Document:

FY2015 Sales Inc. Plan

 
 

 

 
LIFEVANTAGE CORPORATION
FY2015 SALES INCENTIVE PLAN

	
			
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LIFEVANTAGE CORPORATION
FY2015 SALES INCENTIVE PLAN

SECTION 1.  INTRODUCTION.
The Board adopted this LifeVantage Corporation FY2015 Sales Incentive Plan as of the Adoption Date.
The purpose of this Plan is to align Company sales personnel with the Company’s business strategy and key objectives.  Specifically, the Plan is designed to:
		
	•
	Ensure alignment of expectations between the sales organization and individual Participants;

		
	•
	Focus on growth in enrollment and Company revenues;

		
	•
	Support reductions in distributor attrition; and

		
	•
	Ensure a pay for performance philosophy where a Participant is recognized and rewarded for achieving results.

The Plan seeks to achieve its purpose by granting Awards which provide for discretionary Performance Bonus payments that are based on achievement of Performance Metrics and with actual payment of any earned bonus determined as a percentage of a Participant’s Base Salary.  Annual performance targets (from the Company’s approved Fiscal Year 2015 Plan) have been divided into quarterly performance expectations for three discrete Performance Metrics.  Annual incentives paid will be determined by a percent-of-goal approach and measured and paid on a quarterly basis.  No Shares will ever be issued under this Plan.  Award payments may only be made with cash.
Capitalized terms shall have the meaning provided in Section 2 unless otherwise provided in this Plan or any applicable Award Agreement.
SECTION 2.  DEFINITIONS.  If a Participant’s Award Agreement (or other written agreement executed by and between Participant and the Company) expressly includes defined terms that expressly are different from and/or conflict with the defined terms contained in this Plan then the defined terms contained in the Award Agreement  (or other written agreement executed by and between Participant and the Company) shall govern and shall supersede the definitions provided in this Plan.
(a)“Adoption Date” means June 30, 2014.
(b)“Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of such entity.  For purposes of determining an individual’s “Service,” this definition shall include any entity other than a Subsidiary, if the Company, a Parent and/or one or more Subsidiaries own not less than 50% of such entity.
(c)“Award” means an opportunity for a Participant to earn a discretionary cash Performance Bonus for each Quarter that the Award remains outstanding based on achievement of Performance Metrics for such Quarter.  No payment underlying an Award is earned until it has been paid to the 

	
			
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Participant and all payments remain subject to the Committee’s discretion at all times based on all relevant factors, including but not limited to business conditions, performance issues, employment status, and/or any equitable considerations.  A Participant may have at most one outstanding Award under the Plan. A Participant’s Award will cease to be outstanding once the Participant is no longer an Eligible Employee.
(d)“Award Agreement” means an agreement between the Company and a Participant evidencing an Award.  The Award Agreement may specify the terms and conditions for one or more Quarters, including for the entire Fiscal Year.
(e)“Base Salary” means, with respect to a Participant, the annual base salary that such Participant is receiving as of July 1, 2014.
(f)“Board” means the Board of Directors of the Company, as constituted from time to time.
(g)“Cause” means, except as may otherwise be provided in a Participant’s Award Agreement, (i) dishonesty or fraud, (ii) serious willful misconduct, (iii) unauthorized use or disclosure of confidential information or trade secrets, (iv) conviction or confession of a felony, or (v) any other act or omission by a Participant that, in the opinion of the Company, could reasonably be expected to adversely affect the Company’s or a Subsidiary’s or an Affiliate’s business, financial condition, prospects and/or reputation. In each of the foregoing subclauses (i) through (v), whether or not a “Cause” event has occurred will be determined by the Committee whose determination shall be final, conclusive and binding. A Participant’s Service shall be deemed to have terminated for Cause if, after the Participant’s Service has terminated, facts and circumstances are discovered that would have justified a termination for Cause, including, without limitation, violation of material Company policies or breach of confidentiality or other restrictive covenants that may apply to the Participant.
(h)“Change in Control” means the occurrence of any one or more of the following: (i) any merger, consolidation or business combination in which the shareholders of the Company immediately prior to the merger, consolidation or business combination do not own at least a majority of the outstanding equity interests of the surviving parent entity, (ii) the sale of all or substantially all of the Company's assets, (iii) the acquisition of beneficial ownership or control of (including, without limitation, power to vote) a majority of the outstanding Shares by any person or entity (including a "group" as defined by or under Section 13(d)(3) of the Exchange Act), (iv) the dissolution or liquidation of the Company, (v) a contested election of directors, as a result of which or in connection with which the persons who were directors of the Company before such election or their nominees cease to constitute a majority of the Board, or (vi) any other event specified by the Board or the Committee.
A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company's incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities immediately before such transactions.
(i)“Code” means the Internal Revenue Code of 1986, as amended, and the regulations and interpretations promulgated thereunder.
(j)“Committee” means the committee described in Section 3.
(k)“Company” means LifeVantage Corporation, a Colorado corporation.
(l)“Compensation Committee” means the Compensation Committee of the Board.

	
			
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(m)“Eligible Employee” means an Employee who:
		
	(i)
	is responsible for sales targets within the sales organization (must be an account manager or  sales manager or above);

		
	(ii)
	is not on a leave of absence for any reason for thirty calendar days or more in a Quarter;

		
	(iii)
	is not on any type of corrective action plan; and

		
	(iv)
	is not a participant in the Company’s FY2015 Annual Incentive Plan.

(n)“Employee” means any individual who is a common-law employee of the Company, or of a Parent, or of a Subsidiary or of an Affiliate.
(o)“Exchange Act” means the Securities Exchange Act of 1934, as amended.
(p)“Fiscal Year” means the Company’s fiscal year for 2015 which runs from July 1, 2014 through June 30, 2015.
(q)“GAAP” means United States generally accepted accounting principles as established by the Financial Accounting Standards Board.
(r)“Parent” means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.  A corporation that attains the status of a Parent on a date after the Adoption Date shall be considered a Parent commencing as of such date.
(s)“Participant” means an Eligible Employee who has been selected by the Committee to participate in this Plan and receive an Award.  An individual will cease to be a Participant once such individual is no longer an Eligible Employee.
(t)“Performance Bonus” means the discretionary cash incentive bonuses that a Participant can earn pursuant to his/her Award.
(u)“Performance Expectation” means, with respect to a Performance Metric, the target quantitative expected performance that is enumerated in a Participant’s Award Agreement.  
(v)“Performance Metrics” means the three separate performance goals in each Quarter for an Award and these three goals consist of (i) Company revenue, (ii) enrollment, and (iii) distributor attrition rate as described further below.
	
			
	Performance Metrics
	 
	Description

	Revenue
	 
	Based on achievement of Company revenue goals for assigned geographic/territory/accounts

	Enrollment
	 
	Based on achievement of enrollment goals for assigned geography/territory/accounts

	Distributor Attrition Rate
	 
	Based on achievement of attrition rate goals assigned by management for assigned geography

	
			
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(w)“Performance Metric Measurement” means, except as otherwise provided in an Award Agreement, the following potential payments for a Performance Metric based on the below degree of achievement of the Performance Metric in a Quarter.  The degree of achievement of each Performance Metric shall be determined by the Committee in accordance with GAAP and/or internal Company financial reporting  to the extent applicable.  Each Performance Metric, and its related payment that can be earned, is measured and evaluated separately in each Quarter.  The threshold level of performance in order to be eligible for a quarterly payment for a Performance Metric is 90% of Performance Expectation.  However, after the Fiscal Year, the Committee may in its discretion provide for additional compensation for a Participant with respect to a Performance Metric if there was below 90% achievement of the Performance Expectation in one or more Quarters for such Performance Metric but the overall annual Performance Expectation for the Performance Metric was exceeded.
	
			
	Degree of Achievement
	 
	Potential Payment for Performance Metric

	Less than guidance of Performance Expectation
	 
	None

	 
	 
	 

	Between Guidance and 90% and 100% of target of Performance Expectation
	 
	Proportionate scaling between 30% and 100% of Target Amount

	 
	 
	 

	Between 90% and 100% of Performance Expectation
	 
	Proportionate scaling between 50% and 100% of Target Amount

	 
	 
	 

	Above 100% of Performance Expectation
	 
	Proportionate scaling such that for each additional 1% achievement over Performance Expectation, potential payment increases by 4% of Target Amount

(x)“Plan” means this LifeVantage Corporation FY2015 Sales Incentive Plan as it may be amended by the Board in its discretion.
(y)“Quarter” means a fiscal quarter that is contained within the Fiscal Year.  There are four Quarters in the Fiscal Year.
(z)“Relative Weight” means a percentage between 0% and 100% that is assigned to each Performance Metric in an Award Agreement to determine the relative weight of a Performance Metric.  The sum of the Relative Weights in each Award shall equal 100%.
(aa)“Separation From Service” has the meaning provided to such term under Code Section 409A and the regulations promulgated thereunder.
(ab)“Service” means uninterrupted service as an Employee.  Service will be deemed terminated as soon as the entity to which Service is being provided is no longer either (i) the Company, (ii) a Parent, (iii) a Subsidiary or (iv) an Affiliate.  
(ac)“Share” means a share of Company common stock (which has a par value of $0.001 per Share).

