Document:

Asset Purchase Agreement

 Exhibit 10.1 
 ASSET PURCHASE AGREEMENT 
 This Asset Purchase Agreement (this “Agreement”) is
entered into as of August 4, 2008 (“Effective Date”), by and between MILES KIMBALL COMPANY, a Wisconsin corporation (“Buyer”), and REAL HEALTH LABORATORIES, INC., a California corporation (“Seller”)
and a wholly-owned subsidiary of Natural Alternatives International, Inc., a Delaware corporation (“Parent”). Buyer and Seller may be referred to herein individually as a “Party” and collectively as the
“Parties.” 
 WHEREAS, Buyer desires to purchase from Seller certain assets used in (and assume certain of the liabilities
of Seller related to) the Seller’s catalog and internet business conducted under the trademark “As We Change” (the “Business”); and 
 WHEREAS, Seller desires to sell to Buyer such assets and assign to Buyer such liabilities. 
 Now, therefore,
in consideration of the foregoing premises and the mutual promises herein made and the representations, warranties and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows. 
 Section 1. Definitions. The definition of certain defined terms, not defined elsewhere
in this Agreement, are: 
 “Acquired Assets” means all of Seller’s right, title, and interest in and to the following,
and only the following, specified assets: 
  

	 	(a)	the Acquired Intellectual Property; 

  

	 	(b)	the Acquired Inventory; and 

  

	 	(c)	the Acquired Prepaid Catalog Expenses. 

 “Acquired
Intellectual Property” means the Intellectual Property listed on Schedule 1. 
 “Acquired Inventory” means
the inventory of the Business that is listed on Schedule 2 (subject to modification for final month-end adjustments), which includes all inventory of the Business and inventories related to open purchase orders as of the Closing Date.

 “Acquired Prepaid Catalog Expenses” means the unamortized expenses that are related to the production of catalogs for
post August 4, 2008 future revenue streams. 
 “Adverse Consequences” means all actions, suits, proceedings, hearings,
investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, reasonable amounts paid in settlement, liabilities, obligations, taxes, liens, losses, expenses, and
fees, including court costs and reasonable attorneys’ fees and expenses. 

 “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated under
the Securities Exchange Act of 1934, as amended. 
 “Assumed Liabilities” means the following, and only the following,
liabilities of the Seller: 
  

	 	(a)	all obligations of Seller for product returns under the Seller’s return and exchange policies as such policies are disclosed on Schedule 3(i) of Seller’s Disclosure
Schedule; 

  

	 	(b)	all obligations of Seller under the deferred revenue, rewards club, program as such rewards club program is disclosed on Schedule 3(i) of Seller’s Disclosure Schedule;

  

	 	(c)	all obligations of Seller under the affiliate program, as such program is disclosed on Schedule 3(i) of Seller’s Disclosure Schedule, for any sales that occur on or after the
Closing Date; and 

  

	 	(d)	all obligations of Seller related to open purchase orders for Acquired Inventory. 

 provided, however, that the term “Assumed Liabilities” shall not include any of the Excluded Liabilities. 
 “Cash” means cash and cash equivalents (including marketable securities and short-term investments). 
 “Closing Date Net Asset Value” means the Net Asset Value, as of 12:01 a.m., San Diego time, on the Closing Date. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Excluded Liabilities” means any
liability or obligation of Seller other than those set forth in the definition of “Assumed Liabilities”, including: (a) any liability arising out of or relating to the operation of the Business by Seller, including any liability
relating to products manufactured or distributed by or for the Seller prior to the Closing Date; (b) any liability of Seller or any of Seller’s Affiliates for Taxes, including any liability of Seller or any of Seller’s Affiliates for
Taxes as a result of Seller’s operation of the Business or Taxes payable by Seller or any of Seller’s Affiliates that will arise as a result of the sale of the Acquired Assets pursuant to this Agreement; (c) any liability of Seller or
any of Seller’s Affiliates relating to payroll, vacation, sick leave, workers’ compensation, unemployment benefits, pension benefits, health care plans or benefits or other employee plans or benefits of any kind for Seller’s employees
or former employees or both, in every case arising out of and relating to Seller’s employment of such employees or former employees and including any liability of Seller under any employment, severance, retention or termination agreement with
any employee of Seller or any of Seller’s Affiliates; (d) any liability of Seller under this Agreement or other document executed in connection with the transactions contemplated hereby; and (e) any liability of Seller based upon
Seller’s acts or omissions occurring after the Closing. 

 “GAAP” means United States generally accepted accounting principles as in effect from
time to time, consistently applied. 
 “Intellectual Property” means: (a) customer names and history, (b) vendor
names, (c) product cost history, (d) product performance, (e) customer performance, (f) campaign performance, (g) URLs and any Internet addresses, (h) hardcopy of historical catalogs, (i) telecom numbers,
(j) creative catalog and internet assets, (k) trademarks, service marks, trade dress, logos, slogans, trade names, Internet domain names and telephone numbers, together with translations, adaptations, derivations, and combinations thereof
and including goodwill associated therewith, and applications, registrations, and renewals in connection therewith, (l) websites, graphics, designs, labels, packaging and other copyrightable works, copyrights, and applications, registrations,
and renewals in connection therewith, (m) product specifications, and confidential business information (including ideas, research and development, know-how, technical data, designs, drawings, specifications, and business and marketing plans
and proposals), (n) advertising and promotional materials, (o) other proprietary rights, and (p) copies and tangible embodiments thereof (in whatever form or medium). 
 “Knowledge” means, with respect to any representation, warranty or statement of any Party in this Agreement that is qualified by such
Party’s “knowledge,” the actual knowledge of such Party or such knowledge that a reasonably prudent officer, director, manager or employee should have if such Person duly performed his or her duties as an officer, director, manager or
employee of such Party with due care; provided, however, that the foregoing shall not be construed to create a duty or obligation on any Person to engage in or conduct any inquiry or investigation, and provided further that Seller will be deemed to
have Knowledge of a particular fact or other matter only if Randell Weaver, Ken Wolf or John Dullea has Knowledge of that fact or other matter, and Buyer will be deemed to have Knowledge of a particular fact or other matter only if Stan Krangle,
Dana Gilman or Vicki Updike has Knowledge of that fact or other matter. 
 “Net Asset Value” means the difference between
(a) the sum of the Acquired Inventory (not including any Acquired Inventory that is one hundred and eighty (180) days old or more) and Acquired Prepaid Catalog Expenses, and (b) the amount of the Assumed Liabilities. 
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, any other business entity or a governmental entity (or any department, agency, or political subdivision thereof). 
 “Restricted Business” means the production of a lifestyle catalog that
substantially mirrors the As We Change® catalog in terms of products offered, marketing methods used and customers targeted; provided, however, that the foregoing shall not be construed in
a manner such that it in any way limits or restricts the ability of Seller, its Parent or Affiliates from manufacturing, distributing or selling nutritional supplements or other nutraceutical, nutritional or skin care products, including by means of
the production of a lifestyle catalog offering such products. 

 “Tax” or “Taxes” means any federal, state, local, or foreign taxes,
charges, fees, imposts or other assessments, including those related to income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code §59A),
customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or
other tax of any kind whatsoever, whether computed on a separate or consolidated, unitary or combined basis or in any other manner, including any interest, penalty, or addition thereto, whether disputed or not. 
 “Tax Return” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including
any schedule or attachment thereto, and including any amendment thereof. 
 Section 2. Basic Transaction. 
 (a) Purchase and Sale of Assets. On and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from
Seller, and Seller agrees to sell, transfer, convey, and deliver to Buyer, all of the Acquired Assets at the Closing for the consideration specified below in this Section 2. 
 (b) Assumption of Liabilities. On and subject to the terms and conditions of this Agreement, Buyer agrees to assume and become
responsible for all of the Assumed Liabilities at the Closing. Buyer will not assume or have any responsibility, however, with respect to any other obligation or liability of Seller not included within the definition of Assumed Liabilities.

 (c) Purchase Price. The Buyer agrees to pay to the Seller $2,000,000 (the “Purchase Price”) in
United States dollars, by delivery of cash in such amount, payable by wire transfer or delivery of other immediately available funds. Following the Closing, the Purchase Price is subject to adjustment as provided in Section 2(g) below.

