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CONFIDENTIAL TREATMENT REQUEST  

*
Portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

 
 

EXHIBIT 10.17    
  

 
 

INTERNATIONAL DISTRIBUTION AGREEMENT    
  

        THIS AGREEMENT is made and entered into as of August 1, 2001 (the "Effective Date"), by and between HealtheTech, Inc. (along with its Affiliates,
hereinafter collectively referred to as "Manufacturer"), a Delaware corporation having its offices located at 523 Park Point Drive, Golden, Colorado and SensorMedics Corporation, a subsidiary of
VIASYS Healthcare, having its offices at 22705 Savi Ranch Parkway, Yorba Linda, CA 92887 existing under the laws of Delaware (along with its Affiliates, hereinafter collectively referred to as
"Distributor"). 

WITNESSETH 

        In
consideration of the mutual covenants and conditions herein contained, and intending to be legally bound hereby, the parties mutually agree as follows: 

        1.    Products and Territory.    

        (a)  Manufacturer
hereby appoints Distributor as its distributor for the sale of the products listed on Exhibit A
attached hereto and incorporated herein by this reference, as such exhibit may be amended from time to time by the Manufacturer in its sole discretion (hereinafter referred to as the "Products") in
the Territory (as defined below). Distributor shall use its best efforts to promote and sell the Products to the maximum number of responsible customers in the Territory. 

        (b)  Manufacturer
is appointing Distributor hereunder as the non-exclusive distributor with respect to the sale of Products to any purchasers whose principal
place of business is located in the following described territory and are within the customer scope of the following described territory (the "Territory"), and hereby limits such appointment to such
potential purchasers: 

Non-Exclusive
right to sell the products to Hospitals, Skilled Nursing Facilities, Medical Clinics, Occupational Health providers, and Physicians, Clinical Dietitians, and/or Clinical
Dietary departments in Hospitals and Skilled Nursing Facilities, worldwide. 

        (c)  Distributor
shall not solicit orders from any prospective purchaser outside the Territory; specifically, but not limited to: non-medical establishments such
as fitness centers, weight control clinics, consumer retail sales channels, and private consumers. If Distributor receives any order or inquiry from a prospective purchaser outside the Territory,
Distributor shall immediately refer that order or inquiry to Manufacturer. Distributor shall not accept any such orders. Distributor may not deliver or tender (or cause to be delivered or tendered)
any Product outside of the Territory. Distributor shall not sell any Products to a purchaser if Distributor knows or has reason to believe that such purchaser intends to remove those Products from the
Territory or resell those Products. 

        2.    Prices and Payment.    

        (a)  Distributor
shall order and purchase Products from Manufacturer by submitting a written purchase order identifying the Products and quantities ordered, requested
delivery date(s) and any export/import information required to enable Manufacturer to fill the order. All orders for Products are subject to acceptance by the Manufacturer's Chairman and CEO or
designated representative at Manufacturer's office at 523 Park Point Drive, Golden, Colorado. Manufacturer shall have no liability to Distributor with respect to purchase orders which are not
accepted; provided, however, that Manufacturer will not unreasonably reject any purchase order for Products which does not require any modifications,
deletions or additions in order to meet the specifications 

 

of Distributor or its customers. Manufacturer may reject, in its sole discretion, any order for customized products. 

        (b)  If
a purchase order is accepted in accordance with Section 2(a) above, the prices for Products covered by such purchase order shall be Manufacturer's prices as
defined in Exhibit A attached hereto. Manufacturer may from time to time change those prices by written notice to Distributor, such change being effective immediately upon Distributor's receipt
of notice thereof; provided, however, that no price change shall affect purchase orders offered by Distributor and accepted by Manufacturer prior to the
date such price change becomes effective. 

        (c)  Distributor
shall be free to establish its own pricing for Products sold by Distributor. Distributor shall notify Manufacturer of its pricing, as in effect from time to
time. 

        (d)  The
ultimate shipment of orders to Distributor shall be subject to the right and ability of Manufacturer to make such sales and obtain required licenses and permits,
under all applicable decrees, statutes, rules and regulations of the government of the United States and agencies thereof presently in effect or which may be in effect hereafter. 

        (e)  Distributor
hereby agrees: (i) to assist Manufacturer in obtaining any such required licenses or permits by supplying such documentation or information as may be
requested by Manufacturer; (ii) to comply with such decrees, statutes, rules and regulations of the government of the United States and agencies thereof or other foreign governmental bodies;
(iii) to maintain the necessary records to comply with such decrees, statutes, rules and regulations; (iv) not to re-export any Products except in compliance with such
decrees, statutes, rules and regulations; (v) to obtain all governmental approvals and licenses necessary to import the Products into the Territory; (vi) not to sell, transfer, or
otherwise dispose of the Products in violation of the export laws of the United States, the laws of other countries, or international treaties; and (vii) to indemnify and hold harmless
Manufacturer from any and all fines, damages, losses, costs and expenses (including without limitation reasonable attorneys' fees) incurred by Manufacturer as a result of any breach of this subsection
or subsection (f) below by Distributor or any of Distributor's customers. In furtherance of, but without limiting, the foregoing, Distributor expressly represents that it has read, understood
and will comply with the anti-bribery provisions of the U.S. Foreign Corrupt Practices Act. 

        (f)    Distributor
hereby expressly acknowledges that technical data and the direct product thereof are subject to export controls of the United States and agrees that neither
technical data nor the direct product thereof will be transferred, directly or indirectly, to any destination contrary to the requirements of the laws of the United States or to the terms of any
applicable export license. Further, Distributor hereby provides its assurance that it will not participate in any transaction which may involve any commodity or technical data, or the direct product
thereof, exported or to be exported from the United States, if a person denied export privileges from the United States may obtain any benefit from or have any interest in, directly or indirectly,
such transaction. 

        (g)  Unless
Distributor requests otherwise, all Products ordered by Distributor shall be packed for shipment and storage in accordance with Manufacturer's standard commercial
practices. It is Distributor's obligation to notify Manufacturer of any special packaging requirements (which shall be at Distributor's expense and subject to Manufacturer's acceptance of the
applicable purchase order for Products subject to such requirements). Risk of loss and damage to a Product shall pass to Distributor upon the delivery of such Product to the common carrier designated
by Distributor. All claims for non-conforming shipments must be made in writing to Manufacturer within ten (10) calendar days of the passing of risk of loss and damage, as described
above. Any claims not made within such period shall be deemed waived and released. 

2

 

        (h)  All
amounts due and payable with respect to a Product delivered by Manufacturer in accordance with the preceding subsection shall be paid in full within thirty
(30) days after Distributor's receipt of the invoice covering such Product. All such amounts shall be paid in U.S. dollars by wire transfer to such bank or account as Manufacturer may from time
to time designate in writing. Whenever any amount hereunder is due on a day which is not a day on which banks in Golden, Colorado, USA are open for business (a "Business Day"), such amount shall be
paid on the next succeeding Business Day. 

        (i)    In
the event of any discrepancy between any purchase order accepted by Manufacturer and this Agreement, the terms of this Agreement shall govern. 

        (j)    Products
purchased and sold hereunder shall be subject to the terms and conditions attached hereto as Exhibit B
and incorporated herein by this reference, except that in the event of any discrepancy between such terms and conditions and this Agreement, the terms of this Agreement shall govern. 

        3.    Other Obligations of Distributor.    

        (a)  Distributor
shall install the Products on the premises of its customers and shall train its customers to properly operate the Products in conformance with all
Manufacturers' written instructions for use packaged with Products. Distributor shall employ competent and experienced service personnel, provide appropriate service shop facilities, and maintain an
adequate stock of spare parts so as to render prompt and adequate service to the users of the Products in the Territory. 

        (b)  Distributor
shall create and maintain accurate and timely FDA Notification Device Reporting Files for all Products subject to this Agreement. 

        (c)  Distributor
agrees not to modify or repackage Products, or change the labeling of any Products, in anyway, without the express written consent of Manufacturer. 

        (d)  Distributor
agrees not to knowingly misrepresent Products in any way, and shall take all reasonable steps to enhance the Brand of Manufacturer in fulfilling Distributors
obligations under this Agreement. 

        (e)  Distributor
shall have all appropriate sales personnel sufficient to successfully fulfill Distributor's obligations under this Agreement attend, at Distributor's
expense, a one-time initial launch training event presented by Manufacturer at Distributors Yorba Linda, CA location (the "Launch Training"), and shall make available, at Distributor's
expense, additional sales personnel for any additional Manufacturer training sessions as provided under Section 4(b) below. All training of Distributor sales personnel must be completed to the
satisfaction of Manufacturer. 

        (f)    Distributor
agrees to provide appropriate medical device tracking and monitoring for all Product purchased by Distributor and/or distributed or otherwise transferred out
of Distributor's possession and control, and the facilitate any tracking of customer returns of Product to Manufacturer. 

        (g)  Each
month, Distributor agrees to provide to Manufacturer a written twelve (12) month rolling good faith demand forecast for Product purchases and a written firm
three (3) month forecast of Distributor's purchase requirements. 

        4.    Manufacturer's Obligations.    

        (a)  Manufacturer
shall provide Distributor with such marketing and technical assistance and free Product samples as Manufacturer may, in its sole discretion, consider
necessary or helpful to assist with the optimal promotion of the Products. 

