Document:

HRB 8-K (07-01-14) Exhibit 10.3

Exhibit 10.3

H&R BLOCK, INC.
2013 LONG TERM INCENTIVE PLAN
RESTRICTED SHARE UNITS
JUNE 2014 AWARD AGREEMENT
This Award Agreement is entered into by and between H&R Block, Inc., a Missouri corporation (“H&R Block”), and [Participant Name] (“Participant”).
WHEREAS, H&R Block provides certain incentive awards (“Awards”) to key employees of subsidiaries of H&R Block under the H&R Block, Inc. 2013 Long Term Incentive Plan (the “Plan”);
WHEREAS, Participant has been selected by the Board, the Compensation Committee, or the Chief Executive Officer of H&R Block to receive an Award under the Plan; and
WHEREAS, receipt of this Award is conditioned upon Participant’s execution of this Award Agreement within 180 days of [Grant Date], wherein Participant agrees to abide by certain terms and conditions authorized by the Compensation Committee of the Board.
NOW THEREFORE, in consideration of the parties’ promises and agreements set forth in this Award Agreement, the sufficiency of which the parties hereby acknowledge,
IT IS AGREED AS FOLLOWS:
1.    Restricted Share Units.
1.1    Grant of Units.  As of [Grant Date] (the “Grant Date”), H&R Block hereby awards [Number of Units Granted] Restricted Share Units (the “Units”) to Participant, as evidenced by this Award Agreement.
1.2    Vesting Conditions.  In order to become vested in any or all of the Units, Participant must remain continuously employed with Company through the applicable Vesting Date as set forth in Section 1.4. Except as otherwise provided in this Award Agreement, or absent a written agreement to the contrary, if Participant’s employment with Company terminates before a Vesting Date, for any reason other than those set forth in Section 1.5, then all unvested Units then held by Participant, if any, shall be forfeited by Participant, and Participant shall have no right to receive Common Stock in respect thereof. 
1.3    No Shareholder Privileges; Dividend Equivalents. 

(a)    Neither Participant nor any person claiming under or through him or her shall be, or have any of the rights or privileges of, a shareholder of H&R Block (including the right to vote shares or to receive dividends) with respect to any of the Common Stock issuable pursuant to this Award Agreement, unless and until such shares of Common Stock shall have been duly issued and delivered to Participant as a result of the vesting of Units.

(b)    Notwithstanding Section 1.3(a), dividend equivalents will accrue and vest proportionally as the Units vest, and will be paid as additional whole shares of Common Stock (unless the Committee in its discretion determines to pay the value of the accrued dividend equivalents in cash), net of withholding, upon the date shares of Common Stock are delivered for vested Units pursuant to Section 1.4.  Dividend equivalents will apply to all cash dividends (excluding 

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dividends for which an adjustment to the Award was or will be made pursuant to Section 4.3) and will be deemed reinvested in shares of Common Stock based on the Closing Price of the Common Stock on the trading day immediately preceding the ex-dividend date applicable to such dividend. Future dividend equivalents will apply to the shares of Common Stock relating to the reinvested dividend equivalents for each dividend record date that occurs before actual delivery of the shares. Notwithstanding the foregoing, the Committee retains discretion at any time, upon notice to Participant, to revise whether, and in what manner, dividend equivalents will be deemed reinvested with respect to any future dividends.
1.4    Vesting Dates and Delivery of Common Stock.  
(a)    Vesting Dates. Subject to Section 1.2, the Units shall vest on the dates noted below (each, a “Vesting Date”), in accordance with the following schedule:
	
		
	Vesting Date
	Percent of Units Subject to Vesting on Such 
Vesting Date

	First Anniversary of the Grant Date     
	33 1/3%

	Second Anniversary of the Grant Date
	33 1/3%

	Third Anniversary of the Grant Date   
	33 1/3%

If the percentage of the aggregate number of shares of Common Stock subject to this Restricted Share Unit scheduled to vest on a Vesting Date is not a whole number of shares, then the number vesting on such Vesting Date shall be rounded up or down to the nearest whole number of shares for each Vesting Date in accordance with the administrative systems established by Company’s third-party stock plan administrator, except that the amount vesting on the final Vesting Date shall be such that 100% (and for the avoidance of doubt, no more than 100%) of the aggregate number of shares of Common Stock subject to this Restricted Share Unit shall be cumulatively vested as of the final Vesting Date.
(b)    Delivery of Common Stock.  Upon each Vesting Date, Company shall transfer shares of Common Stock equal to the number of Units then vesting under this Award Agreement, plus any shares attributable to vested dividend equivalents, less any shares withheld for tax withholding purposes pursuant to Section 4.7, into a brokerage account established for Participant at a financial institution the Committee shall select at its discretion (the “Financial Institution”) or delivered to Participant in certificate form, such method to be selected by the Committee in its discretion. Participant agrees to complete, before a Vesting Date, any documentation for Company or the Financial Institution which is necessary to effect the transfer of shares of Common Stock to the Financial Institution. 
1.5    Acceleration of Vesting.  Notwithstanding Section 1.4(a), the Units held by Participant vest on the occurrence of any of the following events:  
(a)    Termination Related to Change in Control.  Upon Participant’s Qualifying CIC Separation, 100% of all outstanding Units granted under this Award Agreement shall immediately vest upon the later of the date of the Change in Control and Participant’s Last Day of Employment.  
(b)    Termination Related to Death or Disability.  Upon Participant’s Termination of Employment due to death or Disability at least one year after the Grant Date, 100% of all 

