Document:

ex102090514

Exhibit 10.2

Execution Copy
    

TRANSITION SERVICES AGREEMENT

This Transition Services Agreement (the “Agreement”) is made and entered into as of September 4, 2014 by and between ViSalus, Inc. (“ViSalus”) and Blyth, Inc. (“Blyth”).  ViSalus and Blyth are at times hereafter collectively referred to as the “Parties” or individually referred to as a “Party.”  
WHEREAS, Blyth, ViSalus and others intend to participate in a recapitalization of ViSalus (the “Recapitalization”) pursuant to that certain Recapitalization Agreement dated as of the date hereof by and among Blyth, ViSalus and others (the “Recapitalization Agreement”) as a result of which, among other things, Blyth’s ownership interest in ViSalus will be reduced to approximately 10% with the effect that ViSalus will no longer be a subsidiary of Blyth; and
WHEREAS, pursuant to and in accordance with the terms of this Agreement, Blyth has agreed to provide ViSalus with certain services as described herein following the Recapitalization.  
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
		
	Article I.
	

SERVICES PROVIDED 
1.Definitions.  All capitalized terms used and not otherwise defined herein will have the respective meanings ascribed to such terms in the Recapitalization Agreement.
2.Services.  Subject to the terms and conditions of this Agreement, Blyth will provide, or shall cause its Subsidiaries, Affiliates or third-party service providers to provide, to ViSalus those services described on Exhibit A attached hereto (the “Transition Services”), in accordance with the terms and conditions provided herein and on Exhibit A.  All of the Transition Services shall be for the sole use and benefit of ViSalus and its Subsidiaries and Affiliates.  Blyth shall not be under any obligation under this Agreement to provide services other than the Transition Services.  Blyth may in its discretion (but after providing notice to ViSalus) provide the Transition Services either through its own resources or the resources of its Subsidiaries or Affiliates or by contracting with third-party service providers.  ViSalus shall not, and shall cause its Subsidiaries and Affiliates not to, resell, license, sublet or transfer any Transition Services.
3.Personnel.  Except as provided in this Agreement with respect to a specific Transition Service, or as otherwise required to perform its obligations hereunder, Blyth, in providing the Transition Services, shall not otherwise be obligated to: (i) hire any additional employees or maintain the employment of any specific employee, provided, that upon the departure of any employee who is providing Transition Services to ViSalus, Blyth will provide prior written notice to ViSalus of such employee’s departure and notwithstanding such departure will continue to provide such Transition Services as set forth herein; (ii) purchase, lease, license or otherwise acquire any additional equipment or software; or (iii) pay any costs related to the transfer or conversion of data to any alternate supplier of services similar to the Transition Services. 

Article II.

QUALITY OF SERVICES; LIMITATION OF LIABILITY; INDEMNITIES
1.Quality of the Transition Services.  
(a)Blyth agrees to perform the Transition Services with substantially the same nature, quality, standard of care and service levels at which the same or similar services were performed by or on behalf of Blyth prior to the effective time of the Recapitalization or, if not so previously provided, then substantially similar to that which are applicable to similar services provided to Blyth’s Affiliates.
(b)The Parties each agree to cooperate and use commercially reasonable efforts to obtain any necessary third-party consents required under any existing contract or agreement with a third party to allow Blyth to perform or cause to be performed any Transition Service in accordance with the standards set forth in this Section 2.1.  Any costs and expenses incurred by either Party in connection with obtaining any such third-party consent that is required to allow Blyth to perform or cause to be performed any Transition Service shall be solely the responsibility of ViSalus; provided, that Blyth will not incur any such costs or expenses without ViSalus’s prior written consent.
(c)Nothing in this Agreement shall require Blyth to perform or cause to be performed any Transition Service to the extent any changes are made to ViSalus’ business that materially increase or materially adversely change Blyth’s burden with respect to the provision of such Transition Service or that make commercially impracticable the provision of such Services.
(d)Any Transition Services requiring the use of Blyth-issued checks or other fund transfers by Blyth on behalf of ViSalus shall be provided only to the extent funded by a ViSalus account or to the extent that ViSalus provides Blyth with immediately available funds prior to Blyth’s issuance of the check or the fund transfer, as the case may be, as provided in Section 4.3 hereof.
2.Obligation to Re-Perform; Specific Performance.  
(a)In the event of any breach of this Agreement by Blyth with respect to the provision of any Transition Services (with respect to which Blyth can reasonably be expected to re-perform in a commercially reasonable manner), Blyth shall promptly correct in all material respects such error, defect or breach or re-perform in all material respects such Transition Services at the request of ViSalus and at the sole cost and expense of Blyth.  Any request for re-performance in accordance with this Section 2.3(a) by ViSalus must be in writing and specify in reasonable detail the particular error, defect or breach; provided, however, that nothing in this Section 2.2(a) shall require Blyth to perform Transition Services after the termination or expiration of the term of this Agreement. 
(b)The provisions of Section 2.2(a) shall, to the maximum extent permitted by applicable law, be the sole and exclusive remedies of ViSalus and its Subsidiaries, Affiliates and representatives for any breach of this Agreement and for any claim, loss, damage, expense or liability, whether arising from statute, principle of common or civil law, principles of strict liability, tort, contract or otherwise (“Losses”) under this Agreement; provided, that (i) the foregoing limitation shall not apply in the case of any breach resulting from Blyth’s gross negligence or willful misconduct (except with respect to the provision of legal services by the Blyth Legal Department, which is addressed in clause (ii) hereof) and (ii) with respect solely to the provision of legal services by the Blyth Legal Department, the foregoing limitation shall not apply in the case of any breach resulting from Blyth’s willful misconduct.  
(c)Each Party acknowledges that the rights of the other Party to enforce the covenants and agreements made by the other Party in this Agreement are special, unique, and of extraordinary character, and that, in the event a Party violates or fails and refuses to perform any covenant or agreement made by it herein, the other Party will be without adequate remedy at law.  Each Party agrees, therefore, that in the event it violates or fails and refuses to perform any covenant or agreement made by it herein, the other Party, so long as such other Party is not in breach hereof, shall be entitled to seek specific performance of such covenant or agreement or seek any other equitable remedy.  
3.Indemnification by ViSalus.  