 (d) The Closing. The closing of the transactions contemplated by this Agreement (the “Closing”)
shall take place at the offices of Bell, Boyd & Lloyd LLP, 3580 Carmel Mt. Road, Suite 200, San Diego, California commencing at 9:00 a.m. local time on the Effective Date following the satisfaction or waiver of all conditions to the
obligations of the Parties to consummate the transactions contemplated hereby (other than conditions with respect to actions the respective Parties will take at the Closing itself) or at such other time or place as the Parties may mutually determine
(the “Closing Date”). 
 (e) Deliveries at the Closing. At the Closing, (i) Seller will deliver
to Buyer the various certificates, instruments, and documents referred to in Section 6(a) below; (ii) Buyer will deliver to Seller the various certificates, instruments, and documents referred to in Section 6(b) below;
(iii) Seller will execute, acknowledge (if appropriate), and deliver to Buyer (A) an Assignment and Bill of Sale in the form of Exhibit A, (B) a counterpart Trademark Assignment in the form attached hereto as Exhibit C,
(C) a counterpart Instrument of Assumption in the form attached hereto as Exhibit B, and (C) such other instruments of sale, transfer, conveyance, and assignment as Buyer and its counsel may reasonably request; (iv) Buyer will
execute, acknowledge (if 

 
appropriate), and deliver to Seller (A) a counterpart Instrument of Assumption in the form attached hereto as Exhibit B, (B) a counterpart
Trademark Assignment in the form attached hereto as Exhibit C, and (C) such other instruments of assumption as Seller and its counsel may reasonably request; and (v) Buyer will deliver to Seller the consideration specified in
Section 2(c) above. 
 (f) Purchase Price Allocation. The Purchase Price is being allocated among the
Acquired Assets by the Parties as set forth on Schedule 3. Such allocation is intended to comply with the requirements of Section 1060 of the Code. Buyer shall prepare and deliver Internal Revenue Service (“IRS”) Form
8594 to Seller within forty-five (45) days after the Closing Date to be filed with the IRS, subject to Seller’s review and approval which shall not be unreasonably withheld. Seller and Buyer shall file Form 8594 with their respective
timely-filed Tax Returns consistent with such allocation. The Parties shall treat and report the transaction contemplated by this Agreement in all respects consistently for purposes of any federal, state or local Tax, including the calculation of
gain, loss and basis with reference to the Purchase Price allocation made pursuant to this Section 2(f). The parties shall not take any action or position inconsistent with the obligations set forth in this Agreement. Seller agrees to
indemnify and hold Buyer and its Affiliates harmless and Buyer hereby agrees to indemnify and hold Seller harmless, from and against any and all losses, liabilities and expenses (including additional income taxes and reasonable fees and
disbursements of counsel) that may be incurred by the indemnified party as a result of the failure of the indemnifying party so to report the sale and purchase of the Acquired Assets as required by applicable laws. 
 (g) Net Asset Value Adjustment. 
 (i) Within thirty (30) days of the Closing, the Seller shall deliver to the Buyer an unaudited statement of the Closing Date Net Asset Value (the “Closing Date Net Asset Value Statement”). If the
Closing Date Net Asset Value as shown on the Closing Date Net Asset Value Statement is less than $304,950, then the Purchase Price shall be decreased by an amount equal to the difference obtained by subtracting the amount of the Closing Date Net
Asset Value from $304,950. If the Closing Date Net Asset Value as shown on the Closing Date Net Asset Value Statement is greater than $304,950, then the Purchase Price will be increased by an amount equal to the difference obtained by subtracting
$304,950 from the amount of the Closing Date Net Asset Value. 
 (ii) If the Buyer disagrees with the Closing Date Net Asset
Value as shown on the Closing Date Net Asset Value Statement, then as soon as practicable following the Closing Date (but not later than 30 days after the delivery thereof), the Buyer shall prepare and deliver to the Seller, its own statement of the
Net Asset Value as of 12:01 a.m., San Diego time, on the Closing Date (the “Buyer Closing Date Net Asset Value Statement” and the Closing Date Net Asset Value as reflected on the Buyer Closing Date Net Asset Value Statement being
referred to herein as the “Buyer Determined Closing Date Net Asset Value”). In preparing the Buyer Closing Date Net Asset Value Statement, the Buyer shall be entitled to have access to the books and records of the Seller and the
work papers of the Seller prepared in connection with the preparation of the Closing Date Net Asset Value Statement and shall be entitled to discuss such books and records and work papers with the Seller and those persons responsible for the
preparation thereof. In the event that in preparing the Buyer Closing Date Net Asset Value Statement the Buyer conducts a physical inventory, the Seller shall be entitled to have one or more 

 
representatives present during the conduct of such physical inventory. In addition, if the Buyer does not object to the Closing Date Net Asset Value as shown
on the Closing Date Net Asset Value Statement within the 30-day period referred to above, the Closing Date Net Asset Value as reflected on the Closing Date Net Asset Value Statement as so prepared shall be deemed final and conclusive and binding
upon the Seller and the Buyer. 
 (iii) In the event the Seller does not agree with the Buyer Determined Closing Date Net
Asset Value as reflected on the Buyer Closing Date Net Asset Value Statement, the Seller shall so inform the Buyer in writing within 30 days after the Seller’s receipt thereof, such writing to set forth the objections of the Seller in
reasonable detail. If the Seller and the Buyer cannot reach agreement as to any disputed matter relating to the Closing Date Net Asset Value within 15 days after notification by the Seller to the Buyer of a dispute, they shall forthwith refer the
dispute to a nationally recognized accounting firm mutually agreeable to the Seller and the Buyer for resolution, with the understanding that: (i) the Closing Date Net Asset Value, as finally determined by such firm, shall not be less than the
amount thereof shown in Buyer’s Closing Date Net Asset Value Statement nor greater than the amount thereof shown in the Seller’s objection delivered pursuant to this clause (iii); and (ii) such firm shall resolve all disputed items
within 20 days after such disputed items are referred to it. If the Buyer and the Seller are unable to agree on the choice of an accounting firm, then the Buyer and the Seller shall select a nationally recognized accounting firm by lot (after
excluding their respective regular outside accounting firms). The decision of any such accounting firm under this clause (iii) with respect to all disputed matters relating to the Closing Date Net Asset Value shall be deemed final and
conclusive and shall be binding upon the Seller and the Buyer. In addition, if the Seller does not object to the Buyer Determined Closing Date Net Asset Value within the 30-day period referred to above, the Buyer Determined Closing Date Net Asset
Value as reflected on the Buyer Closing Date Net Asset Value Statement as so prepared shall be deemed final and conclusive and binding upon the Seller and the Buyer. 
 (iv) The Seller shall be entitled to have access to the books and records of the Buyer and the work papers of the Buyer prepared in
connection with the preparation of the Buyer Closing Date Net Asset Value Statement and shall be entitled to discuss such books and records and work papers with the Buyer and those persons responsible for the preparation thereof. The accounting firm
selected pursuant to Section 2(g)(iii) shall be entitled to have access to the books and records of the Buyer and the Seller and the work papers of the Buyer and the Seller prepared in connection with the preparation of the Closing Date
Net Asset Value Statement and the Buyer Closing Date Net Asset Value Statement and shall be entitled to discuss such books and records and work papers with the Buyer and the Seller and those persons responsible for the preparation thereof.

 (v) 
 (A) If the Closing Date Net Asset Value as finally determined pursuant to this Section 2(g) (the “Final Closing Date Net Asset Value”) exceeds $304,950 (such excess, if any, being referred to herein as the
“Finally Determined Excess”) then the Buyer shall pay such amount by wire transfer to an account designated by the Seller within five (5) business days after the date upon which the Closing Date Net Asset Value is deemed final
and conclusive pursuant hereto. 