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outstanding Units granted under this Award Agreement shall immediately vest upon Participant’s Last Day of Employment.  
(c)    Termination Related to Retirement.  Upon Participant’s Termination of Employment due to Retirement at least one year after the Grant Date, does not result in forfeiture of rights in the Units or accelerated vesting of the Units; rather, the Participant shall become vested in the Units as set forth in Section 1.4.. 
(d)    Other Termination of Employment. All unvested Units shall be forfeited upon occurrence of Participant’s Termination of Employment that is not described in subsection (a), (b) or (c).
Upon the accelerated vesting date pursuant to this Section 1.5, Company shall transfer shares of Common Stock equal to the number of Units that become vested, plus any shares attributable to vested dividend equivalents, less any shares withheld for tax withholding purposes pursuant to Section 4.7, directly into a brokerage account established for Participant at the Financial Institution or delivered to Participant in certificate form, such method to be selected by the Committee in its discretion. Any fractional share eligible to be transferred to Participant shall be rounded up to the next whole share. Participant agrees to complete any documentation with Company or the Financial Institution that is necessary to affect the transfer of shares of Common Stock to the Financial Institution before the delivery of such shares will occur.  Notwithstanding the foregoing, delivery of shares of Common Stock will be delayed, if applicable under the circumstances, to the extent provided under Section 4.14 (Compliance with Section 409A).
2.    Covenants.
2.1    Consideration for Award under the Plan.  Participant acknowledges that Participant’s agreement to this Section 2 is a key consideration for the Award made under this Award Agreement.  Participant hereby agrees to abide by the covenants set forth in Sections 2.2, 2.3, 2.4, 2.5, 2.6, and 2.7.
2.2    Covenant Against Competition.  During the period of Participant’s employment and for two (2) years after his or her Last Day of Employment, Participant acknowledges and agrees he or she will not, directly or indirectly, establish or engage in any business or organization, or own or control any interest in, be employed by, or act as an officer, director, consultant, advisor, or lender to, any of the following located in those geographic markets where Participant has had direct and substantial involvement in Company’s operations in such geographic markets: (a) any entity that engages in any business competitive with the business activities of Company including, without limitation, its assisted and digital (including software) tax services businesses (“Prohibited Companies”); (b) any financial institution or business where any of Participant’s duties or activities would relate to or assist in providing services or products to one or more of the Prohibited Companies for use in connection with products, services or assistance being provided to customers; or (c) any financial institution or business whose primary purpose is to provide services or products to one or more of the Prohibited Companies for use in connection with products, services or assistance being provided to customers.  Without limiting clause (c), any financial institution or business whose profits or revenues from the provision of services or products to the Prohibited Companies exceeds 25% of total profits or revenues, as the case may be, shall be deemed to be covered by clause (c).  For Participants whose primary place of employment as of the Last Day of Employment is in Puerto Rico or Arizona, the restrictions in this Section 2.2 shall be limited to one 

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(1) year following Participant’s Last Day of Employment.  The restrictions in this Section 2.2 shall not apply if Participant’s primary place of employment as of the Last Day of Employment is in California or North Dakota; provided, however, to the extent permitted under such states’ laws, Company nevertheless retains all rights and remedies set forth in Sections 2.8 and 2.9 in lieu of enforcing the restrictive covenant set forth in this Section 2.2.  Notwithstanding the foregoing, if Participant has a standalone employment agreement with Company and such employment agreement includes covenants against competition or non-solicitation of customers, the scope, but not the duration, of such covenants shall apply solely for purposes of Sections 2.2 and 2.4, but shall have no other effect on this Award Agreement.  All other covenants contained in this Section 2 shall apply to Participant notwithstanding any covenants or other terms contained in any other agreement.
2.3    Covenant Against Solicitation of Employees. Participant acknowledges and agrees that, during the period of Participant’s employment and for two (2) years after his or her Last Day of Employment, Participant will not directly or indirectly: (a) recruit, solicit, or otherwise induce any employee of Company to leave the employment of Company or to become an employee of or otherwise be associated with Participant or any company or business with which Participant is or may become associated; or (b) hire any employee of Company as an employee or otherwise in any company or business with which Participant is or may become associated.  The restrictions in this Section 2.3 shall not apply if Participant’s primary place of employment as of the Last Day of Employment is in Wisconsin; provided, however, to the extent permitted under such state’s laws, Company nevertheless retains all rights and remedies set forth in Sections 2.8 and 2.9 in lieu of enforcing the restrictive covenant set forth in this Section 2.3. 
2.4    Covenant Against Solicitation of Customers. During the period of Participant’s employment and for two (2) years after his or her Last Day of Employment, Participant acknowledges and agrees that he or she will not, directly or indirectly, solicit or enter into any arrangement with any person or entity which is, at the time of the solicitation, a customer of Company for purposes of engaging in any business transaction of the nature performed by Company, or contemplated to be performed by Company, provided that this Section 2.4 will only apply to customers for whom Participant personally provided services while employed by Company or customers about whom or which Participant acquired material information while employed by Company.  For Participants whose primary place of employment as of the Last Day of Employment is in Puerto Rico or Arizona, the restrictions in this Section 2.4 shall be limited to one (1) year following Participant’s Last Day of Employment.  The restrictions in this Section 2.4 shall not apply if Participant’s primary place of employment as of the Last Day of Employment is in California or North Dakota; provided, however, to the extent permitted under such state’s laws, Company nevertheless retains all rights and remedies set forth in Sections 2.8 and 2.9 in lieu of enforcing the restrictive covenant set forth in this Section 2.4.
2.5     Covenant Against Disclosure of Confidential Information. Participant acknowledges and agrees: (a) that “Confidential Business Information” includes, but is not limited to, Company’s client lists and information, employee lists and information, developments, systems, designs, software, databases, know-how, marketing plans, product information, business and financial information and plans, strategies, forecasts, new products and services, financial statements, budgets, projections, prices, and acquisition and disposition plans, regardless of whether any court determines that such information constitutes a trade secret as defined by applicable law; and (b) 