(a)Subject to Section 2.5, ViSalus hereby releases Blyth and its Subsidiaries, Affiliates and representatives (each, a “Blyth Indemnified Party”), and ViSalus shall indemnify and hold harmless each such Blyth Indemnified Party, from and against any and all Losses incurred by each Blyth Indemnified Party to the extent that any such Loss results from:  (a) the use of any Transition Services by ViSalus or any of its Subsidiaries, Affiliates, representatives or other Persons using such Transition Services; or (b) the sale, delivery, provision or use of any Transition Services provided under or contemplated by this Agreement, in the case of each of clause (a) and (b), except to the extent that such Losses arise out of, relate to or are a consequence of the applicable Blyth Indemnified Party’s gross negligence or willful misconduct.
(b)The provisions of Section 5.4 of the Recapitalization Agreement shall govern third-party claims for indemnification under this Agreement.
(c)The provisions of Sections 2.3 and 2.5 of this Agreement shall, to the maximum extent permitted by applicable law, be the sole and exclusive remedies of the Blyth Indemnified Parties for any breach of this Agreement and for any Losses under this Agreement.
4.Indemnification by Blyth.
(a)Blyth hereby releases Visalus and its Subsidiaries, Affiliates and representatives (each, a “ViSalus Indemnified Party”), and Blyth shall indemnify and hold harmless each such ViSalus Indemnified Party, from and against any and all Losses incurred by each ViSalus Indemnified Party (i) to the extent that any such Loss results from Blyth’s gross negligence or willful misconduct (except with respect to the provision of legal services by the Blyth Legal Department, which is addressed by clause (ii) hereof) and (ii) with respect solely to the provision of legal services by the Blyth Legal Department, to the extent that any such Loss results from Blyth’s willful misconduct.
(b)The provisions of Section 5.4 of the Recapitalization Agreement shall govern third-party claims for indemnification under this Agreement.
(c)The provisions of Sections 2.4 and 2.5 of this Agreement shall, to the maximum extent permitted by applicable law, be the sole and exclusive remedies of the ViSalus Indemnified Parties for any breach of this Agreement and for any Losses under this Agreement.
5.Limitation of Liability.  Notwithstanding any other provision in this Agreement to the contrary, in no event shall either Party be liable to the other Party for any indirect, incidental, special or punitive damages, regardless of whether such liability arises in tort, contract, breach of warranty or otherwise.
6.No Warranty.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE TRANSITION SERVICES ARE PROVIDED AS-IS, THAT VISALUS ASSUMES ALL RISKS AND LIABILITY ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE TRANSITION SERVICES AND BLYTH, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT THERETO.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BLYTH HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE TRANSITION SERVICES, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE, NONINFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS OF ANY TRANSITION SERVICE FOR A PARTICULAR PURPOSE.  
Article III.

TERM AND TERMINATION OF THE TRANSITION SERVICES
1.Term.  Unless terminated sooner pursuant to Section 3.2, with respect to each of the Transition Services, the term of this Agreement will be for a period commencing as of the date hereof and continuing until the periods for which all applicable Transition Services are to be provided, as set forth on Exhibit A, have expired or been terminated (unless such term or such periods are extended by mutual agreement of the Parties). 

2.Termination.
(a)Any of the Transition Services may be terminated by ViSalus, in ViSalus’s sole discretion, at any time during the term of this Agreement by furnishing ten (10) calendar days’ prior written notice to Blyth of ViSalus’ intention to terminate the applicable Transition Service, which such written notice shall specify: (i) the Transition Service(s) being terminated; and (ii) the date on which the applicable Transition Service shall be terminated; provided, however, that ViSalus shall be responsible for the payment of any and all charges and fees owed to Blyth under this Agreement for the relevant Transition Service rendered prior to the effective date of the termination (including the pro-rata portion of any periodic fees).  
(b)Either Blyth or ViSalus may immediately terminate this Agreement by written notice to the other Party, without any prior notice upon the occurrence of any of the following events: 
(i)The other Party enters into proceedings in bankruptcy or insolvency; makes an assignment for benefit of creditors; files or has filed against it any petition under a bankruptcy law, a corporate reorganization law, or any other law for relief as a debtor (or similar law in purpose or effect); or enters into liquidation or dissolution proceedings;     
(ii)Upon a breach by the other Party of its obligations hereunder (other than a failure to pay any amount or fee owed to a Party when due) that remains uncured pursuant to the terms hereof; provided, however, that the breaching Party will have a period of five (5) business days after receipt of notice of the breach from the non-breaching Party in which to initiate actions reasonably designed to cure such breach and such breach shall, in any case, be cured within ten (10) business days following receipt of such notice; or 
(iii)In the case of a failure by the other Party to pay any amount or fee owed to a Party when due, if any amount or fee due remains unpaid for a period of more than thirty (30)  calendar days following written notice of delinquency.   
3.Survival of Certain Obligations.  Without prejudice to the survival of other agreements of the Parties, the right of a Party to receive the applicable payments for fees, if any (including the pro-rata portion of any periodic fees), for the Transition Services rendered by it prior to the effective date of the termination or expiration of the relevant Transition Services under this Agreement shall survive the termination or expiration, in whole or in part, of this Agreement.  Sections 2.2, 2.3, 2.4 and 2.5 and Article V shall survive the termination or the expiration of this Agreement or a particular Transition Service.
Article IV.