	
			
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(ad)“Specified Employee” means a Participant who is considered a “specified employee” within the meaning of Code Section 409A.
(ae)“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.  A corporation that attains the status of a Subsidiary on a date after the Adoption Date shall be considered a Subsidiary commencing as of such date.
(af)“Target Amount” means, except as expressed otherwise in an Award Agreement, the following target payment amounts for the Fiscal Year for a Performance Metric,.  The Target Amount would be attained, for example, if 100% of a Performance Metric’s Performance Expectation was achieved in each of the four Quarters.  The below figures are for the full Fiscal Year but the Award Agreement will apportion such amounts to each Quarter (and such allocation need not be uniform between the Quarters and will be further adjusted if an Eligible Employee is not a Participant for the entire Fiscal Year).
	
			
	Participant Job Level
	 
	Annual Target Amount in Dollars

	Senior Vice President or above
	 
	50% multiplied by Relative Weight multiplied by Base Salary

	 
	 
	 

	Vice President
	 
	35% multiplied by Relative Weight multiplied by Base Salary

	 
	 
	 

	Below Vice President
	 
	20% multiplied by Relative Weight multiplied by Base Salary

(ag)“Termination Date” means the date on which a Participant’s Service terminates.
SECTION 3.  ADMINISTRATION.
(a)Committee Composition.  A Committee shall administer the Plan.  Unless the Board or the Compensation Committee provides otherwise (which either may do in their discretion), the Company’s Chief Executive Officer shall constitute the “Committee” for purposes of this Plan.  The Board may also at any time terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee.
(b)Authority of the Committee.  Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take any actions it deems necessary or advisable for the administration of the Plan.  Such actions shall include without limitation:  
(i) determining Eligible Employees who are to receive Awards under the Plan and the amount of payments provided to a Participant (if any) with respect to an Award;
(ii) determining the terms, conditions, Performance Metrics (or other objective/subjective goals (if any)) and their degree of satisfaction, and other features and conditions of such Awards, and amending such Awards;
(iii) correcting any defect, supplying any omission, or reconciling or clarifying any inconsistency in the Plan or any Award Agreement;

	
			
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(iv) waiving restrictions of Awards at any time and under such terms and conditions as it deems appropriate;
(v) interpreting any extenuating circumstances and modifying the Plan or Award Agreement in its discretion as needed;
(vi) accepting or canceling an order or discontinuing service to a customer;
(vii) disallowing sales that are determined not to be in the normal course of business;
(viii) interpreting the Plan and any Award Agreements;
(ix) making such modifications to the Plan as are necessary to effectuate the intent of the Plan as a result of any changes in applicable laws or accounting treatment; 
(x) modifying, amending or revoking the Plan, or discontinuing (either temporarily or permanently) the distribution of any payment at any time and for any reason and making appropriate adjustments to sales or compensation targets due to favorable or unfavorable events unrelated to a Participant’s efforts of performance; and
(xi) making all other decisions relating to the operation of the Plan;
(xii) granting Awards to Eligible Employees who are foreign nationals on such terms and conditions different from those specified in the Plan, which may be necessary or desirable to foster and promote achievement of the purposes of the Plan, and adopting such modifications, procedures, and/or subplans (with any such subplans attached as appendices to the Plan) and the like as may be necessary or desirable to comply with provisions of the laws or regulations of other countries or jurisdictions to ensure the viability of the benefits from Awards granted to Participants employed in such countries or jurisdictions, or to meet the requirements that permit the Plan to operate in a qualified or tax efficient manner, and/or comply with applicable foreign laws or regulations.
The Committee may adopt such rules or guidelines, as it deems appropriate to implement the Plan.  The Committee’s determinations under the Plan shall be final, conclusive and binding on all persons.  The Committee’s decisions and determinations need not be uniform and may be made selectively among Participants in the Committee’s sole discretion.  The Committee’s decisions and determinations will be afforded the maximum deference provided by applicable law.
The Company shall effect the granting of Awards under the Plan in accordance with the determinations made by the Committee, by execution of instruments in writing in such form as approved by the Committee.  
(c)Indemnification.  To the maximum extent permitted by applicable law, each member of the Committee, or of the Board, or any persons (including without limitation Employees and officers) who are delegated by the Board or Committee to perform administrative functions in connection with the Plan, shall be indemnified and held harmless by the Company against and from (i) any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Award Agreement, and (ii) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her 

	
			
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in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless.
SECTION 4.  GENERAL.
(a)General Eligibility.  Only Eligible Employees shall be eligible for designation as Participants. 
(b)No Rights as a Shareholder.  A Participant shall have no rights as a shareholder with respect to any Award. 
(c)Termination of Service.  Except as otherwise provided in this Plan or in the applicable Award Agreement, a Participant’s outstanding Award shall terminate without consideration upon termination of such Participant’s Service.
(d)Code Section 409A.  Notwithstanding anything in the Plan to the contrary, the Plan and Awards granted hereunder are intended to be exempt from the requirements of Code Section 409A and shall be interpreted in a manner consistent with such intention.  In the event that any provision of the Plan or an Award Agreement is determined by the Committee to not comply with the applicable requirements of Code Section 409A or the applicable regulations and other guidance issued thereunder, the Committee shall have the authority to take such actions and to make such changes to the Plan or an Award Agreement as the Committee deems necessary to comply with such requirements.  Any payment made pursuant to any Award shall be considered a separate payment and not one of a series of payments for purposes of Code Section 409A.  
Notwithstanding the foregoing or anything elsewhere in the Plan or an Award Agreement to the contrary, if upon a Participant’s Separation From Service he/she is then a Specified Employee, then solely to the extent necessary to comply with Code Section 409A and avoid the imposition of taxes under Code Section 409A, the Company shall defer payment of “nonqualified deferred compensation” subject to Code Section 409A payable as a result of and within six (6) months following such Separation From Service under this Plan until the earlier of (i) the first business day of the seventh month following the Participant’s Separation From Service, or (ii) ten (10) days after the Company receives written confirmation of the Participant’s death.  Any such delayed payments shall be made without interest.  
While it is intended that all payments and benefits provided under the Plan or an Award will be exempt from (or comply with) Code Section 409A, the Company makes no representation or covenant to ensure that the payments under the Plan or an Award are exempt from or compliant with Code Section 409A.  In no event whatsoever shall the Company be liable if a payment or benefit under the Plan or an Award is challenged by any taxing authority or for any additional tax, interest or penalties that may be imposed on a Participant by Code Section 409A or any damages for failing to comply with Code Section 409A.  The Participant will be entirely responsible for any and all taxes on any benefits payable to such Participant as a result of the Plan or an Award.  