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that (i) Company has spent many years developing its business and clients, and is engaged in a continuous program of developing its business and clients, (ii) Company’s methods of operation are unique within the industry, (iii) Participant’s position creates a relationship of confidence and trust between Participant and Company with respect to Company’s Confidential Business Information, and (iv) Participant’s disclosure of Confidential Business Information could substantially injure Company’s present and planned business.
Therefore, Participant agrees that at all times during employment and for a period of two (2) years after Participant’s Last Day of Employment with Company, Participant shall keep in strictest confidence and trust all Confidential Business Information.  During this period, Participant shall not use or disclose any Confidential Business Information without the written consent of Company, except as may be necessary in the ordinary course of performing duties as an employee of Company or as may be required by law.  
Notwithstanding the foregoing, to the extent that any Confidential Business Information satisfies the legal definition of “trade secret,” and for so long as such information remains a trade secret, Participant shall keep in strictest confidence such trade secret and not use or disclose any such trade secret without the written consent of Company, except as may be necessary in the ordinary course of performing duties as an employee of Company or as may be required by law. Participant acknowledges that trade secrets include, but are not limited to, Company’s client lists and all information identifying its clients, and all information pertaining to Company’s business development, marketing plans, product information, business and financial information and plans, and strategies.
2.6    Covenant Regarding Company Property. Participant acknowledges and agrees that as between Participant and Company, all Confidential Business Information is the sole and exclusive property of Company and/or Company’s nominee(s) or assign(s). Participant hereby assigns and agrees to assign to Company any rights Participant may have or may acquire in such Confidential Business Information. 
In the event that Participant conceives or develops, in whole or in part, any inventions, discoveries, ideas, concepts, strategies, plans, processes, systems, products, services, know-how, technology, software, website content, writings, expressions, designs, artwork, graphics, names, logos or other proprietary developments while employed by Company that (a) directly or indirectly relate in any way to or arise out of Participant’s job responsibilities or the performance of the duties or assigned tasks of Participant with Company; or (b) directly or indirectly relate or pertain in any way to the existing or reasonably anticipated business, products, services, or other activities of Company; or (c) were otherwise conceived or developed, in whole or in part, using Company time or materials or based upon Confidential Business Information (collectively, the “Developments”), all right, title, and interest in and to the Developments including, without limitation, all patent, copyright, trademark, trade secret and other proprietary rights therein shall become the sole and exclusive property of Company and/or Company’s nominee(s) or assign(s).
Participant acknowledges that any Developments subject to copyright protection shall be considered “works-for-hire” on behalf of Company as such term is defined under the copyright laws of the United States.  All right, title and interest in such Developments or components thereof shall automatically vest in Company and Company shall be the author and exclusive owner thereof including, without limitation, all copyrights (and renewals and extensions thereof), merchandising 

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and allied, ancillary and subsidiary rights therein.  To the extent that any of the Developments, or any portion thereof, may not qualify as a work-for-hire or for copyright protection, Participant hereby irrevocably assigns and agrees to assign in the future all right, title, and interest in and to the Developments to Company or Company’s nominee(s) or assign(s), including, without limitation, all patent, copyright, trademark, trade secret and any and all other proprietary rights therein.  
Participant will keep and maintain adequate and current written records of the conception and development of Developments in the form of notes, sketches, drawings, reports or other documents relating thereto, which records shall be and shall remain the sole and exclusive property of Company and shall be available to Company at all times.
Participant further agrees to execute and deliver all documents and do all acts that Company shall deem necessary or desirable to secure to Company or its nominee(s) or assignee(s) the entire right, title and interest in and to the Confidential Business Information and Developments, at Company’s expense.  Participant further agrees to cooperate with Company as reasonably necessary to maintain or enforce Company’s rights in the Confidential Business Information and Developments.
In the event Participant’s employment terminates, Participant shall promptly deliver to Company the originals and all copies of all Confidential Business Information, Developments and other materials and property of any nature belonging to Company and obtained during the course of, or as a result of, Participant’s employment with Company. In addition, upon such termination, Participant shall not remove from the premises of Company any of its documents or property.
2.7    Non-Disparagement. Participant agrees, that after his or her Last Day of Employment, Participant will not disparage Company or any of its directors, officers, executives, employees, agents or other Company representatives (“Related Parties”), or make or solicit any comments to the media or others that may be considered derogatory or detrimental to the good business name or reputation of Company or Related Parties. This clause has no application to any communications with the Equal Employment Opportunity Commission or any state or local agency responsible for investigation and enforcement of discrimination laws.
2.8    Forfeiture of Rights.  Notwithstanding anything herein to the contrary, if Participant violates any provisions of this Section 2, Participant shall forfeit all rights to payments or benefits under the Plan.  All unvested Units shall terminate and be incapable of vesting.  
2.9    Remedies.  Notwithstanding anything herein to the contrary, if Participant violates any provisions of this Section 2, whether before, on or after any settlement of an Award under the Plan, then Participant shall promptly pay to Company an amount equal to the aggregate Amount of Gain Realized by Participant on all Common Stock received pursuant to this Award Agreement after a date commencing one (1) year before Participant’s Last Day of Employment.  Participant shall pay Company within three (3) business days after the date of any written demand by Company to Participant.
2.10    Remedies Payable.  Participant shall pay the amounts described in Section 2.9 in cash or as otherwise determined by Company.
2.11    Remedies without Prejudice.  The remedies provided in this Section 2 shall be without prejudice to the rights of Company to recover any losses resulting from the applicable 