CONSIDERATION
1.Consideration.  Except as otherwise provided on Exhibit A, each Transition Service will be provided at a fee that is 6% greater than Blyth’s actual, out-of-pocket expenses in providing the applicable Transition Services, which may include: (i) for each employee performing the Transition Services the salaries, fringe benefits and executive compensation benefits (if applicable) (the “Employee Costs”), based upon the ratio of Blyth’s estimate of the time spent by the employee on behalf of ViSalus divided by the total time spent by the employee multiplied by the Employee Costs; (ii) third-party expenses, including travel and entertainment, consulting fees and printing costs and costs associated with third-party agreements relating to the Transition Services (where applicable, such cost being prorated on an equitable basis for usage by or on behalf of ViSalus in connection with the Transition Services), incurred on behalf of ViSalus by Blyth; and (iii) any incremental costs to the extent associated with any Transition Service for new requirements or costs due to the change in status of the ViSalus from a Subsidiary of Blyth to a company independent of Blyth, and shall reflect the arm’s-length relationship between ViSalus and Blyth.  Except as otherwise provided on Exhibit A, within thirty (30) days following the end of each month of the term of this Agreement, Blyth shall provide ViSalus an invoice for all charges during such month, if applicable.  ViSalus will make payment within fifteen (15) days after receipt of any invoice.  Any amount owing under any invoices for Transition Services that remains unpaid as of such date shall accrue interest at a monthly rate of 1.5%. 
2.Taxes.  To the extent not included directly in the price charged for Transition Services, the charge for any Transition Service shall be increased by the amount of the following: (a) any applicable sales, 

use, gross receipts, value added or similar tax that is imposed as a result of, or measured by, any Transition Service rendered hereunder unless covered by an exemption certificate; and (b) any other governmental taxes, duties and/or charges of any kind, excluding any income or franchise taxes imposed on Blyth, which Blyth is required to pay with respect to any Transition Service rendered hereunder.  
Article V.

MISCELLANEOUS
1.Confidentiality.  From and after the date hereof, no Party shall use, divulge, furnish or make accessible to anyone any proprietary, material non-public and confidential information to the extent relating to the provision of Transition Services to the other Party, except to the extent that disclosure of such information is required by applicable law (in which case the disclosing Party shall (unless such disclosure is required, upon advice of counsel, to be made in connection with a periodic report or registration statement filed with the Securities and Exchange Commission) use commercially reasonable efforts to advise the non-disclosing Party prior to making such disclosure and to provide the non-disclosing Party a reasonable opportunity to review the proposed disclosure). 
2.Amendments.  The terms, provisions and conditions of this Agreement may not be changed, modified or amended in any manner except by an instrument in writing duly executed by Blyth and ViSalus.  
3.Successors and Assignment.  Neither this Agreement nor any of the rights, duties, or obligations of any Party hereunder may be assigned or delegated (by operation of law or otherwise) by either Party hereto except with the prior written consent of the other Parties hereto; provided, however, that: (i) either Party may assign all of its rights hereunder to any Affiliate of the assigning Party, provided that no such assignment shall relieve the assigning Party of its obligations hereunder and (ii) either Party (or the assignee pursuant to clause (i)) has a one-time right to assign all of its rights hereunder to any other Person which acquires all or substantially all of the assets used to perform a Transition Service hereunder or all or substantially all of the equity interests in the assigning Party.  
4.Notices.  Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered personally or by a nationally recognized express delivery service (such as FEDEX) or sent by certified, registered or express mail, postage and/or charges prepaid, to the Parties at the following addresses or at such other addresses as shall be specified by the Parties by like notice, and shall be deemed given (a) one business day after being delivered personally or by a nationally recognized express delivery service, and (b) if mailed, three business days after the date of mailing:
(i)  if to Blyth, to 
Blyth, Inc.
One East Weaver Street
Greenwich, CT 06830
Attention:  Robert B. Goergen, Jr.
cc: Michael S. Novins, Esq.
with a copy (which shall not constitute notice) to:
Finn Dixon & Herling, LLP 
177 Broad Street
Stamford, CT 06901
Attention: Erik A. Bergman, Esq.
(ii) if to ViSalus, to 
ViSalus, Inc.
340 E Big Beaver Rd

