Document:

Omnibus Agreement, dated 12/30/2003

 EXHIBIT 10(tt) 
  
 OMNIBUS AGREEMENT 
  
 THIS OMNIBUS AGREEMENT (this “Agreement”) is made as of the 30th day of December, 2003 by and among GENERAL ELECTRIC CAPITAL CORPORATION, as borrower collateral agent (“Borrower Collateral Agent”), as
operating agent (“Operating Agent”) and as collateral agent (“Collateral Agent”), EDISON ASSET SECURITIZATION, L.L.C., as lender (“Edison”), MIZUHO CORPORATE BANK, LTD., as lender (“Mizuho”), KBC BANK N.V., as
lender (“KBC”) (Edison, Mizuho and KBC each a “Lender” and collective, the “Lenders”), WILMINGTON TRUST COMPANY, in its individual capacity only as explicitly set forth herein (“Wilmington”), WILMINGTON TRUST
COMPANY, not in its individual capacity but solely as Owner Trustee under the Trust Agreement (defined below) (in such capacity, “Owner Trustee”), FATICO 1999 TRUST (“Trust”), GENERAL ELECTRIC CAPITAL CORPORATION, as Residual
Support Provider (“Residual Support Provider”), MHCB (USA) LEASING & FINANCE CORPORATION (“MLFC”) and FIRST AMERICAN TITLE INSURANCE COMPANY (“Lessee”). 
  
 A. Owner Trustee and The Fifth Third Leasing Company (“Fifth Third”) entered into that certain
Trust Agreement dated as of December 22, 1999 (the “Trust Agreement”). Prior to the execution of this Agreement, Fifth Third and MLFC entered into that certain Assignment and Assumption Agreement pursuant to which Fifth Third assigned and
conveyed to MLFC all of Fifth Third’s right, title and interest in, and MLFC assumed all of Fifth Third’s obligations under, the Trust Agreement. 
  
 B. Trust, as borrower, Edison, as lender, and General Electric Capital Corporation, as Operating Agent, Borrower Collateral Agent and
Collateral Agent, have heretofore entered into that certain Receivables Funding Agreement dated as of December 27, 1999 (as may be amended from time to time, the “Original Funding Agreement”) and pursuant thereto the Related Documents (as
defined in the Original Funding Agreement). Pursuant to that certain Amendment and Assignment dated as of May 5, 2000 among Edison, General Electric Capital Corporation, the Trust, Wilmington, The Fuji Bank (n/k/a Mizuho Corporate Bank, Ltd.) and
KBC, Edison assigned to Mizuho and KBC a portion of its rights, title and interest in the Original Funding Agreement and the Related Documents, including a portion of the Advance Outstanding (as defined in the Original Funding Agreement). In
connection with the transactions contemplated by this Agreement, MLFC, Lenders, Operating Agent, Borrower Collateral Agent and Collateral Agent are entering into that certain Amended and Restated Receivables Funding Agreement dated as of the date
hereof (the “Amended and Restated Funding Agreement”) amending and restating the Original Funding Agreement (the Amended and Restated Funding Agreement and the other Related Documents are hereinafter collectively referred to herein as the
“Loan Documents”). 
  
 C. Trust, as
lessor, and Lessee, as lessee, have heretofore entered into that certain Master Lease Agreement dated as of December 27, 1999 (as amended, including by this Agreement, the “Master Lease Agreement”) and pursuant thereto Equipment Schedule
No. 1 dated as of December 29, 1999 (the “Equipment Schedule”). The Equipment Schedule, incorporating by reference the terms and conditions of the Master Lease Agreement, constitutes a 

 separate instrument of lease and, together with the Master Lease Agreement and the other documents executed pursuant
thereto are hereinafter collectively referred to as, the “Lease”. The interest of the Trust as lessor under the Lease has previously been collaterally assigned to General Electric Capital Corporation, as Borrower Collateral Agent.

  
 D. Pursuant to that certain Corporate Guaranty dated December
27, 1999 (the “Guaranty”) by The First American Financial Corporation (n/k/a The First American Corporation), as guarantor (the “Guarantor”), in favor of the Trust and the Edison Program Parties, Guarantor guaranteed the due,
regular and punctual payment of any sum or sums of money owing by Lessee to the Beneficiaries (as defined in the Guaranty). 
  
 E. Lessee, as sublessor, and First American Title Company, First American Title Guaranty Co., Midland Title Security, Inc., First American Title Insurance
Company of Oregon, Mortgage Guarantee & Title Co. and SMS Settlement Services, each a sublessee, have heretofore entered into those certain Equipment Sublease Agreements dated as of December 27, 1999 (as amended, including by this Agreement, the
“Sublease Agreements”) 
  
 F. Residual Support Provider,
the Trust and Borrower Collateral Agent have heretofore entered into that certain Residual Support Agreement dated as of December 27, 1999 (the “Original Residual Support Agreement”). In connection with the transactions contemplated by
this Agreement, Residual Support Provider, MLFC and Borrower Collateral Agent are entering into that certain Amended and Restated Residual Support Agreement dated as of the date hereof (the “Amended and Restated Residual Support
Agreement”) amending and restating the Original Residual Support Agreement. 
  
 G. In connection with the termination hereunder of the Trust created by the Trust Agreement, the parties hereto desire that MLFC instruct the Trust to assign to MLFC, and MLFC desires to accept such assignment and
assume all right, title, interest and obligations of the Trust in, under and with respect to the Trust Estate (as defined in the Trust Agreement), including the Related Documents, except as otherwise provided herein with respect to certain rights
and obligations concerning the Lease. Borrower Collateral Agent, Collateral Agent, Lenders and Residual Support Provider are willing to consent to such assignment and assumption on the terms and conditions hereof. 
  
 H. Lessee is willing to acknowledge the referenced assignment and assumption
and make the other agreements provided for herein. 
  

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 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 
  
 ARTICLE I

 DEFINITIONS 
  
 1.1 Interpretation, Definitions and Rules of Usage. Capitalized terms used herein but not otherwise defined herein shall have the meanings provided
therefor in the Lease, or to the extent not defined therein, as defined in the Original Funding Agreement, and the rules of usage set forth therein shall apply hereto. 
  
 ARTICLE II 
 ASSIGNMENT AND ASSUMPTION OF AGREEMENTS 
  
 2.1
Assignment and Assumption of Agreements. MLFC hereby instructs the Trust to assign to MLFC all right, title, interest and obligations of the Trust in, to and under the Original Funding Agreement, the Related Documents, the Lease, the
Subleases and the Residual Support Agreement. The parties hereto hereby acknowledge and consent to the above instruction, and the Trust hereby effects such assignment to MLFC. MLFC hereby accepts such assignment, assumes all such obligations arising
on or after the date hereof and agrees hereafter to keep and perform all of the covenants, obligations arising on or after the date hereof and agreements of the Trust under said documents on and subject to the terms and conditions thereof, including
but not limited to as borrower under the Original Funding Agreement, as lessor under the Lease (as modified by Article IV hereof) and as account party under the Residual Support Agreement. 
  
 2.2 Assumption of Obligations under Existing Agreements. MLFC hereby
acknowledges that it is assuming all accrued obligations under the Original Funding Agreement, as well as the accrued and unaccrued obligations under the Related Documents, including the agreements not being amended and restated. MLFC agrees that it
shall perform all of such assumed obligations, as and when due, but subject to the limitation of liability set forth in Section 14.16 of the Amended and Restated Funding Agreement and as set forth in the following sentence. Each of the parties
hereto acknowledges and agrees that MLFC is not assuming and shall have no liability with respect to any obligations under any Related Document that accrued prior to the date hereof or that arise from any event, circumstance or activity that
occurred prior to the date hereof. 
  
 2.3 Simultaneous
Actions. All of the actions described herein shall be deemed to occur simultaneously. No action described herein shall be deemed to have occurred unless all of the actions described herein occur. 
  

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 ARTICLE III 
 REVOCATION OF THE TRUST; TERMINATION OF THE TRUST AGREEMENT 
  
 3.1 Revocation of Trust. MLFC, pursuant to Section 7.2 of the Trust Agreement, hereby elects, immediately after giving effect to the assignment and
assumption provided in Article II above, to terminate and revoke the Trust created under the Trust Agreement and hereby authorizes, empowers and directs the Owner Trustee to distribute the Trust Estate (as defined in the Trust Agreement) to MLFC
and, thereafter, to execute and file with the Secretary of State of the State of Delaware a certificate of cancellation in substantially the form attached hereto as Exhibit A. The parties hereto hereby acknowledge and consent to the above
instruction. 
  
 3.2 Certification of MLFC. MLFC hereby
certifies and confirms (1) that it is the sole Agent Certificate Holder (as defined in the Trust Agreement) of the Trust, and (2) that the foregoing direction, termination of the Trust and the distribution of the Trust Estate (as defined in the
Trust Agreement) to MLFC (i) is permitted by and authorized under the Trust Agreement and does not violate or constitute a breach of the Trust Agreement or any other Operative Document (as defined in the Trust Agreement) (except for such breaches of
the Operative Documents (as defined in the Trust Agreement) that have been expressly waived), (ii) has been consented to by all of the parties to the Operative Documents (as defined in the Trust Agreement), and (iii) is covered by the
indemnification provided under Article VI of the Trust Agreement. 
  
 3.3 Distribution of the Trust Estate. The Trust hereby distributes the Trust Estate to MLFC. 
  
 3.4 Acknowledgment of Lender’s Lien. MLFC hereby acknowledges that it is acquiring the property, rights and interests constituting the Trust
Estate (as defined in the Trust Agreement) subject to the Lender’s Lien under the Original Funding Agreement and Related Documents and the continuation of such Lien under the Amended and Restated Funding Agreement and the Related Documents
assumed pursuant hereto. 
  