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conduct of Participant, and shall be in addition to any other remedies Company may have, at law or in equity, resulting from such conduct.
2.12    Survival.  Participant’s obligations in this Section 2 shall survive and continue beyond settlement of all Awards under the Plan and any termination or expiration of this Award Agreement for any reason.
2.13    Tolling.  The restricted period for each of the covenants in this Award Agreement shall be tolled during (a) any period(s) of violation that occur during the original restricted period; and (b) any period(s) of time required by litigation to enforce the covenant (other than any periods during which Participant is enjoined from engaging in the prohibited activity and is in compliance with such order of enjoinment) provided that the litigation is filed within one year following the end of the two-year period immediately following the cessation of employment.
3.    Non-Transferability of Award.  This Award (including all rights, privileges and benefits conferred under such Award) shall not be transferred, assigned, pledged, or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate, or otherwise dispose of this Award, or of any right or privilege conferred hereby, contrary to the provisions hereof, or upon any attempted sale under any execution, attachment, or similar process upon the rights and privileges hereby granted, then and in any such event this Award and the rights and privileges hereby granted shall immediately become null and void. 
4.    Miscellaneous. 
4.1    No Employment Contract.  This Award Agreement does not confer on Participant any right to continued employment for any period of time, and is not an employment contract.
4.2    Clawback.  If a restatement of H&R Block’s financial results occurs and (a) the vesting or the Amount of Gain Realized with respect to any portion of this Award, or (b) the vesting or issuance of performance-based Shares pursuant to any other award granted under the Plan or any other company-sponsored equity compensation plan, or (c) any other cash compensation received by Participant pursuant to a Company-sponsored incentive plan, would not have occurred, been paid or would have been reduced if the results represented by the restatement were known as of the time of the original issuance of the financial results, Participant may be required to reimburse Company for the Amount of Gain Realized related to this Award. The Committee has sole discretion to make all determinations that may be made pursuant to this section, including the amount of reimbursement.
4.3    Adjustment of the Units.  If any merger, reorganization, consolidation, recapitalization, dividend or distribution (whether in cash, shares or other property, other than a regular cash dividend), stock split, reverse stock split, spin-off or similar transaction or other change in corporate structure affects the Common Stock or the value thereof, the Committee shall make such adjustments and other substitutions to this Award Agreement as the Committee determines necessary or appropriate to prevent dilution or enlargement of benefits or potential benefits intended to be made available under this Award Agreement, in a manner the Committee deems equitable or appropriate, taking into consideration the accounting and tax consequences, including such adjustments in the aggregate number, class and kind of securities that may be delivered under the Plan, and in the number, class, kind and option or exercise price of securities subject to the 

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Award Agreement (including, if the Committee deems appropriate, the substitution of awards denominated in the shares of another company).
4.4    Merger, Consolidation, Reorganization, Liquidation, etc. If H&R Block shall become a party to any corporate merger, consolidation, major acquisition of property for stock, reorganization, or liquidation, all Plan awards outstanding on the effective date of the consummation of the transaction shall be treated in the manner the Committee, in its discretion, deems equitable and appropriate after taking into consideration relevant facts, including the accounting and tax consequences. Such treatment need not treat all Awards (or all portions of an Award) in an identical manner. Such treatment may include, but is not limited to, the substitution of new Awards, or for any Awards then outstanding, the assumption of any such Awards or the cancellation of such Awards for a payment to Participant in cash or other property in an amount equitably determined by the Committee (and, for the avoidance of doubt, such cancellation may be without any payment to Participant in the event the Committee determines that the intrinsic value of the Award is zero or negative).  Any such arrangements shall be binding upon Participant and any action taken under this Section 4.4 shall either preserve an Award’s status as exempt from Code Section 409A or comply with Code Section 409A.
4.5    Interpretation and Regulations.  The Committee shall have the full power and authority provided under Section 4.2 of the Plan and provided by delegation by the Board, subject to the terms of the Plan, and subject to such orders or resolutions not inconsistent with the provisions of the Plan as may from time to time be adopted by the Board. Such power and authority shall include, but not be limited to, the power and authority to: (a) interpret and administer the Plan, the Award Agreement, and any instrument or agreement entered into under or in connection with the Plan; (b) correct any defect, supply any omission or reconcile any inconsistency in the Plan or the Award Agreement in the manner and to the extent that the Committee shall deem desirable to carry it into effect; (c) establish such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan and Award; (d) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan and Award; (e) determine whether, to what extent and under what circumstances the Award shall be canceled or suspended; and (f) determine, for purposes of the Plan and this Award Agreement, (i) the date and circumstances that constitute a cessation or termination of employment, (ii) whether such cessation or termination is the result of Retirement, death, Disability, termination without Cause or any other reason, and (iii) what constitutes continuous employment with respect to vesting under this Award Agreement. Notwithstanding the foregoing, leaves of absence approved by the Committee or transfers of employment among the subsidiaries of H&R Block shall not be considered an interruption of continuous employment under the Plan, unless otherwise required by Code Section 409A. 
4.6    Reservation of Rights.  If at any time Company determines that qualification or registration of the Units or any shares of Common Stock subject to the Units under any federal, state or other applicable securities law, or the consent or approval of any governmental regulatory authority, is necessary or desirable as a condition of executing an Award or providing a benefit under the Plan, then such action may not be taken, in whole or in part, unless and until such qualification, registration, consent or approval shall have been effected or obtained free of any conditions Company deems unacceptable. 