3

 

        (b)  Manufacturer
shall present, at Manufacturer's expense, the Launch Training to Distributor's personnel at Distributors facility at 22705 Savi Ranch Parkway, Yorba Linda,
CA in connection with the marketing, sale, installation, maintenance and support of the Products. Manufacturer may elect to also provide or make available additional Product training beyond the Launch
Training event, either: (1) at its sole discretion and expense and at times and places selected by Manufacturer; or (2) at times and locations requested by Distributor, at Distributor's
expense, as Manufacturer may agree to in writing. 

        (c)  Manufacturer
shall designate maintenance and support personnel to assist Distributor's support personnel in providing maintenance and support services. 

        5.    Reciprocal Web Site Promotion.    

        (a)  Each
party hereby agrees to provide collateral web site promotion via links to the other party's company website. Each party shall install such URL links within a timely
manner at or near the date of initial Product promotion by Distributor, or sooner. Neither party will make medical claims for the other party's device on any website or in any documentation without
that claim been reviewed and controlled by the Manufacturer. 

        6.    Relationship of the Parties.    

        (a)  Distributor
shall be considered to be an independent contractor. The relationship between Manufacturer and Distributor shall not be construed to be that of employer and
employee, nor to constitute a partnership, joint venture or agency of any kind. 

        (b)  Distributor
agrees to pay all of its expenses incurred in the performance by Distributor of its obligations under this Agreement or otherwise, including without
limitation all travel, lodging and entertainment expenses. Manufacturer shall not reimburse Distributor for any of those expenses. 

        (c)  Distributor
shall have no right to enter into any contracts or commitments in the name of, or on behalf of, Manufacturer, or to bind Manufacturer in any respect
whatsoever. 

        (d)  In
addition, Distributor shall not obligate or purport to obligate Manufacturer by issuing or making any affirmations, representations, warranties or guaranties with
respect to the Products to any third party. 

        7.    Field Assistance.    

        (a)  Distributor
shall provide appropriate field technical assistance and support to Distributor's customers at the minimum performance level specified in Exhibit C,
and Manufacturer shall provide, in its discretion, appropriate additional field technical assistance to Distributor and Distributor's customers where justified and elected by Manufacturer. 

        (b)  The
Manufacturer only may initiate a product recall and is responsible for prompt notification to the Distributor of such recall and the reason. Distributor will be
responsible for distribution of recall notice to customers and reconciliation of returned units against shipments made in the Territory and shall use its best efforts in accurately and promptly
completing these tasks. Manufacturer shall be responsible for all remanufacturing and shipping costs associated with recall. 

        8.    Trademarks, Service Marks and Trade Names.    

        (a)  Distributor
may use the following Manufacturer's trade names, trademarks and service marks listed below and as otherwise identified by Manufacturer in writing
(hereinafter referred to as the "Trademarks"), in conformance with any standards for use defined and provided by Manufacturer, on a non-exclusive basis in the Territory only for the
duration of this Agreement 

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and solely for display or advertising purposes in connection with selling and distributing the Products in accordance with this Agreement: 

	(i)
	HealtheTech
(stylized)

	(ii)
	HealtheTechTM

	(iii)
	BodyGemTM

	(iv)
	BalanceLogTM

	(v)
	Your
Body's TalkingTM

	(vi)
	DietLogTM

	(vii)
	Listen
To Your BodyTM

	(viii)
	Why
GuessTM

	(ix)
	MEDGEMTM

        Distributor
shall not at any time act in any way, or permit any act to be done, which may in any way impair the rights of Manufacturer in the Trademarks, including the omission of
identification of Manufacturer's ownership of such trademarks in Distributor's promotional materials. 

        (b)  In
order to comply with Manufacturer's quality control standards, Distributor shall: (i) use the Trademarks in compliance with all relevant laws and regulations;
(ii) accord Manufacturer the right to inspect during normal business hours, without prior advance notice, Distributor's facilities used in connection with efforts to sell the Products in order
to confirm that Distributor's use of such Trademarks is in compliance with this Section; and (iii) not modify any of the Trademarks in any way and not use any of the Trademarks on or in
connection with any goods or services other than the Products. 

        (c)  Upon
termination or expiration of this Agreement, Distributor agrees to immediately discontinue all use of Manufacturer's trademarks, including internet website use, and
shall immediately destroy or return to Manufacturer all written materials in Distributor's possession incorporating such trademarks. 

        9.    Limited Warranty.    As to all components of the Products manufactured by Manufacturer, Manufacturer makes the
warranties set forth in Exhibit B hereto. As to all components of the Products manufactured by any entity other than Manufacturer, Manufacturer
extends to Distributor the warranties as to such components provided by such other entity to Manufacturer for the length of time that such warranty remains valid for Manufacturer. The time and scope
of the warranties described in Exhibit B shall not exceed the time and scope of any warranties granted by Distributor to any purchaser of such
Product, and Distributor shall not grant any Product warranties exceeding the time and scope of those warranties listed in Exhibit B. 

        10.    Reciprocal Indemnification.    Each party shall indemnify, defend and hold harmless the other party, its
parent, subsidiaries and their respective officers, directors, shareholders and employees, from and against all damages, liabilities, actions, causes of action, suits, claims, demands, losses, cost
and expenses (including without limitation, reasonable attorney's fees, disbursements and court costs) to the extent arising from or in connection with negligence or willful misconduct of the
indemnifying party, its agents, employees, representatives or contractors. The party seeking indemnification under this Section shall provide prompt Written Notice of any third-party claim to the
party from whom indemnification is sought ("Indemnifying Party"). The Indemnifying Party shall have the right to assume exclusive control of the defense of such claim or, at the option of the
Indemnifying Party in connection with the performance of the Indemnifying Party's obligations under this section. 

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        11.    Term and Termination.    

        (a)  This
Agreement may be terminated upon the occurrence of a material breach or default as to any obligation hereunder by either party and the failure of the breaching
party to cure (within thirty (30) days after receiving written notice thereof from the non-breaching party) such material breach or default, this Agreement may be terminated by the
non-breaching party by giving written notice of termination to the breaching party, such termination to be immediately effective upon the giving of such notice of termination. For the
purposes of this section 11(a), Distributor's failure to perform to the Minimum Distributor Sales Quota identified in Exhibit A or the Field and Customer Support Minimum Performance
Criteria identified in Exhibit C, shall constitute a material breach. 

        (b)  This
Agreement may also be terminated upon the filing of a petition in bankruptcy, insolvency or reorganization against or by either party, or either party becoming
subject to a composition for creditors, whether by law or agreement, or either party going into receivership or otherwise becoming insolvent (such party being hereinafter referred to as the "insolvent
party"), this Agreement may be terminated by the other party by giving written notice of termination to the insolvent party, such termination to be immediately effective upon the giving of such notice
of termination. 

        (c)  The
term of this Agreement shall begin on the Effective Date written above and shall end on the later of either: (i) December 31, 2003; or (ii) two
years from the first ship date of any Product from Manufacturer to Distributor, unless terminated earlier pursuant to the terms of this Section 11. 

        (d)  Notwithstanding
the provisions of subsection (c) above, either party shall have the right to terminate this Agreement, without cause, upon no less than one
hundred eighty (180) calendar days' prior written notice to the other party. 

        (e)  Notwithstanding
anything else in this Agreement to the contrary, the parties agree that Sections 2(e), 2(f), 2(h), 2(i), 2(j), 6, 7, 8, 9, 10, 11, 12, 13,
16-25, and 27 shall survive the termination or expiration of this Agreement, as the case may be, to the extent required thereby for the full observation and performance by any or all of
the parties hereto. 

        12.    Repurchase of Inventory.    Upon either termination or expiration of this Agreement, as the case may be,
Manufacturer shall have the right to repurchase Distributor's inventory of Products at the initial purchase price paid by Distributor. 

        13.    Publicity.    Distributor agrees that any publicity or advertising which shall be released by it directed to
promotion of the Products, or in which Manufacturer is identified in connection with the Products shall be in accordance with the terms of this Agreement and with any information or data which
Manufacturer has furnished in connection with this Agreement, and all such publicity, promotion or advertising shall not be published or otherwise distributed without the prior review and approval of
Manufacturer. Manufacturer shall have the right to review and approve all such publicity and advertising prior to dissemination thereof by Manufacturer. Any promotional material which makes medical
claims must be reviewed and formally controlled by the Manufacturer prior to use. 

        14.    Modification.    No modification or change may be made in this Agreement except by written instrument duly
signed by Distributor and by a duly authorized representative of Manufacturer. 

        15.    Assignment.    Distributor acknowledges that Manufacturer is entering into this Agreement in reliance upon the
personal reputation, qualifications and abilities of the present owner or owners and employees of Distributor's business and operations and, accordingly, Distributor may not assign its rights or
delegate its duties or obligations under this Agreement, either voluntarily or by operation of law, except with the prior written consent of Manufacturer. A change in control of Distributor's 

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business shall be deemed to be an assignment for purposes of this Section. This Agreement may be assigned by Manufacturer, without the consent of Distributor, to (i) any affiliate of
Manufacturer or any division of such affiliate, (ii) any entity with which or into which Manufacturer may consolidate or merge or (iii) any entity acquiring all or substantially all of
the assets of Manufacturer. This Agreement shall inure to the benefit of the successors and assigns of Manufacturer. 

