China Remuneration Plan

China Remuneration Program  Retail Business model  Hire full-time sales employees  Same commitment - 42% of revenue allocate to Sales employees for salary, bonuses and employee benefits 5% Service Bonus 5% Customer Retention Bonus 5 – 15% Retail Sales Bonus Basic Pay for all employees Other Employee benefits

China Remuneration Plan Customer Customers purchase products at full retail price similar to any other retail establishment Purchases at full retail price SR is responsible for providing ID number to receive credit for purchase

Preferred Customer Individuals who become a preferred customer will enjoy a 10% discount on product purchases Requirements: Initial minimum 500 Rmb retail purchase Future purchases at 10% discount Referred by Sales Representative or executive China Remuneration Plan

Qualifying Sales Representative Submit Sales Representative application form at store location where employment desired Obtain the following monthly Net Retail Sales (NRS): QSRI 5000 QSRII 8500 QSRIII12000 Preferred customers continue to purchase at a 10% discount as a QSR Work up to 20 hours per week as temporary employee 260 Rmb base pay plus 5% Retention Bonus and 5% Service Bonus China Remuneration Plan

Who can be referred as a SR? Resident of the People’s Republic of China Over 22 years of age No students No full-time military service No government employees China Remuneration Plan

Where to refer SR? Retail Stores SR Applications can be found at: -each retail store location -viewed through the China Business Center on the internet China Remuneration Plan

SR Hiring Procedure Recommended by China Registered Executive or local preferred customer or SR. Interview with Store Manager Qualifications: -received sales training -desire to learn about personal care products -only full-time employees will be hired - no part- time employees -willingness to be employed China Remuneration Plan

Sales Representative Permanent employee of Shanghai Nu Skin Preferred Customers who become a SR enjoy a 15% purchase discount Other SR receive a 5% purchase discount SR receive 260 Rmb base pay Same pay structure as QSR, plus 5-15% Retail Sales Bonus on NRS Work up to 20 hours per week at retail store China Remuneration Plan

How to qualify to become a Nu Skin Sales Employee ？ QSR IQSR IIQSR IIISR 5,000NRS8,500NRS12,000NRS 8,500NRS ＋ China Remuneration Plan

What is Net Retail Sale (NRS) ？ NRS + 17% VAT = Retail Price Example, If Product A retail price is rmb Then, Product A NRS is /1.17 = 100 China Remuneration Plan

Sales Bonus Base Pay China Remuneration Plan

Sales Bonus –Service Bonus 5% –Customer Retention Bonus 5% –Retail Bonus 5 – 15%

Sales Bonus Service Bonus 5% –When on duty, personally provide service and complete the sales transaction –When off duty, bringing referred customers to the working store, providing services and complete the sales transaction

Sales Bonus Customer Retention Bonus 5% –Follow and maintain the good relationship between the company and the referred customers –Sales Employees get 5% on all of their circle group customers’ purchase

Sales Bonus Retail Sales Bonus 5-15% –SRs & above receive 5-15% bonus based on monthly Group NRS –Retail customer –Preferred customer –QSR –Personal purchase

Retail Sales Bonus NRS Bonus % 8, , , , , , , , , , ,500 15

Sales Bonus Base Pay China Remuneration Plan

Base Pay SR ￥ 260 TSM ￥ 700+ SSM ￥ 2,000+ plus other social welfares and benefits

Base Pay TSM / SSM Quarterly Sales Performance Evaluation

Adjust base pay and title position Occurred in every Jan/ April/ July/ Oct Adjusted base pay and position will be reflected to next 3 months

Quarterly Performance Review process  Ability to abide company’s policies  Ability to establish long-term relationships between customers and the company  Total number of active Preferred Customers for the quarter  Number of new Preferred Customers for the quarter  Ability to sell Company’s products  Leadership abilities to supervise and train subordinate sales employees;