	
			
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(e)Electronic Communications.  Subject to compliance with applicable law and/or regulations, an Award Agreement or other documentation or notices relating to the Plan and/or Awards may be communicated to Participants (and executed by Participants) by electronic media.
(f)Unfunded Plan.  The Plan shall be unfunded.  Although bookkeeping accounts may be established with respect to Participants who are granted Awards under this Plan, any such accounts will be used merely as a bookkeeping convenience.  The Company shall not be required to segregate any assets which may at any time be represented by Awards, nor shall this Plan be construed as providing for such segregation, nor shall the Company or the Board or Committee be deemed to be a trustee of cash to be awarded under the Plan.
(g)Liability of Company.  The Company (or members of the Board or Committee) shall not be liable to a Participant or other persons as to any unexpected or adverse tax consequence or any tax consequence expected, but not realized, by any Participant or other person due to the grant, receipt, or settlement of any Award granted hereunder.
(h)Reformation.  In the event any provision of this Plan shall be held illegal or invalid for any reason, such provisions will be reformed by the Board if possible and to the extent needed in order to be held legal and valid.  If it is not possible to reform the illegal or invalid provisions then the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included.  
(i)Successor Provision.  Any reference to a statute, rule or regulation, or to a section of a statute, rule or regulation, is a reference to that statute, rule, regulation, or section as amended from time to time, both before and after the Adoption Date and including any successor provisions.  
(j)Governing Law.  This Plan and (unless otherwise provided in the Award Agreement) all Awards shall be construed in accordance with and governed by the laws of the State of Utah, but without regard to its conflict of law provisions.  The Committee may provide that any dispute as to any Award shall be presented and determined in such forum as the Committee may specify, including through binding arbitration.  Unless otherwise provided in the Award Agreement, recipients of an Award under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Utah to resolve any and all issues that may arise out of or relate to the Plan or any related Award Agreement.
(k)Assignment or Transfer of Awards.  No Award shall be transferable by the Participant.  No Award or interest therein may be transferred, assigned, pledged or hypothecated by the Participant during his or her lifetime, whether by operation of law or otherwise, nor may an Award be anticipated, assigned, attached, garnished, optioned, transferred or made subject to any creditor’s process, whether voluntarily, involuntarily or by operation of law, nor may an Award be made subject to execution, attachment or similar process.  Any act in violation of this Section 4(k) shall be null and void.
(l)Company Rights.  The Company reserves the right at any time to assign accounts, or remove accounts, or  to accept or reject orders from customers, and to refrain from paying incentive on draw fees the Company receives, freight charges to customers or with respect to similar or dissimilar transactions. The Company further reserves the right to adjust quotas under the Plan as it deems appropriate.

	
			
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SECTION 5.  TERMS AND CONDITIONS OF AWARDS.
(a)Award Agreement.  Each grant of an Award under the Plan shall be evidenced by an executed Award Agreement between the Participant and the Company.  Such Award shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan.  The provisions of the various Award Agreements entered into under the Plan need not be identical.
(b)Eligibility for Payments.  An individual must generally be a Participant on the date of any Award payment in order to receive such payment.  However, the Committee may in its discretion provide a Participant, whose Termination Date preceded the date of payment for a Performance Metric(s), with a pro-rated payment (based on the amount of time in the Quarter(s) that the Participant was providing Service) if such Participant was terminated for any reason other than by the Company for Cause and if the threshold for the Performance Metric(s) was exceeded. Similarly, if a Participant’s job level or position changes during a Quarter then the Committee shall address such circumstance on a case-by-case basis and the Committee may in its discretion determine that the Participant continues to be eligible for certain payments under this Plan if threshold performance for a Performance Metric(s) in the applicable Quarter was exceeded.
(c)Form and Time of Settlement of Awards.  Payment of any Performance Bonuses shall be made solely in the form of cash and in the time frames set forth in this section.  Performance Bonuses for Awards covering the first three Quarters of the Fiscal Year shall be paid out to Participants within 45 days after the end of the Quarter.  Performance Bonuses for Awards covering the last Quarter of the Fiscal Year shall be paid out to Participants during the first 2.5 months after the end of the Fiscal Year. Notwithstanding the foregoing, all Performance Bonus payments will be made earlier upon the consummation of a Change in Control (and performance will be measured by the Committee on a pro-rated basis for the Quarter in which the Change in Control occurred).
(d)Creditors’ Rights.  A holder of an Award shall have no rights other than those of a general creditor of the Company.  Awards represent an unfunded and unsecured obligation of the Company.

SECTION 6.  ADJUSTMENTS.
Notwithstanding satisfaction of any Performance Metric(s), the value of a Participant’s Award or Performance Bonus or any other benefits granted, issued, retainable, vested and/or to be paid under an Award on account of satisfaction of such Performance Metrics may be reduced by the Committee on the basis of such further considerations as the Committee in its sole discretion shall determine.  In other words, this Plan is a discretionary plan and a Participant has no rights to any payment and has not earned any payment under this Plan unless and until the Company has actually provided the Participant with the applicable payment.
SECTION 7.  LIMITATIONS ON RIGHTS.
(a)Retention Rights.  Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain in Service or to continued participation in the Plan.  The Company and its Parents and Subsidiaries and Affiliates reserve the right to terminate the Service of any person at any time, and for any reason, subject to applicable laws, the Company’s Articles of Incorporation and Bylaws, and a written employment agreement (if any).

	
			
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(b)Other Company Benefit and Compensation Programs.  Payments and other benefits received by a Participant under an Award made pursuant to the Plan shall not be deemed a part of a Participant’s regular, recurring compensation for purposes of the termination indemnity or severance pay law of any state. Furthermore, such benefits shall not be included in, nor have any effect on, the determination of benefits under any other employee benefit plan or similar arrangement provided by the Company or a Subsidiary  or Affiliate unless expressly so provided by such other plan or arrangement, or except where the Committee expressly determines that inclusion of an Award or portion of an Award should be included. Awards under the Plan may be made in combination with or in addition to, or as alternatives to, grants, awards or payments under any other Company or Subsidiary or Affiliate plans. The Company or any Subsidiary or any Affiliate may adopt such other compensation programs and additional compensation arrangements (in addition to this Plan) as it deems necessary to attract, retain, and motivate officers, directors, employees or independent contractors for their service with the Company and its Subsidiaries and its Affiliates.
(c)Clawback Policy.  The Company may (i) cause the cancellation of any Award, (ii) require reimbursement of any Award by a Participant and (iii) effect any other right of recoupment of equity or other compensation provided under this Plan or otherwise in accordance with Company policies as may be adopted and/or modified from time to time by the Company and/or applicable law (each, a “Clawback Policy”).  In addition, a Participant may be required to repay to the Company certain previously paid compensation, whether provided under this Plan or an Award Agreement or otherwise, in accordance with the Clawback Policy.  By accepting an Award, a Participant is also agreeing to be bound by the Company’s Clawback Policy which may be amended from time to time by the Company in its discretion (including without limitation to comply with applicable laws or stock exchange requirements) and is further agreeing that all of the Participant’s Awards may be unilaterally amended by the Company to the extent needed to comply with the Clawback Policy.
SECTION 8.  TAXES.
A Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations (including without limitation federal, state, local and foreign taxes) that arise in connection with his or her Award.  The Company shall not be required to make any payment under the Plan until such obligations are fully satisfied and the Company shall, to the maximum extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant.
SECTION 9.  DURATION AND AMENDMENTS.
(a)Term of the Plan.  The Plan is effective on July 1, 2014 and  may be terminated by the Board on any date pursuant to Section 10(b).  No further Awards may be granted after the earlier of the Board’s termination of the Plan under Section 10(b), the date of a Change in Control, or June 30, 2015.  This Plan will terminate after the Company has provided all payments (if any) to Participants.  This Plan will not in any way affect outstanding awards that were issued under any other Company compensation plans.  
(b)Right to Amend or Terminate the Plan.  The Board may amend or terminate the Plan or any outstanding Awards at any time and for any reason.  In the event of any conflict in terms between the Plan and any Award Agreement, the terms of the Plan shall prevail and govern.

	
			
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SECTION 10.  EXECUTION.
To record the adoption of this Plan by the Board, the Company has caused its duly authorized officer to execute this Plan on behalf of the Company.
	
		
	 
	LIFEVANTAGE CORPORATION

          ___________________________
By:
Title:

 

	
			
	12Integracore.Services.Agreement

SERVICES AGREEMENT
INTEGRACORE, LLC – LIFEVANTAGE CORPORATION

THIS SERVICES AGREEMENT (this “Agreement”) is dated for reference purposes only as of the 1st day of June, 2014 (the “Effective Date”) by and between IntegraCore, LLC., a Utah limited liability company (“IntegraCore”) and LifeVantage, a Colorado Corporation (“Client”) (collectively the “Parties”, and individually a “Party”) with reference to the following:

RECITALS
A.    IntegraCore is in the business of supply chain management, and provides various Services to its customers, including fulfillment, procurement, warehousing, ordering, processing, and shipping (collectively the “Services”).
B.    Client desires to engage IntegraCore to provide certain Services as defined herein.
C.    IntegraCore is willing to provide the Services in accordance with and subject to the terms and conditions of this Agreement. 