Troy, MI 48083
Attention: Tyler Schuessler, Chief Administrative Officer

with a copy (which shall not constitute notice) to:
Jones Day
222 East 41st Street
New York, New York 10017-6702
Attention: Robert F. Kennedy, Esq.
5.Governing Law; Jury Trial.  
(a)This Agreement shall be governed by and construed in accordance with the domestic laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.  
(b)The Parties waive their right to jury trial in any dispute relating to this Agreement.
6.Headings.  The descriptive headings of the several sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.   
7.Severability.  In the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument.  Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.  
8.Counterparts.  For the convenience of the parties, any number of counterparts of this Agreement may be executed by any one or more parties hereto (including by way of electronic transmission), and each such executed counterpart shall be, and shall be deemed to be, an original, but all of which shall constitute, and shall be deemed to constitute, in the aggregate but one and the same instrument.  
9.No Third Party Beneficiaries.  This Agreement shall not confer any rights or remedies upon any person or entity other than the Parties and their respective permitted successors and assigns.  
10.Reservation of Rights.  A Party’s waiver of any of its rights or remedies afforded hereunder or at law is without prejudice and shall not operate to waive any other rights or remedies which that Party shall have available to it, nor shall such waiver operate to waive the Party’s rights to any remedies due to a future breach, whether of a similar or different nature.  The failure or delay of a Party in exercising any rights granted to it hereunder shall not constitute a waiver of any such right and that Party may exercise that right at any time.  Any single or partial exercise of any particular right by that Party shall not exhaust the same or constitute a waiver of any other right.
11.Force Majeure.  Any failure or omission by a Party in the performance of any obligation under this Agreement, shall not be deemed a breach of this Agreement or create any liability, if the same arises primarily from any of the following: acts of God, fire, storm, flood, earthquake, governmental regulation or direction, acts of the public enemy, war, acts of terrorism, disease, rebellion, insurrection riot, invasion, strike or lockout; provided, however, that such Party shall resume the performance whenever such causes are removed.  Notwithstanding the foregoing, if such Party cannot perform under this Agreement for a period of forty-five (45) calendar days due to such cause or causes, the Party that is not prevented from performing its obligations hereunder as a result of the “force majeure” circumstances described above may terminate this Agreement by providing written notice to the other Party, provided that nothing herein shall be construed as precluding either Party from terminating a Transition Service in accordance with the provisions of Section 3.2.  

12.Relationship of the Parties.  It is expressly understood and agreed that in rendering the Transition Services hereunder, each Party is acting as an independent contractor and that this Agreement does not constitute any Party as an employee, agent or other representative of the other Party for any purpose whatsoever.  No Party has the right or authority to enter into any contract, warranty, guarantee or other undertaking in the name or for the account any of the other Parties, or to assume or create any obligation or liability of any kind, express or implied, on behalf of any other Party, or to bind any other Party in any manner whatsoever, or to hold itself out as having any right, power or authority to create any such obligation or liability on behalf of any other Party or to bind any other Party in any manner whatsoever (except as to any actions taken by a Party at the express written request and direction of another Party).  
13.Conflict.  In case of conflict between the terms and conditions of this Agreement and Exhibit A, the terms and conditions of such Exhibit A shall control and govern as it relates to the Service to which those terms and conditions apply.  In the event of any conflict between the terms of the Recapitalization Agreement on the one hand, and this Agreement and Exhibit A hereto, on the other hand, the terms of the Recapitalization Agreement shall control and govern.  
14.Entire Agreement.  This Agreement and the Recapitalization Agreement constitute the entire agreement among the Parties with respect to the subject matter hereof, supersede and are in full substitution for any and all prior agreements and understandings among them relating to such subject matter, and no Party shall be liable or bound to the other Party hereto in any manner with respect to such subject matter, including by any warranties, representations, indemnities, covenants, or agreements except as specifically set forth herein or in the Recapitalization Agreement.  Exhibit A to this Agreement is hereby incorporated and made a part hereof and is an integral part of this Agreement.  
*** Remainder of Page Intentionally Left Blank***

IN WITNESS WHEREOF, the Parties have executed this Transition Services Agreement as of the day and year first above written.   

BLYTH, INC.                        VISALUS, INC.

By: /s/ Michael S. Novins                By:  /s/ Todd A. Goergen    
Name: Michael S. Novins                Name:      Todd A. Goergen
Title:   Vice President and General Counsel        Title:      COO

EXHIBIT A TO THE TRANSITION SERVICES AGREEMENT
TRANSITION SERVICES
	
			
	Service
	Provider
	End Date

	Credit Card Processing
	ChasePaymentech
	[TBD] 

	Overnight Delivery
	UPS
	[TBD] 

	Benefits:  Medical
	Anthem BC BS
	Policy year-end 2015 (the “Medical End Date”)

	Benefits:  Dental
	Cigna Dental
	Medical End Date

	Benefits:  FSA
	Wageworks
	Medical End Date

	Benefits:  401k
	T. Rowe Price
	Medical End Date

	Benefits:  Broker
	AonHewitt
	Medical End Date

	Payroll
	Ulti Pro
	Medical End Date

	Tax Services
	Blyth Tax Department
	Through filing of 2014 state and federal tax returns

	General Insurance:  Broker
	Willis
	Through each policy’s year-end

	General Insurance (D&O, CGL, product liability, etc.)
	Various
	Through policy year-ends

	Legal
	Blyth Legal Department
	60 days after date of Agreement

	Credit Cards
	American Express
	60 days after date of Agreement

	Banking Services - Payroll Account
	Bank of America
	Medical End Date

	Travel Administration
	DirectTravel
	60 days after date of Agreement

	Telecom contract
	Verizon
	[TBD]

	Equity management system
	Easi
	Through the end of 2015

	To the extent not set forth above, all other services provided by Blyth to ViSalus as of the date of this Agreement
	Various
	60 days after date of Agreementex103090514