 3.5 Termination of the Trust
Agreement. MLFC and Wilmington hereby terminate the Trust Agreement, except for the obligations in the Trust Agreement that are expressly stated to survive the cancellation and termination of the Trust Agreement, and such termination shall be
effective immediately after giving effect to the assignment and assumption set forth in Article II. The parties hereto hereby acknowledge and consent to such termination. 
  
 ARTICLE IV 
 AMENDMENTS 
  
 4.1 Amendments to the Lease.
The Lease is amended as follows: 
  

	 	(a)	Throughout the Lease, each reference to “FATICO 1999 Trust” shall be deemed to refer to “MHCB (USA) Leasing & Finance Corporation”. 

 

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	 	(b)	All references to “c/o Wilmington Trust Company, as Owner Trustee, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001” shall be replaced with
“1251 Avenue of the Americas, 32nd Floor, New York, New York 10020.” 

  

	 	(c)	All references to “Delaware business trust” are replaced with “New York corporation”. 

  

	 	(d)	All references to “Trust” and to “Owner Trustee” are replaced with “Lessor”. 

  

	 	(e)	The defined terms “Owner Trustee”, “Trust” and “Trust Agreement” are deleted and each reference to such defined terms are deleted.

  

	 	(f)	All references to “any beneficiary of the Trust”, to “The Fifth Third Leasing Company” and to “Wilmington Trust Company” are deleted.

  

	 	(g)	Section 9(c)(ii) is amended by restating the entire subsection as follows: “interest on the Lease Balance outstanding from time to time during the Extension Term at a rate per
annum equal to: (A) for the portion of the Lease Balance representing the Equity Investment (as defined in the Funding Agreement), the sum of four hundred fifty (450) basis points over LIBOR calculated, as to each day in any Rent Payment Period, at
LIBOR applicable to such day, in twelve (12) equal monthly installments; and (B) for the remaining portion of the Lease Balance, the sum of three hundred seven (307) basis points over LIBOR calculated, as to each day in any Rent Payment Period, at
LIBOR applicable to such day, in twelve (12) equal monthly installments.” 

  

	 	(h)	Section 11(b) is amended by: 

  

	 	(i)	inserting the following words at the end of the first sentence: “; provided, however, that Lessor shall not assign all or any part of its rights granted hereunder without the
prior written consent of Lessee, such consent not to be unreasonably withheld or delayed.” 

  

	 	a.	inserting the words “and Section 5.1(a) of the Omnibus Agreement” after the words “permitted under the Funding Agreement”. 

  

	 	(i)	Section 14(i) of the Agreement is amended by adding the words “, jurisdiction of organization” after the first reference to “chief executive office”, by adding
after the words “at the address set forth above” the words “or the jurisdiction set forth above”, and by adding at the end of the sentence the words “or any change of its jurisdiction of organization.”

  

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	 	(j)	Section 18(n) is amended by adding the following language at the end of the section: 

  
 “If the Lessor maintains its Equity Investment (as defined in the Amended and Restated Funding Agreement) on a LIBOR
Basis and any payment of Rent or Lease Balance is made on a date other than the scheduled last day of the LIBOR interest period or Rent Payment Period applicable thereto (including, without limitation, as a result of acceleration of the obligations
hereunder), then Lessee shall pay to Lessor within five (5) Business Days following written demand therefor by the Lessor, the amount of Breakage Costs actually incurred by the Lessor in connection therewith. A certificate from the Lessor as to the
calculation of Breakage Costs shall, absent demonstrable error, be final and conclusive.” 
  

	 	(k)	Section 18(o) is amended as follows: 

  

	 	(i)	by deleting “3001 Summer Street, 2nd
Floor” in clause (2) and replacing it with “1600 Summer Street, 4th Floor”; and

  

	 	(ii)	by adding new clauses (3) and (4) after the words “Conduit Administration” as follows: “and (3) Mizuho Corporate Bank, Ltd., 1251 Avenue of the Americas, New York,
New York 10022, Attention: David Lim, Americas Corporate Banking Division II - Account Management Group I; and (4) KBC Bank N.V., 125 West 55th Street, New York, New York 10019, Attention: Jean Pierre Diels, First Vice President”. 

  

	 	(l)	In Section 19, the definition of “Affected Party” is amended by adding the word “Lessor” after the words “Residual Support Provider”.

  

	 	(m)	Section 19 is amended by adding the following definitions: 

  
 “Excepted Payments” shall have the meaning given such term in the Funding Agreement. 
  
 “Omnibus Agreement” shall have the meaning given such term
in the Funding Agreement. 
  

	 	(n)	Section 19 is further amended by amending and restating the definitions of “Funding Agreement” and “Lender” as follows: 

  
 “Funding Agreement” means the Amended and Restated
Receivables Funding Agreement, dated as of December 30, 2003, among the Lessor, as borrower, Lenders, as lenders, the Operating Agent, the Collateral Agent and the Borrower Collateral Agent. 
  

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 “Lender” means, collectively, Edison Asset Securitization, L.L.C., Mizuho Corporate
Bank, Ltd. and KBC Bank N.V. in their capacities as Lenders under the Funding Agreement. 
  

	 	(o)	Section 21 is deleted in its entirety and replaced with: 

  
 21. THIRD PARTY BENEFICIARIES. Notwithstanding anything to the contrary contained herein, Lessor and Lessee hereby acknowledge and agree that,
consistent with the purposes of the Omnibus Agreement, and for the consideration referred to therein, Borrower Collateral Agent and Lenders shall be third party beneficiaries of this Agreement. 
  

	 	(p)	A new Section 22 is added as follows: 

  
 22. ASSIGNMENT OF RIGHTS. Lessor hereby assigns all of its rights hereunder to Lenders and Borrower Collateral Agent. Pursuant to such assignment,
all of the rights and remedies of Lessor contained herein shall be enforced only by Lenders and Borrower Collateral Agent. Lessor shall have no right to enforce or modify this Agreement; provided, however, that Lessor may enforce this Agreement
solely to the extent necessary to collect any Excepted Payments but may not exercise any remedies with respect to any Lease Collateral, Parts, Equipment, New Equipment, Replacement Equipment, Used Equipment, Substituted Item or Additional
Collateral. All notices and information required to be supplied by Lessee shall be transmitted directly to Lenders and Borrower Collateral Agent at the addresses set forth in Section 18(o) of this Agreement. All payments by Lessee shall be made in
accordance with Section 2(b). 
  

	 	(q)	Exhibit No. 1 to Annex E to the Equipment Schedule is amended by adding the following provision immediately after the pricing grid under Daily Margin for Non-Assigned Advance
Outstanding: “In addition, Lessee shall pay to Lessor per annum the amount of 1% of $2,431,109.99. The amount shall be paid monthly in arrears by multiplying $2,431,109.99 by 100 basis points (1%) and dividing the product ($24,311.10) by 360,
and then multiplying the result by the number of days in the billing period.” 

  
 4.2 Amendments to the other Related Documents. Except for the Original Funding Agreement, the Amended and Restated Funding Agreement, the Note, the
Lease and the Amended and Restated Residual Support Agreement, the Related Documents are amended as follows: 
  

	 	(a)	Each reference to “FATICO 1999 Trust” shall be deemed to refer to “MHCB (USA) Leasing & Finance Corporation” and any reference to the address for the Trust
shall be replaced with “1251 Avenue of the Americas, 32nd Floor, New York, NY 10020.”

  

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	 	(b)	All references to “The Fifth Third Leasing Company” and to “Wilmington Trust Company” shall be deleted. 

  

	 	(c)	All references to the “Borrower” under the “Funding Agreement” shall be deemed to refer to MLFC. 

  

	 	(d)	All references to the “Lessor” under the “Lease” shall be deemed to refer to MLFC. 

  

	 	(e)	All references to the “Funding Agreement” shall be deemed to refer to the Funding Agreement, as amended and restated by the Amended and Restated Funding Agreement.

  
 ARTICLE V 
 ASSIGNMENTS AND PARTICIPATIONS BY MLFC 
  
 5.1 Assignments. 
  
 (a) MLFC. Except as set forth in Section 5.2, MLFC may not assign, transfer, hypothecate or otherwise convey any of its rights, obligations or
interests hereunder, herein, or in or under the Amended and Restated Funding Agreement, the Lease, the Amended and Restated Residual Support Agreement or any other Related Document without the express prior written consent of the Lenders and the
Borrower Collateral Agent and unless the Rating Agency Condition shall have been satisfied with respect to any such assignment. Any such purported assignment, transfer, hypothecation or other conveyance by MLFC without the prior express written
consent of Lenders and Borrower Collateral Agent shall be void. Unless an Event of Default by Lessee under the Lease has occurred and is continuing, and MLFC or its assignee is diligently exercising its remedies under the Lease, MLFC may not assign,
transfer, hypothecate or otherwise convey any of its rights, obligations or interests hereunder, herein, or in or under the Amended and Restated Funding Agreement, the Lease, the Amended and Restated Residual Support Agreement or any other Related
Document (1) to a Person that is not Solvent and (2) without the prior written consent of Lessee, such consent not to be unreasonably withheld or delayed. 
  
 (b) Lenders and Borrower Collateral Agent. Any of Lenders and Borrower Collateral Agent may, at any time, assign any or all of its rights and
obligations hereunder or interests herein to any Person and any such assignee may further assign at any time its rights and obligations hereunder or interests herein, in each case without the consent of MLFC. MLFC acknowledges and agrees that, upon
any such assignment by Lenders and/or Borrower Collateral Agent, the assignee thereof may enforce directly, without joinder of Lenders and Borrower Collateral Agent, all of the obligations of MLFC hereunder. 
  