NOW THEREFORE, in consideration of the foregoing facts and for other good and valuable consideration, the legal sufficiency of which are hereby acknowledged, Client and IntegraCore hereby agree as follows:

		
	1.
	Services, Pricing and Payment.  The Services to be provided by IntegraCore to Client hereunder, along with the pricing and payment for services are set forth in the Statement of Work attached as Schedule A, attached hereto and incorporated and made a part of this Agreement by this reference. In the event of a conflict between the terms of this Agreement and Schedule A, the terms of this Agreement shall control.

		
	a.
	Except as expressly provided in the Statement of Work or otherwise in this Agreement, IntegraCore shall provide all equipment necessary to perform the Services in accordance with this Agreement and shall have the right to perform the Services in the manner and using the means IntegraCore deems necessary and appropriate in its sole discretion.  

		
	b.
	In the event that any provision or term set forth in the Statement of Work contradicts any provision or term of the body of this Agreement, the provision or term set forth in the Statement of Work shall supersede and replace such contradictory provision or term.

		
	c.
	Client is solely responsible for all international fees and costs as set forth in the Statement of Work.  Furthermore, Client is solely responsible for tax liabilities, duties, product identification, product valuation, and product registration for any and all international shipments. 

		
	2.
	Term, Option and Renewal.  This Agreement shall run from the Effective Date to the last date of the month thirty six (36) months following the Effective Date.  The term of this Agreement shall automatically renew month to month at the expiration of the 36 month term unless either Party gives prior written notice forty five (45) days before the expiration of the initial term or the renewal term.  

		
	3.
	Offer Only; Effective Date.  Execution of this Agreement by Client shall constitute only an offer for services which shall not be binding unless signed and executed by only those individuals authorized to accept this Agreement on behalf of IntegraCore.  IntegraCore’s sales and service representatives do not have the authority to bind IntegraCore to this Agreement.  This Agreement becomes effective to bind both 

Service Agreement - Page 1 of 9

[***] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission

IntegraCore and Client ON THE DATE THIS AGREEMENT IS EXECUTED BY IntegraCore (the “Effective Date”).  The date listed near the heading of this page, if any, is for reference purposes only. 

		
	4.
	Confidentiality.  Both Parties acknowledge and agree to the Confidentiality and Non-Disclosure Agreement attached hereto as Exhibit B and will execute said document, if not already signed by both Parties, in conjunction with the execution of this Agreement.  Said Exhibit is made incorporated herein as if fully set forth by this reference.

		
	5.
	Ownership of Intellectual Property; No License.  Each Party acknowledges that it may have access to certain intellectual property owned or licensed by the other Party in connection with this Agreement.  Each of IntegraCore and Client agrees that no license or any other property right in any such intellectual property is granted to the other Party by the other as a result of this Agreement.

		
	6.
	Intentionally Omitted.

		
	7.
	Events of Default.  The occurrence of any of the following shall constitute an event of default by either Client or IntegraCore (“Event of Default”) hereunder:

		
	a.
	The default in the prompt and complete payment or performance of any obligation of Client or IntegraCore now or hereinafter arising under this Agreement where such default is not cured within thirty (30) days after written notice thereof from the other Party.

		
	b.
	If, pursuant to or within the meaning of the United States Bankruptcy Code or any other federal or state law relating to insolvency or relief of debtors (a “Bankruptcy Law”), Client or IntegraCore shall (i) commence a voluntary case or proceeding; (ii) consent to the entry of an order for relief against it in an involuntary case; (iii) consent to the appointment of a trustee, receiver, assignee, liquidator or similar official; (iv) make an assignment for the benefit of its creditors; (v) admit in writing its inability to pay its debts as they become due, or (vi) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (a) is for relief against CLIENT or IntegraCore in an involuntary case; (b) appoints a trustee, receiver, assignee, liquidator or similar official; or (c) orders the liquidation, and in each case, the order or decree is not dismissed within sixty (60) days.

		
	c.
	The initiation of steps by any third party to obtain a lien, levy or writ of attachment or garnishment upon any or all of the Collateral or substantially all of any of the other property of Client or any guarantor of any Secured Obligation or to affect any of the Collateral or any such other property by other legal process not in the ordinary course of business by the Client, unless the same is dismissed within thirty (30) days after the initiation thereof.

		
	d.
	Should any representation or warranty by either Party be false.

		
	e.
	If either Party has a reasonable concern that the other Party may breach this Agreement, they may send a written statement setting forth the reasons for the concern of breach and make a demand for further assurances that the Party is or will continue to honor this Agreement.  The Party in receipt of such request shall respond in writing to the requesting Party within twenty (20) calendar days of the written request or they shall be deemed to be in Default of this Agreement.

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	8.
	Remedies Upon Default.  If any Event of Default occurs, IntegraCore or Client may exercise any one or more of all rights and remedies available to it under this Agreement, under applicable Utah law, at equity, or otherwise, including, without limitation:

		
	a.
	Termination of this Agreement.  The non-defaulting Party may terminate this Agreement by written notice to the defaulting Party, effective upon receipt of such notice.

		
	b.
	Collection.  The non-defaulting party may collect from the defaulting party all actual damages, sums, fees, costs, expenses and obligations due under this Agreement, including collection costs, pre and post judgment interest at the rate of 18% per annum, court costs (filing fees, service of process, and other court fees), and all reasonable attorney’s fees incurred by the non-defaulting party in connection with such Event of Default or the interpretation or enforcement of this Agreement or the rights and remedies of the non-defaulting party hereunder.

		
	c.
	Intentionally Omitted.

		
	d.
	Intentionally Omitted.

		
	e.
	Cumulative Remedies.  The rights and remedies of each Party in this section or in any other part of this Agreement are cumulative of themselves and of every other right or remedy.

		
	9.
	Abandoned Goods.  Notwithstanding the other terms of this Agreement, if at any time IntegraCore determines, in its reasonable discretion, that any goods in its possession or facility in connection with this Agreement have been abandoned by Client, IntegraCore may demand in a written notice to Client that Client, at its sole cost, remove or cause to be removed from any IntegraCore warehouse or storage facility such goods and that Client make payment of all fees, expenses and costs due; provided, however, IntegraCore shall have the right, but not the obligation, to refuse and stop any such removal, until Client makes payment of all charges, fees, expenses and costs due hereunder.  If such payment is not so made and such goods are not so removed within sixty (60) calendar days of such written notice, this Agreement shall terminate as to such goods, and such goods shall then be, without any further notice to or action of Client, the sole property of IntegraCore.  IntegraCore may then in its reasonable discretion move and store such goods at Client’s expense, and IntegraCore may retain all proceeds and benefits of any such action only to the extent that IntegraCore is owned monies or the goods have not been removed after written notice as set forth above. All remaining goods shall be promptly provided to Client.  The rights and remedies of this section shall be cumulative of every other right or remedy.

		
	10.
	Early Termination.

		
	a.
	Notwithstanding the other terms of this Agreement, IntegraCore may terminate this Agreement during the term or any renewal term of this Agreement, if Client is storing or shipping product in violation of law, including any city, municipality, county, state, foreign, international; or in violation of intellectual property rights of another (domestic or foreign); or if Client has failed to cure any default under this Agreement, including payment, after written notice of such default and a reasonable time to cure.   

		
	b.
	Notwithstanding the other terms of this Agreement, Client may terminate this Agreement during the term or any renewal term of this Agreement, if IntegraCore fails to meet expected service 

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level commitments found in Schedule A, Statement of Work, if IntegraCore is storing or shipping product in violation of law, including any city, municipality, county, state, foreign, international; or in violation of intellectual property rights of another (domestic or foreign); or if IntegraCore has failed to cure any default under this Agreement, including credit, after written notice of such default.

		
	11.
	Independent Contractor.  At all times IntegraCore shall be acting as an independent contractor and not as an employee, partner, joint venturer, or agent of Client.  As an independent contractor, IntegraCore shall have no authority, express or implied, to commit or obligate Client in any manner whatsoever.  IntegraCore shall be responsible for the payment of all federal, state or local income taxes payable with respect to all sums paid to IntegraCore under this Agreement.

		
	12.
	Representations and Warranties.

		
	a.
	IntegraCore represents and warrants to Client that: (i) it is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Utah; (ii) it has the lawful right, power, authority and capacity to enter into this Agreement; (iii) the person signing this Agreement is authorized to do so; and (iv) neither the execution nor the performance of this Agreement shall constitute a violation of or interfere with IntegraCore's obligations to any third party.

		
	b.
	Client represents and warrants to IntegraCore that: (i) it is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Colorado; (ii) it has the lawful right, power, authority and capacity to enter into this Agreement; (iii) the person signing this Agreement is authorized by Client as an officer, director, or manager, or has such authority by a declaration to do so; and (iv) neither the execution nor the performance of this Agreement shall constitute a violation of or interfere with Client's obligations to any third party.

		
	c.
	None of the Parties makes any representation or warranty except those expressly set forth in this Agreement, attachments or exhibits hereto.  Each Party disclaims all other warranties and conditions, express, implied or statutory, including without limitation the implied warranties of title, non-infringement, merchantability, and fitness for a particular purpose.