        16.    Notice.    All notices given under this Agreement shall be in writing and shall be addressed to the parties at
their respective addresses set forth below: 

If
to Distributor:    Larry Murdock, SensorMedics Corp., 22705 Savi Ranch Parkway, Yorba Linda, CA 92887 

If
to Manufacturer:    James Mault, MD, Chairman & CEO, HealtheTech, Inc., 523 Park Point Drive, Suite 300, Golden, CO 80401 

or
to such other address or addresses as shall from time to time be designated by written notice by either party to the other as herein provided. All notices shall be sent by registered or recorded
delivery air mail letter, postage pre-paid and return receipt requested, or by a reputable international courier providing proof of delivery (Federal Express, DHL, etc.), and shall be
deemed duly given and received (i) if mailed, on the tenth (10th) Business Day following the mailing thereof, or (ii) if sent by courier, the day of its receipt (or, if such day is not a
Business Day, the next succeeding Business Day). 

        17.    Waiver.    None of the conditions or provisions of this Agreement shall be held to have been waived by any act
or knowledge on the part of either party, except by an instrument in writing signed by a duly authorized officer or representative of such party. Further, the waiver by either party of any right
hereunder or the failure to enforce at any time any of the provisions of this Agreement, or any rights with respect thereto, shall not be deemed to be a waiver of any other rights hereunder or any
breach or failure of performance of the other party. 

        18.    Validity.    Manufacturer warrants that this Agreement is lawful and may be performed in accordance with its
terms under all laws in force in the State of Colorado, USA, at the time of execution of this Agreement. Distributor warrants that this Agreement is lawful and may be performed in accordance with its
terms under all laws in force in USA and all of the countries comprising the Territory at the time of execution of this Agreement. Manufacturer and Distributor covenant and warrant that they will each
advise the other of any changes in the respective laws which might or will impair the validity of all or any part of this Agreement. 

        19.    Construction of Agreement and Resolution of Disputes.    This Agreement, which is in English, shall be
interpreted in accordance with the commonly understood meaning of the words and phrases hereof in the United States of America, and it and performance of the parties hereto shall be construed and
governed according to the laws of the State of Colorado, USA, applicable to contracts made and to be fully performed therein. 

        20.    Confidentiality.    

        (a)  As
used herein, "Confidential Information" means all documentation and information which is supplied by one Party to the other in connection with this Agreement and
which is marked as confidential or, if delivered orally, is indicated at the time of delivery to be confidential. Information shall not be considered to be Confidential Information if it (a) is
already or otherwise becomes publicly known through no act or omission of the receiving Party, (b) is received free from restriction from third parties without violation of any obligation to
the disclosing Party, or (c) can be shown by the receiving Party to have been independently developed by it without use of or reference to the disclosing Party's Confidential Information. 

        (b)  Each
Party agrees that the Confidential Information of the other Party shall be maintained in confidence and not disclosed to any third party by the receiving Party,
either during 

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or subsequent to the term of this Agreement, except as otherwise permitted under this Agreement. The Parties further agree not to use any Confidential Information of the other Party in any way,
directly or indirectly, except as required in the course of the performance of the terms of this Agreement. Each Party agrees that all of its employees and subcontractors having access to Confidential
Information of the other Party shall have executed confidentiality agreements requiring them to treat such information confidentially and prohibiting them from disclosing such information. Each Party
agrees to protect the Confidential Information of the other Party with the same standard of care it uses to protect its own
similar trade secrets and proprietary information, but in no event less than reasonable care. The foregoing shall not prevent either Party from disclosing the other Party's Confidential Information
(a) to its legal advisors, to the extent such advisors are bound by a duty of nondisclosure, (b) to the extent required by law; provided  that reasonable efforts are made to provide the other
Party with prior notice and an opportunity to oppose or limit the disclosure, or (c) as necessary in connection
with the enforcement of this Agreement. 

        (c)  The
Parties agree to maintain in confidence and not disclose to any other party the terms of this Agreement without the written consent of the other party. The foregoing
shall not prevent either Party from disclosing the terms of this Agreement (a) to the extent required by law; provided that reasonable efforts
are made to provide the other Party with prior notice and an opportunity to oppose or limit the disclosure, or (b) to its legal and financial advisors, to the extent such advisors are bound by
a duty of nondisclosure. In addition, neither Party may, without the prior written consent of the other Party, issue any press release, or make any other public announcement, concerning this Agreement
or the existence or nature of the relationship established by the Parties hereunder. The timing and content of such press release(s) shall be mutually acceptable to both Parties. Notwithstanding the
above, each Party agrees that they may disclose this Agreement to their respective investors and potential investors; provided that each such investor is subject to a nondisclosure agreement which
would include this Agreement and which is at least as restrictive as the terms of this Section 20. 

        21.    Entire Agreement.    This Agreement supersedes and cancels any previous agreements or understandings, whether
oral, written or implied, heretofore in effect and sets forth the entire agreement between Manufacturer and Distributor with respect to the subject matter hereof. 

        22.    No Rights by Implication.    No rights or licenses with respect to the Products or the Trademarks are granted
or deemed granted hereunder or in connection herewith, other than those rights expressly granted in this Agreement. 

        23.    Force Majeure.    

        (a)  Neither
Manufacturer nor Distributor shall be liable in damages, or shall be subject to termination of this Agreement by the other party, for any delay or default in
performing any obligation hereunder if that delay or default is due to any cause beyond the reasonable control and without fault or negligence of that party; provided  that, in order to excuse its delay
or default hereunder, a party shall notify the other of the occurrence or the cause, specifying the nature and particulars thereof and the
expected duration thereof, and shall use its best efforts to mitigate the duration and effect of such cause; and provided, further, that within fifteen
(15) calendar days after the termination of such occurrence or cause, such party shall give notice to the other party specifying the date of termination thereof. All obligations of both parties
shall return to being in full force and effect upon the termination of such occurrence or cause (including without limitation the obligation to make any payments which became due and payable hereunder
prior to the termination of such occurrence or cause). 

        (b)  For
the purposes of this Section, a "cause beyond the reasonable control" of a party shall include, without limiting the generality of the phrase, any act of God, act of
any government or 

8

 

other authority or statutory undertaking, industrial dispute, fire, explosion, accident, power failure, flood, riot or war (declared or undeclared). 

        24.    Severability.    If any provision of this Agreement is declared invalid or unenforceable by a court having
competent jurisdiction, it is mutually agreed that this Agreement shall endure except for the part declared invalid or unenforceable by order of such court. The parties shall consult and use their
best efforts to agree upon a valid and enforceable provision which shall be a reasonable substitute for such invalid or unenforceable provision in light of the intent of this Agreement. 

        25.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 

        26.    Medical Device Listing (Domestic).    Manufacturer shall obtain all of the necessary Food and Drug
Administration (FDA) 510k marketing clearance necessary to market the BodyGemTM by HealtheTech oxygen uptake computer as a medical device prior to supplying Products to Distributor under
terms of this agreement, and Distributor agrees not to commence any marketing or promotional activities, and not to offer the BodyGemTM by HealtheTech oxygen uptake computer or associated
disposables to any potential customer in the Territory prior to receiving written notice from Manufacturer that such 510k marketing clearance has been received. Notwithstanding, Distributor agrees to
provide Manufacturer with medical regulatory monitoring and tracking of all devices sold or otherwise transferred by Distributor within Distributor's Territory. Manufacturer is responsible for
collating data and reporting to regulatory agencies as required by those agencies. 

        27.    Medical Device Listing (International).    Manufacturer shall obtain all of the necessary regulatory clearance
necessary to market the BodyGemTM by HealtheTech oxygen uptake computer as a medical device outside the United States prior to supplying Products to Distributor for distribution in
countries other than the United States under terms of this agreement, and Distributor agrees not to commence any marketing or promotional activities, and not to offer the BodyGemTM by
HealtheTech oxygen uptake computer to any potential customer in non-U.S. portions of the Territory prior to receiving written notice from Manufacturer that such clearance has been
received. Notwithstanding, Distributor agrees to provide Manufacturer with medical regulatory monitoring and tracking of all devices sold or otherwise transferred by Distributor within Distributor's
Territory. Manufacturer is responsible for collating data and reporting to regulatory agencies as required by those agencies. 

        28.    Definition of Affiliates.    For the purposes of this Agreement, "affiliates" of a party to this Agreement
shall mean all companies, natural persons, partnerships, and other business entities controlled by, under common control with or controlling such party. 

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        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as a sealed instrument. 

	 	 	DISTRIBUTOR:.
	

 	
 	

SensorMedics
	

 	
 	

By:	
 	

/s/  ED PULWER      
 Name: Ed Pulwer

Title: General Manager
	

 	
 	

MANUFACTURER:
	

 	
 	

HealtheTech, Inc.
	

 	
 	

By:	
 	

/s/  JAMES R. MAULT      
 Name: James R. Mault, M.D.

Title: Chairman and CEO

10

EXHIBIT A—PRODUCTS, PRICING and SALES QUOTA  

        1.    Products Definitions:    

        (a)  BODYGEMTM—Shall
mean Manufacturer's version 1.0 digital personal health monitor used primarily for weight management and nutrition assessment,
which measures gas exchange and oxygen uptake at rest or under light activity or other low flow conditions, branded under the HealtheTech name and trademarked as "BodyGem," "MedGem" or other trademark
designated by Manufacturer. Version 1.0 shall mean the version subject to Manufacturer's initial FDA 510k application submission of February 2001. 