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 5.2 Participations. MLFC may sell, transfer or assign a participation in all or a portion of the
interests represented by its Equity Investment and/or its right to payment under the Lease (each such sale, transfer or assignment of a participation in such interests or rights, a “Participation”), to any Person (a “Participation
Holder”) upon prior notice to Lessee, Lenders and Borrower Collateral Agent. In no event may MLFC sell a Participation to a Person that is not Solvent. In the event of any such sale by MLFC of a Participation to a Participation Holder, the
obligations of MLFC under the Amended and Restated Funding Agreement and under the other Related Documents shall remain unchanged, MLFC shall remain solely responsible for the performance thereof, MLFC shall remain the holder of the Equity
Investment, and the party in interest for all purposes under the Amended and Restated Funding Agreement and under the other Related Documents, and Lessee, Lenders and Borrower Collateral Agent shall continue to deal solely and directly with MLFC in
connection with such Participation Holder’s rights and obligations under the Amended and Restated Funding Agreement and the other Related Documents. Any agreement pursuant to which MLFC may grant such a Participation shall provide that, as
between MLFC and such Participation Holder, MLFC shall retain the sole right and responsibility to enforce, at the direction of Lenders and Borrower Collateral Agent, the obligations of Lessee under the Related Documents, including, without
limitation, the right to approve any amendment, modification or waiver of any provision of the Related Documents. 
  
 5.3 Documentation of Assignments. Any assignment to an Affiliate shall be documented pursuant to documents reasonably acceptable to all parties,
and MLFC shall pay or otherwise be responsible for all reasonable costs incurred by the parties with respect thereto. 
  
 ARTICLE VI 
 THIRD PARTY BENEFICIARIES

  
 6.1 Third Party Beneficiaries. The
parties hereto hereby acknowledge and agree that, consistent with the purposes of this Agreement, and for the consideration referred to above, Borrower Collateral Agent and Lenders shall be third party beneficiaries of all Related Documents to which
any of them is not a party, if and to the extent any provisions thereof contain representations, warranties, covenants, acknowledgments, indemnities or agreements made or purporting to be made for their respective benefit. 
  
 ARTICLE VII 
 WAIVERS 
  
 7.1 Waiver and Consent with Respect to Certain Covenants. By consenting to this Agreement, Lenders, the Operating Agent, the Borrower Collateral Agent and the Collateral Agent, for the limited purpose of effecting this Agreement,
hereby (a) waive the requirements of Section 5.1(b) of the Original Funding Agreement and Section 10.3 of the Trust Agreement, (b) consent to the assignments and assumptions effected herein and referenced in Recital A hereof for the purposes of
Sections 5.3(a), 5.3(c) and 14.2 of the Original Funding Agreement, and (c) waive any breach of or default under the Original Funding Agreement arising solely as a result of the execution and delivery of this Agreement and the agreements
contemplated hereby. 
  

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 7.2 Acknowledgment of Lenders. The parties hereto acknowledge that each Lender is currently a
“Lender” under the Related Documents. 
  
 ARTICLE VIII

 CONDITIONS PRECEDENT 
  
 8.1 Conditions Precedent. This Agreement shall not become effective until the following conditions have been satisfied: 
  

	 	(a)	Each of the parties executes and delivers this Agreement. 

  

	 	(b)	Fifth Third and MLFC shall have executed and delivered that certain Assignment and Acceptance Agreement dated as of the date hereof regarding the assignment by Fifth Third of its
rights, title and interest in and the assumption of the obligations by MLFC under the Trust Agreement referred to in Recital Paragraph A. 

  

	 	(c)	MLFC shall have received a Replacement Certificate dated the date hereof substantially in the form of Exhibit B hereto. 

  

	 	(d)	Lenders, MLFC and Borrower Collateral Agent shall have duly authorized, executed and delivered the Amended and Restated Funding Agreement. 

  

	 	(e)	Each Lender shall have received a replacement Loan Note executed and delivered by MLFC pursuant to the Amended and Restated Funding Agreement. 

  

	 	(f)	MLFC shall have received an Equity Fee Letter dated the date hereof substantially in the form of Exhibit C hereto, duly authorized, executed and delivered by the parties
thereto. 

  

	 	(g)	Residual Support Provider, MLFC and Lenders shall have duly authorized, executed and delivered the Amended and Restated Residual Support Agreement 

  

	 	(h)	MLFC shall have caused the Residual Support Provider to issue and deliver an amended and restated Residual Letter of Credit in favor of Lenders. 

  

	 	(i)	MLFC shall have provided to Borrower Collateral Agent evidence of the authority of MLFC to accept the assignment and assumption contemplated herein, together with a certificate of
the secretary or any assistant secretary of MLFC certifying the incumbency of the officers of MLFC authorized to execute and deliver all documents in connection therewith and attaching the charter and bylaws of MLFC, as reasonably may be required by
Borrower Collateral Agent. 

  

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	 	(j)	Borrower Collateral Agent shall have received a certificate of good standing regarding MLFC from the Secretary of State of the State of New York. 

  

	 	(k)	Any Uniform Commercial Code (“UCC”) financing statements, terminations and/or amendments reasonably requested by the Lenders and the Borrower Collateral Agent shall be
delivered to such parties. 

  

	 	(l)	An opinion letter dated the date hereof of MLFC’s counsel covering such matters reasonably requested by and in form and substance reasonably satisfactory to Borrower Collateral
Agent, Collateral Agent, Residual Support Provider, Lenders, the Trust and Wilmington shall be delivered to the parties hereto. 

  

	 	(m)	An opinion letter dated the date hereof of counsel to the Lessee and the Guarantor covering such matters reasonably requested by and in form and substance reasonably satisfactory to
Borrower Collateral Agent, Collateral Agent, Residual Support Provider, Lenders, the Trust, Wilmington and MLFC shall be delivered to the parties hereto. 

  

	 	(n)	An opinion letter dated the date hereof of counsel to the Trust and Wilmington covering such matters reasonably requested by and in form and substance reasonably satisfactory to
Borrower Collateral Agent, Collateral Agent, Residual Support Provider, Lenders and MLFC shall be delivered to the parties hereto. 

  

	 	(o)	Lessee shall have provided to MLFC an insurance certificate reflecting the inclusion of MLFC as an additional insured. 

  
 8.2 Authorization to Effect UCC Filings. MLFC authorizes Borrower
Collateral Agent to record, at Lessee’s expense, such UCC financing statements, amendments and terminations as Borrower Collateral Agent may reasonably require. 
  
 ARTICLE IX 
 REPRESENTATIONS AND WARRANTIES 
  
 9.1
Representations and Warranties of MLFC. MLFC hereby represents and warrants as follows: 
  

	 	(a)	MLFC is a New York corporation duly organized and validly existing in good standing under the laws of the State of New York and has full power and authority to execute, deliver and
perform its obligations under this Agreement and each other Related Document to which it is or will be a party. 

  

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	 	(b)	This Agreement and each Related Document to which MLFC is or will be a party are or upon execution and delivery, will be legal, valid and binding obligations of MLFC, enforceable
against it in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting creditors’ rights generally and by general equitable principles. The execution,
delivery and performance of this Agreement and each Related Document to which MLFC is a party have been duly authorized by all necessary corporate action on the part of MLFC and do not require the approval of any stockholder or holder of any
obligations of MLFC except such as have been duly obtained. 

  

	 	(c)	The execution and delivery by MLFC of this Agreement and of each Related Document to which it is or will be a party, are not and will not be, and the performance by MLFC of its
obligations under each are not and will not be, inconsistent with the articles of incorporation and by-laws of MLFC, do not and will not contravene any law, governmental rule, regulation or order now binding on MLFC and do not and will not
contravene any provision of, or constitute a default under, any indenture, mortgage, chattel mortgage, deed of trust, lease, conditional sales contract, loan or credit arrangement or other agreement or instrument to which MLFC is a party or by which
it or its properties may be bound or affected. 

  

	 	(d)	There is no action, proceeding or investigation pending or to MLFC’s knowledge threatened against MLFC which questions the validity of this Agreement or any of the Related
Documents, and there is no action, proceeding or investigation pending or threatened which is likely to result, either in any case or in the aggregate, in any material adverse change in the ability of MLFC to perform its obligations hereunder or
under the Related Documents to which it is a party, or in MLFC not being Solvent. 

  

	 	(e)	After giving effect to the transactions contemplated hereby, MLFC is Solvent as of the date hereof. 

  
 9.2 Representations and Warranties of the Trust. The Trust hereby represents and warrants as follows: 
  

	 	(a)	Immediately prior to the execution of this Agreement, the Trust (i) was a Delaware statutory trust duly formed, validly existing and in good standing under the laws of the State of
Delaware; (ii) was duly qualified to conduct business and is in good standing in each other jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification; (iii) was in compliance with the Trust
Agreement; and (iv) had the power and authority to enter into and perform its obligations under this Agreement. 

  

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	 	(b)	The execution, delivery and performance by the Trust of this Agreement: (i) are within its power as a Delaware statutory trust; (ii) have been duly authorized by all necessary or
proper action; (iii) do not contravene any provision of the Trust Agreement or its other organizational documents; (iv) do not violate any law or regulation, or any order or decree of any court or Governmental Authority of the State of Delaware or
the federal government of the United States governing the banking and trust power of Wilmington; (v) do not conflict with or result in the breach or termination of, constitute a default under or accelerate or permit the acceleration of any
performance required by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which it is a party or by which it or any of its property is bound; (vi) do not result in the creation or imposition of any Adverse Claim upon
any of the property of any Person, and (vii) do not require the consent or approval of any Governmental Authority or any other Person. 

  

	 	(c)	The Agreement has been duly executed and delivered by the Trust and, constitutes the legal, valid and binding obligation of the Trust, enforceable against he Trust in accordance
with its terms. 

  

	 	(d)	Upon execution and delivery of this Agreement, the Trust shall have transferred to MLFC all of its obligations and liabilities as Borrower under the Original Funding Agreement, and
MLFC shall be fully obligated and bound as borrower under the Original Funding Agreement, as amended by the Amended and Restated Funding Agreement. 

  
 9.3 Representations and Warranties of Lessee. Lessee hereby represents and warrants as follows: 
  

	 	(a)	Lessee is a corporation, duly organized, validly existing and in good standing under the laws of the State of California. 