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4.7    Withholding of Taxes.  Company shall make the delivery of shares of Common Stock pursuant to this Award Agreement net of all federal, state, local or foreign taxes required to be paid or withheld as a result of the delivery of shares of Common Stock.  Unless otherwise determined pursuant to established procedures pursuant to the Plan, the number of shares of Common Stock withheld shall be based on the Fair Market Value of such shares on the vesting date and the minimum required tax withholding rate for Participant (or such other rate that will not cause an adverse accounting consequence or cost to Company).
4.8    Reasonableness of Restrictions, Severability and Court Modification.  Participant and Company agree that the restrictions contained in this Award Agreement are reasonable, but, should any provision of this Award Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable or unreasonable in scope, the validity, legality and enforceability of the other provisions of this Award Agreement will not be affected thereby, and the provision found invalid, illegal, or otherwise unenforceable or unreasonable will be considered by Company and Participant to be amended as to scope of protection, time or geographic area (or any one of them, as the case may be) in whatever manner is considered reasonable by that court and, as so amended, will be enforced.
4.9    Waiver.  The failure of Company to enforce at any time any terms, covenants or conditions of this Award Agreement shall not be construed to be a waiver of such terms, covenants or conditions or of any other provision. Any waiver or modification of the terms, covenants or conditions of this Award Agreement shall only be effective if reduced to writing and signed by both Participant and an officer of H&R Block.
4.10    Plan Control.  The terms of this Award Agreement are governed by the terms of the Plan, as it exists on the Grant Date (except to the extent the Plan is amended from time to time and such amendment is intended to have retroactive effect). Except where the Plan expressly permits an award agreement to provide for different terms, if any provisions of this Award Agreement conflict with any provisions of the Plan, the terms of the Plan shall control.
4.11    Notices.  Any notice to be given to Company or election to be made under the terms of this Award Agreement shall be addressed to Company (Attention: Long Term Incentive Department) at One H&R Block Way, Kansas City Missouri 64105, or at such other address or by such other means as Company may hereafter designate in writing to Participant. Any notice to be given to Participant shall be addressed to Participant at the last address of record with Company or at such other address as Participant may hereafter designate in writing to Company. Any such notice shall be deemed to have been duly given when deposited in the United States mail via regular or certified mail, addressed as aforesaid, postage prepaid.  
4.12    Choice of Law.  This Award Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Missouri without reference to principles of conflicts of laws.
4.13    Choice of Forum and Jurisdiction.  Participant and Company agree that any proceedings to enforce the obligations and rights under this Award Agreement must be brought in the Missouri District Court located in Jackson County, Missouri, or in the United States District Court for the Western District of Missouri in Kansas City, Missouri.  Participant agrees and submits to personal jurisdiction in either court.  Participant and Company further agree that this Choice of Forum and Jurisdiction is binding on all matters related to Awards under the Plan and may not be 

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altered or amended by any other arrangement or agreement (including an employment agreement) without the express written consent of Participant and H&R Block.
4.14    Compliance with Section 409A.  Notwithstanding any provision in this Award Agreement or the Plan to the contrary, this Award Agreement shall be interpreted and administered in accordance with Code Section 409A and regulations and other guidance issued thereunder (“Section 409A”).  For purposes of determining whether any payment made pursuant to this Award Agreement results in a “deferral of compensation” within the meaning of Treasury Regulation 1.409A-1(b), H&R Block shall maximize the exemptions described in such section, as applicable.  Any reference to a “termination of employment” or similar term or phrase shall be interpreted as a “separation from service” within the meaning of Section 409A.  If any deferred compensation payment is payable while Participant is a “specified employee” under Section 409A, and payment is due because of separation from service for any reason other than death, then payment of such amount shall be delayed for a period of six months and paid in a lump sum on the first payroll payment date following the earlier of the expiration of such six month period or Participant’s death.  To the extent any payments under this Award Agreement are made in installments, each installment shall be deemed a separate payment for purposes of Section 409A and the regulations issued thereunder.  Participant or his or her beneficiary, as applicable, shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on Participant or his or her beneficiary in connection with any payments to Participant or his or her beneficiary pursuant to this Award Agreement, including but not limited to any taxes, interest and penalties under Section 409A, and neither H&R Block nor any of its affiliates shall have any obligation to indemnify or otherwise hold Participant or his or her beneficiary harmless from any and all of such taxes and penalties.   
4.15    Attorneys Fees.  Participant and Company agree that in the event of litigation to enforce the terms and obligations under this Award Agreement, the party prevailing in any such cause of action will be entitled to reimbursement of reasonable attorneys fees.
4.16    Relationship of the Parties.  Participant acknowledges that this Award Agreement is between H&R Block and Participant.  Participant further acknowledges that H&R Block is a holding company and that Participant is not an employee of H&R Block.
4.17    Headings.  The section headings herein are for convenience only and shall not be considered in construing this Award Agreement.
4.18    Amendment.  No amendment, supplement, or waiver to this Award Agreement is valid or binding unless in writing and signed on behalf of H&R Block by an officer of H&R Block, and, if materially adverse to Participant, signed by Participant.
4.19    Execution of Agreement.  This Award Agreement shall not be enforceable by either party, and Participant shall have no rights with respect to the Awards made hereunder, unless and until it has been (a) signed by Participant within 180 days of the Grant Date, (b) signed on behalf of H&R Block by an officer of H&R Block, and (c) returned to H&R Block.
This Award Agreement may be signed by the parties via facsimile or electronic signature, as acceptable to Company, and may be signed by H&R Block via stamped signature. 

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4.20    WAIVER OF JURY TRIAL. PARTICIPANT KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING, ACTION OR CLAIM ARISING OUT OF OR RELATED TO THIS AGREEMENT.
5.    Definitions.  Whenever a term is used in this Award Agreement, the following words and phrases shall have the meanings set forth below or as set forth in the Plan unless the context plainly requires a different meaning, and when a defined meaning is intended, the term is capitalized.
5.1    Amount of Gain Realized.  The Amount of Gain Realized shall be equal to the number of shares of Common Stock that Participant receives pursuant to this Award Agreement multiplied by the Fair Market Value of one share of Common Stock on the date of delivery.
5.2    Board. Board means the Board of Directors of H&R Block.
5.3    Cause.  Cause means those actions or omissions that constitute cause for termination under the written Company severance plan that applies to Participant.  If no severance plan applies to Participant or if the applicable severance plan does not define “Cause,” then Cause shall have the meaning found in the H&R Block Severance Plan, or any successor to that plan.  Notwithstanding any of the foregoing, if Participant has a standalone employment agreement with Company and such employment agreement includes a definition for cause, the definition of cause in the employment agreement shall apply.
5.4    Change in Control.  Change in Control means the occurrence of one or more of the following events:

(a)    Any one person, or more than one person acting as a group, acquires ownership of stock of H&R Block that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of H&R Block.  If any one person, or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of H&R Block, the acquisition of additional stock by the same person or persons shall not be considered to cause a Change in Control.  An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which H&R Block acquires its stock in exchange for property will be treated as an acquisition of stock for purposes of this Section 5.4(a).