        (b)  BODYGEM
Disposable Breathing Circuit—Shall mean either version 1.0 of Manufacturer's single-use disposable mouthpiece or Manufacturer's
single-use disposable facemask for BODYGEM personal health monitors. Version 1.0 shall mean the embodiments subject to initial Manufacturer's FDA 510k application submission of
February 2001. 

        II.    Pricing for Sales to Distributor (in U.S. Dollars exclusive of shipping, etc.):    

	(a)
	BODYGEM:
[*] each.

	(b)
	BODYGEM
Disposable Breathing Circuit (mouthpiece or facemask): $[*] each

	(c)
	HealtheTech
PDA w/ DietLog software: $[*]/unit

	(d)
	BalanceLog
for Windows Software: $[*]/unit

	(e)
	BalanceLog
for Palm OS Software: $[*]/unit

	(f)
	BalanceLog
for Windows and Palm Bundle: $[*]/unit 

NOTE:
Pricing for BODYGEM and BODYGEM Disposables are for version 1.0 only, pricing for future versions is subject to change at discretion of Manufacturer upon written notice to Distributor. 

        III.    Minimum Distributor Sales Quotas (Global Sales):    

        The
following Sales Quotas are per CALENDAR QUARTER, pro-rated for partial calendar quarters where applicable: 

BODYGEM
units: [*] units.

BODYGEM Disposable Breathing Circuits: [*] units per BODYGEM unit sold. 

        IV.    Target Global Market Distribution:    [*]% of total units sold in each quarter outside
the United States and Canada. 

        V.    Initial Launch Distributor Purchase Requirements:    No later than five (5) calendar days following
written notice from Manufacturer of Manufacturer receiving FDA 510k clearance to sell BODYGEM in the United States, Distributor shall place an initial minimum purchase order for
[*] BODYGEM units with Manufacturer, and shall place a second purchase order for a minimum additional [*] BODYGEM units before the conclusion of the
2001 calendar year. 

*
Portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

EXHIBIT B—STANDARD TERMS AND CONDITIONS OF SALE  

        SAME TERMS: It is expressly understood and agreed that all Distributors' orders must include all of Manufacturers (seller's) terms and conditions printed hereon. 

        DELIVERY:
Delivery shall be F.O.B. point of origin at Manufacturer's shipping dock, warehouse or point of entry. Shipping dates are estimates which are not guaranteed and are based upon
prompt receipt of all necessary information. Manufacturer shall in no event be liable for delays caused by fire, act of God, strikes, labor difficulties, acts of governmental or military authorities,
delay in transportation or in procuring materials or causes of any kind beyond the Manufacturer's control. All shipping charges shall be paid by Distributor. 

        WARRANTY:
Manufacturer warrants that all Products will be free from defects in materials and workmanship. THIS WARRANTY SHALL EXPIRE THIRTEEN (13) MONTHS FOR BODYGEM OXYGEN UPTAKE
COMPUTER UNITS AND NINETY (90) DAYS FOR BREATHING CIRCUIT DISPOSABLE UNITS FOLLOWING THE DATE OF SHIPMENT FROM MANUFACTURER. Manufacturer shall, at its own option, repair or replace f.o.b.
factory or warehouse any such Product or part which is defective within the terms of the foregoing warranty, provided such products and parts have at all times been operated or used under the normal
operating conditions for which they were designed. THE COMPANY HEREBY DISCLAIMS ALL OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION ALL IMPLIED WARRANTIES OF MERCHANTABILITY
PERTAINING TO SUCH PRODUCTS OR PARTS. THE FOREGOING OBLIGATION TO REPAIR OR REPLACE SUCH PRODUCTS OR PARTS SHALL BE THE SOLE AND EXCLUSIVE REMEDY OF THE DISTRIBUTOR (PURCHASER), ITS CUSTOMERS, OR
USERS OF THE PRODUCTS OR PARTS FOR THE BREACH OF THE WARRANTY SPECIFIED HEREIN. MANUFACTURER SHALL HAVE NO OBLIGATION TO REPAIR OR REPLACE SUCH PRODUCTS OR PARTS UNLESS IT RECEIVES WRITTEN NOTICE OF
SUCH DEFECT WITHIN THE ABOVE-MENTIONED WARRANTY PERIOD. 

        RETURN
PROCEDURE: Manufacturer shall either repair or replace, at its sole discretion, any defective Product sold to Distributor. All returns must be executed in accordance with the
following procedure. (1) contact Manufacturer's Customer Service department to obtain a return authorization number or similar information; (2) Distributor ships the Product back to
Manufacturer or designated agent in accordance with the shipping instructions provided by Manufacturer's Customer Service Department at Manufacturer's expense; (3) Manufacturer shall repair or
replace any defective Product and ship such Product to Distributor. 

        LIABILITY:
EXCEPT AS SPECIFIED IN THE FOREGOING PARAGRAPH ENTITLED "WARRANTY", MANUFACTURER SHALL HAVE NO OBLIGATION OR LIABILITY WHATSOEVER TO THE DISTRIBUTOR, INCLUDING, WITHOUT
LIMITATION, ANY CLAIMS FOR CONSEQUENTIAL DAMAGES OR LABOR COSTS, BY REASON OF ANY BREACH OF THE EXPRESS WARRANTY DESCRIBED THEREIN. DISTRIBUTOR FURTHER HEREBY AGREES TO INDEMNIFY AND HOLD MANUFACTURER
HARMLESS FROM AND AGAINST ALL LOSSES, DAMAGES, OBLIGATIONS, LIABILITIES, SUITS AND CAUSES OF ACTION OTHER THAN THE COST OF REPLACING OR REPAIRING THE DEFECTIVE PRODUCT AS SPECIFIED IN THE FOREGOING
PARAGRAPH ("WARRANTY") ARISING DIRECTLY OR INDIRECTLY FROM THE ACTS, OMISSIONS, OR NEGLIGENCE OF DISTRIBUTOR IN CONNECTION WITH OR ARISING OUT OF THE TESTING, USE, OPERATION, REPLACEMENT OR REPAIR OF
ANY PRODUCT SOLD OR FURNISHED BY MANUFACTURER TO DISTRIBUTOR. 

        TAXES:
Distributor shall reimburse Manufacturer for any sales, use, occupation, excise, or other tax arising out of sales of products to Distributor upon receipt of Manufacturer's
invoice for the amount of the tax; or, at the option of Manufacturer, the purchaser shall provide the seller with a tax exemption certificate acceptable to the appropriate taxing authorities. 

 

        TERMS
OF PAYMENT: Unless otherwise agreed upon in writing terms of Payment are cash, in United States Dollars, in full, within thirty (30) days from date of shipment. All orders
are subject to the approval of the 

        SECURITY
INTEREST: If requested by Manufacturer, Distributor hereby agrees to grant to Manufacturer a security interest in all Products sold by Manufacturer to Distributor and all
proceeds of the resale thereof by Distributor, including without limitation all accounts receivable, for the purpose of providing the Manufacturer with security for the payment of the purchase price
of such Products. Pursuant to such security interest Manufacturer shall at all times have the rights of a secured party with regard to such products and proceeds under the Uniform Commercial Code, or
any similar statute, as enacted in the state or states in which such products may at any time be located. Distributor hereby agrees to execute any and all security agreements, financing statements,
and other documents which may be requested by Manufacturer in order to create and perfect any of the foregoing security interests. 

2

EXHIBIT C

FIELD AND CUSTOMER SUPPORT MINIMUM PERFORMANCE CRITERIA  

        Distributor shall provide Field and Customer support for all Products sold by Distributor in conformance with the following minimum support criteria: 

        Minimum
Support Criteria for the MEDGEM 

Product Installation & Customer Training  

        No field service installation is required. Field service option can be ordered. 

	Operator's manual & product instruction video	 	Included with system
	Self-taught Nutritional Assessment web seminar at www.sensormedics.com	 	$49.99

Product Tracking  

	1.
	Product
tracking of the MEDGEM will follow Distributor regulatory policy. Customer sales entered in Clientele database by serial number, date of sale and
location of use.

	2.
	Semi-annual
updates to the Food and Drug Administration with device listings.

	3.
	Maintenance
of mandatory device reports database for the Food and Drug Administration.

	4.
	Maintenance
of required regulatory control for each country where the MEDGEM is sold by the Distributor. 

Warranty Support  

        Distributor's service department will maintain warranty and service contract records. Defective products sold by the Distributor will be returned to Distributor
for evaluation, repair or replacement. Product under warranty will be serviced by exchange; exchange stock maintained at Distributor, with two business-day turnaround (US only).
Distributor will use the Manufacturer for repair of warranty products. 

Customer Support  

        Distributor will offer customers 24-hour, 7-day a week toll-free telephone technical support in the United States and Canada.
Other countries will be offered 10-hour a telephone business-day support. 

        Support
consists of telephone consultation for product operation and application, provided by factory-trained clinical specialists. 

        Support
will also be provided on the Distributor's website and will include FAQs, technical tips, and trouble-shooting suggestions. 

Third Party Distributors  

        The Distributor will offer other "third party distributors" of the Manufacturer, the same Product Installation & Training, Product Tracking, Warranty
Support and Customer Support provided to MEDGEM instruments sold by the Distributor. These services are offered together on a one-time fee-per-MEDGEM basis. The
"third party Distributor" will provide the Distributor with the customer name, location and serial number of the MEDGEM instrument to be covered. Distributor will also 

 

accept requests for coverage by lot numbers of MEDGEM serial numbers and receive customer names and locations directly from third party distributor customers. 