		
	13.
	Limitation of liability.  Notwithstanding any other provision in this Agreement (including Schedules and Exhibits), each Party's maximum liability to the other under this Agreement for any cause whatsoever, regardless of the form of action, whether in contract or in tort, including but not limited to negligence of the other Party and indemnification obligations, shall be limited to the recovery of actual damages.  In addition, neither Party shall be liable to the other Party for lost profits or special, incidental or consequential damages, and punitive damages, whether based in contract or tort (including negligence, strict liability or otherwise), and whether or not advised of the possibility of such damages.

		
	14.
	Inventory Shrinkage; Insurance; Carrier Claims; and Shipping Errors.  

		
	a.
	Once IntegraCore has received Client’s inventory items into IntegraCore’s systems and physical warehouses in connection with this Agreement, IntegraCore will be responsible for any actual 

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loss or damage to goods in its possession in excess of 2% (.02) inventory accuracy.  Inventory accuracy shall equal the number of deviated units below 99.0% x actual cost of missing product in credit reimbursement.
		
	b.
	Client shall insure, at its own expense, its inventory against loss from flood, fire, theft, etc. just as it would if its inventory were in its own warehouse.   IntegraCore shall, during the term here of, maintain in full force and effect the insurances listed below. IntegraCore shall provide a certificate of insurance evidencing the insurances listed below.  The Commercial General Liability insurance will be endorsed to add Client as an Additional Insured as respects to Integracore’s obligations under this agreement.

		
	i.
	Commercial Liability insurance with respect to coverage for the property of others  stored at its properties, with a limit not less than $5 Million per occurrence

		
	ii.
	Commercial General Liability insurance not less than $5 Million per occurrence

		
	iii.
	Business Automobile Liability insurance not less than $1 Million per occurrence

		
	iv.
	Workers Compensation insurance per State statute

		
	c.
	In the event a shipment or any part of it is received in damaged condition, Client shall work with the carrier or manufacturer/supplier to remedy damages.  Where damages are not noted on the Bill of Lading, Client will work with IntegraCore to remedy said damages.  Further, Client shall be responsible for filing a claim with the carrier if Client’s carrier account was used, and IntegraCore shall be responsible for filing a claim with the carrier if IntegraCore’s carrier account was used, after such claim is raised to IntegraCore and all required information has been provided by Client.

		
	d.
	Client shall be solely responsible to provide all shipping information and data for shipping product via portkey (or otherwise) to Client’s customers.  IntegraCore shall not be responsible for any shipment, fees, taxes, fines, or costs whatsoever for shipments that contained inaccurate, incorrect, or misinformation provided by Client.

		
	e.
	If IntegraCore incorrectly ships product due to its own error, then IntegraCore shall pay the actual cost for any item and the pick pack and shipment for the re-shipment of any product at the same shipping method as the original shipment method at IntegraCore’s sole cost.  

		
	15.
	Indemnification.

		
	a.
	Subject to the limitations on liability found herein, IntegraCore shall indemnify, hold harmless and defend Client and each person or entity that is an officer, director, member, manager, employee, affiliate or agent of Client from and against any and all losses, claims, damages, liabilities, whether joint or several, expenses (including reasonable legal fees and expenses), judgments, fines and other amounts paid in settlement, incurred or suffered (collectively, “Losses”) by any such person or entity arising out of or in connection with: (i) the breach of any representation or warranty made by IntegraCore hereunder; (ii) the breach of any term or provision of this Agreement or (iii) any intentional or negligent act by IntegraCore or its employees or agents in connection with the performance by IntegraCore or its employees or agents hereunder, provided such negligent act or omission was not done or omitted at the direction of Client.

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	b.
	Subject to the limitations on liability set forth herein, Client shall indemnify, hold harmless and defend IntegraCore and each person or entity that is an officer, director, employee, affiliate or agent of IntegraCore from and against any and all losses by any such person or entity arising out of or in connection with: (i) the inaccuracy or breach of any representation or warranty made by Client hereunder; (ii) the breach of any term or provision of this Agreement by Client; (iii) any negligent act or omission by Client or its employees or agents in connection with the performance by Client or its employees or agents hereunder, provided such negligent act or omission was not done or omitted at the direction of IntegraCore; (iv) for any and all claims brought under a theory of contract, statute or tort law against IntegraCore regarding the manufacturing, instructions, warnings, contents, or use of Client’s product ; (v) any claim against IntegraCore alleging violation of intellectual property rights, including patent infringement, trademark, trade dress, trade secrets, and copyright for any product or agreed to use of information provided by Client to IntegraCore under this Agreement; and (vi) any unpaid transportation charges in connection with Products Client caused to be shipped to or from IntegraCore for fulfillment. This provision shall survive and termination or cancelation of this Agreement.

		
	16.
	Audit Rights.  IntegraCore shall keep for at least four (4) years from the date of distribution proper records and books of accounting relating to the Services provided to Client.  Once every six (6) months, Client or its designee may inspect such records to verify such reports.  If the audit finds material discrepancies between the books and records and the audited results, the Parties agree the frequency of the audits may be increased to the extent reasonably necessary to satisfy the purposes of this Agreement.  Any such inspection will be conducted at the sole expense of Client and shall be in a manner that does not unreasonably interfere with IntegraCore's business operations.  This provision shall not survive the termination of this Agreement.

		
	17.
	Shortages/Nonconforming Goods.  Claims for shortages that are not attributable to a carrier, or for nonconforming goods, are to be reported in writing to IntegraCore's customer care department within ten (10) days after receipt of shipment, otherwise the claim will not be allowed and Client shall be deemed to have waived such claim.

		
	18.
	Sale and Use Taxes.  Client agrees to pay, when due, any and all applicable sales and use taxes on any products or Services sold to Client by IntegraCore.  Client agrees to indemnify and hold IntegraCore harmless for any and all applicable sales and use taxes that remain unpaid when due on any products or Services sold to a customer of Client by IntegraCore.  This provision shall survive and termination or cancelation of this Agreement.

		
	19.
	Subcontractors.  IntegraCore may, in its reasonable discretion, subcontract certain individuals to assist in the performance of all or any part of the work ordered by Client or to otherwise be performed by IntegraCore hereunder. The use of a subcontractor by IntegraCore shall not create any contractual relationship or obligations between any subcontractor and Client.  

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	20.
	Non-Solicitation Clause.  Client agrees and acknowledges that IntegraCore has invested significant time and money into the development of its employees and into each of its employee’s training, understanding and skill.  Thus, Client agrees that it shall not directly solicit, make offers of employment, or hire employees of IntegraCore, during the term of this Agreement, without the prior written consent of IntegraCore, which shall be granted or withheld in IntegraCore’s sole discretion.  This convent shall not apply to employees of IntegraCore who directly respond to Client’s advertisement for a position or the advertisement of an agent of Client.  Client further acknowledges that any breach of this Section may cause IntegraCore irreparable harm for which no adequate remedy exists at law, and agrees that upon any such breach of this Section, IntegraCore shall be entitled to seek injunctive relief, without any requirement to post a bond, and without prejudice to any other right or remedy that IntegraCore may have in law or equity.

		
	21.
	Miscellaneous.

		
	a.
	Notices.  All notices, consents, requests, instructions, approvals or other communications provided for herein shall be in writing and shall be delivered by personal delivery, overnight courier, U.S. certified mail addressed, or facsimile to the receiving Party at the address or facsimile number set forth below.  Any Party may change the address set forth below by notice to each other Party given as provided herein.  All such communications and all time periods based on such communications shall be effective when received.  