(b)    Any one person, or more than one person acting as a group, acquires (when combined with all other acquisitions of H&R Block stock acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of H&R Block possessing 35 percent or more of the total voting power of the stock of H&R Block.  If any one person, or more than one person acting as a group, is considered to effectively control a corporation within the meaning of Treasury Regulation 1.409A-3(i)(5)(vi), the acquisition of additional control of the corporation by the same person or persons is not considered to cause a change in the effective control of the corporation. An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction in which H&R Block acquires its stock in exchange for property will not be treated as an acquisition of stock for purposes of this Section 5.4(b), but will be treated as an acquisition of stock for purposes of Section 5.4(a).

11

(c)    A majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by two-thirds (2/3) of the members of the Board before the date of such appointment or election.

(d)    Any one person, or more than one person acting as a group, acquires (when combined with all other acquisitions of H&R Block assets acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from H&R Block that have a total gross fair market value equal to or more than 50 percent of the total gross fair market value of all of the assets of H&R Block immediately before such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of H&R Block, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.  Notwithstanding the foregoing, there is no Change in Control event under this Section 5.4(d) when there is a transfer to an entity that is controlled by the shareholders of H&R Block immediately after the transfer. A transfer of assets by H&R Block is not treated as a change in the ownership of such assets if the assets are transferred to: (i) a shareholder of H&R Block (immediately before the asset transfer) solely in exchange for or with respect to its stock; (ii) an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by H&R Block; (iii) a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or voting power of all the outstanding stock of H&R Block; or (iv) an entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in (iii) above.  

Notwithstanding the foregoing, the direct or indirect sale of any or all of the stock of, merger or liquidation of, or sale or assumption of all or substantially all the assets or liabilities of, H&R Block Bank FSB, (i) will not be considered a Change in Control for purposes of this Award Agreement, and (ii) will not be included in any determination of the total gross fair market value of assets of H&R Block sold during any 12-month period under Section 5.4(d) above.

For purposes of this section, persons will be considered to be acting as a group in accordance with Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934, as amended, and Code Section 409A.
5.5    Closing Price.  Closing Price shall mean the last reported market price for one share of Common Stock, regular way, on the New York Stock Exchange (or any successor exchange or stock market on which such last reported market price is reported) on the day in question.  If the exchange is closed on the day on which the Closing Price is to be determined or if there were no sales reported on such date, the Closing Price shall be computed as of the last date preceding such date on which the exchange was open and a sale was reported.
5.6    Code.  Code means the Internal Revenue Code of 1986, as amended.
5.7    Committee.  Committee means the Compensation Committee of the Board. 
5.8    Common Stock.  Common Stock means the common stock of H&R Block, without par value.
5.9    Company.  Company means H&R Block, Inc., a Missouri corporation, and includes its “subsidiary corporations” (as defined in Code Section 424(f)) and their respective divisions, 

12

departments and subsidiaries and the respective divisions, departments and subsidiaries of such subsidiaries.
5.10    Comparable Position. Comparable Position means a position where:
(a)    Participant’s primary work location would be within 50 miles of Participant’s current primary work location, and
(b)    Participant’s compensation rate (salary and target bonus) would be no more than 10% below Participant’s current compensation rate.
5.11    Disability. Disability or disabled means, determined in accordance with the following determination periods:  
(a)    If Participant has coverage under a group long-term disability program maintained by Company, Participant is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of at least three months under such program; or
(b)    If Participant does not have coverage under a group long-term disability program maintained by Company, Participant is unable to engage in any substantial gainful activity for a period of at least 9 months by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.
For this purpose, Participant shall be deemed to have incurred a Disability on the last day of the applicable determination period above. Notwithstanding the foregoing, if Participant has a standalone employment agreement with Company and such employment agreement includes a definition of disability, the definition in the employment agreement shall apply.
5.12    Fair Market Value.  Fair Market Value means the Closing Price for one share of Common Stock.
5.13    Good Reason Termination.  Good Reason Termination means a Termination of Employment initiated by Participant that is related to one or more conditions described in subsection (a), and that is subject to the timing, notice and remedy provisions of subsection (b):
(a)    Conditions for Good Reason Termination. The conditions that qualify for Good Reason Termination shall be those conditions provided in the definition of Good Reason Termination under the written Company severance plan that applies to Participant, unless Participant has a standalone employment agreement with Company and such employment agreement includes such definition (or a definition of “Good Reason”), in which case the definition in the employment agreement shall apply. For the avoidance of doubt, any such definition shall only apply with respect to determining the conditions that constitute “Good Reason.” The periods of time relating to the initial existence, notice, and remedy of any such condition are determined solely as described in subsection (b). If no severance plan or employment agreement applies to Participant or if neither includes a definition of “Good Reason” or “Good Reason Termination,” then the conditions that qualify for Good Reason Termination are:
(i)    A change in Participant’s primary work location that is more than 50 miles from Participant’s previous primary work location, or