 (B) If the Final Closing Date Net Asset Value is less than $304,950 (such shortfall, if
any, being referred to herein as the “Finally Determined Shortfall”) then the Seller shall pay such amount by wire transfer to an account designated by the Buyer within five (5) business days after the date upon which the
Closing Date Net Asset Value is deemed final and conclusive pursuant hereto. 
 (vi) If the Final Closing Date Net Asset Value
is determined by an accounting firm under Section 2(g)(iii), and such determination results in a payment to the Seller, then the Buyer shall pay the aggregate fees and expenses of the accounting firm selected to finally determine the
Closing Date Net Asset Value. If the Final Closing Date Net Asset Value is determined by an accounting firm under Section 2(g)(iii), and such determination results in a payment to the Buyer that is greater than the payment that would
have been required to have been made to Buyer based on the Closing Date Net Asset Value Statement, or results in no payment to Buyer or Seller where a payment to Seller would have been required to have been made to Seller based on the Closing Date
Net Asset Value Statement, then the Seller shall pay the aggregate fees and expenses of the accounting firm selected to finally determine the Closing Date Net Asset Value. 
 Section 3. Seller’s Representations and Warranties. Seller represents and warrants to Buyer that the statements contained in this
Section 3 are correct and complete as of the Effective Date and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the Effective Date throughout this
Section 3), except as set forth in the disclosure schedule accompanying this Agreement (the “Disclosure Schedule”). The Disclosure Schedule will be arranged in paragraphs corresponding to the lettered and numbered
paragraphs contained in this Section 3 and the other sections of this Agreement pursuant to which disclosure is made or items are referred to in the Disclosure Schedule. 
 (a) Organization of Seller. Seller is a corporation duly organized, validly existing, and in good standing under the laws of the
State of California, with full corporate power and authority to conduct the Business as now being conducted by it, and to own and use the properties it purports to own and use in the conduct of the Business. 
 (b) Authorization of Transaction. Seller has full corporate power and authority to execute and deliver this Agreement and the
documents contemplated hereby (the “Transaction Documents”) and to perform its obligations thereunder. This Agreement constitutes, and the other Transaction Documents when executed will constitute, the valid and legally binding
obligation of Seller, enforceable against it in accordance with its terms and conditions, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general application
affecting enforcement of creditors’ rights generally. The execution, delivery and performance of the Transaction Documents by Seller have been duly authorized by all necessary action of Seller’s shareholder and board of directors.

 (c) Non-contravention. Neither the execution and delivery of this Agreement, nor
the consummation of the transactions contemplated hereby (including the assignments and assumptions referred to in Section 2 above), will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge, or other restriction of any government, governmental agency, or court to which Seller or the Acquired Assets are subject or any provision of the charter or bylaws of Seller, or (ii) except as set forth in Schedule 3(c) of
Seller’s Disclosure Schedule, conflict with, result in a material breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument, or other arrangement to which Seller is a party or by which it is bound or to which any of the Acquired Assets is subject (or result in the imposition of any lien upon any of the Acquired Assets).
Except as set forth in Schedule 3(c) of Seller’s Disclosure Schedule, the Seller does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for
the Parties to consummate the transactions contemplated by this Agreement (including the assignments and assumptions referred to in Section 2 above). 
 (d) Brokers’ Fees. Except as set forth in Schedule 3(d) of Seller’s Disclosure Schedule, Seller has no liability or
obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement. 
 (e) Title to Assets. Except as set forth in Schedule 3(e) of Seller’s Disclosure Schedule, Seller has good title to the Acquired Assets, free and clear of any liens or restriction on transfer, and Seller
has the right to transfer the Acquired Assets to Buyer, free and clear of any liens. 
 (f) Selected Financial Data.
Attached hereto as Exhibit D are the following financial data (the “Selected Financial Data”): 
 (i)
the value of the Acquired Inventory as of June 30, 2008; 
 (ii) the value of the Acquired Prepaid Catalog Expenses as of
June 30, 2008; and 
 (iii) the obligations of the Seller in respect of the Assumed Liabilities, as of June 30,
2008. 
 Except as set forth on Schedule 3(f) of Seller’s Disclosure Schedule, the Selected Financial Data fairly present the values,
obligations and expenses set forth therein and are based upon the books and records of the Seller, which have been maintained in accordance with GAAP. 
 (g) Acquired Intellectual Property. 
 (i) Except as set forth on Schedule 3(g)(i) of
Seller’s Disclosure Schedule, to Seller’s Knowledge: (a) no third party has interfered with, infringed upon, misappropriated, or violated the Acquired Intellectual Property; (b) no Acquired Intellectual Property interferes with,
infringes upon or violates the intellectual property rights of any third-party; (c) no copyrighted or copyrightable material included in the Acquired Intellectual Property infringes upon or violates the copyrights of any third party; and
(d) no know-how, process, or product included in the Acquired Intellectual Property violates any trade secret of any third party. 

 (ii) Schedule 3(g)(ii) of the Disclosure Schedule identifies: (a) each
license, agreement, or other permission that Seller has granted to any third party with respect to any of the Acquired Intellectual Property (together with any exceptions); and (b) each license, agreement, or other permission that has been
granted to Seller with respect to any of the Acquired Intellectual Property. With respect to each item required to be disclosed on Section 3(g)(ii) of the Disclosure Schedule, as well as each other item of Acquired Intellectual Property:

 (A) Except as set forth on Schedule 3(g)(ii)(A) of Seller’s Disclosure Schedule, Seller possesses all right, title,
and interest in and to the item, free and clear of any lien, license, or other restriction, and Seller is not obligated to pay any royalties with respect thereto; 
 (B) the item is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge; 
 (C) no action, suit, proceeding, hearing, charge, complaint, claim, or demand is pending nor, to Seller’s Knowledge, is threatened,
nor has Seller received notice of the commencement of any investigation, that challenges the legality, validity, enforceability, use, or ownership of the item; 
 (D) except as set forth in Schedule 3(g)(ii)(D) of Seller’s Disclosure Schedule, the consummation of the transactions contemplated
hereby would not result in the loss or expiration of any domain name or registered trademark set forth in Schedule 3(g)(iv) of Seller’s Disclosure Schedule; and 
 (E) except as set forth in Schedule 3(g)(ii)(E) of Seller’s Disclosure Schedule, all fictional names, trade marks, trade names and
service marks have been registered with the applicable governmental authority, including the United States Patent and Trademark Office, are currently in compliance with all applicable laws, and, to Seller’s knowledge, are valid and enforceable.

 (iii) Schedule 3(g)(iii) of the Disclosure Schedule identifies each material item of Acquired Intellectual Property
that any third party owns and Seller uses pursuant to license, sublicense, agreement, or permission. Seller has delivered to Buyer correct and complete copies of all such licenses, sublicenses, agreements, and permissions (as amended to date). With
respect to each such item of used Intellectual Property required to be identified in Schedule 3(g)(iii) of the Disclosure Schedule Seller has not granted any sublicense or similar right with respect to the license, sublicense, agreement, or
permission. 
 (iv) Schedule 3(g)(iv) of the Disclosure Schedule identifies each material trademark and Internet domain
name used in the operation of the Business. 
 (v) Except as set forth on Schedule 3(g)(v) of Seller’s Disclosure
Schedule, the Acquired Intellectual Property constitutes all of the material Intellectual Property used by Seller in the operation of the Business as currently conducted. 

 (h) Acquired Inventory. The Acquired Inventory consists of materials and supplies,
manufactured and processed parts, work in process, and finished goods, all of which, to Seller’s Knowledge, is fit for the purpose for which it was procured or manufactured, and none of which, to Seller’s Knowledge, except as set forth on
Schedule 3(h) of Seller’s Disclosure Schedule is damaged or defective. Inventory now on hand that was purchased after June 30, 2008 was purchased in the ordinary course of business at a cost not exceeding market prices prevailing at the
time of purchase. 
 (i) Product Warranty; Product Liability. 
 (i) Except as set forth in Schedule 3(i) of Seller’s Disclosure Schedule,
substantially all of the products manufactured, sold, leased, and delivered by Seller in the operation of the Business have conformed in all material respects with all applicable contractual commitments and all express and implied warranties, and
Seller has no material liability (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due) for replacement or repair
thereof or other damages in connection therewith. Substantially all of the products manufactured, sold, leased, and delivered by Seller in the operation of the Business are subject to the terms and conditions of sale or lease as set forth in
Schedule 3(i) of Seller’s Disclosure Schedule, the most recently distributed As We Change® catalog as of the Closing Date, and on the Business’ website as of the Closing Date.
Except as set forth in Schedule 3(i) of Seller’s Disclosure Schedule, Seller provides no standard terms and conditions of sale or lease (including guaranties, warranties or indemnities) relating to the products manufactured, sold, leased or
delivered in Seller’s operation of that portion of the Business being sold by Seller hereunder. 
 (ii) Seller has no
material liability (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due) arising out of any injury to
individuals or property as a result of the ownership, possession, or use of any product manufactured, sold, leased, or delivered by Seller in its operation of that portion of the Business conducted with the Acquired Assets. 
 (j) Solvency. Seller is not now insolvent and will not be rendered insolvent by any of the transactions contemplated hereby. As
used in this Section 3(j), “insolvent” means that the sum of the debts and other probable liabilities of Seller exceed the present fair saleable value of Seller’s assets. 
 Section 4. Buyer’s Representations and Warranties. Buyer represents and warrants to Seller that the statements contained in this
Section 4 are correct and complete as of the Effective Date and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the Effective Date throughout this
Section 4). 
 (a) Organization of Buyer. Buyer is a corporation duly organized, validly existing, and in
good standing under the laws of the jurisdiction of its incorporation, with full corporate power and authority to conduct its business as now being conducted by it and to own and use the properties it purports to own and use. 