  

	 	(b)	The execution, delivery and performance of this Agreement and the performance of the Lease: (1) have been duly authorized by all necessary corporate action on the part of Lessee;
(2) do not require the approval of any stockholder, trustee or holder of any obligations of Lessee except such as have been duly obtained; and (3) do not and will not contravene any law, governmental rule, regulation or order now binding on Lessee,
or the organizational documents of Lessee, or contravene the provision of, or constitute a default under, or result in the creation of any lien or encumbrance upon the property of Lessee under, any indenture, mortgage, contract or other agreement to
which Lessee is a party or by which it or its property is bound. 

  

	 	(c)	This Agreement and the Lease constitute legal, valid and binding obligations of Lessee, enforceable against Lessee in accordance with the 

  

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 terms hereof and thereof, except as such enforceability may be limited by applicable bankruptcy,
insolvency, or other similar laws affecting creditors’ rights generally and by general equitable principles. 
  

	 	(d)	There are no pending actions or proceedings to which Lessee is a party, and there are no other pending or threatened actions or proceedings of which Lessee has knowledge, before any
court, arbitrator or administrative agency, which either individually or in the aggregate would have a Material Adverse Effect. As used herein, “Material Adverse Effect” shall mean (1) a materially adverse effect on the business, condition
(financial or otherwise), operations or properties of Lessee, or (2) a material impairment of the ability of Lessee to perform its obligations under or to remain in compliance with the Lease. Further, Lessee is not in default under any obligation
for borrowed money, for the deferred purchase price of property, or any lease agreement which, either individually or in the aggregate, would have the same such effect. 

  

	 	(e)	That the representations and warranties of Lessee contained in Sections 14(f), (g), (h), (i) and (m) of the Lease are true and correct as if made on and as of the date hereof.

  

	 	(f)	After giving effect to this Agreement and the other agreements contemplated hereby, the security interest granted by Lessee under the Lease Agreement shall continue to be perfected
by the filing of those UCC Financing Statements previously filed with respect to said lease (the “UCC Financing Statements”), shall remain in full force and effect and the priority of such security interest shall relate back to the
date on which the UCC Financing Statements were filed. 

  
 ARTICLE X 
 MISCELLANEOUS 
  
 10.1 Entire Agreement. This Agreement, the Lease, the Amended and Restated Funding Agreement and the other Related Documents constitute the entire
agreement among the parties with respect to the subject matter hereof and shall not be rescinded, amended or modified in any manner except by a document in writing executed by the parties hereto. 
  
 10.2 Binding Agreement. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and permitted assigns. Each party hereto (in any capacity) consents to the transactions contemplated hereby (including the amendment and restatement of the Original Funding
Agreement and the termination of the Trust). 
  
 10.3
Severability. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provisions shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
  

 14 

 10.4 Governing Law; Venue; Waiver of Jury Trial. THIS AGREEMENT, AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER, SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE. 
  
 EACH PARTY HERETO HEREBY CONSENTS
AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT; PROVIDED, THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE BOROUGH OF MANHATTAN IN NEW YORK CITY. EACH
PARTY HERETO SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE
OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELEIF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH PARTY HERETO HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS
ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPALINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT THE ADDRESS SET FORTH IN SECTION 14.1 OF THE AMENDED AND RESTATED FUNDING
AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE PREPAID. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT
OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 
  
 THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO, OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
  

 15 

 10.5 Counterparts. This Agreement may be executed in any number of counterparts, and by different
parties hereto on separate counterpart signature pages, and all such counterparts taken together shall be deemed to constitute one and the same instrument. 
  
 10.6 Section Titles. The section titles contained in this Agreement are and shall be without substantive meaning or content of any kind whatsoever
and are not a part of the agreement between the parties hereto. 
  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Omnibus Agreement to be duly
executed as of the day and year first above set forth. 
  

			
	 GENERAL ELECTRIC CAPITAL CORPORATION,
 as Borrower Collateral Agent
	    	 GENERAL ELECTRIC CAPITAL CORPORATION,
 as Operating Agent

		
	 By:    /s/    PETER DI
BIASI

	    	 By:    /s/    KRISTI
COLBURN

	 Name: Peter Di Biasi

	    	 Name: Kristi Colburn

	 Title: Risk Manager

	    	 Title: Vice President

		
	 GENERAL ELECTRIC CAPITAL CORPORATION,
 as Collateral Agent
	    	EDISON ASSET SECURITIZATION, L.L.C.
		
	 By:    /s/    KRISTI
COLBURN

	    	 By:    /s/    MICHAEL
JOHNSTON

	 Name: Kristi Colburn

	    	 Name: Michael Johnston

	 Title: Vice President

	    	 Title: Assistant Secretary

		
	 MIZUHO CORPORATE BANK, LTD.
	    	 KBC BANK N.V.

		
	 By:    /s/    ROBERT
GALLAGHER

	    	 By:  /s/  ROBERT
SNAUFFER     /s/  JEAN-PIERRE DIELs

	 Name: Robert Gallagher

	    	 Name: Robert
Snauffer                  Jean-Pierre Diels

	 Title: Vice President & Team Leader

	    	 Title: First Vice President          First
Vice President

		
	 WILMINGTON TRUST COMPANY,
 in its individual capacity only as set forth herein
	    	 WILMINGTON TRUST COMPANY,
 not in its individual capacity by solely as Owner Trustee

		
	 By:    /s/    TIRA L.
JOHNSON

	    	 By:    /s/    TIRA L.
JOHNSON

	 Name: Tira L. Johnson

	    	 Name: Tira L. Johnson

	 Title: Financial Services Officer

	    	 Title: Financial Services Officer

			
	 FATICO 1999 TRUST
  
 By Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee
	    	GENERAL ELECTRIC CAPITAL CORPORATION, as Residual Support Provider
		
	 By:    /s/    TIRA L.
JOHNSON

	    	 By:    /s/    PETER DI
BIASI

	 Name: Tira L. Johnson

	    	 Name: Peter Di Biasi

	 Title: Financial Services Officer

	    	 Title: Risk Manager

		
	MHCB (USA) LEASING & FINANCE CORPORATION	    	FIRST AMERICAN TITLE INSURANCE COMPANY
		
	 By:    /s/    VICTOR
MORA

	    	 By:    /s/    MAX O.
VALDES

	 Name: Victor Mora

	    	 Name: Max O. Valdes

	 Title: Vice President

	    	 Title: Vice President

  
 Notwithstanding the
foregoing Omnibus Agreement, the undersigned confirms that the Corporate Guaranty dated December 27, 1999 by the undersigned remains in full force and effect. 
  

	
	 THE FIRST AMERICAN CORPORATION
 (f/k/a The First American Financial Corporation),
 as Guarantor

	
	 By:    /s/    THOMAS A.
KLEMENS

	 Name: Thomas A. Klemens

	 Title: Senior Executive Vice President

 EXHIBIT A TO OMNIBUS AGREEMENT 
  
 CERTIFICATE OF CANCELLATION 
 OF 
 CERTIFICATE OF TRUST 
 OF 
 FATICO 1999 TRUST 
  
 This Certificate of Cancellation of Certificate of Trust is being executed
and filed by the undersigned to cancel the certificate of trust of a statutory trust formed under the Delaware Statutory Trust Act, 12 Del. C. §3801 et seq. (as amended, the “Act”). 
  

	 	Section 1.	Name. The name of the statutory trust (the “Trust”) is FATICO 1999 Trust. 

  

	 	Section 2.	The Certificate of Trust of the Trust was filed with the Secretary of State of the State of Delaware on December 22, 1999. 

  
 IN WITNESS WHEREOF, the undersigned has executed this Certificate of
Cancellation of Certificate of Trust in accordance with the Act. 
  

	
	WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as trustee of the Trust
	
	 By:

	 Name:

	 Title:

  

 EXHIBIT B TO OMNIBUS AGREEMENT 
  
 REPLACEMENT CERTIFICATE 
  

			
	 $                    
	 	December     , 2003

  
 THIS REPLACEMENT
CERTIFICATE evidences the right of MHCB (USA) Leasing & Finance Corporation (the “Certificate Holder”) to receive on the Maturity Date the principal sum of
                                        
                     Dollars
($                     ) or, if less, the aggregate unpaid principal amount of all amounts advanced by the Certificate Holder pursuant to that
certain Master Lease Agreement, dated as of December 27, 1999 (together with all amendments, supplements, amendments and restatements and other modifications, if any, from time to time thereafter made thereto, the “Lease”), between
the Lessee and the Lessor. 
  
 This Replacement Certificate
further evidences the right of the Certificate Holder to receive Yield on the unpaid principal amount hereof from time to time outstanding from the date hereof until maturity (whether by acceleration or otherwise) and, after maturity, until paid, at
the rates per annum and on the dates specified in the Equity Fee Letter. 
  
 Payments of both principal and Yield are to be made without setoff or counterclaim in lawful money of the United States of America in same day or immediately available funds to the account of the Certificate Holder
specified in Schedule II hereto (or to such other account as the Certificate Holder may from time to time designate in a written notice to the Owner Trustee). 
  

The Certificate Holder is authorized to endorse the schedule attached hereto (and any continuation thereof) in accordance with the provisions of the
Trust Agreement. 
  
 Capitalized terns used but not otherwise
defined herein have the respective meanings specified in the Lease (as the Lease may be amended, supplemented, amended and restated or otherwise modified from time to time). 
  
 All parties hereto, whether as makers, endorsers, or otherwise, severally waive presentment for payment, demand, protest and
notice of dishonor. 
  
 Notwithstanding any provisions contained
in the Trust Agreement or this Replacement Certificate to the contrary, the Lessor Trust shall not, and shall not be obligated to, pay any amount pursuant to the Trust Agreement or this Certificate, unless the Lessor Trust has received funds which
may be used to make such payment pursuant to Section 6.2 of the Funding Agreement. Any amount which the Lessor Trust does not pay pursuant to the operation of the preceding sentence shall not constitute a claim (as defined in §101 of the
Bankruptcy Code) against or corporate obligation of the Lessor Trust for any such insufficiency unless and until the Lessor Trust satisfies the provisions of such preceding sentence. 
  