	

1 to 5000 MEDGEM instruments in the same calendar year from the same third party distributor	
 	

[*]/instrument
	

5001 to 20,000 MEDGEM instruments in the same calendar year from the same third party distributor	
 	

[*]/instrument
	

>20,000 MEDGEM instruments in the same calendar year from the same third party distributor	
 	

[*]/instrument

        Payment
for these services will be provided by HealtheTech and pre-payment is required in full. 

	(a)
	Product
Installation and Training for Customers—

	(b)
	Product
Tracking—

	(c)
	Warranty
Support (Repair, Returns or Replacement)—

	(d)
	Customer
Support Telephone Response—

	(e)
	Other—

        Distributor
agrees to offer to Manufacturer or other third party distributors the same Field and Customer Support defined above for like Products of Manufacturer on a fixed fee for
service schedule, to be negotiated by the parties, for the life of the Products. The fixed fee shall be on a Product per-unit basis. 

*
Portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

2

QuickLinks

EXHIBIT 10.17

INTERNATIONAL DISTRIBUTION AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

CONFIDENTIAL TREATMENT REQUEST  

*
Portions denoted with an asterisk have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment. 

 
 

EXHIBIT 10.18    
  

 
 

EXCLUSIVE DISTRIBUTION AGREEMENT    
  

        This Exclusive Distribution Agreement is dated December 5, 2001 and is entered into by and between the following Parties: 

	NSP:	 	Nature's Sunshine Products, Inc.

75 East 1700 South

Provo, UT 84606

Fax: (801) 342-4555
	

HET:	
 	

HealtheTech, Inc.

523 Park Point Drive, Third Floor

Golden, CO 80401

Fax: (303) 526-5186

who
agree as follows: 

SECTION 1

INTRODUCTION AND DEFINITIONS  

        1.1    HET and its BodyGem System.    HET is a Delaware corporation engaged in the business of creating and/or
acquiring new, innovative and safe technologies, products, and services to promote and further the health and well-being of its customers. HET has created and/or acquired proprietary
technology relating to the reading or measuring of a person's metabolism. HET has utilized this technology to create a system, including services, devices, disposables and know-how, under
the name, service mark and trademark BodyGemTM. The BodyGem system includes devices, disposables and know-how to facilitate metabolism measurements in a safe, convenient and
cost effective manner. As used in this Agreement, the "BodyGem System" will mean the devices, disposables, technology and know-how of HET relating to the measurement or reading of
metabolism, in their then-most-current commercialized form for non-medical device applications. The BodyGem System includes, without limitation, the subject matter
described in Exhibit A. As HET creates or acquires improvements to the commercialized BodyGem System or commercializes new developments and inventions relating to the measurement or reading of
metabolism that are incorporated into a new commercialized version of the BodyGem System, HET shall offer to NSP these new technologies under the terms of this Agreement as part of the BodyGem System.
Prices will be reasonably increased or decreased relative to current pricing herein to reflect any increase or decrease in the cost of manufacturing of the applicable BodyGem Devices and BodyGem
Disposables having these new technologies. Each such price increase or decrease will be documented by the Parties. For the purposes of this Agreement, the following definitions also apply: 

        "BodyGem
Services" are the services and methods of measuring or reading a person's metabolism using the BodyGem System for non-medical applications. BodyGem Services
specifically exclude any services that are subject to Medicare/Medicaid or other health care provider reimbursement. 

        "BodyGem
Devices" are the devices, instrumentation, and equipment of the BodyGem System used to measure or read a person's metabolism. Exhibit A hereto lists the currently
commercialized BodyGem Devices. BodyGem Devices also include applicable packaging and user documentation for those devices. 

 

        "BodyGem
Disposables" are the single-use disposables and supplies used in the BodyGem System in delivering or performing BodyGem Services. BodyGem Disposables include the HET
supplied mouthpiece and/or facemask identified in Exhibit A and also includes any accompanying packaging and user documentation for the disposable units. 

        "Multi-Level
Direct Sales" shall mean direct marketing and/or sales of services to consumers using independent representatives and/or authorized distributor sales force, and may for the
purposes of this definition, include the direct marketing and/or sales of products necessary to perform such services to such independent representatives or sales force. 

        1.2    NSP, its Business and NSP Distributors.    NSP is a Utah corporation engaged in the business of creating and/or
acquiring new, innovative and safe products and services which it sells through its Multi-Level Direct Sales distribution and marketing channels and organization. These channels and organization
include managers, distributors and sales representatives who purchase products and/or services from NSP for resale to their customers. These managers, distributors and sales representatives are
referred to herein as "NSP Distributors." NSP Distributors are not employees of NSP, but participate as independent contractors in NSP's Multi-Level Direct Sales distribution and marketing channels
and organization. 

        1.3    Intent of Agreement.    The Parties intend through this Agreement for: (a) HET to grant to NSP exclusive
BodyGem System distribution, sales, marketing and commercialization rights in the area of Multi-Level Direct Sales; and to (b) define the performance criteria needed to maintain the exclusivity
of such rights, as more fully described below. 

SECTION 2

RIGHTS, LICENSES, EXCLUSIVITY AND PROMOTION  

        2.1    Grant of License.    HET hereby grants to NSP the exclusive world-wide BodyGem Services and BodyGem
System distribution, sales, marketing and commercialization rights in the area of Multi-Level Direct Sales. This exclusive right is intended to allow BodyGem Services sales by NSP Distributors
directly to end-user consumers using the HET supplied BodyGem System (including devices and disposables), and is subject to the limitations provided in section 2.3.1 and
section 2.3 below. To enable or facilitate these rights, HET hereby grants to NSP the world-wide right and license: (a) to use and practice the BodyGem System and to
authorize and sublicense NSP Distributors to use and practice the BodyGem System for the purpose of selling, delivering and/or performing BodyGem Services to or for their customers; (b) to buy
BodyGem Devices and BodyGem Disposables from HET, and (c) to sell BodyGem Devices and BodyGem Disposables to NSP Distributors for the purpose of facilitating NSP Distributor sales of the
BodyGem Services. The rights and licenses granted under this Section 2.1 are referred to as the "License." 

        2.2    NSP BodyGem Service Sales Customers.    NSP and NSP Distributors may sell, deliver and/or perform BodyGem
Services to any end-user customers outside of the Health Care Provider setting. The "Health Care Provider" setting consists of: hospitals; licensed health care provider clinics, offices,
establishments or institutions; licensed physician's offices; and public health institutions; but expressly excludes any of the foregoing which may be an NSP Distributor, or have an NSP Distributor
on-site, or may be owned, operated or managed by an NSP Distributor engaged in Multi-Level Direct Sales for NSP. NSP acknowledges that the BodyGem System is not a medical device and that
BodyGem Services by NSP Distributors are not intended to be reimbursable health services under Medicare, Medicaid or other health care provider reimbursement plans. 

        2.3    Exclusion from License.    The License does not include any right for NSP to sell any BodyGem Devices or
BodyGem Disposables to any person who is not an NSP Distributor. 

2

 

Additionally, the License does not include any exclusive rights to make any sales of BodyGem Services in the non-exclusive territory identified in section 2.3.1 below (i.e., such
rights are non-exclusive). 

        2.3.1    Non-Exclusive Territory.    NSP's exclusive BodyGem Services sales rights specifically excludes
any exclusive right to make BodyGem Services sales (other than from or through Multi-Level Direct Sales) in: (i) Day-Spa or Salon establishments; (ii) third party retail
stores (retail stores not wholly-owned by NSP or a NSP distributor); or (iii) any corporation or educational institution health, wellness or research facility. NSP's and NSP Distributors'
BodyGem Services sales rights and the License in these settings are strictly non-exclusive. 

        2.4    Exclusivity.    Because of the exclusivity granted to NSP, HET warrants that it has not and will not, grant any
rights directly or indirectly to any third party that violates the exclusivity of the distribution, sales, marketing and commercialization rights granted to NSP in section 2.1 herein. It is
agreed that this exclusivity granted to NSP does not prevent HET from selling, delivering or performing BodyGem Services to its customers through consumer retail stores or from authorizing others to
do so, even if NSP Distributors sell, deliver or perform BodyGem Services in consumer retail stores. 

        2.5    Preservation of Exclusivity.    In order for NSP to retain the exclusivity of its exclusive rights provided in
section 2.1, NSP must meet or exceed the following purchase "Targets" for purchasing both BodyGem Devices and BodyGem Disposables from HET: 

Purchase Targets for BodyGem Devices:  

	Quantity Ordered
 
	 	Period (all quarters are calendar quarters)

	[*] devices	 	Ordered on or before December 31, 2001
	[*] devices	 	Ordered during the first three quarters of 2002 combined
	[*] devices	 	Ordered during the last quarter of 2002
	[*] devices	 	Ordered during the first quarter of 2003
	[*] devices	 	Ordered during the second quarter of 2003

Purchase Targets for BodyGem Disposables:  

	Quantity Ordered
 
	 	Period

	[*] units	 	Ordered on or before December 31, 2001
	[*] units	 	Ordered during the first two quarters of 2002 combined
	[*] units	 	Ordered during the third quarter of 2002
	[*] units	 	Ordered during the fourth quarter of 2002
	[*] units	 	Ordered during each subsequent quarter

        2.5.1.    Failure to Meet Purchase Targets.    If a Purchase Target specified above is not met for any Period (unless
due to the fault of HET or the unavailability of BodyGem Devices or BodyGem Disposables), then the exclusivity of the License shall end at the end of that Period and the License shall thereafter be
non-exclusive for the remaining Term of the Agreement and NSP shall have no continuing right of exclusivity under this Agreement. If orders for any given Period exceed the Target Quantity
Ordered, then the excess may be applied by NSP to any subsequent Period(s) in order to satisfy any subsequent Target(s). 