Exhibit 10.3

Blyth, Inc.
One East Weaver Street
Greenwich, CT 06831

CONFIDENTIAL

September 4, 2014

ViSalus, Inc.
340 E. Big Beaver Road
Suite 400
Troy, Michigan 48083

Revolving Credit Facility Commitment Letter

Ladies and Gentlemen:

Blyth, Inc., a Delaware corporation (“Blyth” or “Lender”) hereby commits to provide to ViSalus, Inc., a Nevada corporation (“you”, “ViSalus” or “Borrower”) a revolving credit loan facility in the amount of $6 million (the “Revolving Credit Facility”) upon the terms and subject to the conditions set forth in this letter (this “Commitment Letter”) and in the attached Term Sheet attached hereto as Exhibit A and hereby made a part of this Commitment Letter (the “Term Sheet”).  Capitalized terms used in the text of this Commitment Letter without definition have the meanings assigned in the Term Sheet.

Certain Expenses.  

Each of Blyth and ViSalus shall pay for its own respective costs and expenses (including the fees and disbursements of legal counsel) incurred in connection with the preparation and negotiation of this Commitment Letter and the initial Credit Documentation.  The Term Sheet contains provisions, in the event the Revolving Credit Facility closes, with respect to costs and expenses incurred after the initial Credit Documentation is entered into. 

Confidentiality.  

You agree that until such time as Blyth makes public disclosure of this Commitment Letter you will not disclose the contents of this Commitment Letter or Blyth’s commitment to provide the Revolving Credit Facility to any third party without Blyth’s prior written consent other than (a) to your directors, officers, employees, attorneys or advisors, and (b) as may be compelled in a judicial or administrative proceeding or as otherwise required by law (in which case you agree to inform Blyth promptly thereof).  You agree to use commercially reasonable efforts to inform all such persons or entities who receive information concerning this Commitment Letter or Blyth’s commitment to provide the Revolving Credit Facility that such information is to be kept confidential and may not, without Blyth’s prior written consent, be used for any purpose other than in connection with the proposed Revolving Credit Facility.  The Lender reserves the right to review and approve, in advance, all materials, press releases, advertisements and disclosures that contain Blyth’s name.

As set forth in the Term Sheet, the Credit Documentation shall include a customary confidentiality provision in favor of the Borrower.

Counterparts and Governing Law.  

This Commitment Letter may be executed in counterparts, each of which shall be deemed an original and all of which counterparts shall constitute one and the same document.  Delivery of an executed signature page of this Commitment Letter by facsimile or electronic (including “PDF”) transmission shall be as effective as delivery of a manually executed counterpart hereof.  

The laws of the State of New York shall govern all matters arising out of, in connection with or relating to this Commitment Letter, including, without limitation, its validity, interpretation, construction, performance and enforcement and any disputes or claims arising out of the subject matter hereof.

Assignments and Amendments of Commitment Letter.  

This Commitment Letter shall not be assignable by either ViSalus or by Blyth without the prior written consent of the other (and any purported assignment without such consent shall be null and void).  This Commitment Letter may not be amended or waived except in a writing executed and delivered by Blyth and ViSalus.   

Venue and Submission to Jurisdiction.  

The parties hereto (Borrower and Lender) consent and agree that the state or federal courts located in New York County, State of New York, shall have exclusive jurisdiction to hear and determine any claims or disputes pertaining to this Commitment Letter and any investigation, litigation, or proceeding in connection with, related to or arising out of this Commitment Letter, provided, that the Borrower and Lender acknowledge that any appeal from those courts may have to be heard by a court located outside of such jurisdiction.  The parties hereto expressly submit and consent in advance to such jurisdiction in any action or suit commenced in any such court, and hereby waive any objection, which each of the parties may have based upon lack of personal jurisdiction, improper venue or inconvenient forum.  In the event the Revolving Credit Facility closes, the terms and provisions of the Credit Documentation shall govern matters of venue and submission to jurisdiction with respect to disputes, investigations, litigation or proceedings in connection with, related to or arising out of the Credit Documentation.  

Waiver of Jury Trial and Consequential Damages. 

THE PARTIES HERETO, TO THE FULLEST EXTENT PERMITTED BY LAW, WAIVE (1) ALL RIGHT TO TRIAL BY JURY AND (2) CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES, IN EACH CASE IN ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS COMMITMENT LETTER.  THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE.

Survival.  

The provisions of this letter set forth under this heading and the headings “Expenses”, “Confidentiality”, “Assignments and Amendments of Commitment Letter”, “Counterparts and Governing Law”, “Venue and Submission to Jurisdiction” and “Waiver of Jury Trial and Consequential Damages” shall survive the termination or expiration of this Commitment Letter and shall remain in full force and effect regardless of whether the Revolving Credit Facility closes or the Credit Documentation shall be executed and delivered.

Integration.  

This Commitment Letter supersedes any and all discussions, negotiations, understandings or agreements, written or oral, express or implied, between or among the parties hereto and their affiliates as to the subject matter of the Revolving Credit Facility. 

Patriot Act.

Blyth hereby notifies you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT Act”), Blyth may be required to obtain, verify and record information that identifies the Borrower, which information includes the name, address, tax identification number and other information regarding the Borrower that will allow the Lender to identify the Borrower in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective as to the Lender.