 (b) Authorization of Transaction. Buyer has full corporate power and authority to
execute and deliver the Transaction Documents and to perform its obligations thereunder. This Agreement constitutes, and the other Transaction Documents when executed will constitute, the valid and legally binding obligation of Buyer, enforceable
against it in accordance with its terms and conditions, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general application affecting enforcement of creditors’
rights generally. The execution, delivery and performance of the Transaction Documents by Buyer have been duly authorized by all necessary action of Buyer’s shareholders and board of directors. 
 (c) Non-contravention. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated
hereby (including the assignments and assumptions referred to in Section 2 above), will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any
government, governmental agency, or court to which Buyer is subject or any provision of its charter or bylaws or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right
to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which Buyer is a party or by which it is bound or to which any of its assets are subject. Buyer
does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the Parties to consummate the transactions contemplated by this Agreement (including
the assignments and assumptions referred to in Section 2 above). 
 (d) Brokers’ Fees. Buyer has no
liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement. 
 Section 5. Post-Closing Covenants. The Parties agree as follows with respect to the period following the Closing: 
 (a) General. Each Party shall, at the request of any other Party from time to time and at any time, whether on or after the Closing Date, and without further consideration except as provided in
Section 5(b) hereof, execute and deliver such deeds, assignments, transfers, assumptions, conveyances, powers of attorney, receipts, acknowledgments, acceptances and assurances as may be reasonably necessary to procure for the Party so
requesting, and its successors and assigns, or for aiding and assisting in collecting and reducing to possession, any and all of the Acquired Assets, or for the assumption of the Assumed Liabilities, or to otherwise satisfy and perform the
obligations of the Parties hereunder. Without limiting the generality of the foregoing, Seller shall, upon the request of Buyer, in a timely manner on and after the Closing Date execute and deliver to Buyer such other documents, releases,
assignments and other instruments as may be reasonably required to effectuate completely the transfer and assignment to Buyer of, and to vest fully in Buyer, Seller’s rights to, the Acquired Assets. 

 (b) Transition. 
 (i) Seller will not take any action that is designed to or could reasonably be anticipated to discourage any lessor, licensor, customer,
supplier, or other business associate of Seller from maintaining the same business relationships with Buyer after the Closing as it maintained with Seller with respect to the Business prior to the Closing. 
 (ii) Seller will, on behalf of Buyer, fulfill customer orders until August 15, 2008, and respond to customer service calls until
August 25, 2008, in each case in accordance with past practice of Seller unless otherwise mutually agreed by Seller and Buyer. For such services, Buyer will compensate Seller in the amount of $20,000, which amount shall be due and payable at
the Closing, plus any reasonable out of pocket expenses incurred by Seller in the performance of such services including, without limitation, the costs incurred by Seller to ship customer orders on behalf of Buyer from and after the Closing Date.
Attached hereto as Exhibit F is the transition schedule mutually agreed upon by Buyer and Seller, which schedule may be changed or modified upon the approval of both Buyer and Seller. 
 (iii) Seller agrees it will keep the Business’ existing bank account open for a period of one month after the Closing Date and in the
event it receives any monies, payments or deposits after the Closing that relate to any sales or other operations of the Business after the Closing and properly belonging to Buyer, Seller shall deposit or maintain such amounts received in such
account and shall remit such amounts to Buyer on a monthly basis or more frequently as mutually agreed by Buyer and Seller. 
 (c) Non-Competition. 
 (i) In consideration of the Purchase Price and the assumption by Buyer of the Assumed
Liabilities, for a period of two (2) years from the Closing Date (the “Restricted Period”), Seller and its Affiliates shall not: 
 (A) engage in the Restricted Business; 
 (B) directly or indirectly through another entity
induce or attempt to induce any customer, supplier, licensee, licensor, franchisee or other business relation of Buyer or any of its Affiliates to cease doing Restricted Business with Buyer or any of its Affiliates, or in any way interfere with the
Restricted Business relationship between any such customer, supplier, licensee or business relation of Buyer or any of its Affiliates (including making any negative statements or communications about the Restricted Business of Buyer or any of its
Affiliates); 
 (C) directly or indirectly through another entity solicit, induce or conspire with or attempt to solicit,
induce, or conspire with any employee or officer of Buyer or any of its Affiliates to leave the employ of Buyer or any of its Affiliates, or to compete against the Buyer or any of its Affiliates in the Restricted Business, or in any way interfere
with the relationship between Buyer or any of its Affiliates and any employee or officer thereof; or 

 (D) divert or attempt to divert any or all of Buyer’s customers’ or
suppliers’ Restricted Business with Buyer from Buyer in violation of this Agreement or applicable law (including the violation of any trade secrets law). 
 (ii) The covenants in this Section 5(c) are severable and separate, and the unenforceability of any specific covenant in this
Section 5(c) is not intended by any Party to, and shall not, affect the provisions of any other covenant in this Section 5(c). If any court of competent jurisdiction shall determine that the scope, time, or territorial
restrictions set forth in this Section 5(c) are unreasonable as applied to Seller, the Parties acknowledge their mutual intention and agreement that those restrictions be enforced to the fullest extent the court deems reasonable, and
that they thereby shall be reformed to that extent as applied to Seller. 
 (iii) All of the covenants in this
Section 5(c) are intended by each Party hereto to be, and shall be construed as, an agreement independent of any other provision in this Agreement and the existence of any claim or cause of action of Seller against Buyer, whether
predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Buyer of any covenant in this Section 5(c). It is specifically agreed that the time periods specified in Section 5(c)(i) shall be
computed by excluding from that computation any time during which Seller is in violation of any provision of Section 5(c)(i). 
 (iv) Buyer and Seller hereby agree that this Section 5(c) is a material and substantial part of this Agreement, and absent Seller agreeing to be bound by this Section 5(c), Buyer would not have
consummated the transactions contemplated herein. 
 (v) The parties hereto agree that money damages would not necessarily be
an adequate remedy for any breach of this Section 5(c). Because of the difficulty in measuring the economic losses that may be incurred by Buyer as a result of any breach by Seller of the covenants in this Section 5(c) and
because of the immediate and irreparable damage that could be caused to Buyer for which it would have no other adequate remedy, Seller agrees that Buyer may enforce the provisions of this Section 5(c) by any equitable or legal means,
including seeking an appropriate injunction or restraining order against Seller if a breach of any of those provisions occurs. Therefore, in the event of a breach of this Section 5(c), Buyer or its successors or assigns may, in addition
to other rights and remedies existing in their favor, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief (temporary and/or permanent), in order to enforce, or prevent any violations of, the
provisions hereof. 
 (vi) In the event of any breach by Seller or any of its Affiliates of the terms of this
Section 5(c), Seller shall reimburse Buyer for its reasonable attorneys’ fees, court costs and other expenses it incurs in enforcing the provisions of this Section 5(c). 
 (d) Preservation of Records. Seller shall, and shall cause its Affiliates to, preserve and keep the financial records held by it
relating to the Business for a period of three (3) years from the Closing Date and shall make such records available to Buyer as may be reasonably required by Buyer in connection with, among other things, the conduct by the Buyer of the
Business conducted with the Acquired Assets, any insurance claims, governmental investigations, or securities offerings and shall permit Buyer to make and keep copies of such records, at Buyer’s sole cost and expense. 

 (e) Assignment and Assumption of Certain Contracts. Buyer shall have five
(5) business days following the Closing Date to notify Seller in writing whether Buyer desires Seller to assign Seller’s rights and interest in, and Buyer to assume Seller’s obligations under, one or more of the contracts set forth on
Exhibit G attached hereto. In the event Buyer elects to assume one or more of such contracts, Buyer and Seller shall execute an Assignment and Assumption Agreement in the form attached hereto as Exhibit H with respect to the contracts
to be assigned and assumed. 
 Section 6. Conditions to Obligation to Close. 
 (a) Conditions to Buyer’s Obligation. The obligation of Buyer to consummate the transactions to be performed by it in
connection with the Closing is subject to satisfaction of the following conditions: 
 (i) the representations and warranties
set forth in Section 3 above shall be true and correct in all material respects (except for those representations and warranties qualified by “material,” which shall be true and correct in all respects) at and as of the Closing
Date; 
 (ii) Seller shall have performed and complied with all of its covenants hereunder in all material respects (other
than those covenants contained in Section 2(e) which shall have been complied with in all respects) through the Closing; 
 (iii) no action, suit, or proceeding shall be pending before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment,
order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this Agreement, (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation or
(C) adversely affect the right of Buyer to own the Acquired Assets (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 
 (iv) Seller shall have received the consent of Wells Fargo Bank, National Association identified in Schedule 3(c) of Seller’s
Disclosure Schedule and such consent shall be in full force and effect; 
 (v) Seller shall have delivered to Buyer a
certificate, executed by an authorized officer of Seller, to the effect that each of the conditions specified above in Section 6(a)(i)-(iv) is satisfied in all respects; 
 (vi) Buyer shall have received from counsel to Seller an opinion in form and substance as set forth in Exhibit E attached hereto,
addressed to Buyer; and 
 (vii) all actions to be taken by Seller in connection with consummation of the transactions
contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and substance to Buyer. 

