Document:

Ex 10.6 NSE 3Q 2007 FORM 10-Q

August 2, 2007 

Re: Larry MacFarlane 

Dear Larry: 

        This
letter sets forward a draft of our current thinking regarding your leaving Nu Skin. This
letter sets forth the proposed conditions and agreements that apply to your termination of
employment. 

        From
July 23, 2007 until October 31, 2007 you will report to Dan Chard, as an internal
consultant regarding Distributor Success (DS) technology strategy and organization. 

	•	  	Stock
 -- Your stock options will continue to vest through October 31.  

        On
October 31, 2007 your employment with Nu Skin Enterprises, Inc. will end. 

	• 	  	Severance  

        On
the effective date of your Settlement and Release Agreement, you will receive a lump sum
severance benefit of $250,000 less federal and state withholding taxes and other
applicable deductions made up of the following components: 

               	a. 	  	
                    As of September 30, 2007 your Deferred Compensation balance, including the
                    Company portion, will be 100% vested. Payout of your Deferred Compensation
                    account will be as previously elected by you in the amount of $84,150. 

                    

               	b. 	  	
                    A lump sum cash payment of $165,850. 

                    

        Restricted
stock and stock option vesting will stop at your termination date, and you will have
90-days to exercise any vested options under the terms of your stock options. 

	•	  	Non-Compete
Agreement  

        Paragraph
10 (Non-Competition) of the Key-Employment Covenants signed by you on September 10,
2003 is hereby amended as follows: 

	  	
In
exchange for the severance benefit outlines above, Employee (Larry MacFarlane) shall not
accept employment with, engage in or participate, directly or indirectly, individually or
as an officer, director, employee, shareholder, consultant, partner, joint venture, agent,
equity owner, distributor or in any other capacity whatsoever, with any direct sales or
multi-level marketing company that competes with the business of the Company whether for
market share of products or for independent distributors in a territory in which the
Company is doing business. The restrictions set forth in this paragraph shall remain in
effect during a period of one year following the Employee’s termination of
Employment. 

        All
other terms of your Key-Employee Covenants Agreement remain unchanged as outlined therein. 

Sincerely, 

	  	/s/ Claire H. Averett

Claire
H. Averett
 Nu Skin International, Inc. 

Acknowledged:

/s/ Larry MacFarlane
Larry MacFarlane
 

Dated:__________________________Exhibit 10.7 2007 3Q NSE FORM 10-Q

August 10, 2007 

Dear Andrew: 

I am pleased to confirm your
assignment as the new President of the Greater China Region effective May 21, 2007.
This opportunity represents our confidence in your ability to succeed in your new
assignment. Please refer to the following points outlining your new assignment: 

	  	• 	  	Title
— President, Greater ChinaRegion, reporting directly to Dan Chard, Executive
Vice President, Distributor Success.

	  	• 	  	Responsibility
—Your primary responsibility will be to lead the distributor success
organization for the Greater China Region including China, Taiwan and Hong Kong.  

	  	• 	  	 Compensation
(RMB) – Your base salary will be 2,160,000 RMB annually, 180,000 monthly, which
will be subject to annual adjustment according to performance. You will also receive
300,000 RMB as a hardship differential, which will not be re calculated year to year. The
base salary plus hardship differential together will form the incentive base. You will
receive a home leave/vacation allowance of 100,000 RMB per year. The company will provide
a car and housing allowance in the amount of 80,000 RMB per month. The total of your
housing and car allowance will be paid upfront for three years for a total of 2,880,000
RMB. Should you leave within the first three years, the upfront housing and car allowance
would need to be paid back at a prorated amount. In addition, you will receive income tax
equalization provided under the company’s expatriate plan for income earned as an
employee, if needed.  

	  	• 	  	Bonus
— You will be paid at 50% bonus as a member of the Management Committee.
Throughout the rest of 2007, this bonus will be tied to the results of South East Asia.
You will also be eligible for an override performance bonus subject to specified
performance guidelines and targets tied to the Greater China Region. (see attached)  

	  	•  	  	Stock
– Your stock options 10,000 per year and 3,000 restricted will remain the same
as a member of the management committee that will vest 25% per year over a four year
period. In addition you will receive an additional one time signing grant of 5,000 shares
of restricted stock that will vest 25% per year over a four year period.  

	  	•   	  	Non-Competition:
In exchange for the benefits of continued employment by Company, Employee shall not
accept employment with, engage in or participate, directly or indirectly, individually or
as an officer, director, employee, shareholder, consultant, partner, joint venturer,
agent, equity owner, distributor or in any other capacity whatsoever, with any direct
sales or multi-level marketing company including any direct or indirect affiliate or
subsidiary of such company that competes with the business of Company whether for market
share of products or for independent distributors in a territory in which Company is
doing business. The restrictions set forth in this paragraph shall remain in effect
during the Employee’s employment with Company and during a period of twelve (12)
months following the Employee’s termination of employment.  