	
		
	LIFEVANTAGE CORPORATION
Attn: Robert Urban
9785 S Monroe Street, Suite 300
Sandy, Utah 84070
Office: 801-432-9000

	INTEGRACORE, LLC:
Attn: Kurt Flygare
6077 W. Wells Park Rd.
West Jordan, Utah 84081
Office: 801-994-3921
Facsimile:  801-838-8890

		
	b.
	No Waiver.  No failure to exercise, delays in exercising, or single or partial exercise of any right, power or remedy by any Party shall constitute a waiver thereof.  No provision of this Agreement shall be deemed waived unless such waiver shall be in writing signed by the waving Party.  No waiver by any Party of any of its rights or remedies on any one occasion shall operate as a waiver of any other of its rights or remedies or any of its rights or remedies on a future occasion.

		
	c.
	Entire Agreement.  This Agreement, including its schedules and exhibits, constitutes the entire Agreement of the Parties with respect to the subject matter hereof and shall supersede all other representations, statements, Agreements, written or oral, between the Parties unless reduced to writing and made a part of this Agreement.  Client acknowledges and agrees that Client is not relying upon any other agreements, understandings, inducements, promises, representations or warranties, express or implied made by any sales person, employee or agent of the IntegraCore unless reduced to writing and made a part of this Agreement.

		
	d.
	Interpretation.  Headings in this Agreement are included for reference purposes only and shall not affect the meaning of any provisions of this Agreement.  Client (and/or Client’s counsel) has reviewed this Agreement and Client agrees that any rule of contract interpretation that ambiguities or uncertainties are to be interpreted against the drafting party or the party who 

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caused it to exist shall not be employed in the interpretation of this Agreement.  As used in this Agreement, the word “including” means “including but not limited to.”  The words Client and IntegraCore shall include the plural as well as the singular.  In the event that there is more than one entity or person comprising Client, each of the entities or persons is jointly and severally liable under this Agreement.
		
	e.
	Assignment.  Neither Party shall assign or transfer this Agreement, or any right or obligation hereunder, without the prior written consent of the other Party.  For purposes of this paragraph, the term “assign or transfer” shall include any merger, sale of stock or other change in control of Client that results in a change in equity ownership of the Party of fifty percent (50%) or more.

		
	f.
	Amendment.  This Agreement shall not be amended or modified except by written document signed by all of the Parties.

		
	g.
	Survival.  The obligations arising under Sections 4, 5, 8, 9, 11, 13, and 15 of this Agreement shall survive any expiration or termination of this Agreement.

		
	h.
	Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of Utah without regard to conflicts-of-laws principles that would require the application of any other law.  Each of the Parties hereto irrevocably submits to the jurisdiction of each federal or state court located in Salt Lake County, Utah and waives any objection it may now or hereafter have to venue or to convenience of forum.

		
	i.
	Attorney’s Fees and Other Expenses.  Each Party shall pay all reasonable costs and expenses incurred by or on behalf of the other Party in connection with the other Party’s exercise of any or all of its rights and remedies under this Agreement, including, without limitation, reasonable attorneys’ fees. 

		
	j.
	Binding.  This Agreement shall be binding on the Parties and their respective heirs, successors and assigns.

		
	k.
	Severability.  In the event that any provision of this Agreement is held invalid, illegal or unenforceable by any court of competent jurisdiction, such portion shall be deemed severed from this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement.  

		
	l.
	Force Majeure.  Neither Party shall be liable to the other for any delay or failure of performance hereunder where the delay or failure is caused by strikes, lockouts, war, riots, insurrection, civil commotion, failure of supplies from ordinary sources, fire, flood, storm, accident, any act of God, or any other cause beyond the control of the Party.  The Party claiming the benefit of this provision shall use their best efforts to remove any such causes and to resume performance under this Agreement as soon as is feasible.  Performance by the other Party shall be suspended and excused during any such delay or failure.

		
	m.
	Cooperation.  Each Party agrees to execute and deliver such further documents and to cooperate as may be necessary to implement and give effect to the provisions contained herein.

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	n.
	Counterparts.  This Agreement may be signed in counterparts and by signature sent by facsimile, each of which shall be deemed to be an original, and all of which together shall constitute one and the same Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective for all purposes as of the Effective date.

	
		
	

IntegraCore

IntegraCore, LLC., 
a Utah limited liability company

By: /s/ Kurt Flygare

Its: President

Date (“Effective Date”): 5/30/2014

	LifeVantage Corporation

LifeVantage Corporation 
a Colorado Corporation

By: /s/ Douglas C. Robinson

Its: President and CEO

Date: 5/28/2014

 

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SCHEDULE A – STATEMENT OF WORK – LifeVantage

Pricing

Order Processing Pricing shall be set forth in the following table.
	
				
	Pricing
	Order Type
	 

	Measurement
	Mass Mail Order
	Standard Order
	 

	Per order
	[***]
	[***]
	 

	Per line
	[***]
	[***]
	 

	Per unit
	[***]
	[***]
	 

	International Fee
	[***]
	[***]
	 

	Packaging Fill per Order
	[***]
	[***]
	 

Billed only when incurred
		
	A.
	Storage pricing

		
	a.
	[***] per month for pallet locations (to be prorated and billed on a weekly basis)

		
	b.
	[***] per month for pick locations (to be prorated and billed on a weekly basis)

		
	B.
	Will Call Orders / International Bulk Orders

		
	a.
	Will call orders                    Standard Pick Pack Fees Apply

		
	C.
	Placing Bar-code on to finished goods            [***]   Each

		
	D.
	Container Unload Floor stack*

		
	a.
	53’ Container                    [***] Each

		
	b.
	40’ Container                    [***] Each

		
	c.
	20’ Container                    [***] Each 
*Container unload fee does not include the receiving charges for all products received.  As such, an additional receiving fee will also be assessed. Does not include pallets required for put away.

		
	E.
	Implementation Setup Fee (One Time)            [***]

		
	F.
	Kitting & Assembly                        As Quoted/Minimum of [***]

		
	G.
	Receiving Requirements                Refer to IntegraCore routing guide

		
	a.
	Pallet/new license receipt                [***] Each

		
	b.
	Labor to correct other nonconformance issues (labeling, pallet quality, re-boxing, sorting through mixed pallets, down stacking, re-palletizing for non-standard pallets and pallets out of dimensional specification (48X40X52), etc.)    [***] per Hour

		
	c.
	Supplied Pallet                    [***] per pallet

		
	H.
	IT Custom Development                    [***] per Hour

		
	I.
	IT Re-implementation                    [***] Charge

		
	J.
	Account Management Fee                    [***] Per Month

		
	K.
	3rd Party Billing Fee                        [***] Per Order

		
	L.
	Returns Processing                        [***] Per Order

		
	M.
	White Glove Fee

		
	a.
	2-4 Business Hours Notice                [***] Per Order

Statement of Work Page 1 of 7

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	b.
	4-6 Business Hours Notice                [***] Per Order

		
	c.
	If freight orders need to be rushed out in less than two business days, this will be priced at time of request if approved by Account manager. Rush freight orders must be approved by Account Manager before guaranteeing service.

		
	N.
	Delivery Services

		
	a.
	Per Delivery-Small Van(small pallet of product) – Salt Lake Valley        [***]

		
	b.
	Per Delivery-Large Truck(2 to 12 pallets) – Salt Lake Valley            [***]

		
	c.
	Per Delivery –Small Van(small pallet) – Davis or Utah County        [***]

		
	d.
	Per Delivery-Large Truck(2 to 12 pallets) – Davis or Utah County        [***]

		
	O.
	Physical inventory counts 

		
	a.
	Integracore shall provide free of charge: count sheets, Account Manager/CSR time, update of inventory adjustments after count is complete

		
	b.
	[***] per hour for Integracore employees helping during the PI count

		
	c.
	If the PI requires extra Integracore lifts above one lift these will be billed for these at a rate of [***] per day.

		
	d.
	If scissor lifts need to be rented from an outside company the charge is [***] per day per lift (This will commonly be charged for Quarter end and Year end counts and includes rental, pick-up, and delivery fees)

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	P.
	Hong Kong Rate Table:

	
			
	Basic Services
	Rates (USD)

	Storage & Inventory Management 
•    Goods stored under ambient environment
	[***] per CBM per day

	Goods Receiving, Sorting & Handling (excluding materials) 

	[***] per CBM plus [***] per SKU
(Min. [***] per order)

	Order Administration & Processing *(excluding materials) 
 
Payment Collection if applicable – Cash Collection [***] on collection amount (minimum [***] per order)
	•    [***] per order; plus [***] per unit 
•    Will Call Handling(Order input before visit) [***] per order plus [***] per unit
•    Will Call Handling(Order input at V-Logic) [***] per order plus [***] per unit
•    Will Call Handling Admin - [***] per month

	Local Hong Kong Pick Up & Delivery to Commercial or Residential Address 
*    Delivery to commercial address (includes hospitals), street retail outlets, distributors and wholesalers between V-Logic and the collection/ delivery point in any land bound locations in Hong Kong (non-central warehouse) 
*    Delivery to residential address between V-Logic and the collection/ delivery point in any land bound locations in Hong Kong 

	1 kg
	[***]

	2 kg
	[***]

	3 kg
	[***]

	4 kg
	[***]

	5 kg
	[***]

	6 kg
	[***]

	7 kg
	[***]

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Remarks:
*    Delivery to counter/ warehouses at department stores (e.g. Sogo, City Super, Seibu, and Wing On, etc.) is subject to a minimum of US [***] per order
*    Delivery to central warehouses of department store/ chain stores (e.g. Mannings, etc.), freight forwarder warehouses, airports or ocean ports is subject to a minimum of US [***] per order
*    Service fee exclude materials (such as pallets, packing carton boxes, etc.)