 Buyer may waive any condition specified in this Section 6(a) if it executes a writing so
stating at or prior to the Closing. 
 (b) Conditions to Seller’s Obligation. The obligation of Seller to
consummate the transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions: 
 (i) the representations and warranties set forth in Section 4 above shall be true and correct in all material respects (except for those representations and warranties qualified by “material,”
which shall be true and correct in all respects) at and as of the Closing Date; 
 (ii) Buyer shall have performed and
complied with all of its covenants hereunder in all material respects (other than those covenants contained in Section 2(e) which shall have been complied with in all respects) through the Closing; 
 (iii) no action, suit, or proceeding shall be pending before any court or quasi-judicial or administrative agency of any federal, state,
local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this Agreement or (B) cause any
of the transactions contemplated by this Agreement to be rescinded following consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 
 (iv) Buyer shall have delivered to Seller a certificate, executed by an authorized officer of Buyer, to the effect that each of the
conditions specified above in Section 6(b)(i)-(iii) is satisfied in all respects; 
 (v) Seller shall have
received the consent of Wells Fargo Bank, National Association identified in Schedule 3(c) of Seller’s Disclosure Schedule and such consent shall be in full force and effect; 
 (vi) all actions to be taken by Buyer in connection with consummation of the transactions contemplated hereby and all certificates,
opinions, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and substance to Seller; and 
 (vii) Buyer shall have paid the Purchase Price to Seller. 
 Seller may waive any condition specified in this Section 6(b) if it executes a writing so stating at or prior to the Closing. 

 Section 7. Remedies for Breaches of This Agreement. 
 (a) Survival of Representations and Warranties. All of the representations and warranties of Buyer and Seller contained in this
Agreement shall survive the Closing and continue in full force and effect for a period of one year from the Effective Date; provided, however, that the representations and warranties contained in Sections 3(d), 3(e) and 4(d) shall
survive the Closing and continue in full force and effect for a period of three years from the Effective Date. 
 (b)
Indemnification Provisions for Buyer’s Benefit. 
 (i) In the event Seller breaches any of its representations,
warranties, and covenants contained in this Agreement, and, provided that Buyer makes a written claim for indemnification against Seller pursuant to Sections 7(d) and 9(g) below within the survival period (if there is an applicable
survival period pursuant to Section 7(a) above), then Seller agrees to indemnify Buyer from and against the entirety of any Adverse Consequences Buyer may suffer (including any Adverse Consequences Buyer may suffer after the end of any
applicable survival period) resulting from, arising out of, relating to, in the nature of, or caused by the breach. 
 (ii)
Seller agrees to indemnify Buyer from and against the entirety of any Adverse Consequences Buyer suffers resulting from, arising out of, relating to, in the nature of, or caused by any liability of Seller that is not an Assumed Liability.

 (c) Indemnification Provisions for Seller’s Benefit. 
 (i) In the event Buyer breaches any of its representations, warranties, and covenants contained in this Agreement, and, provided that
Seller makes a written claim for indemnification against Buyer pursuant to Sections 7(d) and 9(g) below within the survival period (if there is an applicable survival period pursuant to Section 7(a) above), then Buyer
agrees to indemnify Seller from and against the entirety of any Adverse Consequences Seller may suffer (including any Adverse Consequences Seller may suffer after the end of any applicable survival period) resulting from, arising out of, relating
to, in the nature of, or caused by the breach. 
 (ii) Buyer agrees to indemnify Seller from and against the entirety of any
Adverse Consequences Seller suffers resulting from, arising out of, relating to, in the nature of, or caused by any Assumed Liability or by Buyer’s acts or omission occurring after the Closing. 
 (d) Limitations. 
 (i) Notwithstanding the foregoing, no indemnification for any Adverse Consequences shall be made pursuant to this Section 7 if and to the extent that such Adverse Consequences were taken into account in
determining whether or not any adjustment would be made to the Purchase Price pursuant to Section 2(c) or Section 2(g) (whether or not any such adjustment was, in fact, made) or the amount of any such adjustment. 

 (ii) Notwithstanding any other provision of this Agreement: (i) the liability of
Seller or Buyer for any Adverse Consequences shall be limited to direct Adverse Consequences and shall not include incidental, consequential or punitive damages (whether arising in tort, contract or otherwise, including the negligence or gross
negligence of any of the Parties and whether or not foreseeable), unless such damages arise as a result of fraud or willful misconduct; and (ii) the obligations of Seller or Buyer for Adverse Consequences, whether pursuant to the indemnity
obligations of this Section 7 or otherwise, arising, directly or indirectly, from or in connection with, this Agreement or the transactions contemplated hereby, shall in no event exceed in the aggregate the Purchase Price, as such Purchase
Price may be adjusted as provided herein. 
 (iii) Notwithstanding any other provision of this Agreement, for purposes of this
Section 7, a Party shall not be deemed to have breached any representation, warranty, covenant or obligation if (i) the other Party, prior to the Closing, had Knowledge of the breach, or facts and circumstances constituting or resulting in
a breach, of such representation, warranty, covenant or obligation, and (ii) the non-breaching Party did not notify the breaching Party of the breach and consummated the transactions contemplated by this Agreement notwithstanding the
non-breaching Party’s Knowledge of the breach. 
 (e) Matters Involving Third Parties. 
 (i) If any third party notifies any Party (the “Indemnified Party”) with respect to any matter (a “Third-Party
Claim”) that may give rise to a claim for indemnification against the other Party (the “Indemnifying Party”) under this Section 7, then the Indemnified Party shall promptly notify the Indemnifying Party thereof
in writing; provided, however, that no delay on the part of the Indemnified Party in notifying the Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the
Indemnifying Party is thereby actually and materially prejudiced. 
 (ii) The Indemnifying Party will have the right to assume
the defense of the Third-Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party at any time within 15 business days after the Indemnified Party has given notice of the Third-Party Claim; provided,
however, that the Indemnifying Party must conduct the defense of the Third-Party Claim actively and diligently thereafter in order to preserve its rights in this regard; and provided further that the Indemnified Party may retain separate
co-counsel at its sole cost and expense and participate in the defense of the Third-Party Claim. 
 (iii) So long as the
Indemnifying Party has assumed and is conducting the defense of the Third-Party Claim in accordance with Section 7(e)(ii) above, (A) the Indemnifying Party will not consent to the entry of any judgment on or enter into any
settlement with respect to the Third-Party Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld) unless the judgment or proposed settlement involves only the payment of money damages by the Indemnifying
Party and does not impose an injunction or other equitable relief upon the Indemnified Party and (B) the Indemnified Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without
the prior written consent of the Indemnifying Party (not to be unreasonably withheld). 