Acceptance and Termination

Please indicate your acceptance of the terms hereof by signing in the appropriate space below and returning to Blyth such signature page by September 3, 2014.  Unless extended in writing by the Lender, the commitments and agreements of Blyth contained herein (subject to the provisions under the heading “Survival”) shall automatically expire on the first to occur of (a) the date and time referred to in the previous sentence unless you shall have prior thereto executed and delivered a copy of this Commitment Letter as provided above, (b) if the Revolving Credit Facility does not close by September 30, 2014 on the terms and conditions of this Commitment Letter, and (c) execution and delivery of the Credit Documentation and closing of the Revolving Credit Facility.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

Sincerely,

BLYTH, INC.

By:      /s/ Michael Novins_________________________
Name:  Michael Novins
Title:    Vice President

Agreed and accepted
this 4th day of SEPTEMBER, 2014

ViSALUS, INC.

By:      /s/ Todd A. Goergen________________________
Name:  Todd A. Goergen
Title:     COO

[Signature page to Commitment Letter]

    
CONFIDENTIAL
Exhibit A to Revolving Credit Facility Commitment Letter
Term Sheet
September 4, 2014
Borrower:                ViSalus, Inc., a Nevada corporation
Lender:                Blyth, Inc., a Delaware corporation
		
	Revolving Credit Facility:
	A revolving credit facility in the committed amount (the Commitment Amount”) of $6 million (the “Revolving Credit Facility”; the revolving loans made under the Revolving Credit Facility are referred to herein as the “Revolving Loans”).  Within the Commitment Amount, the Borrower may, until the Revolving Credit Facility is terminated, borrow, repay and re-borrow the Revolving Loans from time to time. 

		
	Termination/Maturity:
	The Revolving Credit Facility shall terminate upon the later of (i) the date that is 60 months after the Revolving Credit Facility closes or (ii) resolution of the lawsuit identified on Exhibit A hereto.  Upon such termination, the Revolving  Loans shall mature and shall be due and payable by the Borrower in full (along with any then accrued and unpaid interest on the Revolving Loans). 

		
	Use of Proceeds:
	The proceeds of the initial Revolving Loan shall first be applied towards the Temporary Loan Repayment (as defined below) and any remaining proceeds of the initial Revolving Loan and the proceeds of all other Revolving Loans shall be used for working capital purposes of the Borrower and other general corporate purposes of the Borrower.

		
	Interest:
	Interest will be payable on the unpaid principal amount of the Revolving Loans outstanding from time to time at a rate per annum equal to ten percent (10%).  There shall not be a higher default rate.  Interest shall be due and payable monthly and also on maturity of the Revolving Loans.

		
	Voluntary Prepayment:
	Voluntary prepayment of the Revolving Loans will be permitted at any time, in whole or in part, provided that (i) partial prepayments shall be in a minimum amount of $100,000 and (ii) no more than one (1) voluntary prepayment shall be made per calendar month.

		
	Voluntary Termination:
	The Borrower shall have the right to terminate the revolving commitment under the Revolving Credit Facility  upon five (5) business days prior written notice provided that (i) simultaneously with such termination all amounts then outstanding under the Loan Agreement and the Note shall be paid in full and (ii) the revolving commitment under the Founder Revolving Credit Facility shall also simultaneously be terminated and all amounts then outstanding under the Founder Revolving Credit Facility shall be paid in full.

No Collateral:            The Revolving Loans will be unsecured.
		
	Intercreditor Agreement:
	The Borrower, Lender and the Founder Lenders (as defined below) shall enter into an intercreditor agreement (the “Intercreditor Agreement”) which will provide for, among other things, (i) order of application of payments with respect to costs and expenses (and other items not consisting of interest or principal), interest and principal, (ii) pro-rata sharing of all payments (including without limitation any scheduled payments, any prepayments, any accelerated payments or any payments after maturity) made with respect to the Facilities (as defined below), with all interest payments to be shared pro-rata in accordance with the then respective unpaid interest accrued on the Revolving Loans and the Founder Revolving Loans (as defined below) and all principal payments to be shared pro-rata in accordance with the then respective unpaid principal amount of the Revolving Loans and the Founder Revolving Loans and (iii) no amendment, waiver or other modification may be made to the documents with respect to one Facility without the lender(s) under the other Facility approving such change in writing except that, with respect to non-economic terms only, non-material amendments may be made without such consent (provided that written notice of any such non-material amendment to a non-economic term shall be provided to the lender(s) under the other Facility as promptly as practicable following such amendment).  The terms and provisions of the Loan Agreement and Note (as those terms are respectively defined below), and of the loan agreement and notes evidencing the Founder Revolving Credit Facility (as that term is defined below), shall be made subject to the Intercreditor Agreement.

Conditions Precedent to 
Closing of Revolving Credit 
		
	Facility:
	The following shall be the conditions precedent to the closing of the Revolving Credit Facility and the making of the initial Revolving Loan (the conditions under the heading “conditions precedent to all Revolving Loans” shall also apply to the making of such initial Revolving Loan):

		
	1)
	The execution and delivery of a Loan Agreement (the “Loan Agreement”), promissory note of the Borrower (the “Note”), the Intercreditor Agreement, a Borrower’s secretary certificate (with incumbency, good standing certificates, certified copies of the Borrower’s charter documents and required authorizing resolutions/consents), in customary form and containing terms and provisions consistent with this Term Sheet and such other loan documentation as may be mutually agreed between Borrower and Lender and is customary for financings of this type (the Loan Agreement, Note, the Intercreditor Agreement, such Secretary’s Certificate and such other loan documentation, collectively, the “Credit Documentation”) .