	8 kg
	[***]

	9 kg
	[***]

	10 kg
	[***]

	11 kg
	[***]

	12 kg
	[***]

	13 kg
	[***]

	14 kg
	[***]

	15 kg
	[***]

	16 kg
	[***]

	17 kg
	[***]

	18 kg
	[***]

	19 kg
	[***]

	20 kg
	[***]

	21 kg
	[***]

	22 kg
	[***]

	23 kg
	[***]

	24 kg
	[***]

	25 kg
	[***]

	Over 25 kg
	[***] + [***] per kg for weight over 25kg

*Materials- shipping boxes, void fill or any other special required packaging for orders. This will be determined on a case by case basis. 
	
		
	Return Order Handling
	•    [***] per order up to 3 units
•    Additional Units will be [***] per unit 

Service Level Commitment –
		
	A.
	Account Management.  You will be assigned a dedicated Account Manager.  

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	a.
	Personal account management

		
	b.
	Project management

		
	c.
	Quarterly cycle count and real time reporting 

		
	d.
	Unlimited PortKey access for downloadable reports and order entry 

		
	e.
	Quarterly Business Review (QBR) will be scheduled by your Account Manager to ensure expectations and needs are being met. 

		
	B.
	Receiving

		
	a.
	Dock to stock (on time)- >=4 and <8 business hours

		
	b.
	All conforming receipts will be received into IntegraCore ‘s system within 1 business day of delivery

		
	C.
	Inventory

		
	a.
	Overall Inventory unit accuracy- >99.70%

		
	b.
	Cycle count- one complete count of all items per quarter

		
	c.
	Location audit- one complete audit per quarter

		
	i.
	Three business day notice required prior to inventory inspection

		
	d.
	Physical inventory counts are the responsibility of the client, not IntegraCore. These are to be arranged through the Account Manager

		
	e.
	Once IntegraCore has received Client’s inventory items into IntegraCore’s systems and physical warehouses, in connection with this Agreement, IntegraCore will be responsible for any damage to the goods in its possession once the receipt has been transacted. For those damaged items, IntegraCore shall issue a credit memo to the client for the actual manufacturing cost x item quantity damaged.

		
	f.
	An item shall be deemed as lost if the quantity in IntegraCore’s system is lower than what is physically in the location for that license plate. All lost items/quantities shall be transacted to a “Lost Hold” location and shall remain on lost hold until the item is found or until the end of the calendar month the item was put on Lost Hold, but no item shall be held one month to the next in the Lost Hold location. All items still on Lost Hold at month end shall be issued out of IntegraCore’s system in the following manner:

		
	i.
	All A items (outlined below) remaining on Lost Hold at month end, IntegraCore may write off 2.5% or below that specific license plates quantity. 

		
	ii.
	B and C items (outlined below) remaining of Lost Hold at month end, IntegraCore may write off 5% of that specific item’s license plates quantity. 

For any quantity written off at month end over the 2.5% or 5% threshold, respectively, IntegraCore shall issue a credit memo to the client for the actual manufacturing cost x item quantity written off over the percentage outline above. If any item that is put on Lost Hold will cause the Client to backorder, the Client shall reorder the quantity needed to prevent the backorder and shall be reimbursed by IntegraCore for that order. 

Statement of Work Page 5 of 7

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Items Classification Schedule
A Items
-Vantage Packs, Start Kits, Protandim, Protandim Samples, TrueScience, TrueScience Samples, Canine
-Any Raw Material (i.e. Bacopa, Milk Thistle, etc.)
-Any other non-literature finished good excluding swag
B Items
-Packaging, Literature (Non-Kits, i.e. Start Kits, Vantage Packs, etc.), Recognition Pins, Labels
C Items
-Swag (items numbers beginning with an 8)
 
		
	D.
	Production

		
	a.
	Assembly on time based on delivery date as long as all inventory is available when Production PO is issued with 5-business day notice- 99.80%

		
	E.
	Shipping Quality (On Time)

		
	a.
	Express Orders (11 AM Mountain Time cutoff, same day)- 100%

		
	b.
	Standard Orders (8 AM Mountain Time cutoff, same day)- >99.80%

		
	F.
	Shipping Quality

		
	a.
	Small Parcel Orders Accuracy Percentage - >99.70%

		
	b.
	Bulk/Freight Orders Accuracy Percentage –

		
	i.
	A items – 99.7%

		
	ii.
	B/C items – 97%

If IntegraCore incorrectly ships product due to its own error exceeding the variances above, IntegraCore shall pay the     actual cost for any product, the pick pack, and shipping charges for any re-shipment of the product. The re-shipment method shall be at the sole discretion of the Client. All incurred charges for the products, pick pack, and shipping shall be credited as a reimbursement to the Client.

		
	G.
	Bulk Orders

		
	a.
	Order Turnaround Time – 2 to 4 business days (depending on size of order, and based on monthly forecast provided by Client)

***All Accuracy measures are dependent on incoming product conforming to Integracore Routing Guide with an accuracy of 99.8%. If inbound shipments fall below this level of accuracy the KPI accuracy measures listed above cannot be guaranteed. Integracore, LifeVantage, and its’ vendors shall review non-conforming receipts monthly in order to make improvements where necessary.
This accuracy will be measured based on item and box labeling conforming with the Routing Guide as well as matching the packing slip provided from the vendor.

Statement of Work Page 6 of 7

[***] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission

Mutual Expectations
	
		
	Open Account Agreement:
	All accounts, including pre-pay and COD, must have a current completed and signed IntegraCore Open Account Agreement on file.

	Sales Tax Forms:
	Client must provide all necessary Sale Tax Exempt forms, including additional forms as may be requested by IntegraCore.

	Credit Terms:
	On approval of credit, initial payment terms are:
•    Net 15 Days – Assembly and procurement.
•    All shipping charges Net 7 Days—pick, pack, shipping, receiving etc...

	Freight:
	Unless otherwise stated, all prices reflect F.O.B. Salt Lake City, UT and/or Atlanta, GA.  Freight is prepaid and added to invoice.

	Specifications:
	Prices in this statement of work may be revised if actual job specifications or instructions differ from those received for the purposes of this statement of work.

	
			
	IntegraCore, LLC., 
a Utah limited liability company

By: /s/ Kurt Flygare

Its: President

Date (“Effective Date”): 5/30/2014

	LifeVantage Corp

By: /s/ Douglas C. Robinson

Its: President and CEO

Date: 5/28/2014

Statement of Work Page 7 of 7

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Mutual Confidentiality Agreement

This Mutual Confidentiality Agreement is effective as of May 22, 2014 (the “Effective Date”), by and between IntegraCore, LLC (“IntegraCore”), with offices at 6077 West Wells Park Road, West Jordan, Utah 84081, and LifeVantage Corporation, a Colorado corporation (“LifeVantage”) with offices at 9785 S. Monroe Street, Suite 300, Sandy, Utah 84070 (each hereinafter a “Discloser” if they are disclosing Confidential Information to the other party, and a “Recipient” if they are receiving Confidential Information from the other party).

WITNESSETH

WHEREAS, the parties wish to enter into discussions relating to warehousing, storage, inventory, transport, and shipping of goods and/or possible commercial relationships between the parties (the “Subject Matter”).

WHEREAS, during such discussions, Discloser may disclose to Recipient its confidential and proprietary scientific, technical and commercial information relating to the Subject Matter.  Such information is being disclosed solely for the purposes of 1) determining whether Discloser and Recipient will enter into a business relationship with respect to the Subject Matter and 2) the negotiation and execution of any agreements between the parties relating to the Subject Matter (the “Purpose”).

WHEREAS, the parties desire to enter into this Agreement with each other to protect the confidentiality of the Confidential Information (as defined below).
NOW, THEREFORE, the parties, in consideration of the mutual covenants and conditions set forth below, do hereby agree as follows.

