocity and cannot resell Products or register other Registered Customers.

Sales Volume: A point value set for each Product used to compare the relative value of Products across various currencies and markets to measure qualification for various performance benchmarks, including Sharing Blocks, Building Blocks, and Leadership Team Sales Volume, and quantify the Product sales in your Consumer Group and Team. Sales Volume is adjusted from time to time as the Company deems necessary. Sales Volume is different from Commissionable Sales Value. You can obtain information regarding the Sales Volume and other sales compensation related information for each Product by signing in to your market’s Brand Affiliate website.

Sharing Block: A subset of Building Blocks. Sharing Blocks consist of 500 points of Sales Volume that are only derived from purchases made by Personally Registered Customers and Personally Registered Band Affiliates in your Consumer Group excluding Brand Representatives. Your personal purchases do not count towards Sharing Blocks. Sharing Blocks are only applicable to Qualification Requirements. See Section 3.1.

Sharing Bonus: The Bonus earned daily on Product purchases by your Personally Registered Customers and earned monthly on Product purchases by your Personally Registered Brand Affiliates subject to meeting the Sharing Bonus Volume Requirement (Brand Representatives keep the Sharing Bonus on their own Product purchases provided the Sharing Bonus Volume Requirement is met)*. The Sharing Bonus amount is determined by the local market and can be adjusted in the Company’s discretion. It will vary depending on the Product. Not all Products will earn a Sharing Bonus, and in some markets the Sharing Bonus may be discounted. The market will provide Product pricing information to all Brand Affiliates regarding the Sharing Bonus of each Product. See Section 2.1.

Sharing Bonus Volume Requirement: The requirement to reach a minimum of 50 points of Personally Registered Customer Sales Volume in a current month to earn and receive a Sharing Bonus on Product purchases made by your Personally Registered Brand Affiliates (and on your personal Product purchases if you are a Brand Representative) during that month.

Team: Your Team consists of all Generations on which you are eligible to be paid a Leading Bonus. Your Title determines the number of Generations of Brand Representatives and their Consumer Groups on your Team, as shown in the Velocity Title Determination table. Your Team does not include your Consumer Group.

Title: Titles are achieved as a Brand Representative based on your number of G1 Brand Representatives and Leadership Teams. Your Title determines the number of Generations on which you can earn a Leading Bonus.

Velocity Account: A digital account found in Volumes & Genealogies that reflects all your Bonuses, payments and adjustments. A Velocity Account is automatically created for you when you become a Brand Affiliate. Velocity Accounts do not accrue interest.Nu Skin automatically transfers your remaining Velocity Account balance free of charge at the start of each weekly and monthly pay period. There is a EUR €10 minimum balance required for automated transfers from the Company.¹

Volumes & Genealogy: An information system that provides information related to your Brand Affiliate Account, including your Product purchases, sales network, Bonuses, goal setting, reporting, recognition and more. You can log into Volumes & Genealogy by logging into nuskin.com or My Nu Skin app.

*For France: See Note 1 on p. 18.

¹ Countries outside the Eurozone: The minimum will be based on the equivalent local currency on the date of termination and at the rate of currency exchange at a bank selected by the Company.