Please review the contents of this
letter of agreement carefully as it represents essential terms of your new assignment. If
the terms are agreeable to you, please sign the original copy and return it to me. I look
forward to your leadership and impact on the future growth of the Greater China Region. 

Sincerely, 

/s/ Dan Chard
Dan Chard

 Executive Vice President DSP

date:   August 10, 2007 

/s/ Andrew Fan
Andrew Fan

Regional Vice President, Greater China

Date:   August 10, 2007 

BONUS ATTACHMENT 

May 30, 2007 

Andrew Fan, President,
Greater China RegionMainland 
China and Greater China Bonus Plan 

The terms of the bonus plan are as
follows: 

     	1. 	
          The bonuses described below will be in addition to the standard incentive bonus
          calculated quarterly. 

          

     	2. 	
          During any rolling four quarter period prior to December 31, 2010, if Mainland
          China achieves positive operating income (i.e. at least break even at the
          operating income level), then you will be paid a bonus of one times your annual
          base salary (“Break Even Bonus”), subject to the following limitation. 

          

               	a. 	  	
                    Hong Kong and Taiwan combined must achieve the full target (i.e. achievement of
                    100% payout) for both revenue and operating income during the rolling four
                    quarter period in which break even in Mainland China is achieved, or the Break
                    Even Bonus will be subject to a 20% discount (80% x your annual base salary).
                    Hong Kong and Taiwan will be combined in USD converted at constant currency
                    exchange rates for both the target and results. See number 4 for exceptions. 

                    

     	3. 	
          For the subsequent five calendar years following achievement of break even in
          Mainland China (the “Break Even Year”), you will be paid a bonus of
          1.5% of the annual incremental increase in revenue (“Incremental Revenue
          Bonus”) at the end of each calendar year subject to the limitations set
          forth below. For example, if revenue in the Break Even Year was 815,000,000 RMB
          and increased in “year one” to 850,000,000 RMB, you would be paid a
          bonus of 1.5% of 35,000,000 RMB (850,000,000 – 815,000,000 = 35,000,000 x
          1.5% = 525,000 RMB) or $67,742 (USD at 7.75 FX = $67,742). If revenue then
          increased to 900,000,000 RMB in “year two”, your bonus would be
          calculated as (900,000,000 – 850,000,000 = 50,000,000; 50,000,000 x 1.5% =
          750,000 RMB or US$96,774). Annual incremental revenue growth will be calculated
          from the calendar year with the highest revenue since the Break Even Year. For
          example, if revenue in “year two” was 900,000,000 RMB, but declined in
          “year three” and “year four” to 875,000,000 RMB and
          890,000,000 RMB respectively, no Incremental Revenue Bonus would be paid in
          “year three” or “year four” as the year with highest revenue
          during the five year period subsequent to the Break Even Year was “year
          two” at 900,000,000 RMB. The incremental revenue bonus for “year
          five” would be based on 900,000,000 RMB from “year two”. 

          

               	a. 	  	
                    For the Incremental Revenue Bonus to be paid, operating margin (operating income
                    as a percentage of revenue) must increase as revenue increases. For example, if
                    operating margin in “year one” was 2.5% of revenue and operating
                    margin in “year two” was below 2.5%, no bonus would be paid on the
                    incremental revenue for “year two”, even if revenue increased from
                    “year one” to “year two”. Although the bonus from year two
                    was not paid, once the operating margin has increased over the highest operating
                    margin since the Break Even Year (2.5% operating margin from “year
                    one” in this example) the incremental revenue bonus for “year
                    two” can be recouped. 

                    

               	b. 	  	
                    Hong Kong and Taiwan combined must achieve the full target (i.e. achievement of
                    100% payout) for both revenue and operating income for each year of the bonus
                    payment or the bonus will be subject to a 20% discount (80% x 1.5% of
                    incremental revenue). 

                    

               	c. 	  	
                    The total bonus paid for the Incremental Revenue Bonus will be capped at USD
                    $1.0 million (using an exchange rate of 7.75 RMB to the USD) for the five year
                    period following the Break Even Year. 

                    

     	4. 	
          Bonus targets will be adjusted for transfer prices made in between budgeting
          periods. For example, if a transfer price is made that has not been budgeted for
          in Hong Kong, which reduces profitability such that they do not achieve the
          budget targets, then an adjustment would be made to the calculation of operating
          income to determine if Hong Kong has achieved the target.

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