		
	2)
	The execution and delivery of an opinion of counsel to the Borrower (which may be provided by the Borrower’s in house and/or outside counsel) in customary form, provided such opinion shall be limited to matters of corporate existence and good standing, corporate power and authority to conduct business and execute, deliver and perform 

the Credit Documentation, due authorization of the Credit Documentation and such execution, delivery and performance does not violate the Borrower’s organizational documents or material known contracts.
		
	3)
	Various founders of ViSalus as lenders (the “Founder Lenders”) and the Borrower as borrower shall, simultaneously with the execution and delivery of the Credit Documentation, enter into a committed revolving credit facility (and related loan documentation) providing for a revolving credit facility in a committed amount (the “Founder Commitment Amount”) at least equal to the Commitment Amount, having the same termination and maturity as the Revolving Credit Facility, the same interest rate as the Revolving Credit Facility and otherwise having substantially identical terms and conditions as the Credit Documentation (such revolving credit facility between the Founder Lenders and the Borrower is referred to herein as the “Founder Revolving Credit Facility” and the revolving loans made thereunder are referred to herein as the  “Founder Revolving Loans”; the term “Facilities” as used herein shall mean, collectively, the Revolving Credit Facility and the Founder Revolving Credit Facility and the respective related credit documents).

		
	4)
	Consummation of a mandatory exchange of all Preferred Stock of the Borrower for shares of Class B Common Stock of Borrower (the “Mandatory Exchange”).

		
	5)
	The Temporary Loan (as defined below) shall be repaid (both unpaid principal and any accrued and unpaid interest) in full (the “Temporary Loan Repayment”), with the proceeds of the initial Revolving Loan and the initial Founder Revolving Loan first used to effect such repayment before any other use.  The “Temporary Loan” shall mean (i) that certain loan(s) from Lender to Borrower as evidenced by that certain Intercompany Note dated on or about August 12, 2014 made by Borrower in favor of the Lender and (ii) any other loan that may be made by the Lender to the Borrower prior to the making of the initial Revolving Loan under the Revolving Credit Facility, provided that the maximum amount of the loans described in clauses (i) and (ii) shall not exceed, at any one time outstanding, $5,000,000.  

Conditions Precedent to 
		
	All Revolving Loans: 
	The making of each Revolving Loan shall also be subject to the satisfaction of the following conditions precedent:

		
	1)
	The Borrower shall provide at least five (5) business days’ prior written notice to the Lender of the proposed Revolving Loan including the proposed date of borrowing, the account to which the Revolving Loan shall be funded (which shall be a domestic account of a U.S. bank) and the amount of the proposed Revolving Loan.  The minimum amount of each Revolving Loan shall be $500,000.  The Borrower shall make no more than one borrowing per calendar month.

		
	2)
	The Founder Lenders shall, simultaneously with the funding of any Revolving Loan, fund a Founder Revolving Loan.  The respective amounts of the simultaneous Revolving Loan and the Founder Revolving Loan shall be pro-rata in accordance with the respective amount of the Commitment Amount and the Founder Commitment Amount.   No Revolving Loan or Founder Revolving Loan may be made unless there is simultaneous funding as provided for in this 

paragraph, provided, however, to the extent any Founder Revolving Loans are made but are made in an amount less than the amount requested by the Borrower with respect to a particular borrowing (and assuming the conditions precedent for borrowings under the Facilities are satisfied by the Borrower), Revolving Loans shall nonetheless be made in a corresponding pro-rata amount (in other words, assuming the conditions precedent for such borrowings are satisfied by the Borrower but the Founder Lenders only, for example, fund 80% of the borrowing requested of the Founder Lenders, then the Lender shall only be obligated to fund 80% of the Revolving Loan  requested by the Borrower).
		
	3)
	All of the representations and warranties in the Credit Documentation shall be true and correct in all material respects (but in all respects if such representation or warranty is qualified by “material” or “Material Adverse Effect”); no default or event of default under the Credit Documents shall then be continuing or result from such borrowing.

		
	Representations and Warranties:
	The representations and warranties included in the Loan Agreement will be limited to the following and shall contain customary materiality and other customary qualifiers: 

Existence and good standing; power and authority and due authorization; compliance with laws and court orders and the like (including without limitation that the applicable borrowing does not violate any injunction or restraining order binding on the Borrower or its properties); no violation or conflict; governmental authorization (if any required); legal, valid, binding and enforceable nature of Credit Documentation; no default or event of default under the Credit Documentation; and use of proceeds.  
		
	Affirmative Covenants:
	The affirmative covenants included in the Loan Agreement will be limited to the following and shall contain customary materiality and other customary qualifiers: 

Preservation of corporate existence, good standing, licenses and intellectual property; maintenance of property and insurance; payment and performance of obligations; compliance with laws;  right of Lender to inspect property and books and records; and use of proceeds.
		
	Reporting Requirements:
	The financial and other reporting requirements will be limited to the following: 

Delivery of internally prepared quarterly financial statements consisting of an income statement, balance sheet and cash flow statement, delivered within 45 days after the end of each quarter, certified, on behalf of the Borrower, by the CFO or other appropriate officer of the Borrower; promptly upon receipt thereof by the Borrower, copies of any annual financial statements of the Borrower (whether audited, reviewed or compiled) reported on by independent public accountants; notice of default or event of default under the Credit Documentation; notice of material litigation or investigations or other events which would reasonably be expected to have a material adverse effect on the Borrower.
No Financial Performance
Covenants:                There will be no financial performance covenants.