 This Replacement Certificate is issued in replacement and substitution for the Certificate dated December 29, 1999, issued
by the Owner Trustee to The Fifth Third 

 Leasing Company and evidences the same obligation evidenced by such prior Certificate as assigned to MHCB Leasing &
Financing Corporation. 
  
 THIS REPLACEMENT CERTIFICATE SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF DELAWARE. 
  

	
	 FATICO 1999 TRUST

	By Wilmington Trust Company, not in its individual capacity but solely as Owner
	 Trustee

	
	 By:

	 Name:

	 Title:

 SCHEDULE TO CERTIFICATE 
  

																			
	 DATE

	  	 AMOUNT OF
 ADVANCE MADE

	  	 INTEREST
 PERIOD IF
 APPLICABLE

	  	AMOUNT OF
PRINCIPAL REPAID

	  	 UNPAID
 PRINCIPAL BALANCE

	  	TOTAL

	  	 NOTATION
 MADE BY

	 	  	Base Rate	  	Eurodollar
Rate	  	 	  	Base Rate	  	Eurodollar
Rate	  	Base Rate	  	Eurodollar
Rate	  	 	  	 

 SCHEDULE II 
  
 CERTIFICATE HOLDER ACCOUNT 

 EXHIBIT C TO OMNIBUS AGREEMENT 
  
 See Tab # 11 of Closing BinderROYAL AGREEMENT, DATED APRIL 26, 1999, BETWEEN THE COMPANY AND GARY D. PIAGET

 EXHIBIT 10.10 
  
 LICENSE AGREEMENT 
 between 
 PIAGET ASSOCIATES, L.L.C., 
 A              LIMITED LIABILITY COMPANY 
 (LICENSOR) 
 and 
 DIRECT FOCUS, INC. 
 (A Washington Corporation) 
 (LICENSEE) 
  
 This
Agreement is the complete and exclusive statement of Licensor’s and Licensee’s obligations and responsibilities to each other and supersedes any other proposal, representation, or other communication by or on behalf of Licensor relating to
the subject matter hereof. This Agreement shall become effective when both Licensor and Licensee have executed this Agreement. 
  

	1.	LICENSE 

  

	1.1	Licensed Intellectual Property. Licensor owns, and warrants to Licensee that its ownership comprises rights sufficient to grant exclusively to Licensee the rights so granted herein,
to U.S. Patent 5,336,146 and U.S. Patent Des. 406,621 and all follow-on and supplemental utility and design patents either filed or pending or which may be filed in the future and any common law or registered trademarks covering the name “Tread
Climber” (hereinafter referred to as “Patent” and/or “Trademark”). Goods incorporating the Patent shall be “Licensed Goods.” A copy of the Patent shall be attached to this Agreement and listed as Exhibit A hereto.

  

	1.2	License Grant. 

  

	 	A.	Licensor hereby grants to Licensee an exclusive worldwide right and license to all of Licensor’s rights and interest in the Patent and Trademark, including the right to
sublicense to others, to manufacture, have manufactured, import, use, sell, or otherwise distribute or dispose of Licensed Goods. 

  

	1.3	Patent Notice/Location of the Mark. 

  

	 	A.	Licensed Goods shall be marked with the patent numbers in a manner that allows the consumer to be easily informed upon examination of Licensed Goods of the patented nature of the
Licensed Product. 

  

	2.	WARRANTIES AND PROPRIETARY RIGHTS 

  

	2.1	Warranty of Title. Licensor represents and warrants to Licensee that Licensor has all necessary rights, power and authority to enter into and perform this Agreement and to grant the
licenses granted to Licensee herein. Licensor represents that Licensor has experience in research and development regarding products related to the Patent and has made reasonable efforts to ascertain regarding the Patent, the absence of infringement
or misappropriation of any third party rights in any patent, copyright, trademark, trade secret or any other proprietary rights and that there are no claims known of any third party which, if upheld, would impair Licensor’s right to enter into
this Agreement, or that would, in any way, restrict or limit Licensee’s ability to manufacture or market products worldwide using the Licensed Goods. Licensor has not granted any prior licenses which would interfere with or restrict in any way
its ability to grant the License to Licensee. 

	2.2	Licensee’s Warranties and Representations. Licensee represents and warrants that it has the requisite authority, ability and resources to enter into this Agreement and to
perform all of the contemplated obligations enumerated therein. Entering into this Agreement will not cause Licensee to be in breach or default of any other agreement and the product to be manufactured and sold under the Agreement will be
manufactured of good workmanship and of a reasonable quality to enable the product to be used for its intended purpose. 

  

	2.3	Limitation Warranty. Except as expressly set forth in this Agreement, Licensor makes no other representations or warranties, expressed or implied, and Licensor makes no
representations or warranties of merchantability or fitness for a particular purpose. 

  

	2.4	Limitation of Damages. Except for the indemnity provided in Section 2.5 in this Agreement, in no event shall Licensor be liable for any damages or losses, whether direct, incidental
or consequential or otherwise, arising out of any claim or allegation or damage sustained by Licensee or a third party, that arises from or relates to Licensee’s use of the Patents or the use of the Mark under this Agreement.

  

	2.5	Indemnity. Licensor, subject to the limitation below, shall indemnify, hold harmless, and defend Licensee, and its officers, agents, and employees, against any and all claims,
expense, judgments, liabilities, damages or losses, including reasonable attorney fees, court costs, and any settlements, whether direct or consequential or otherwise, arising out of any claim or allegation that the Licensed Goods, solely with
respect to licensed rights hereunder, infringe or misappropriates any patent, copyright, trademark, trade secret, mask work, intention, intellectual property right, or other proprietary right of any third party, including any claims of Trace O.
Gordon associated with any claims he may have concerning his status as co-inventor under Patent 5,336,146, and Licensee shall cooperate with Licensor, at Licensor’s expense, in the defense or settlement of any such claim. In the event Licensor
does not defend Licensee, Licensee shall have the right to defend itself and its officers, agents, and employees against any such charge of infringement, misappropriation of trade secrets or violation of any proprietary rights, and to deduct the
cost of doing so from the royalties as they come due under Article 3.1 of this Agreement. Licensor’s liabilities under this paragraph shall be limited to royalties as they come due after Licensor has received written notice of such claim.

  

	2.6	Proprietary Rights of Licensor. Ownership of subsequent developments, improvements, or inventions which are patented shall be jointly owned by Licensor and Licensee when such
developments, improvements, or inventions are derived by Licensee from claims allowed in the Patents and may be used without the requirement for the payment of any additional royalties by Licensee other than those specified in 4.2 (A) of this
Agreement. Otherwise, Licensor shall have sole and exclusive ownership of all right, title and interest in and to the Patent and to all modifications and enhancements thereof made by Licensor subject only to the rights of Licensee under this
License. Any foreign patents developed by Licensor during the term of this Agreement shall be licensed to Licensee on the terms and conditions of this Agreement without the requirement for the payment of any additional royalties by Licensee.

  

	3.	ASSIGNMENT OF PATENT 

  

	3.1	Licensor agrees to assign patents covered by this Agreement to Licensee upon request of Licensee as long as Licensee is not in default under this Agreement, and so long as Licensee
has paid Licensor at least a total of $100,000 in royalties during the most recent four calendar quarters cumulative. Licensor further agrees to assign all improvements to Licensee and to reasonably cooperate with Licensee in prosecuting patent
applications, both U.S. and foreign, covering the patented technology and/or any improvements, modifications, enhancements or adaptations made to the patent technology or products covered under this Agreement by Licensee, provided that Licensee
shall pay all expenses (including legal fees and expenses) of the Licensor in connection therewith. Licensee shall be obligated to pay all ongoing maintenance fees for existing patents previously obtained by Licensor. 

	3.2	If this Agreement is terminated for any reason other than upon expiration of the term hereof, Licensee shall execute any instrument necessary to formally revest Licensor of his
interest in the Patent Rights as fully and entirely as the Licensor would have held and enjoyed if an assignment of the patent had not been made. 

  

	3.3	During the term of the Agreement, Licensee may apply for a patent based on any improvements, adaptations or inventions of Licensee relating to the Licensed Product. Licensee will be
responsible to prosecute and maintain such applications and pay all costs incurred in connection therewith. Licensor shall receive notice of any such improvements, adaptations or inventions at such time as patents are applied for. These patents
would be royalty free; however, upon termination of the Agreement, all such patent rights would revert to Licensor. 

  

	4.	ROYALTY, PAYMENT, AND RECORD KEEPING 

  

	4.1	The Licensee shall use its best reasonable efforts to develop, market and sell Licensed Goods. Licensee commits to make a national rollout of the contemplated direct response
commercial within twelve (12) months of execution of this Agreement. Failure to do so will be an event of default giving Licensor the right of termination pursuant to paragraph 5.2(B). However, in the event Licensee has not commenced a national
rollout of the direct response commercial within twelve (12) months of execution of this Agreement, Licensee may extend its license rights for up to an additional six (6) months by paying the minimum quarterly royalty payment amount specified in
paragraph 4.1(D) ii of $25,000 per quarter. Said payments would not count toward the advance royalty. Additionally, Licensee agrees to develop, market and offer for sale a club version within two and one-half (2 1/2) years from the date of this Agreement. Failure to develop, market and offer for sale a club version within two
and one-half (2 1/2) years from the date of this Agreement will result in termination of Licensee’s right to
exclusivity to develop, market and offer for sale a club version of the Licensed Goods. 

  

	4.2	Royalties and Payments/Minimum Royalties. 

  

	 	A.	As consideration for the rights and licenses herein granted, Licensee shall pay to Licensor a royalty on all Licensed Goods at a rate of four percent (4%) of net collected sales by
Licensee. 

  

	 	B.	Licensee may enter into sub-license agreements for part or all of the Licensed Goods. However, in no case shall royalties be less than what would have been payable under 4.2(A).