		
	1.
	Confidential Information. As used herein, the term “Confidential Information” shall mean:

		
	(i)
	any information disclosed by Discloser or its Affiliates, or its or their directors, officers, agents and representatives relating to Discloser or its Affiliates, including any clinical or preclinical data, tangible and intangible information relating to chemical and biological materials, cell lines, samples of assay components, media and/or cell lines and procedures and formulations for producing any such assay components, media and/or cell lines, know-how, trade secrets, plans, business strategy, patent rights, licenses, suppliers, designs, processes, formulas, manufacturing techniques, discoveries, inventions and ideas, improvements, developments, product specifications, machinery, drawings, photographs, equipment, devices, tools and apparatus, sales and marketing data and plans, pricing and cost information, distributor, customer, manager, staff and supplier information and any other technical or business information. "Affiliates" shall mean with respect to Discloser or Recipient, any subsidiaries or holding companies or the subsidiaries of any such holding companies;

		
	(ii)
	analyses, compilations, studies, reports and other documents prepared by Recipient to the extent that they contain or reflect the information specified in paragraph (i) above;

		
	(iii)
	the Subject Matter and the existence and contents of this Agreement.

	
			
	 
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	If disclosed in written, graphic or physical form, Discloser shall use reasonable efforts to label such Confidential Information as confidential or proprietary information of Discloser, or if disclosed orally, Discloser shall use reasonable efforts to identify such Confidential Information as confidential at the time of disclosure. 

		
	2.
	No License; No Further Agreement. Each party retains all right, title and interest in and to its Confidential Information.  The execution of this Agreement or the disclosure of Confidential Information hereunder shall not be deemed to constitute or imply any license or right to use or practice the same except as expressly provided herein, whether or not such Confidential Information is patented or patentable, nor as an obligation to enter into any further agreement relating to any of the Confidential Information or the Subject Matter.

		
	3.
	Confidentiality & Non-Use Obligations. For a period of five (5) years from the date of disclosure  (the “Confidentiality Period”), Recipient shall hold secret and confidential any and all Confidential Information received by it hereunder and (i) shall use Confidential Information exclusively for the Purpose and not otherwise, (ii) shall not, without the prior written consent of Discloser, disclose such Confidential Information to anyone, except pursuant to Section 4 below, (iii) shall not use Confidential Information of Discloser for its own benefit (other than for the Purpose) or the benefit of any third party, including, without limitation, with respect to research, product development or patent filings, (iv) shall protect the confidentiality of the Confidential Information of Discloser using at least the same level of efforts and measures used to protect its own confidential information, and not less than commercially reasonable and customary efforts and measures; (v) shall not copy, reproduce or duplicate the other Party’s Confidential Information except to the extent required for the Purpose, or as otherwise provided herein; and (vi) shall notify Discloser as promptly as practicable of any unauthorized use, disclosure or loss of the Confidential Information of Discloser. During the Confidentiality Period and thereafter, Recipient shall not use the Confidential Information for any purpose except in connection with the Purpose, or as otherwise specified in a separate instrument executed by the parties hereto.

Recipient shall return to Discloser all Confidential Information upon Discloser’s request, including all copies thereof and any documents, electronic files, notes, extracts, analysis or articles that contain, reflect or is derived from Confidential Information; provided, however, that one (1) copy of the Confidential Information may be retained internally by Recipient’s legal department, or at another location, for the sole purpose of determining the Recipient’s continuing obligations to Discloser hereunder, provided that in such case the Confidential Information shall continue to be kept secret and confidential in accordance with Section 3.

		
	4.
	Limitations on Disclosure. Recipient shall limit disclosure of Discloser’s Confidential Information to its directors, officers, employees, consultants, agents and advisers and that of its Affiliates (each, a "Recipient Related Party") as necessary for the Purpose, who are informed of the confidential nature of Discloser’s Confidential Information and the other restrictions contained herein. Recipient shall ensure that each such Recipient Related Party is obliged (whether by its contract of employment or service of other contract or by law) to comply with such restrictions and obligations and shall 

	
			
	 
	2
	 

[***] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission

ensure that each such Recipient Related Party complies with such restriction and obligations and Recipient shall enforce the obligation to do so at Recipient's expense.  The Recipient shall be responsible for any breach of the terms of this Agreement by any of its Recipient Related Parties.

		
	5.
	Exceptions to Confidentiality Obligations. Recipient’s obligations shall not apply to Confidential Information which 

		
	(a)
	was already known to Recipient prior to disclosure hereunder, as evidenced by Recipient’s competent records, other than as a result of prior confidential disclosure by Discloser;

		
	(b)
	was in the public domain at the time of disclosure, or subsequently enters the public domain without violation by Recipient of its obligations hereunder;

		
	(c)
	is rightfully received by Recipient from third parties who have no obligations of confidentiality to Discloser; or 

		
	(d)
	is independently developed by Recipient without use of or reliance on the Confidential Information, as evidenced by Recipient’s contemporaneous tangible records.

Recipient may disclose Confidential Information that is required to be disclosed by any applicable statute, law, rule or regulation of any governmental authority or pursuant to any order of any court of competent jurisdiction; provided that Recipient shall advise Discloser in a timely manner prior to making any such disclosure to enable Discloser to apply for such legal protection as may be available with respect to the confidentiality of the Confidential Information.

		
	6.
	Injunctive Relief/Specific Performance. The parties hereto acknowledge and agree that the extent of damages to Discloser in the event of a material breach by Recipient of this Agreement would be difficult or impossible to ascertain and that there is and will be available to Discloser no adequate remedy at law in the event of such a material breach. Consequently, the Recipient agrees that in the event of such a material breach or threatened breach, Discloser shall be entitled, in addition to any other remedies (including damages), to request the specific performance of any or all of the covenants contained in this Agreement by an injunction or other equitable relief.

		
	7.
	Fax or Email Signatures. In the event the parties execute this Agreement by exchange of faxed signed copies or emailed digital scans of signed copies, the parties agree that, upon being signed by both parties, this Agreement shall become effective and binding and that such faxed or emailed signed copies will constitute evidence of the existence of this Agreement. 

		
	8.
	Governing Law; Assignment; Amendment. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Utah, United States of America and shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement may not be assigned by either party without the prior written consent of the other party. Any such purported assignment shall be void.  This Agreement is the complete agreement between the parties as of the Effective Date, as to the matters described herein and supersedes all prior discussions, correspondence, negotiations or agreements, written or oral as to such matters.  No modification, amendment or waiver or any provision of this Agreement shall be effective unless in writing, specifically referring hereto and signed by both parties.

	
			
	 
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[***] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission

		
	9.
	Notice. Any notice or other communication to be given under this Agreement shall be delivered personally, sent by international 2-day courier, or facsimile transmission (followed by a copy by international 2-day courier).  All such notices or other communications shall be deemed to have been delivered at the time of such delivery if received prior to 5 p.m. on a business day at the recipient address and, if other than prior to 5 p.m. on a business day at the recipient address, on the next business day.

	
		
	LifeVantage:
	LifeVantage 
At the address set forth at the beginning of the Agreement.
Attention: General Counsel
 

	IntegraCore:
	IntegraCore, LLC
At the address set forth at the beginning of the Agreement.

		
	10.
	Term and Termination.  The term of this Agreement shall be one (1) year from the Effective Date; provided, that the parties may extend the term by mutual written agreement.  Notwithstanding the foregoing, either party may terminate this Agreement by giving thirty (30) days’ written notice to the other party or upon the material breach of this Agreement by the other party, which material breach continues unremedied for thirty (30) days after delivery to the breaching party by the nonbreaching party of notice of the material breach.  The rights and obligations of confidentiality and limited use of this Agreement shall survive and continue for the duration of the Confidentiality Period, after any expiration or termination of this Agreement.

		
	11.
	No Other Obligations.  Neither this Agreement nor the disclosure or receipt of Confidential Information hereunder shall constitute or imply any promise or intention by one party to make any purchase of products or services from the other party or enter into any other agreement(s) with the other party.  A subsequent business relationship regarding the Subject Matter, if any, shall be governed by the terms of a separate agreement.

		
	12.
	Jurisdiction.  The parties will submit any dispute or claim arising under this Agreement to the exclusive jurisdiction of the state and federal Courts sitting in the County and State of Salt Lake, Utah, and the parties hereby submit to, and waive any objection to, personal jurisdiction and venue in such courts for such purpose.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

	
			
	 
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This Confidentiality Agreement is executed as of the Effective Date by the parties’ duly authorized representatives.

	
		
	LifeVantage Corporation

	IntegraCore, LLC

	By: /s/ Mike Gallman
	By: /s/ Kurt Flygare

	

Name: Mike Gallman
	

Name: Kirt Flygare

	

Title: Director of Supply Chain
	

Title: President

	
			
	 
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[***] Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission

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