		
	Negative Covenants:
	The negative covenants included in the Loan Agreement will be limited to the following, subject to customary and reasonable exceptions and carve-outs: 

Restricted payments (including dividends and redemptions) provided that, assuming no Event of Default or Default then exists or would result therefrom, dividends and redemptions in an amount not to exceed 50% of positive consolidated aggregate cumulative net income of the Borrower earned in the period commencing October 1, 2014 shall be permitted, provided however, that at any time when there are no Revolving Loans outstanding, the aforesaid 50% restriction shall not apply; transactions with affiliates which are not at least as favorable to the Borrower as could be obtained in a comparable transaction at arms-length terms with an unaffiliated person or entity, provided that, for the avoidance of doubt, the foregoing shall not be deemed to restrict any intercompany (with subsidiaries of ViSalus) loans or advances made or outstanding at any time; and consolidations, mergers, split-ups and similar transactions and sale of all or substantially all assets, in each case, unless all outstanding amounts under the Loan Agreement and Note are repaid in full in connection therewith and the lending commitments under the Loan Agreement are terminated. 
		
	Events of Default:
	The Loan Agreement will contain the following events of default: 

Failure to pay principal at maturity; failure to pay, interest or any other non-principal amount when due and any such failure shall continue for a period of three (3) business days; representations and warranties incorrect in any material respect when made or deemed made; failure to comply with covenants in the Credit Documentation (with customary grace periods for certain affirmative and financial reporting covenants); cross-default to (i) the Founder Revolving Credit Facility and (ii) other indebtedness (subject, in the case of this clause (ii) to a basket threshold to be mutually agreed upon); failure to satisfy or stay execution of judgments (in each case subject to a basket threshold to be mutually agreed upon); bankruptcy or insolvency or failure to generally pay debts when they become due (a “Bankruptcy Event of Default”); actual or asserted invalidity or impairment of any material part of the Credit Documentation; and change of ownership or control (to be defined in the definitive Loan Agreement).
Upon the occurrence and during the continuance of any Event of Default, the Lender may (i) accelerate payment of the Revolving Loans and/or (ii) terminate its commitment to make the Revolving Loans; provided that upon the occurrence of a Bankruptcy Event of Default, such acceleration and termination shall be deemed to occur automatically.
		
	Amendments:
	The Credit Documentation may not be amended, waived or otherwise modified without the prior written consent of the Borrower and the Lender (except that with respect to the Intercreditor Agreement, matters among the lenders themselves may be modified without the consent of the Borrower). Lender acknowledges that the documentation for the Founder Revolving Credit Facility may contain provisions with respect to what required percentage(s) of the Founder Lenders are needed for various modifications to such documentation and that such provisions shall not be considered in violation of the condition precedent above 

that the Credit Documentation and the documentation for the Founder Revolving Credit Facility must be substantially identical.
		
	Miscellaneous:
	The Credit Documentation will include (a) a waiver of consequential, punitive, exemplary, or special damages and right to a jury trial, (b) customary indemnification provisions in favor of the Lender, (c) a customary confidentiality provision in favor of the Borrower, (d) to the extent applicable, provisions with respect to the Patriot Act and OFAC (and any similar laws or regulations) and (e) such other terms and provisions as are customary for a commercial revolving credit facility of the type contemplated by this Term Sheet and provided such other terms and provisions are not inconsistent with the terms and provisions of this Term Sheet. 

		
	Assignments and Participations:
	The Borrower shall not be permitted to assign its rights or obligations under the Credit Documentation (or under the documentation evidencing the Founder Revolving Credit Facility) without the prior written consent of the Lender.  The Lender shall not be permitted to assign (or participate) its rights or obligations under the Credit Documentation without the prior written consent of the Borrower except that (i) the Lender may (without the prior written consent of the Borrower) collaterally assign/pledge its rights to its lender(s) or other credit providers and (ii) if an Event of Default exists and is continuing, the Lender may participate or assign its rights and obligations without the prior written consent of the Borrower, but in no event shall the Lender make any assignment or participation to the Borrower, any subsidiary of the Borrower or any other affiliate of the Borrower (except that, during the existence of an Event of Default, the Lender may make an assignment to the Founder Lenders).  Subject to the preceding provisions of this paragraph, the Credit Documentation shall be binding upon and inure to the benefit of the Borrower and Lender and their respective successors and assigns.

		
	Expenses:
	Borrower shall pay/reimburse the Lender for all reasonable costs and expenses, including reasonable attorneys’ fees and disbursements, incurred by the Lender in (i) collecting or otherwise enforcing the Revolving Loans and the Credit Documentation, (ii) in any bankruptcy or insolvency of, or any workout with respect to, the Borrower and (ii) any amendment, waiver or other modification of the Credit Documentation which arises out of a Default or Event of Default with respect to the Borrower.  With respect to any amendment, waiver or other modification that does not arise out of such an Event of Default or Default, the Lender shall pay for its own costs and expenses (including the fees and disbursements of legal counsel) with respect to such amendment, waiver or other modification and the Borrower shall pay for its own costs and expenses (including the fees and disbursements of legal counsel) with respect to such amendment, waiver or other modification..

Governing Law and Submission
		
	to Jurisdiction:
	New York.  (Submission to jurisdiction shall be non-exclusive).

    
Exhibit A
That certain legal action captioned Kerrigan et al. vs. ViSalus, Inc., which was commenced on July 9, 2014, in the United States District Court in the Eastern District of Michigan, Southern Division.

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