  

	 	C.	Licensee shall pay such royalties and all other amounts due under this License each quarter no later than thirty (30) days following the end of such quarter and shall, at that time,
deliver to Licensor a royalty statement for such quarter. “Net collected sales” shall be defined as gross sales by Licensee less credit card and cash discounts actually credited to the customer, financing discounts, selling commissions
paid, freight and bad debt. “Net collected sales” shall refer only to sales for which the company has received payment. Net collected sales will also include any actual net profit realized from shipping and handling revenue after fully
burdening of shipping and handling. 

  

	 	D.	Licensee agrees to make royalty payments, as follows: 

  

	 	i.	$17,500 within two (2) weeks of the signing of this Agreement and an additional $17,500 within six months from the signing of this Agreement. 

  

	 	ii.	$25,000 minimum per quarter beginning with the quarter ending eighteen (18) months from the date of this Agreement and thereafter until such time actual royalties due under
this Agreement exceed royalty minimums paid. However, in the event Licensee has commenced the sale of Licensed Goods earlier than eighteen (18) months from the date of this Agreement, minimum royalty payments shall be due for the quarter in which
first sales of Licensed Goods are made. 

	4.3	Reports and Records. 

  

	4.3.1	Licensee shall keep complete and accurate records of its operations under this Agreement and shall furnish Licensor with a statement not more than thirty (30) days after the end of
each calendar quarter during the term of this Agreement, setting forth the “net sales” and the method used to determine net sales during the quarter to which the statement pertains, and the royalty then due. Each such statement shall be
accompanied by payment to Licensor of all amounts then due. The first such report and payment shall be due not more than thirty (30) days after the quarter in which product sales have commenced. 

  

	4.3.2	Licensor shall have the right to audit the records and accounts of Licensee relating to the sales under this Agreement, provided that such audits shall be made at reasonable times
during normal business hours by a certified public accountant selected by Licensor solely at Licensor’s expense. 

  

	4.3.3	If an audit shall reveal that in any calendar quarter, Licensee has made an error in its favor in any payment due to Licensor, Licensee shall be obligated to pay the reconciled
unpaid amount and, in addition, pay the audit fee in respect of such audits if such error equals or is greater than five percent (5%). 

  

	4.3.4	In calculating and determining the royalties payable hereunder, Licensee shall consistently apply the conventions, rules and procedures of Generally Accepted Accounting Principles
(GAAP) as defined by the American Institute of Certified Public Accountants (AICPA). 

  

	5.	TERM, TERMINATION AND REVISION 

  

	5.1	Term. Unless sooner terminated as provided herein, this Agreement shall remain in effect for the term of the licensed patents, or for so long as Licensee continues to manufacture,
market, promote or sell the Licensed Product, whichever is longer. 

  

	5.2	Termination. 

  

	 	A.	Licensee shall have the right to terminate this Agreement upon ninety (90) days written notice to Licensor. Expiration or termination of this Agreement or of any license rights
under this Agreement shall not relieve the parties of any obligation accruing prior to or at the time of such expiration or termination, and any provisions relating to enforcement of the license rights hereunder or indemnification of one party by
the other shall survive the expiration or termination of this Agreement. 

  

	 	B.	In the event of a breach of any of the terms or provisions of this Agreement by either party, the party not in default shall have the right to terminate the Agreement by giving
thirty (30) days written notice to such effect to the defaulting party, such notice to set forth the nature of the breach or default relied upon to effect termination. In the event that the breach or default is cured by the defaulting party within
the period of the notice, then the notice shall be null and void and of no further effect. 

  

	 	C.	If Licensee becomes insolvent or files for liquidation under any provision of the bankruptcy law, all rights of the Licensee will be automatically deemed to have expired as of a
date seven (7) days prior to that event. 

  

	5.3	Rights After Termination. Upon termination of this Agreement, Licensee shall have the right to complete any Licensed products then in the process of manufacture and to dispose of
those Licensed Goods, as well as its existing inventory of all Licensed Goods, subject to the payment of royalties to Licensor as provided in Article 3.1. Any inventory not disposed of one hundred eighty (180) days from the date of termination will
be offered to Licensor at cost. Licensor shall have no obligation to purchase said existing inventory. 

	5.4	Reversion. Upon termination of this Agreement, all rights granted to Licensee will terminate and revert to Licensor. 

  

	6.	GENERAL 

  

	6.1	Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington, to which State the parties agree to jurisdiction of its courts or to
federal courts situated therein. 

  

	6.2	Indemnification. Licensee shall defend, indemnify and hold Licensor harmless from and against any and all damages, liabilities, costs, losses, expenses, claims and/or judgments,
including legal costs and reasonable attorneys’ fees which may result in connection with the Direct Response Commercial or the manufacturing, marketing or distribution of the Product, unless resulting directly from Licensor’s material
breach of this Agreement or Licensor’s gross negligence or willful misconduct. 

  

	6.3	Litigation. 

  

	 	A.	So long as this exclusive license to Direct Focus, Inc. is in effect, Licensee shall have the authority, but not the obligation, to pursue any and all litigation and/or potential
litigation with third parties regarding said Product and any and all modifications and improvements thereof. Licensee shall pay Licensor royalties on proceeds of any such action, after deducting all costs of litigation including attorney fees, in
accordance with percentages outlined in paragraph 4.2 (A). 

  

	 	B.	Licensor shall make reasonable efforts to cooperate with Licensee in litigation and/or potential litigation with third parties being pursued by Licensee. 

 

	 	C.	Where Licensee chooses not to pursue a particular litigation matter, including a party who infringes Licensee’s exclusive rights hereunder, Licensor shall have the authority,
but not the obligation, to pursue the particular litigation matter. Licensee shall not be obligated to pay any fees or expenses for litigation that Licensor chooses to pursue. Licensor shall not be obligated to pay Licensee any proceeds from
litigation commenced under this paragraph. 

  

	 	D.	Licensee shall make reasonable efforts to cooperate with Licensor in litigation and/or potential litigation with third parties being pursued by Licensor. 

 

	6.4	Modifications. No waiver, consent, modification, amendment or change of the terms of this Agreement shall be binding unless in writing and signed by Licensee and Licensor.

  

	6.5	Notices. Any notices required or permitted under this Agreement shall be in writing and delivered in person or sent by registered or certified mail, return receipt requested, with
proper postage affixed to Licensee: Direct Focus, Inc., attention Brian R. Cook, 2200 NE 65th Avenue, Vancouver, WA
98661, telephone (360) 418-6177; to Licensor: Gary Piaget, P.O. Box 236, Deerharbor, WA 98243, telephone (360) 376-7088. 

  

	6.6	Severability. In the event that any provision of this Agreement is held by a court of competent jurisdiction to be legally ineffective or unenforceable, the validity of the
remaining provisions shall not be affected, unless the intent of this Agreement is frustrated. 

  

	6.7	Assignment of Contract. 

  

	 	A.	Neither this Agreement nor the licenses granted herein may be assigned or otherwise transferred by Licensee or Licensor without the other’s written consent. Such consent shall
not be unreasonably withheld, except in connection with the sale of substantially all of the assets of the business to which the Agreement pertains or any inter-company assignment. Any assignment or transfer without such consent shall be null and
void. 

  

	 	B.	Subject to the restriction against assignment and transfer set forth in Paragraph A of this Article, this Agreement shall inure to the benefit of and be binding upon the parties
hereto, their subsidiaries, successors, assigns, and other legal representatives. 

	6.8	Execution in Counterparts. This Agreement shall be executed in counterparts, each of which shall have the full force and effect of an original. 

  

	6.9	Arbitration. Any controversy or claim arising under or in relation to this Agreement or the breach thereof, or the relations between Licensee and Licensor shall be settled by
arbitration by one arbitrator in the City of Vancouver, Washington administered by the American Arbitration Association under the then applicable general arbitration rules of said association and judgment on the award rendered by the arbitrator may
be entered in any court having jurisdiction thereof; provided however that the arbitrator shall be bound by the laws of the State of Washington and regarding any questions relating thereto, the trademark and patent laws of the United States of
America. The prevailing party shall be awarded its attorney’s fees and reasonable costs. The choice of law governing any and all questions and issues any way related to this Agreement shall be the laws of the State of Washington and the patent
and trademark laws of the United States of America. 

  

	6.10	Product Liability Insurance. Licensee agrees to maintain product liability insurance on the Licensed Goods in such amount as Licensee typically maintains on its other fitness
products, but in any event, not less than $1 million per occurrence and $2 million aggregate with coverage for attorney’s fees and costs outside those amounts. Licensee agrees to provide appropriate certificates of insurance evidencing such
coverage. Licensee agrees to list Piaget Associates, LLC as an additional insured on such policy. Any additional expense for naming Piaget Associates LLC as an additional insured will be borne by Licensor. 

  

	6.11	Time is Of the Essence. The parties acknowledge that time is strictly of the essence with respect to each and every term, condition and obligation of this Agreement, and the failure
to perform any of the terms, conditions or obligations hereunder by any party shall constitute a material breach of this Agreement. 

  

	6.12	Confidentiality. Each party hereto agrees to maintain the confidentiality of the Confidential Information acquired during the negotiations leading up to and throughout the term of
this Agreement from the other party. “Confidential Information” includes, without limitation, trade secrets, technical data, prototypes, product summaries, financial data, sales data, business plans, and other certain information which
either party with respect to its own information deems to be confidential, and which the party claiming confidentiality has declared to the other party verbally or in writing to be “Confidential” or “Proprietary.” Each party
agrees to receive and hold all such Confidential Information acquired from the other party in strict confidence and to disclose the same within its own organization only on an “as needed” basis, and then only to those employees who have
agreed in writing to protect and preserve the confidentiality of such disclosures. Further, each party agrees that it will not disclose or use the Confidential Information acquired from the other party, in whole or in part, for any purpose other
than those purposes contemplated under this Agreement, and that it will not disclose any such Confidential Information to any third party, or use the same for its own benefit or for the benefit of any third party. The foregoing restrictions on the
disclosure and use of Confidential Information shall not apply to the extent of information (a) known to one party prior to receipt from the other party; (b) which becomes public knowledge without breach of this confidentiality provision; (c)
rightfully acquired from a third party without restriction on disclosure or use; (d) disclosed by the disclosing party to a third party without restriction on disclosure or use; (e) independently developed by the receiving party without resort to
the disclosing party’s disclosure; or (f) as to which the receiving party has received express consent from an authorized officer of the disclosing party to disclose or use; provided, however, that the receiving party shall have the burden to
prove any of the aforementioned events on which that party relies to relieve it of the restrictions hereunder, and provided further that in the case of events (b), (c), (d), (e) and (f), the removal of restrictions shall be effective only from and
after the date of occurrence of the applicable event. 