 (iv) In the event the Indemnifying Party does not assume and conduct the defense of the
Third-Party Claim in accordance with Section 7(e)(ii) above, however, (A) the Indemnified Party may defend against, and consent to the entry of any judgment on or enter into any settlement with respect to, the Third-Party Claim in
any manner it reasonably may deem appropriate (and the Indemnified Party need not consult with, or obtain any consent from, the Indemnifying Party in connection therewith) and (B) the Indemnifying Party will remain responsible for any Adverse
Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third-Party Claim to the fullest extent provided in this Section 7. 
 (f) Exclusive Remedy. Buyer and Seller acknowledge and agree that the foregoing indemnification provisions in this
Section 7 shall be the exclusive remedy of Buyer and Seller with respect to the transactions contemplated by this Agreement; provided that, in the case of fraud or willful misrepresentation or breach, the foregoing indemnification
provisions shall not be exclusive, but shall be in addition to any other rights or remedies to which Buyer and Seller or their respective assigns, as the case may be, may be entitled at law or in equity. 
 Section 8. Termination. 
 (a) Termination of Agreement. The Parties may terminate this Agreement as provided below: 
 (i) Buyer and
Seller may terminate this Agreement by mutual written consent at any time prior to the Closing; 
 (ii) Buyer may terminate
this Agreement by giving written notice to Seller at any time prior to the Closing (A) in the event Seller has breached any material representation, warranty, or covenant contained in this Agreement in any material respect, Buyer has notified
Seller of the breach, and the breach has continued without cure for a period of 10 days after the notice of breach or (B) if the Closing shall not have occurred on or before August 4, 2008, by reason of the failure of any condition
precedent under Section 6(a) hereof (unless the failure results primarily from Buyer itself breaching any representation, warranty, or covenant contained in this Agreement); and 
 (iii) Seller may terminate this Agreement by giving written notice to Buyer at any time prior to the Closing (A) in the event Buyer
has breached any material representation, warranty, or covenant contained in this Agreement in any material respect, Seller has notified Buyer of the breach, and the breach has continued without cure for a period of 10 days after the notice of
breach or (B) if the Closing shall not have occurred on or before August 4, 2008, by reason of the failure of any condition precedent under Section 6(b) hereof (unless the failure results primarily from Seller itself breaching
any representation, warranty, or covenant contained in this Agreement). 
 (b) Effect of Termination. If any Party
terminates this Agreement pursuant to Section 8(a) above, all rights and obligations of the Parties hereunder shall terminate without any liability of any Party to the other Party (except for any liability of any Party then in breach);
provided, however, that the covenants contained in Sections 9(a) and 9(p), below, and in that certain Mutual Confidentiality and Non-Disclosure Agreement effective as of August 10, 2007, by and between Parent and Blyth,
Inc., an Affiliate of Buyer (“Confidentiality Agreement”), shall survive termination. 

 Section 9. Miscellaneous. 
 (a) Press Releases and Public Announcements. No Party shall issue any press release or public announcement relating to the subject
matter of this Agreement without the prior written approval of the other Party, which approval shall not be unreasonably withheld; provided, however, that any Party may make any public disclosure it believes in good faith is required
by applicable law or any listing or trading agreement concerning its publicly traded securities (in which case the disclosing Party will advise the other Party prior to making the disclosure). Notwithstanding the foregoing, Buyer is hereby advised
by Seller and acknowledges that within four (4) business days after the Effective Date, Parent will file a Current Report on Form 8-K with the United States Securities and Exchange Commission disclosing the entry into this Agreement, the
Parties, the terms of this Agreement and the transactions contemplated hereby and such other information as it believes in good faith is required by applicable law to be disclosed in such report, and Seller hereby agrees it will provide a copy of
such Form 8-K to Buyer prior to its filing and allow Buyer a reasonable opportunity to review and comment upon the disclosures set forth therein. 
 (b) No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties and their respective successors and permitted assigns. Nothing in this Agreement
is intended to relieve or discharge the obligation or liability of any third Person to any Party to this Agreement, nor shall any provision give any third Person any right of subrogation or action over or against any Party to this Agreement.

 (c) Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement
between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, express or implied, to the extent they relate in any way to the subject matter hereof. Each Party acknowledges
that no representation, warranties, inducements, promises or agreement, oral or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not embodied herein. 
 (d) Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named herein and their
respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the other Party; provided, however, that Buyer may
(i) assign any or all of its rights and interests hereunder to one or more of its Affiliates and (ii) designate one or more of its Affiliates to perform its obligations hereunder (in any or all of which cases Buyer nonetheless shall remain
responsible for the performance of all of its obligations hereunder). 
 (e) Counterparts. This Agreement may be
executed in one or more counterparts (including by means of electronic transmission), each of which shall be deemed an original but all of which together will constitute one and the same instrument. 

 (f) Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
 (g) Notices. All
notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given on receipt as shown by written or electronic records and
either (i) delivered personally to the recipient, (ii) sent to the recipient by reputable overnight courier service (charges prepaid), (iii) sent to the recipient by facsimile transmission or electronic mail, or (iv) mailed to
the recipient by certified or registered mail, return receipt requested and postage prepaid, and addressed to the intended recipient as set forth below: 
  

			
	If to Seller:	  	Real Health Laboratories, Inc.
		  	c/o Natural Alternatives International, Inc.
		  	1185 Linda Vista Drive
		  	San Marcos, CA 92078
		  	Attention: Randell Weaver
		  	Fax: (760)591-9637
		
	Copy to:	  	Bell, Boyd & Lloyd LLP
		  	3580 Carmel Mountain Rd., Ste. 200
		  	San Diego, CA 92130
		  	Attention: David A. Fisher
		  	Fax: (858) 509-7461
		
	If to Buyer:	  	Miles Kimball Company
		  	250 City Center
		  	Oshkosh, WI 54910
		  	Attention: Stan Krangle
		  	Fax: (920) 231-6775
		
	Copy to:	  	Blyth, Inc.
		  	One East Weaver Street
		  	Greenwich, CT 06831
		  	Attention: Michael Novins
		  	Fax: (203) 552-9168

 Any Party may change the address to which notices, requests, demands, claims, and other
communications hereunder are to be delivered by giving the other Party notice in the manner herein set forth. 
 (h)
Governing Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of California without giving effect to any choice or conflict of law provision or rule (whether of California or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California. 

 (i) Amendments and Waivers. No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by Buyer and Seller. No waiver by any Party of any provision of the Agreement or any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall
be valid unless the same shall be in writing and signed by the Party making such waiver nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way
any rights arising by virtue of any prior or subsequent such occurrence. 
 (j) Severability. Any term or provision of
this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in
any other situation or in any other jurisdiction. 
 (k) Expenses. Each of Buyer and Seller shall bear its own costs
and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby. 
 (l) Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including” shall mean including without limitation. 
 (m) Incorporation of Exhibits and Schedules. The Exhibits and Schedules identified in this Agreement are incorporated herein by
reference and made a part hereof. 
 (n) Attorneys’ Fees. If any Party brings a suit or other proceeding against
another Party as a result of any alleged breach or failure by the other Party to fulfill or perform any covenants or obligations under this Agreement, then the prevailing Party obtaining final judgment in such action or proceeding shall be entitled
to receive from the non-prevailing Party the prevailing Party’s reasonable attorneys’ fees incurred by reason of such action or proceeding and all costs associated with such action or proceeding incurred by the prevailing Party, including
the costs of preparation and investigation. The term “prevailing party” shall mean the Party that is entitled to recover its attorneys’ fees, costs and expenses in the proceeding under applicable law or the Party designated as such by
the court or arbitrator. 
 (o) Time of Essence. With regard to all dates and time periods set forth or referred to in
this Agreement, time is of the essence. 
 (p) Confidentiality. Subject to Section 9 (a), Seller hereby agrees not
to disclose, disseminate or publish Confidential Information (as such term is defined in the Confidentiality Agreement) concerning the Business, whether or not such Confidential Information has heretofore been disclosed to Blyth, Inc. or Buyer, and
shall treat any such information in accordance with the terms of the Confidentiality Agreement. 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date. 

 

			
	MILES KIMBALL COMPANY
		
	By:	 	/s/ Stan Krangel
		 	Stan Krangel, President
	
	REAL HEALTH LABORATORIES, INC.
		
	By:	 	/s/ Randell Weaver
		 	Randell Weaver, Chief Executive Officer2006 Equity Incentive Award Plan Form of Stock Option Agreement

 Exhibit 10.57 
 BARE ESCENTUALS, INC. 
 2006 INCENTIVE AWARD PLAN 
 FORM OF STOCK OPTION GRANT NOTICE AND 
 STOCK OPTION AGREEMENT 
 Bare Escentuals, Inc., a Delaware corporation (the “Company”), pursuant to
its 2006 Equity Incentive Award Plan (the “Plan”), hereby grants to the holder listed below (“Participant”), an option to purchase the number of shares of the Company’s common stock, par value
$0.001 (“Stock”), set forth below (the “Option”). This Option is subject to all of the terms and conditions set forth herein and in the Stock Option Agreement attached hereto as Exhibit A (the
“Stock Option Agreement”) and the Plan, which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Stock Option
Agreement. 
 Participant: 
 Grant Date:

 Vesting Start Date: 
 Exercise Price Per Share:

 Total Exercise Price: 
 Total Number of Shares
Subject to Option: 
 Expiration Date: 
 Type of
Option:             
  

			
	 Vesting Schedule:
	  	

 By his or her signature, the Participant agrees to be bound by the terms and conditions of the
Plan, the Stock Option Agreement and this Grant Notice. The Participant has reviewed the Stock Option Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant
Notice and fully understands all provisions of this Grant Notice, the Stock Option Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions
arising under the Plan or relating to the Option. 
  