        2.6    BodyGem Name and Mark.    HET grants to NSP the right to use the HealtheTechTM and
BodyGemTM names and trademarks in a manner approved by HET as consistent with any HET specified branding requirements and guidelines, provided in advance by HET to NSP, in connection 

3

 

with the sales, distribution, marketing and commercialization of the BodyGem System to NSP Distributors, and further grants to NSP the right to sublicense to NSP Distributors the use of the
HealtheTechTM and BodyGemTM names and trademarks in a manner consistent with the HET specified branding requirements and guidelines (as provided in advance by HET to NSP) in
connection with sales, distribution, marketing and commercialization of the BodyGem Services. HET reserves the right to deny any use of, or demand the immediate discontinuation of any application of,
the HealtheTechTM and BodyGemTM names and trademarks that is inconsistent with such HET specified branding requirements and guidelines. The HET branding requirements and
guidelines will be reasonable. 

        2.7    Promotion by NSP.    In accordance with NSP's normal business practices, NSP shall actively promote the BodyGem
System to NSP Distributors through appropriately trained and qualified NSP personnel in appropriate NSP publications and at appropriate NSP conventions. It is HET's responsibility to provide the
appropriate training under Section 4. The HealtheTech and BodyGem branding, artwork, logo, and corporate identity specifications in the advertising and promotion activities of NSP relating to
the BodyGem System must be approved by HET, but such approval will not be unreasonably withheld or delayed. 

        2.8    Promotion by HET.    HET shall promote NSPs and NSP Distributors' BodyGem Services offerings in appropriate
advertising, public relations and other marketing communications selected by HET and shall provide on the HET website a URL link to the NSP website to allow customers interested in BodyGem Services to
find out more about receiving such services from a NSP Distributor. 

        2.9    Press Releases.    Any press release by a party to this Agreement relating to the business relationship between
with the other party shall be subject to the review and approval of the other party, and such approval shall be made promptly and not be unreasonably withheld. Each party agrees to submit any such
press release to the other party for approval at lease one business day before any public release. 

SECTION 3

SALE OF DEVICES AND DISPOSABLES TO NSP  

        3.1    BodyGem Devices.    NSP may purchase the BodyGem Devices from HET at the following price and terms for the Term
of this Agreement: 

        $[*]
per device (excluding shipping charges), F.O.B. HET's distribution facilities in the United States. 

BodyGem
Devices are to be deployed into service by trained and qualified NSP personnel or NSP Distributors for the purpose of actively making sales of BodyGem Services to customers. All BodyGem
Devices purchased by NSP shall not be resold by NSP, except to NSP Distributors, without the express written consent of HET. With each BodyGem Device purchased, NSP must order (or already have in
inventory) an initial quantity of [*] disposables per BodyGem device to enable sufficient deployment of the device in the NSP Distributor field. 

        3.2    BodyGem Disposables.    NSP may purchase the BodyGem Disposables from HET at the following prices and terms for
the Term of this Agreement: 

	Quantity Ordered
 
	 	Price Per Unit

	0-25,000 units	 	$	[*]/disposable
	25,001-50,000 units	 	$	[*]/disposable
	50,001-75,000 units	 	$	[*]/disposable
	75,001-100,000 units	 	$	[*]/disposable

Pricing
for BodyGem Disposables (single-use mouthpiece or single-use face mask) shall be in accordance with the above table and quantity discount schedule. To qualify for
volume discounts, unit 

4

 

volumes must be placed in a single purchase order to qualify for the discount. Prices are F.O.B. HET's distribution facilities in the United States and do not include shipping charges. 

        3.3    Ordering by NSP.    NSP shall order BodyGem Devices and BodyGem Disposables through purchase orders submitted
to and accepted by HET. Each purchase order will include the quantity of the devices or disposables ordered and the destination(s) to which they shall be shipped by HET. NSP may designate the shipping
date, method of shipment, carrier, and other relevant instructions in the purchase order. HET will use its best efforts to comply therewith. In the event that HET is unable to comply with any of the
foregoing shipping formalities, HET will promptly give NSP notice thereof and notice of the substitute shipping performance that HET will actually be able to provide. NSP may cancel any order if HET's
noncompliance with the purchase order instructions is material. 

        3.4    Title and Risk of Loss.    Title and risk of loss will pass to NSP upon shipment from HET distribution
facilities of the device or disposable to the destination specified in the NSP purchase order. 

        3.5    Payment Terms.    Upon or after delivery of an order of BodyGem Devices or BodyGem Disposables to NSP, HET
shall invoice NSP for the order. Payment in full shall be due no later than thirty (30) days after NSP's receipt of the invoice, provided that the invoice is properly stated and subject to
NSP's right to return—see Section 3.6 below. There shall be no fees or charges other than the purchase price specified in this Agreement and any applicable shipping (including
shipping insurance specified by NSP) charges. NSP is responsible for the payment of shipping charges and any applicable sales taxes, customs fees, and tariffs necessary to facilitate the shipment to
the destination specified by NSP. Purchase orders may be canceled at any time by NSP in writing prior to five business days before the specified or scheduled shipping date. 

        3.6    Returns.    Any BodyGem Devices or BodyGem Disposables that are defective or damaged or not in conformance with
their Specifications when received by NSP may be rejected and returned by NSP to HET at HET's expense. The "Specifications" for a device or disposable are the descriptions and specifications published
or otherwise stated by HET in the applicable written user instructions or product documentation. A BodyGem Device or BodyGem Disposable will be considered "defective" if in its operation or use it
malfunctions, produces or causes erroneous results outside the product specification, is unsafe, fails to conform to its Specifications, or is otherwise materially defective. If during the Warranty
Period (see Subsection 7.2(g) below) it is discovered that a BodyGem Device or BodyGem Disposable is not in compliance with a warranty under Section 7.2, then it may be returned by NSP at HET's
expense for either a refund of the purchase price or for replacement with a device or disposable that is in compliance with the warranties of Section 7.2, as elected by HET. NSP must contact
the HET Customer Support Department to report the intent to make a warranty return and request instructions for completing such a warranty return. HET will pay all shipping costs of providing such
warranty replacements to NSP. 

        3.7    Price Increases.    The prices set forth in Sections 3.1 and 3.2 are subject to increase by HET after the
18 month Initial Term of this Agreement. Such increases shall require at least 90 days advance notice to NSP and shall not occur more than once per year. No increase shall be more than
once per year. 

        3.8    NSP Tracking.    NSP shall keep accurate and current records of the sale or disposition of each BodyGem Device
and BodyGem Disposable purchased under this Agreement by NSP to NSP Distributors or any third party. If HET desires, at its sole expense, to replace, upgrade or audit the internally recorded use of
such devices upon reasonable notice to NSP, NSP shall facilitate prompt communication with the NSP Distributors to enable access to such devices. 

5

 

SECTION 4

TRAINING, SUPPORT AND CONSULTATION  

        4.1    Initial Training.    HET will provide the following initial training to NSP personnel and NSP Distributors
designated by NSP: 

        (a)  Five
(5) full days (eight hours/day) of initial product training by a HET designated trainer at HET directed to the theory and use of the BodyGem System. This
initial training will be provided in five consecutive business days or in separate business days as designated by NSP, at dates specified by NSP
and as agreed to by HET, and shall be allocated in no less than half-day (4 hour) increments. HET shall provide up to five (5) BodyGem Systems for use in this initial
training and up to 25 sets of training hand-out materials per half day session. The providing of additional BodyGem Systems or handouts shall be subject to the fees provided in
section 4.5 below. 

        (b)  All
initial training shall be provided at HET facilities in Golden, Colorado unless requested otherwise by NSP and is subject to the fee schedule of section 4.5. 

        (c)  HET
shall provide one HET trainer per half day session. If NSP requests more than one (1) HET trainer at any given session, fees for additional trainers shall be
paid by NSP in accordance with the fee schedule of section 4.5 below. 

        4.2    On-going Training.    If and as requested by NSP, HET will provide on-going BodyGem
System theory and use training to NSP personnel and NSP Distributors designated by NSP on the following basis: 

        (a)  All
on-going training shall be charged at a rate of six-hundred dollars ($600.00) per day per HET trainer and shall be charged in full day
(8 hours) increments. Each $600 fee includes up to twenty-five (25) training hand-out packages and the use of up to five (5) BodyGem Systems. Any
additional hand-out packages or BodyGem Systems shall be provided in accordance with the fee schedule of section 4.5. 

        (b)  All
on-going training shall be provided at HET facilities in Golden, Colorado unless requested otherwise by NSP, and if conducted outside of HET's Golden,
Colorado facilities shall be subject to the fee schedule in section 4.5. 

        (c)  HET
shall use all reasonable efforts to accommodate the time and place for NSP requested on-going training, but any on-going training shall be
schedule by mutual agreement of the parties. 

        4.3    Customer Support.    At no charge, HET shall provide on-going customer support to NSP and NSP
Distributors designated by NSP relating to the BodyGem System. This customer support shall be provided at regular HET customer support hours (currently 8:30 a.m. to 5:30 p.m. MST). 