13

(ii)    A diminution of Participant’s compensation rate (salary and target bonus) of more than 10%.
(b)    Timing, Notice and Remedy Requirements. Participant’s voluntary Termination of Employment qualifies as a Good Reason Termination only if such Termination of Employment occurs within 18 months after a Change in Control because of a qualifying condition described in subsection (a), and only if (i) the initial existence of the condition occurs no more than 75 days before the Change in Control, or occurs on or after the Change in Control; (ii) Participant does not consent to the condition; and (iii) Company does not substantially remedy the condition (as further described in this section).
Participant must provide notice no more than 30 days after the initial occurrence of the event; provided, however, if the event initially occurs within the 75 day period preceding a Change in Control, notice must be provided by the earlier of (i) 90 days of the date of the initial occurrence and (ii) 30 days after the date of the Change in Control. During the 30 days following receipt of the notice, Company may take steps to substantially remedy the event, occurrence or condition for which notice was given, in which case a Good Reason Termination will not occur as a result of the condition.
5.14    Last Day of Employment.  Last Day of Employment means the date of Participant’s Termination of Employment.  
5.15    Qualifying CIC Separation.  Qualifying CIC Separation means (a) a Good Reason Termination or (b) Company’s involuntary Termination of Employment of Participant without Cause no more than 75 days before or 18 months after a Change in Control; provided, however, that Qualifying CIC Separation described under subsection (b) does not include the elimination of Participant’s position where Participant was offered a Comparable Position with Company or with a party (or a subsidiary or an affiliate of such a party) that acquires any asset from Company.
5.16    Restricted Share Units.  Restricted Share Units means Restricted Share Units granted to Participant under the Plan subject to such terms and conditions as the Committee may determine at the time of issuance. 
5.17    Retirement.  Retirement means Participant’s voluntary Termination of Employment with Company at or after the date Participant attains age 60.
5.18    Termination of Employment.  Termination of Employment, termination of employment and similar references mean a separation from service within the meaning of Code Section 409A.  If Participant is an employee, Participant will generally have a Termination of Employment if Participant voluntarily or involuntarily terminates employment with Company.  A termination of employment occurs if the facts and circumstances indicate that Participant and Company reasonably anticipate that no further services will be performed after a certain date or that the level of bona fide services Participant will perform after such date (whether as an employee, director or other independent contractor) for Company will decrease to no more than 20 percent of the average level of bona fide services performed (whether as an employee, director or other independent contractor) over the immediately preceding 36-month period (or full period of services if Participant has been providing services for less than 36 months).  For purposes of this Section 5.18, “Company” includes any entity that would be aggregated with Company under Treasury Regulation 1.409A-1(h)(3).

14

6.    ACKNOWLEDGEMENT OF COVENANTS AND WAIVERS. 
6.1    Participant understands and acknowledges that this Award Agreement confers both rights and obligations upon Participant. 
6.2    Participant has reviewed this Award Agreement in its entirety and understands that by signing this Award Agreement, Participant agrees to all of its terms, including, but not limited to, the covenants set forth in Section 2 of this Award Agreement, the Choice of Forum and Jurisdiction, and the Waiver of Jury Trial set forth in Section 4 of this Award Agreement.
6.3    Participant acknowledges that Company has advised Participant to seek his or her own legal counsel before signing this Award Agreement and that Participant has consulted or has had the opportunity to consult with his or her personal attorney before executing this Award Agreement.

[Signature Page Follows.]

    

15

In consideration of said Award and the mutual covenants contained herein, the parties agree to the terms set forth above.

     The parties hereto have executed this Award Agreement.

Participant Name:     [Participant Name]

Date Signed:        [Acceptance Date] 

H&R BLOCK, INC. 
By: 

Aileen M. Wilkins
Chief People Officer

16Joymain International Development Group Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

DISTRIBUTION COOPERATION
CONTRACT
Between

JOYMAIN INTERNATIONAL DEVELOPMENT
GROUP, INC. (herein after referred to as “JM” or “Distributor”)

Address: 2451 NW 109TH AVE , Suite # 9 
Miami, FL
33172
Phone:                   
786-232-3083
Fax:                        
786-233-7098
Email:                    
 David@joymainlife.com with copy to

elsa.pconsilium@gmail.com
Principle Contact: David Shao,
Manager
and

RIGHT FORTUNE INTERNATIONAL LIMITED. (herein
after referred to as “ RF” or “Supplier”)
Address: 1957 S. Knolls
St.
George, UT
84790
Phone:                  435-215-9632
Fax:                      
 435-215-2525
Email:                     Phil@RightFortune.com with copy to
 info@RightFortune.com
Principle Contac: Phillip C.
Hutchings, Manager

This Agreement is made as of the 25th day
of June 2014, by and between the aforementioned parties in respect of entering
into the distribution business of Yolexury branded 750 ml bottles and Yolexury
Travel Packs (herein after referred to as “Products”). Both Parties hereby agree
that once the Exclusive Right of Resell Agreement (See Attachment 1) be signed
by both Parties, JM will be authorized with the exclusive distribution right to
China, Hong Kong, Macau, and Taiwan (herein after referred to as “Greater
China”) which means without written consent of JM, RF should not sell the
Products to any other party including but not limited to an individual,
corporation, association, limited liability company, joint venture,
unincorporated organization or other entity or organization in aforementioned
areas. 

The business relationship between the
parties is outlined as follows: 

1. GENERAL TERMS OF
AGREEMENT

1.1 MANUFACTURING STANDARDS

	(a) 	
      Good Manufacturing Practice (GMP) – RF makes the
      commitment that all products produced under this agreement will be
      produced by manufactures meeting GMP standards and qualifications. As
      proof of certification, RF will provide JM with two original signed and
      notarized GMP Certificates annually for each manufacturer producing goods
      under this agreement. Any product standards in addition to U.S.A. GMP
      standards must be submitted in English by JM at the time of each
    order.