									
	BARE ESCENTUALS, INC.	 		 	PARTICIPANT
					
	By:	 	 	 		 	By:	 	 
	 Print Name: 
	 	 	 		 	 Print Name: 
	 	
	 Title:
	 	 	 		 		 	
	 Address:
	 	71 Stevenson St., 22nd Floor	 		 	 Address:
	 	 
		 	San Francisco, CA 94105	 		 		 	 

 EXHIBIT A 
 TO STOCK OPTION GRANT NOTICE 
 STOCK OPTION AGREEMENT 
 Pursuant to the Stock Option Grant Notice (the “Grant Notice”) to which this Stock Option Agreement (this
“Agreement”) is attached, Bare Escentuals, Inc., a Delaware corporation (the “Company”), has granted to the Participant an option under the Company’s 2006 Incentive Award Plan (the
“Plan”) to purchase the number of shares of Stock indicated in the Grant Notice. 
 ARTICLE I. 
 GENERAL 
 1.1 Defined Terms.
Wherever the following terms are used in this Agreement they shall have the meanings specified below, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and
the Grant Notice. 
 (a) “Administrator” shall mean the Board or the Committee responsible for
conducting the general administration of the Plan in accordance with Article 12 of the Plan; provided that if the Participant is an Independent Director, “Administrator” shall mean the Board. 
 (b) “Cause” shall mean (i) with respect to any Participant who is employed by the Company or one of its
Subsidiaries pursuant to an effective written employment agreement in which there is a provision expressly providing for a termination of employment for “Cause” and a definition of “Cause,” the definition of “Cause” as
set forth in such employment agreement and (ii) with respect to any other Participant, that the Board has determined, in its reasonable judgment, that any one or more of the following has occurred: (A) the Participant shall have been
convicted of, or shall have pleaded guilty or nolo contendere to, a felony, (B) the Participant shall have breached any non-competition agreement between the Participant and the Company or its affiliates or (C) the Participant shall
have openly disregarded his or her responsibilities to the Company and/or its affiliates and shall have refused to devote substantial time and energy to the business and affairs of the Company and/or its affiliates (other than due to Disability or
temporary disability which, in the reasonable judgment of the Board, caused the Participant to be incapable of devoting such time and energy) within 30 days after written notification by the Board that, in their good faith judgment, the Participant
has consistently failed to do so. 
 (c) “Disability” shall mean (i) with respect to any
Participant who is employed by the Company or one of its Subsidiaries pursuant to an effective written employment agreement in which there is a provision expressly providing for a termination of employment for “Disability” or “Total
Disability” and a definition of “Disability” or “Total Disability,” the definition of “Disability” or “Total Disability” as set forth in such employment agreement and (ii) with respect to any other
Participant, that the Board has determined, in its reasonable judgment, that the Participant is unable, due to illness, accident, injury, physical or mental incapacity or other disability, to carry out effectively the Participant’s duties and
obligations to the Company and its Subsidiaries. 
 (d) “Termination of Consultancy” shall mean the
time when the engagement of the Participant as a Consultant to the Company or a Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, by resignation, discharge, death or retirement, but excluding:
(a) terminations where there is a simultaneous employment or continuing employment of the 

 
Participant by the Company or any Subsidiary, and (b) terminations where there is a simultaneous re-establishment of a consulting relationship or
continuing consulting relationship between the Participant and the Company or any Subsidiary. The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Consultancy, including,
but not by way of limitation, the question of whether a particular leave of absence constitutes a Termination of Consultancy. Notwithstanding any other provision of the Plan, the Company or any Subsidiary has an absolute and unrestricted right to
terminate a Consultant’s service at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in writing. 
 (e) “Termination of Directorship” shall mean the time when the Participant, if he or she is or becomes an
Independent Director, ceases to be a Director for any reason, including, but not by way of limitation, a termination by resignation, failure to be elected, death or retirement. The Board, in its sole and absolute discretion, shall determine the
effect of all matters and questions relating to Termination of Directorship with respect to Independent Directors. 
 (f)
“Termination of Employment” shall mean the time when the employee-employer relationship between the Participant and the Company or any Subsidiary is terminated for any reason, with or without cause, including, but not by way
of limitation, a termination by resignation, discharge, death, disability or retirement; but excluding: (a) terminations where there is a simultaneous reemployment or continuing employment of the Participant by the Company or any Subsidiary,
and (b) terminations where there is a simultaneous establishment of a consulting relationship or continuing consulting relationship between the Participant and the Company or any Subsidiary. The Administrator, in its absolute discretion, shall
determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a particular leave of absence constitutes a Termination of Employment; provided, however, that,
if this Option is an Incentive Stock Option, unless otherwise determined by the Administrator in its discretion, a leave of absence, change in status from an employee to an independent contractor or other change in the employee-employer relationship
shall constitute a Termination of Employment if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and
revenue rulings under said Section. 
 (g) “Termination of Services” shall mean the Participant’s
Termination of Consultancy, Termination of Directorship or Termination of Employment, as applicable. 
 1.2 Incorporation of Terms of
Plan. The Option is subject to the terms and conditions of the Plan which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control. 
 ARTICLE II. 
 GRANT OF OPTION 

 2.1 Grant of Option. In consideration of the Participant’s past and/or continued employment with or service to the Company or
a Subsidiary and for other good and valuable consideration, effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the Company irrevocably grants to the Participant the Option to purchase any part or
all of an aggregate of the number of shares of Stock set forth in the Grant Notice, upon the terms and conditions set forth in the Plan and this Agreement. Unless designated as a Non-Qualified Stock Option in the Grant Notice, the Option shall be an
Incentive Stock Option to the maximum extent permitted by law. 
  

 A-2 

 2.2 Exercise Price. The exercise price of the shares of Stock subject to the Option shall be as
set forth in the Grant Notice, without commission or other charge; provided, however, that the price per share of the shares of Stock subject to the Option shall not be less than 100% of the Fair Market Value of a share of Stock on the
Grant Date. Notwithstanding the foregoing, if this Option is designated as an Incentive Stock Option and the Participant owns (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of
stock of the Company or any “subsidiary corporation” of the Company or any “parent corporation” of the Company (each within the meaning of Section 424 of the Code), the price per share of the shares of Stock subject to the
Option shall not be less than 110% of the Fair Market Value of a share of Stock on the Grant Date. 
 2.3 Consideration to the
Company. In consideration of the grant of the Option by the Company, the Participant agrees to render faithful and efficient services to the Company or any Subsidiary. Nothing in the Plan or this Agreement shall confer upon the Participant any
right to continue in the employ or service of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the
services of the Participant at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and the Participant. 
 ARTICLE III. 
 PERIOD OF
EXERCISABILITY 
 3.1 Commencement of Exercisability. 
 (a) Subject to Sections 3.2, 3.3 and 5.8, the Option shall become vested and exercisable in such amounts and at such times as are set
forth in the Grant Notice. 
 (b) No portion of the Option which has not become vested and exercisable at the date of the
Participant’s Termination of Employment, Termination of Directorship or Termination of Consultancy shall thereafter become vested and exercisable, except as may be otherwise provided by the Administrator or as set forth in a written agreement
between the Company and the Participant. 
 (c) Notwithstanding Sections 3.1(a) and 3.1(b), pursuant to Article 11 of the
Plan, the Option shall become fully vested and exercisable in the event of the Participant’s Termination of Employment or Termination of Directorship by the Company other than for Cause upon or at any time following 18 months after the date of
a Change in Control. 
 3.2 Duration of Exercisability. The installments provided for in the vesting schedule set forth in the Grant
Notice are cumulative. Each such installment which becomes vested and exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and exercisable until it becomes unexercisable under Section 3.3. 