        4.4    Training Forecasts.    In order to provide reasonable notice to HET of known NSP or NSP Distributor training
requirements, NSP agrees to give non-binding good faith training demand forecasts at the beginning of each month for the following 60 day period during the Term of this Agreement.
All forecasts shall be in writing and shall specify the number of attendees and the desired location and duration (in half-day increments). 

        4.5    Training Fee Schedule.    Additional training services that are not otherwise specified as
no-charge to NSP under this section 4 shall be provided by HET and reimbursed by NSP in accordance with the following fee schedule: 

        (a)    Trainers:    Six-hundred dollars ($600.00) per day (8 hours/day) billed in
half-day increments. 

6

 

        (b)    Hand-out Packages:    Reimbursed at actual HET cost. Estimated $0.05 per page for copies, actual
acquisition cost for re-prints, etc., plus any applicable shipping charges for transfer to training location. 

        (c)    BodyGemSystems:    Seven-dollars ($7.00) per BodyGem Disposable used, no charge for use of other BodyGem
Devices. 

        (d)    Travel and Expenses:    Actual travel time will not be subject to reimbursement. All reasonable travel
expenses, including lodging, meals, transportation, and economy class airfare, and reasonable ancillary travel expenses such as phone, fax or shipping charges related to the training, shall be
reimbursed to HET by NSP. Travel must be approved or otherwise requested in advance in writing by NSP. 

        (e)  All
fees and expenses shall be invoiced by HET and reimbursed by NSP within 30 days of date of invoice. 

        4.6    Written Instructions.    HET shall provide to NSP written instructions with the BodyGem Devices and BodyGem
Disposables for the correct, proper and safe operation and use of the BodyGem Device. 

SECTION 5

SOFTWARE  

        5.1    Development of BLP Software.    HET will develop for NSP within a reasonable time a NSP branded professional
software application (a re-badged version of HET's current BalanceLog PROTM software product) that would allow each NSP Distributor to track the metabolic measurements,
nutrition, fitness, and weight loss data of each of his or her enrolled customers. This application is referred to as the
"BLP Software". The parties agree to negotiate in good faith a mutually agreeable license/subscription fee agreement that would apply to NSP's and NSP Distributors' copying, use of, and rights to, the
BLP Software or, an applicable per-copy purchase price of the BLP Software, upon presentation of the Beta version of the BLP Software to NSP. At NSP's option, NSP and NSP Distributors
shall have similar access and rights to the non-re-badged version of HET's current BalanceLog PROTMsoftware product subject to a negotiated, mutually agreeable
license or subscription fee agreement for such software. Until such time, the non-re-badged version will be available to NSP and NSP Distributors at HET's
then-current generally available distributor pricing and terms. Whenever the context reasonably permits, the parties shall agree to include all warranties and indemnifications in this
Agreement to any software license anticipated under this Section 5.1 in the same manner that they apply to the BodyGem Devices or BodyGem Disposables. 

        5.2    Maintenance of Software.    If the parties agree to pricing and deployment of the BLP Software to NSP
Distributors, HET shall maintain the BLP Software for NSP. Maintenance shall include the following: (a) correcting programming errors and other defects and problems in the Software reported by
NSP to HET, and (b) keeping the Software in conformance with its applicable documentation and specifications. HET shall make corrections and provide fixes and work-around solutions
to NSP as soon as possible and in a competent and professional manner. 

        5.3    New Versions.    HET shall keep the BLP Software, if subject to a license or subscription agreement between the
parties, current with the offering of future versions and releases of the BalanceLog PROTM software product and the same shall be made available by HET to NSP as "BLP Software." 

7

 

SECTION 6

INTELLECTUAL PROPERTY  

        6.1    Ownership.    HET has represented and warranted to NSP that the BodyGem System is protected by the HET
portfolio of pending and issued patents directed to HET technologies and is proprietary to HET. Based on this representation and warranty, NSP acknowledges HET's rights of ownership in the patents and
other intellectual property in the BodyGem System. This ownership by HET does not extend to or include anything independently developed or created by NSP or NSP Distributors. 

        6.2    Restrictions.    Nothing in this Agreement assigns or conveys to any Party any rights of ownership of any of
the trademarks, product names, symbols, slogans, marketing materials, customer lists, know-how or goodwill of the other Party. The BodyGem and HealtheTech trademarks, service marks, and
names and the goodwill associated therewith shall belong to HET. 

        6.3    Indemnification.    

        (a)  HET
shall indemnify NSP (and its employees, officers and directors) and NSP Distributors against, and hold them harmless from, any and all litigation, arbitration,
mediation, judgments, awards, settlements, attorneys' fees, expenses, costs, damages and losses arising from any claim by any other person or entity that any of the BodyGem System (including any
service, device or disposable), as provided, delivered or disclosed by HET to NSP, or NSP's or NSP Distributor's use, practice, sale, delivery, performance, marketing, distribution or
commercialization thereof: (a) constitutes an infringement, misappropriation or violation of any patent, copyright, trade secret, trademark, service mark or other intellectual property or other
right, or (b) as result of a defect in design or manufacture, or as the result of HET's negligence, has injured or damaged a person, or caused his or her death, or is unsafe or harmful. A
products liability claim shall be deemed within the scope of (b) above. However, HET's indemnification obligations shall not apply to any claim caused by or arising from NSP's or an NSP
Distributor's negligence or failure to follow the written instructions provided by HET to NSP under Section 4.6. 

        (b)  NSP
shall indemnify HET and HET's suppliers, employees, officers and directors against, and hold them harmless from, any and all litigation, arbitration, mediation,
judgments, awards, settlements, attorneys' fees, expenses, costs, damages and losses arising from any claim by any other person or entity that is harmed in any way from NSP's use of any BodyGem System
that is not in conformance with HET's written instructions under Section 4.6 for use of the BodyGem System or that is in any way the result of NSP's negligence in providing BodyGem Services,
including but not limited to any unauthorized re-use of the BodyGem Disposables. NSP's obligation to indemnify and hold harmless does not apply to NSP Distributors or their use of any
BodyGem System that is not in conformation with HET's written instructions or any negligence of NSP Distributors. However, see (c) below. 

        (c)  NSP
will include with BodyGem Devices and BodyGem Disposables distributed by NSP to NSP Distributors, such written disclaimers and notices as are included by HET with
the devices and disposables when delivered to NSP. Such disclaimers and notices must be the same as those that are generally included by HET in or with BodyGem Devices and BodyGem Disposables sold to
customers other than NSP. 

8

   
        6.4    Intellectual Property Notices.    NSP will not remove, alter or obscure any patent, copyright or trademark
notices included on any BodyGem Devices or BodyGem Disposables delivered to NSP when the same are sold by NSP to NSP Distributors. 

SECTION 7

WARRANTIES, DISCLAIMERS AND LIMITATIONS  

        7.1    Warranty by NSP.    NSP represents and warrants that: 

        (a)  NSP
has the right and power to enter into this Agreement. 

        (b)  This
Agreement is not contrary to or in violation of any other agreement to which NSP is a party or any obligation of NSP to another person or entity. 

        (c)  NSP
understands that for safety reasons, the BodyGem Disposables are single-use only, that re-use of a BodyGem Disposable is in violation of the
written instructions for use of the BodyGem System and that re-use of a BodyGem Disposable could result in transmission of communicable diseases. NSP warrants that it shall comply with
Section 6.3(c) and shall not provide any training or communication to NSP Distributors that is contrary to the written instructions provided under section 4.6 herein. 

        7.2    Warranty by HET.    HET represents and warrants that: 

        (a)  HET
has the right and power to enter into this Agreement and to grant the licenses and rights granted to NSP under this Agreement. 

        (b)  This
Agreement is not contrary to or in violation of any other agreement to which HET is a party or any obligation of HET to another person or entity. 

        (c)  HET
owns or has acquired rights to the proprietary BodyGem System technologies and owns or has secured rights to all known applicable patents, copyrights and other
intellectual property thereto. 

        (d)  With
respect to all BodyGem Devices and BodyGem Disposables sold or delivered to NSP under the terms of this Agreement, marketable title to such devices and disposables
will pass to NSP upon delivery, free and clear of any liens, encumbrances, or defects in title and of any claims by third parties that may interfere with NSP's rights under this Agreement. 

        (e)  The
BodyGem System, BodyGem Services, and the BodyGem Devices and BodyGem Disposables sold or delivered to NSP, as provided, delivered or disclosed by HET to NSP, and
NSP's and each NSP Distributor's use, practice, sale, delivery, performance, marketing, distribution or commercialization thereof (without violating the applicable written instructions of
Section 4.6), do not and will not constitute an infringement, misappropriation or violation of any patent, copyright, trade secret, trademark, service mark or other intellectual property or
other right of any other person or entity. 

        (f)    When
shipped to NSP, the BodyGem Devices and BodyGem Disposables shall be in an undamaged and merchantable condition. 

        (g)  For
the Warranty Period, the BodyGem Devices and BodyGem Disposables shall not be "defective" (as defined in Section 3.6) and shall conform to their applicable
written Specifications. The "Warranty Period" shall be one year beginning on the date that the BodyGem Device or BodyGem Disposable is delivered to NSP. However, for BodyGem Devices and BodyGem
Disposables sold by NSP to NSP Distributors, the one year Warranty Period shall begin on the date that the device or disposable is delivered to the NSP Distributor, but shall in no event be longer
than fifteen (15) months from the date that device or disposable is delivered to NSP. 

