Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
At the direction of the Executive Compensation Committee of the Board of
Directors of Nu Skin Enterprises, Inc. (the "Company"), the Company entered into
an employment agreement, effective as of April 16, 2015, with Joseph Y. Chang,
Chief Scientific Officer and Executive Vice President of Product Development.
Dr. Chang's employment period under the employment agreement will be April 16,
2015 to December 31, 2020 unless terminated earlier. The employment agreement
includes many of the same terms as Dr. Chang's previous employment agreement,
which was entered into on November 9, 2009, including the following, among
• Compensation: Dr. Chang will receive a base salary, cash incentives, equity
awards and other compensation, as determined by the Executive Compensation
Committee of the Company's Board of Directors;
• Vesting upon a change in control: Time-based equity awards granted to Dr. Chang
will fully vest upon certain terminations of employment within six months prior
to and in connection with, or within two years following, a change in control;
• Termination payments: Dr. Chang will receive various termination payments in
specified circumstances without excise tax reimbursements;
• Consulting agreement: Upon the occurrence of certain terminations of
employment, Dr. Chang and the Company will enter into a consulting agreement
with a four-year term, the fees for which will be $250,000 per year less the
amount of certain termination payments; and
• Covenants: Dr. Chang will be bound by certain covenants, including
non-solicitation, non-competition and non-endorsement, that are in addition to,
or supersede, previous key employee covenants.
Unlike the November 9, 2009 employment agreement, this employment agreement does
not entitle Dr. Chang to an annual retention bonus. This employment agreement
supersedes all previous employment letters, agreements and arrangements for Dr.
Chang, including his November 9, 2009 employment agreement.
The foregoing description of the employment agreement is not intended to be
complete and is qualified in its entirety by reference to the full text of the
agreement, which is filed as Exhibit 10.1 hereto.
Item 9.01 Financial Statements and Exhibits.
10.1 Employment Agreement, effective as of April 16, 2015 between the Company and
Joseph Y. Chang.
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