3.3 Expiration of Option. The Option may not be exercised to any extent by anyone after the first to occur of the following events: 

(a) The Expiration Date; 
 (b) If this Option is designated as an Incentive Stock Option and the Participant owned (within the meaning of Section 424(d) of the Code), at the time the Option was granted, more than 10% of the total combined
voting power of all classes of stock of the Company or any “subsidiary corporation” of the Company or any “parent corporation” of the Company (each within the meaning of Section 424 of the Code), the expiration of five years
from the Grant Date; and 
  

 A-3 

 (c) The expiration of 90 days from the date of the Participant’s Termination of
Services, unless such termination occurs by reason of the Participant’s death or Disability or Termination of Services for Cause; 
 (d) The expiration of six months from the date of the Participant’s Termination of Services by reason of the Participant’s death or Disability; or 
 (e) Immediately upon the Participant’s Termination of Services for Cause. 
 The Participant acknowledges that an Incentive Stock Option exercised more than three months after the Participant’s Termination of Employment,
other than by reason of death or Disability, will be taxed as a Non-Qualified Stock Option. 
 3.4 Special Tax Consequences. The
Participant acknowledges that, to the extent that the aggregate Fair Market Value (determined as of the time the Option is granted) of all shares of Stock with respect to which Incentive Stock Options, including the Option, are exercisable for the
first time by the Participant in any calendar year exceeds $100,000, the Option and such other options shall be Non-Qualified Stock Options to the extent necessary to comply with the limitations imposed by Section 422(d) of the Code. The
Participant further acknowledges that the rule set forth in the preceding sentence shall be applied by taking the Option and other “incentive stock options” into account in the order in which they were granted, as determined under
Section 422(d) of the Code and the Treasury Regulations thereunder. 
 ARTICLE IV. 
 EXERCISE OF OPTION 
 4.1 Person
Eligible to Exercise. During the lifetime of the Participant, only the Participant may exercise the Option or any portion thereof. After the death of the Participant or incapacitation of the Participant by reason of Disability, any exercisable
portion of the Option may, prior to the time when the Option becomes unexercisable under Section 3.3, be exercised by the Participant’s personal representative or by any person empowered to do so under the deceased the Participant’s
will or under the then applicable laws of descent and distribution. 
 4.2 Partial Exercise. Any exercisable portion of the Option or
the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3. 
 4.3 Manner of Exercise. The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary of the Company (or
any third party administrator or other person or entity designated by the Company) of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 3.3: 
 (a) An Exercise Notice in a form specified by the Administrator, stating that the Option or portion thereof is thereby exercised, such
notice complying with all applicable rules established by the Administrator; 
  

 A-4 

 (b) The receipt by the Company of full payment for the shares of Stock with respect to
which the Option or portion thereof is exercised, including payment of any applicable withholding tax, which may be in one or more of the forms of consideration permitted under Section 4.4; 
 (c) Any other written representations as may be required in the Administrator’s reasonable discretion to evidence compliance with the
Securities Act or any other applicable law rule, or regulation; and 
 (d) In the event the Option or portion thereof shall be
exercised pursuant to Section 4.1 by any person or persons other than the Participant, appropriate proof of the right of such person or persons to exercise the Option. 
 Notwithstanding any of the foregoing, the Company shall have the right to specify all conditions of the manner of exercise, which conditions may vary by country and which may be subject to change from time to time.

 4.4 Method of Payment. Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of
the Participant: 
 (a) Cash; 
 (b) Check; 
 (c) With the consent of the Administrator, delivery of a notice that the
Participant has placed a market sell order with a broker with respect to shares of Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the aggregate exercise price; provided, that payment of such proceeds is then made to the Company upon settlement of such sale; 
 (d) With the consent of the Administrator, surrender of other shares of Stock which (A) in the case of shares of Stock acquired from the Company, have been owned by the Participant for more than six
(6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the shares of Stock with respect to which the Option or portion thereof is being exercised; 

(e) With the consent of the Administrator, surrendered shares of Stock issuable upon the exercise of the Option having a Fair Market
Value on the date of exercise equal to the aggregate exercise price of the shares of Stock with respect to which the Option or portion thereof is being exercised; or 
 (f) With the consent of the Administrator, property of any kind which constitutes good and valuable consideration. 
 4.5 Conditions to Issuance of Stock Certificates. The shares of Stock deliverable upon the exercise of the Option, or any portion thereof, may be
either previously authorized but unissued shares of Stock or issued shares of Stock which have then been reacquired by the Company. Such shares of Stock shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any
shares of Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions: 
 (a) The admission of such shares of Stock to listing on all stock exchanges on which such Stock is then listed; 
  

 A-5 

 (b) The completion of any registration or other qualification of such shares of Stock
under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Administrator shall, in its absolute discretion, deem necessary or advisable;

 (c) The obtaining of any approval or other clearance from any state or federal governmental agency which the Administrator
shall, in its absolute discretion, determine to be necessary or advisable; 
 (d) The receipt by the Company of full payment
for such shares of Stock, including payment of any applicable withholding tax, which may be in one or more of the forms of consideration permitted under Section 4.4; and 
 (e) The lapse of such reasonable period of time following the exercise of the Option as the Administrator may from time to time establish
for reasons of administrative convenience. 
 4.6 Rights as Stockholder. The holder of the Option shall not be, nor have any of the
rights or privileges of, a stockholder of the Company in respect of any shares of Stock purchasable upon the exercise of any part of the Option unless and until such shares of Stock shall have been issued by the Company to such holder (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment will be made for a dividend or other right for which the record date is prior to the date the shares of Stock are issued,
except as provided in Article 11 of the Plan. 
 ARTICLE V. 
 OTHER PROVISIONS 
 5.1 Administration. The Administrator shall have the
power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all
interpretations and determinations made by the Administrator in good faith shall be final and binding upon Participant, the Company and all other interested persons. No member of the Committee or the Board shall be personally liable for any action,
determination or interpretation made in good faith with respect to the Plan, this Agreement or the Option. 
  

 A-6 

 5.2 Option Not Transferable. The Option may not be sold, pledged, assigned or transferred in any
manner other than by will or the laws of descent and distribution, unless and until the shares of Stock underlying the Option have been issued, and all restrictions applicable to such shares of Stock have lapsed. Neither the Option nor any interest
or right therein shall be liable for the debts, contracts or engagements of Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void
and of no effect, except to the extent that such disposition is permitted by the preceding sentence. 
 5.3 Adjustments. The
Participant acknowledges that the Option is subject to modification and termination in certain events as provided in this Agreement and Article 11 of the Plan. 
 5.4 Notices. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the address given beneath the signature of the
Company’s authorized officer on the Grant Notice, and any notice to be given to Participant shall be addressed to Participant at the address given beneath Participant’s signature on the Grant Notice. By a notice given pursuant to this
Section 5.4, either party may hereafter designate a different address for notices to be given to that party. Any notice which is required to be given to Participant shall, if Participant is then deceased, be given to the person entitled to
exercise his or her Option pursuant to Section 4.1 by written notice under this Section 5.4. Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage
prepaid) in a post office or branch post office regularly maintained by the United States Postal Service. 
 5.5 Titles. Titles are
provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement. 
 5.6
Governing Law; Severability. The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles
of conflicts of laws. 
 5.7 Conformity to Securities Laws. The Participant acknowledges that the Plan and this Agreement are intended
to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations.
Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the
Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 5.8 Amendments,
Suspension and Termination. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board, provided,
that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely effect the Option in any material way without the prior written consent of the Participant. 
 5.9 Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement
shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in Section 5.2, this Agreement shall be binding upon Participant and his or her heirs, executors, administrators,
successors and assigns. 
  

 A-7 

 5.10 Notification of Disposition. If this Option is designated as an Incentive Stock Option,
Participant shall give prompt notice to the Company of any disposition or other transfer of any shares of Stock acquired under this Agreement if such disposition or transfer is made (a) within two years from the Grant Date with respect to such
shares of Stock or (b) within one year after the transfer of such shares of Stock to him. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or
other consideration, by Participant in such disposition or other transfer. 
 5.11 Limitations Applicable to Section 16 Persons.
Notwithstanding any other provision of the Plan or this Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan, the Option and this Agreement shall be subject to any additional limitations set forth in any applicable
exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, this Agreement shall be
deemed amended to the extent necessary to conform to such applicable exemptive rule. 
 5.12 Not a Contract of Employment. Nothing in
this Agreement or in the Plan shall confer upon the Participant any right to continue to serve as an employee or other service provider of the Company or any of its Subsidiaries. 
 5.13 Entire Agreement. The Plan, the Grant Notice and this Agreement (including all Exhibits thereto) constitute the entire agreement of the
parties and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof. 
 5.14 Section 409A. Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and
incorporate the terms and conditions required by, Section 409A of the U.S. Internal Revenue Code of 1986, as amended (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without
limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”). The Committee may, in its discretion, adopt such amendments to the Plan, this Agreement or the Grant Notice or adopt
other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Committee determines are necessary or appropriate to comply with the requirements of Section 409A.

  

 A-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]