9

 

        (h)  The
BodyGem System, including the BodyGem services, BodyGem devices and BodyGem disposables, and their practice and use as disclosed or taught by HET in its written
instructions under Section 4.6, shall be in conformance with all applicable laws and regulations, including, without limitation, any applicable FDA regulations. 

        (i)    The
BodyGem System is not considered a medical device, and has not been submitted to the FDA for clearance to market as a medical device. 

        Additionally
BodyGem Services are not intended to be reimbursable health care services under Medicare / Medicaid. HET warrants that FDA clearance is not required for the BodyGem System
and BodyGem Services and that they are non-medical. 

        7.3    Disclaimers.    NO PARTY MAKES ANY WARRANTY NOT EXPRESSLY SET
FORTH IN THIS AGREEMENT. IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED AND EXCLUDED.

        7.4    Limitation on Liability.    IN NO EVENT SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, SPECIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

SECTION 8

TERM AND TERMINATION  

        8.1    Initial Term and Renewals.    The initial term of this Agreement shall be 18 months beginning on the
date of this Agreement (the "Initial Term"). Unless and until NSP fails to meet a Period Target under Section 2.5 of this Agreement, NSP shall have the right to renew this Agreement on a year
to year basis after the 18 month Initial Term, up to a maximum of two twelve-month renewal periods. By mutual written agreement between the Parties, the Parties may further renew this Agreement
beyond the two twelve month renewal periods. 

        8.2    Breach.    In the event of a breach by either Party of any of the provisions of this Agreement, the other Party
shall have the right to terminate this Agreement at any time if the breaching Party fails to cure said breach within 30 days of receiving written notice of said breach. The notice must describe
the breach in reasonable detail to the best of the nonbreaching Party's knowledge and must indicate how the breach can be cured by the breaching Party if it is curable. If the breaching Party
reasonably requires more than 30 days to cure said breach, the 30 day period shall be extended as reasonably necessary to allow completion of the cure, provided that the breaching Party
begins the cure within the 30 day period and diligently pursues the cure to completion. If the breach is incurable, then the breach shall be deemed cured if the breaching Party pays to the
nonbreaching Party the damages suffered by the nonbreaching Party because of the breach and if the breaching Party takes reasonable action to mitigate the damages and to prevent the breach from
occurring again. If the existence of the breach is disputed, then this dispute shall first be resolved by arbitration in accordance with Section 9.7. If the arbitrator concludes that a breach
has occurred, then the provisions of this Section 8.2 shall apply and the breaching Party shall then have an opportunity to cure. The right of termination shall be in addition to any and all
other remedies to which the nonbreaching Party may be entitled. 

        8.3    Early Termination.    Notwithstanding anything herein to the contrary, NSP may terminate this Agreement without
cause at any time during the initial Term of this Agreement by giving at least ninety (90) days advance written notice to HET of its intent to terminate. 

        8.4    Effect of Termination.    Termination of this Agreement shall not release NSP from any obligation to make
payments to HET for BodyGem Devices or BodyGem Disposables sales to NSP, or for training provided to NSP and subject to fees under section 4 herein, prior to such termination. Purchase orders
placed by NSP and accepted by HET prior to termination shall be filled and delivered by HET in accordance with the terms of the purchase order and applicable terms of this Agreement. 

10

 

Termination of this Agreement shall not apply to or affect any BodyGem Devices or BodyGem Disposables sold or delivered to NSP prior to termination (i.e., this Agreement will continue to govern such
devices and disposables), and the License shall continue to apply thereto, including, without limitation, the right for NSP and NSP Distributors to continue to use such BodyGem Devices and BodyGem
Disposables to offer and perform BodyGem Services in conformance with the obligations and restrictions of this Agreement. 

SECTION 9

GENERAL PROVISIONS  

        9.1    Governing Law and Forum.    This Agreement shall be governed by and enforced in accordance with the laws of the
state of Colorado and of the United States of America. Nothing in this Section 9.1 shall determine the jurisdiction or venue of any litigation between the Parties. 

        9.2    Entire Agreement.    This Agreement: (i) represents the entire agreement between the Parties relating to
the License and the BodyGem System, (ii) supersedes all prior agreements, understandings, representations and warranties relating to the subject matter of this Agreement, and (iii) may
only be amended by a writing signed by both Parties. 

        9.3    Assignment.    In the absence of the other Party's advance written consent, neither Party shall have the right
nor the power to assign or transfer this Agreement or any rights (including the Licenses) under this Agreement or to delegate any duties or responsibilities under this Agreement to any third party.
However, such consent is not necessary for an assignment or transfer of this Agreement: (a) by NSP to any person or entity who acquires substantially all of the business assets of NSP, or
(b) by HET to any person or entity who acquires substantially all of the business assets of HET. Any assignee or transferee to whom this Agreement is assigned or transferred must agree, in a
writing delivered to the nonassigning or nontransferring Party, to be bound by this Agreement in the same manner that the assigning or transferring Party is bound by this Agreement. 

        9.4    Notices.    All notices and consents permitted or required under this Agreement must be in writing and shall be
delivered to the other Party at the address set forth at the beginning of this Agreement or such substitute address as either Party may specify by written notice to the other party. Notice to HET
shall be addressed to the attention of Chief Operating Officer, and notice to NSP shall be addressed to the attention of Chief Executive Officer. 

        9.5    Headings.    Section headings used herein are for convenience only and shall not be used to broaden or limit
this Agreement. 

        9.6    Severability.    If any provision in this Agreement is invalid or unenforceable, such provision shall be
construed, limited, or if necessary, severed to the extent necessary to eliminate such invalidity or unenforceability, and all other provisions of this Agreement shall remain in effect. 

        9.7    Dispute Resolution and Arbitration.    In the event of any dispute between the Parties relating to this
Agreement or its subject matter, they shall first seek to amicably resolve or settle the dispute in good faith by mutual agreement. If they have not reached a resolution or settlement within 30
business days, then either party may thereafter submit the dispute to arbitration, and if so submitted, shall be finally settled by arbitration conducted in accordance with the commercial arbitration
rules of the American Arbitration Association or its successor. The Parties shall attempt to mutually agree upon a neutral arbitrator within 30 days of submission to arbitration. If the Parties
cannot reach such agreement, they shall request the American Arbitration Association or its successor to promptly designate a neutral arbitrator. The arbitration shall be conducted in Denver, Colorado
if the arbitration is demanded by NSP. The arbitration shall be conducted in Salt Lake City, Utah if the arbitration is demanded by HET. The decision by the arbitrator shall be binding and conclusive
upon the Parties, their successors, assigns and trustees and they shall comply with such decision in good faith, and each 

11

 

Party hereby submits itself to the jurisdiction of the courts of the place where the arbitration is held, but only for the entry of judgment or for the enforcement of the decision of the arbitrator
hereunder. Judgment upon the award may be entered in any court having jurisdiction. 

        9.8    Relationship.    Neither Party is the partner, joint venturer, agent or representative of the other Party. NSP
and HET are independent contractors. There is no employment or agency relationship between the Parties. Neither Party has the authority to make any representations or warranties or incur any
obligations or liabilities on behalf of the other Party. Neither Party shall make any representation to a third party inconsistent with this Section 9.8. 

        9.9    Construction.    This Agreement represents the wording selected by the Parties to define their agreement and no
rule of strict construction shall apply against or in favor of either Party. 

        9.10    Waiver.    Any waiver of, or promise not to enforce, any right under this Agreement shall not be enforceable
unless evidenced by a writing signed by the Party making said waiver or promise. 

        9.11    Remedies.    Any remedies set forth in this Agreement are not exclusive, and either Party will be entitled
alternatively or cumulatively to damages for breach of this Agreement and to any other available legal or equitable remedies. 

        9.12    Successors.    This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective permitted successors and assigns. 

        9.13    Execution.    This Agreement may be executed in any number of duplicate counterparts, each of which shall be
deemed an original, but all of which taken together shall constitute one and the same instrument. The persons signing below represent that they are duly authorized to execute this Agreement for and on
behalf of the Party for whom they are signing. 

AGREED TO AND ACCEPTED BY:  

HealtheTech, Inc. ("HET")  

	By (Signature):	 	/s/  JAMES R. MAULT      
	 	 
	Name:	 	James R. Mault, MD	 	 
	Title:	 	CEO	 	 

Nature's Sunshine Products, Inc. ("NSP")  

	By (Signature):	 	/s/  CRAIG D. HUFF      
	 	 
	Name (print):	 	Craig D. Huff	 	 
	Title:	 	Chief Financial Officer	 	 

12

EXHIBIT A  

 Description of the BodyGem System 

(including services, devices and disposables)  

        I.    BodyGem
Devices: 

        (a)  BodyGem
System Kit—PN 100-001-01. Includes BodyGem Metabolic Meter, power adapter, 1 single use disposable mouthpiece, 1 single use
disposable facemask, User Guide instructions for use and BodyGem case. 

        II.    BodyGem
Disposables: 

	(a)
	Single
Use Disposable Mouthpiece

	(i)
	3
pack—PN 100-0020-01

	(ii)
	25
pack—PN 100-0006-01 

	(b)
	Single
Use Disposable Facemask (available in small, medium and large sizes)

	(i)
	3
pack

	(ii)
	25
pack 

QuickLinks

EXHIBIT 10.18

EXCLUSIVE DISTRIBUTION AGREEMENT

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