	6.13	Survival. In addition to the express survival provision of Section 5.2.A. herein above, and without limiting any other provision herein regarding survival of covenants and
obligations, Sections 2.4, 2.5, 2.6, 3.2, the reversion of patent rights under 3.3, 5.3, 5.4, 6.2, 6.3, 6.7.B., 6.9, 6.10, 6.12 and this Section 6.13 shall survive the expiration or termination of this Agreement. 

  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and
delivered as of the day and year first written above. 
  

									
	LICENSOR	    	Piaget Assoc LLC
			
	Date: 4/11/99	    	By:	 	 /s/ Gary D. Piaget

		
	LICENSEE	    	DIRECT FOCUS, INC.
			
	Date: 4/26/99	    	By:	 	 /s/ Brian R. Cook

	 	    	Brian R. Cook, President
		
	Notary Statement: (Licensor)	    	Notary Statement: (Licensee)
		
	STATE OF Washington	    	STATE OF Washington
	 	  	) ss.	    	 	  	 ) ss.

		
	County of San Juan	    	County of Clark
		
	 On 4/11/99 before me,
 a Notary Public in and
for said County
 and State, residing therein, personally
	    	On 4/26/99 before me,
a Notary Public in and for said County and State,
residing
therein, and personally appeared
		
	appeared Gary Piaget,	    	Brian R. Cook
	who, being duly sworn, and he acknowledged said instrument to be its voluntary act and deed.	    	who, being duly sworn, and he acknowledged said
Instrument to be its voluntary act and deed.
		
	IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year last above written.	    	IN WITNESS WHEREOF, I have hereunto set my
hand and affixed by official seal the day and year last
above Written.
	Diane M. Baxtor	    	Deborah L. Merz
		
	Notary Public for San Juan County, State of Washington	    	Notary Public for Clark County, WA
		
	My Commission Expires 7/9/01	    	My Commission Expires 10/19/02
		
	 (Seal)
	    	                                (Seal)

 FIRST AMENDMENT TO LICENSE AGREEMENT 
  
 The License Agreement executed by Piaget Associates, L.L.C. on April 11, 1999 and by Direct Focus, Inc. on April 26, 1999 is hereby amended
as follows: 
  

	A.	The parties to the Agreement are changed to include Gary D. Piaget, an individual residing in East Sound, Washington, as the Licensor along with Piaget Associates, L.L.C.

  

	B.	The royalty rate (Paragraph 4.2A) is reduced from Four Percent (4%) to Three Percent (3%). 

  

	C.	The minimum royalty payment (Paragraphs 4.1 and 4.2D ii) is reduced from Twenty five Thousand Dollars ($25,000) per quarter to Twenty Thousand Dollars ($20,000) per quarter.

  

	D.	Paragraph 2.6 is amended to add the following: 

  

	 	2.6	Improvements. Licensor shall promptly notify Licensee of all improvements heretofore or hereinafter made by Licensor relating to exercise machines covered by U.S. Patent No.
5,336,146, and Licensee shall have the exclusive right and license to use such improvements without further payment to Licensor. 

  

	E.	The following new Paragraph 3.4 is added to the agreement: 

  

	 	3.4	Upon request by Licensee and as long as Licensee is not in default under this Agreement, Licensor will assign the entire right, title and interest in and to the TREAD CLIMBER
trademark and any registration granted thereon to Licensee. 

  

	F.	In Paragraph 4.1, the reference to Paragraph 4.1D ii is changed to Paragraph 4.2D ii. 

  

	G.	In Paragraph 5.3, the reference to Article 3.1 is changed to Article 4.2A. 

  
 IN WITNESS WHEREOF, the parties have caused this amendment to be executed and delivered this 7th day of October, 1999. 
  

			
	 PIAGET ASSOCIATES. L.L.C.

		
	 By
	 	 /s/ Gary D. Piaget

	 	 	 Gary D. Piaget, President

		
	 	 	 /s/ Gary D. Piaget

	 	 	 Gary D. Piaget

	
	 DIRECT FOCUS, INC.

		
	 By
	 	 /s/ Brian R. Cook

	 	 	 Brian R. Cook, President

 SECOND AMENDMENT TO LICENSE AGREEMENT 
  
 The License Agreement executed by Piaget Associates, L.L.C. on April 11, 1999 and by Direct Focus, Inc. on April 26, 1999,
is hereby amended as follows: 
  

	A.	Paragraph 4.1 in the License Agreement is replaced with the following paragraph: 

  
 “Licensee shall use its best reasonable efforts to develop, market and sell Licensed Goods. Licensee commits to make a
national roll-out of the contemplated direct response commercial by April 30, 2000. Failure to do so will be an event of default giving Licensor the right of termination pursuant to Paragraph 5.2(B). However, in the event Licensee has not commenced
a national roll-out of the direct response commercial by April 30, 2000, Licensee may extend its license rights for up to an additional eighteen (18) months by paying a minimum quarterly royalty payment in the amount of $20,000 per quarter. Said
payments would not count towards the advanced royalty. Additionally, Licensee agrees to develop, market and offer for sale a club version within two and one-half (2 1⁄2) years from the date of this Agreement. Failure to develop, market and offer
for sale a club version within two and one-half (2 1⁄2) years from the date of this Agreement will result in termination of Licensee’s right to exclusivity to develop, market and offer for sale a club version of the Licensed Goods.”

  

	B.	Licensee and Licensor agree that, as referred to within this document, the term “quarter” will refer to calendar quarters. The first such calendar quarter for which
minimum royalty payments are due shall be the quarter ending June 30, 2000. Minimum royalties due for that quarter will be pro-rated from April 26 through June 30, 2000. The pro-rated amount of royalties for that period is $14,505.50. It is agreed
between the parties that the royalties for this quarter will be paid within seven (7) days of the signing of this Amendment to the Agreement. Future royalties will be due as outlined in Section 4 of the License Agreement. 

 
 Dated this 26th day of April, 2000. 
  

			
	 /s/ Brian R. Cook

	  	 /s/ Gary D. Piaget

	 Brian R. Cook, President
	  	 Gary D. Piaget

	 DIRECT FOCUS, INC.
	  	 TEAM PIAGET

 THIRD AMENDMENT TO LICENSE AGREEMENT 
  
 The License Agreement executed by Piaget Associates, LLC on April 11, 1999 and by Direct Focus, Inc. on April 26, 1999,
along with the First and Second Amendments thereto, is hereby amended as follows: 
  

	A.	Paragraph 4.1 in the License Agreement is replaced with the following paragraph: 

  
 “Licensee shall use its best reasonable efforts to develop, market and sell Licensed Goods. Licensee commits to make a
national roll-out of the contemplated direct response commercial by March 31, 2002. Failure to do so will be an event of default giving Licensor the right of termination pursuant to Paragraph 5.2(B). However, in the event Licensee has not commenced
a national roll-out of the direct response commercial by March 31, 2002, Licensee may extend its license rights for up to an additional three (3) months by continuing to pay the minimum quarterly royalty in the amount of $20,000 per quarter. Said
payments would not count towards the advanced royalty. Additionally, Licensee agrees to develop, market and offer for sale a club version within two (2) years from the date of this Amendment. Failure to develop, market and offer for sale a club
version within two (2) years from the date of this Amendment will result in termination of Licensee’s right to exclusivity to develop, market and offer for sale a club version of the Licensed Goods.” 
  

	B.	Licensee acknowledges that it is currently paying minimum quarterly royalties in the amount of $20,000 per quarter and agrees that until such time as a product is being marketed
under this Agreement (or unless the License is terminated), Licensee shall continue to pay minimum quarterly royalties within seven (7) days after the end of the calendar quarter. At such time Licensee begins marketing a product under this
Agreement, the quarterly royalties will be due in accordance with the original Agreement and the first two (2) Amendments thereto. 

  
 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered this 11 day of April, 2001. 
  

			
	 PIAGET ASSOCIATES, LLC
	 	 DIRECT FOCUS, INC.

		
	 /s/ Gary D. Piaget

	 	 /s/ Brian R. Cook

	 Gary D. Piaget, President
	 	 Brian R. Cook, President

		
	 /s/ Gary D. Piaget

	 	 
	 Gary D. Piaget
	 	 

 FOURTH AMENDMENT TO LICENSE AGREEMENT 
  
 The License Agreement executed by Piaget Associates, LLC on April 11, 1999 and by Direct Focus, Inc. on April 26, 1999,
along with the First, Second and Third Amendments thereto, is hereby amended as follows: 
  

	A.	Paragraph 4.1 in the License Agreement is replaced with the following paragraph: 

  
 “Licensee shall use its best reasonable efforts to develop, market and sell Licensed Goods. Licensee commits to make a
national roll-out of the contemplated direct response commercial by December 31, 2002. Failure to do so will be an event of default giving Licensor the right of termination pursuant to Paragraph 5.2(B). However, in the event Licensee has not
commenced a national roll-out of the direct response commercial by December 31, 2002, Licensee may extend its license rights for up to an additional three (3) months by continuing to pay the minimum quarterly royalty in the amount of $20,000 per
quarter. Said payments would not count towards the advanced royalty. Additionally, Licensee agrees to develop, market and offer for sale a club version within two (2) years from the date of this Amendment. Failure to develop, market and offer for
sale a club version within two (2) years from the date of this Amendment will result in termination of Licensee’s right to exclusivity to develop, market and offer for sale a club version of the Licensed Goods.” 
  

	B.	Licensee acknowledges that it is currently paying minimum quarterly royalties in the amount of $20,000 per quarter and agrees that until such time as a product is being marketed
under this Agreement (or unless the License is terminated), Licensee shall continue to pay minimum quarterly royalties within seven (7) days after the end of the calendar quarter. At such time Licensee begins marketing a product under this
Agreement, the quarterly royalties will be due in accordance with the original Agreement and the first three (3) Amendments thereto. 

  
 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered this 4th day of October, 2001. 
  

					
	 	 	 PIAGET ASSOCIATES, LLC
	  	 DIRECT FOCUS, INC.

			
	 	 	 /s/ Gary D. Piaget

	  	 /s/ Brian R. Cook

	 	 	 Gary D. Piaget, President
	  	 Brian R. Cook, C.E.O.

			
	 	 	 /s/ Gary D. Piaget

	  	 
	 	 	 Gary D. Piaget
	  	 

 FIFTH AMENDMENT TO LICENSE AGREEMENT 
  
 This Fifth Amendment (hereinafter, “Amendment”) is made this 31st day of December, 2002, and amends the License Agreement dated
April 26, 1999, by and between Piaget Associates, L.L.C. (hereinafter, “Licensor”) and The Nautilus Group, Inc., formerly known as Direct Focus, Inc. (hereinafter, “Licensee”). 
  
 The purpose of this Amendment is to provide the following modifications to the Agreement, and
Amendments, as set forth below. 
  

	 	1.	Paragraph 4.1 of the Agreement is replaced in its entirety as follows: 

  
 Licensee shall use its best reasonable efforts to develop, market and sell Licensed Goods. Licensee commits to making a national roll-out of the
contemplated direct response infomercial by June 30, 2003. Failure to do so will constitute an event of default giving Licensor the right of termination pursuant to Paragraph 5.2(B). However, in the event Licensee has not commenced a national
roll-out of the direct response infomercial by June 30, 2003, Licensee may extend its license rights for up to an additional three (3) months by continuing to pay the minimum quarterly royalty in the amount of $27,500. These payments will not count
towards the advanced royalty. 
  
 Additionally, Licensee agrees
to develop, market and offer for sale a club version on or before March 31, 2005. Failure to develop, market and offer for sale a club version by this date will result in termination of Licensee’s right to exclusively develop, market and offer
for sale a club version of the Licensed Goods. 
  

	 	2.	Paragraph 4.1, third sentence, delete the phrase “paragraph 4.1(D) ii of $25,000 per quarter.” and replace with the phrase “paragraph 4.1(D) ii of $27,500 per
quarter”. 

  

	 	3.	Paragraph 4.1(D)(ii), first sentence, delete the beginning phrase “$25,000 minimum per quarter” and replace with the phrase “27,500 minimum per quarter”.

  

	 	4.	Insert new Paragraph 6.14 as follows: 

  
 Licensor has knowledge and capabilities, which will assist Licensee in achieving its objectives as anticipated under this Agreement. Licensor will
disclose to Licensee such knowledge and will advise and assist Licensee, and its technical staff, as required and at reasonable times and in reasonable ways in consideration for which Licensee shall reimburse Licensor for reasonable travel expenses
if Licensor is required to travel outside the State of Washington. 
  

	 	5.	In the event of a conflict between the terms and conditions of this Amendment and those contained in the Agreement, the provisions of this Amendment shall govern.

  

	 	6.	All other terms and conditions of the Agreement remain in full force and effect. 

 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered this 31 day of December, 2002.

  

							
	 PIAGET ASSOCIATES, L.L.C.
	 	 THE NAUTILUS GROUP, INC.

				
	 By:
	 	 /s/ Gary Piaget

	 	 By:
	 	 /s/ Brian R. Cook

	 Name:
	 	 Gary Piaget
	 	 Name:
	 	 Brian R. Cook

	 Title:
	 	 Owner
	 	 Title:
	 	 CEO

 SIXTH AMENDMENT TO LICENSE AGREEMENT 
  
 This Sixth Amendment (hereafter, “Amendment”) is made this 2nd day of May, 2003, and amends the License Agreement by and between Piaget Associates, L.L.C. (hereinafter “Licensor”) and The Nautilus Group,
Inc., formerly known as Direct Focus, Inc. (hereinafter, “Licensee”), such License Agreement dated April 26, 1999 (hereafter “Agreement) and amended by the First Amendment on October 7, 1999, Second Amendment of April 26, 2000, Third
Amendment of April 11, 2001, Fourth Amendment of October 4, 2001, and Fifth Amendment of December 31, 2002. 
  
 NOW THEREFORE, for One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
agree as follows: 
  
 1. Section 1.1 of the Agreement shall be amended as follows
to add U.S. Patent Des. 421,779 entitled “Treadmill-Type Exercise Apparatus” and U.S. Patent No. 5,626,539 entitled “Treadmill Apparatus with Dual Spring-Loaded Treads” as two of the patents licensed under the Agreement:

  
 In section 1.1, line 3, after “U.S. Patent Des.
406,621” insert “U.S. Patent Des. 421,779 and U.S. Patent No. 5,626,539” 
  
 2. In the event of a conflict between the terms and conditions of this Amendment, and those contained in the Agreement, as amended by the previous five amendments, the provisions of this Amendment shall govern. 
  
 3. All other terms and conditions of the Agreement shall remain in full force and effect.

  
 IN WITNESS WHEREOF, the parties have executed this Amendment
to be effective as of the date first written above. 
  

							
	 PIAGET ASSOCIATES, L.L.C.
	 	 THE NAUTILUS GROUP, INC.

				
	 By:
	 	 /s/ Gary D. Piaget

	 	 By:
	 	 /s/ Brian R. Cook

	 Name:
	 	 Gary D. Piaget
	 	 Name:
	 	 Brian R. Cook

	 Title:
	 	 Gary Piaget, Owner
	 	 Title:
	 	 CEO

 SEVENTH AMENDMENT TO LICENSE AGREEMENT 
  
 This Seventh Amendment (hereafter, “Amendment”) is made this
2nd day of May, 2003, and amends the License Agreement by and between Piaget Associates, L.L.C. (hereinafter
“Licensor”) and The Nautilus Group, Inc., formerly known as Direct Focus, Inc. (hereinafter, “Licensee”), such License Agreement dated April 26, 1999 (hereafter “Agreement) and amended by the First Amendment on October 7,
1999, Second Amendment of April 26, 2000, Third Amendment of April 11, 2001, Fourth Amendment of October 4, 2001, Fifth Amendment of December 31, 2002, and Sixth Amendment of May 2, 2003. 
  
 NOW THEREFORE, for One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows: 
  
 1. Section 1.1 of the
Agreement shall be amended as follows to add U.S. Patent Des. 421,779 entitled “Treadmill-Type Exercise Apparatus” as one of the patents licensed under the Agreement: 
  
 In section 1.1, line 3, after “U.S. Patent 5,626,539” insert “U.S. Patent Des. 421,779” 
  
 2. In the event of a conflict between the terms and conditions of this Amendment, and those
contained in the Agreement, as amended by the previous five amendments, the provisions of this Amendment shall govern. 
  
 3. All other terms and conditions of the Agreement shall remain in full force and effect. 
  
 IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the date first written above. 

 

							
	 PIAGET ASSOCIATES, L.L.C.
	 	 THE NAUTILUS GROUP, INC.

				
	 By:
	 	 /s/ Gary D. Piaget

	 	 By:
	 	 /s/ Brian R. Cook

	 Name:
	 	 Gary D. Piaget
	 	 Name:
	 	 Brian R. Cook

	 Title:
	 	 Gary Piaget
	 	 Title:
	 	 CEO

 EIGHTH AMENDMENT TO LICENSE AGREEMENT 
  
 This Eighth Amendment (hereafter, “Amendment”) is made this 22nd day of October, 2003, and amends the License Agreement by and between Piaget Associates, L.L.C. (hereinafter “Licensor”) and The Nautilus Group,
Inc., formerly known as Direct Focus, Inc. (hereinafter, “Licensee”), such License Agreement dated April 26, 1999 (hereafter “Agreement) and amended by the First Amendment on October 7, 1999, Second Amendment of April 26, 2000, Third
Amendment of April 11, 2001, Fourth Amendment of October 4, 2001, Fifth Amendment of December 31, 2002, Sixth Amendment of May 2, 2003, and Seventh Amendment of May 2, 2003. 
  
 NOW THEREFORE, for One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows: 
  
 1. As a result of the
assignment by Gary Piaget to Nautilus, Inc. of his entire right, title and interest in and to U.S. Patent No. 5,626,539 entitled “Treadmill Apparatus With Dual Spring-Loaded Treads,” the Agreement and any and all Amendments are revised to
read as follows: 
  
 In section 1.1, line 3, after “U.S.
Patent Des. 406,621” delete “U.S. Patent 5,626,539.” 
  
 2. In the
event of a conflict between the terms and conditions of this Amendment, and those contained in the Agreement, as amended by the previous five amendments, the provisions of this Amendment shall govern. 
  
 3. All other terms and conditions of the Agreement shall remain in full force and effect.

  
 IN WITNESS WHEREOF, the parties have executed this Amendment
to be effective as of the date first written above. 
  

							
	 PIAGET ASSOCIATES, L.L.C.
	 	 THE NAUTILUS GROUP, INC.

				
	 By:
	 	 /s/ Gary D. Piaget

	 	 By:
	 	 /s/ Gregg C. Hammann

	 Name:
	 	 Gary D. Piaget
	 	 Name:
	 	 Gregg C. Hammann

	 Title:
	 	 Owner
	 	 Title:
	 	 President and CEO

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