1

	(b) 	
      Product Requirement – RF will manufacture products
      in strict accordance with Purchase Orders placed by JM. RF will be
      responsible for assuring that manufacturing and packaging is completed
      within USA standards and practices. Any product not deemed acceptable by
      reason of variation from standards outlined in this agreement or not
      according to USA standards and common practices for manufacturing will be
      replaced by RF. Notice of non-acceptance and reason for non-acceptance
      must be made by JM prior to or at pick up of product at manufacturer’s
      dock. It is agreed that RF has no control of and no responsibility for any
      damage to product after pick up at manufacturer’s dock.

	(c) 	
      Certificate of Free Sale and Sanitation (CFS) – RF
      makes the commitment that all products produced under this agreement will
      be produced by manufacturers meeting CFS standards and qualifications. As
      proof of manufacturer certification, RF will provide JM with two original
      signed and notarized CFS Certifications annually for each manufacturer
      producing goods under this agreement.

	(d) 	
      Guarantee of Quality of Product and Ingredients –
      RF makes the commitment that all products and ingredients shall be of the
      highest quality. As proof of guarantee of quality, each product is tested
      scientifically. The details of this testing is in (e) below. In the event
      that product quality is challenged by JM after pick up by JM, a sample of
      the non- acceptable product shall be sent to RF via courier for
      examination with the detailed reason for unacceptable quality. Proof of
      sample product lot # and production date must also be provided by JM. It
      is agreed by both parties that RF cannot control shipping conditions,
      product storage conditions or time of opening of product bottle or JM
      storage or customer storage and use conditions. No product quality
      challenge will be considered for product lots that have reached the expire
      date listed on the Certificate of Analysis for that product lot. To
      facilitate any question regarding quality, RF will provide test of sample
      couriered by JM and a test of a product sample of the same lot and
      production date that has been stored at the factory (retains). Copies of
      these test results will be provided to JM. If the results of both tests
      show product to be defective, product for that lot will be replaced by RF
      at RF expense.

	(e) 	
      Product Testing – As part of its guarantee of
      providing the highest quality product to JM, each lot of product produced
      is tested by the manufacturer and a third party lab. Two signed original
      Certificates of Analysis (CofA) will be provided to JM. In addition to the
      manufacturer testing, a Third Party Laboratory is engaged to test the
      nutrition panel elements. Scanned copies of each report will be provided
      to JM for review in advance of the pickup of each order. All testing is
      completed according to GMP manufacturing practices to meet USA standards.
      Any requests for variance in testing process must be made at the time of
      product order and will require provision of detailed testing procedures in
      English. These requests will be reviewed by the manufacturer and the third
      part lab to assure that the tests and analysis can be completed
      properly.

	(f) 	
      Variance In Production and Testing Standards – It
      is understood by both parties that JM has decided to purchase Yolexury
      from RF due to the outstanding quality of production at US Manufacturers.
      It is also understood that from time to time JM may request changes in
      requirements of the product in order to meet strict government standards
      in China. RF will work very hard to achieve any changes to requirements
      requested by JM. Changes in product standards, testing processes or
      requirements for particular results in addition to USA standards must be
      made at time of Purchase Order requiring additional standards or changed
      requirements. These changes should be detailed on the purchase order.
      Standards and variance specifics must be provided in English and include
      all details including ranges of acceptance for each requested change. RF
      will review the request with the manufacturer and determine if the
      standard/requirement can reasonable be met. RF will complete its review
      and discussions with the manufacturer and report the ability to meet the
      JM requested standard within 30 days of the detailed request by JM. The
      Yolexury product achieves its superior taste and benefits as a result of
      the use of unique ingredients sourced from around the world. Care is taken
      to assure that all fresh ingredients are harvested at the best time in a
      variety of locations. Both parties understand that due to the natural
      variance in raw, fresh ingredients at harvesting, final testing results
      may vary from product lot to product lot. RF will make every effort to
      assure that results are as consistent as possible for each product
    run.

2

	(g) 	
      Guarantee of Quantity – RF will provide no less
      than and no more than 5% of quantity listed in the detailed purchase order
      as agreed by JM and RF. All documents issued in conjunction with a
      purchase order shall be accurate and consistent with quantity produced for
      that order.

	(h) 	
      Factory Inspection – JM has the right to conduct
      an on-site quality inspection to monitor production of Yolexury juice in
      RF manufacturer’s factory at any time after the production date is fixed
      for an order. JM inspection will occur during regular business hours for
      factory. RF will make arrangements for the inspection and provide on-site
      technician to work with JM staff during the quality inspection. RF will
      pay $ 5,000 USD toward actual JM inspection cost per year for inspection
      tour cost once inspection is arranged.

	(i) 	
      Force Majeure – Both parties shall not be held
      responsible for delay or breach of a product order under this agreement
      due to acts of war, fire, flood, typhoon, earthquakes and other natural
      disasters or events agreed by both parties as an act of force majeure. In
      such case the affected party will advise the other party immediately of
      the occurrence. Within 14 days, the affected party shall provide proof of
      the occurrence. Such proof may include certificate of the event issued by
      Competent Government Authority or other similar proof such as news
      coverage from national media or other reasonable proof. Both parties will
      take all necessary measures to fulfill the agreement. Prior to breach of
      this agreement and cancellation of a product order due to force majeure,
      both parties agreed to work together to achieve a delivery date and
      circumstance that is acceptable to both parties. If no mutual agreement
      for delay of the order is achieved within 12 weeks after the notice given
      by the affected party, the product order shall be cancelled with no
      penalty to either party.

	(j) 	
      Governing Law and Dispute Resolution – This
      agreement shall be governed by the laws of the state of Utah, without
      regard to the principle of conflict laws thereunder. All disputes between
      the Parties arising out of or relating to this agreement shall be settled
      in a friendly manner through negotiations. In case no settlement can be
      reached, the case may then be submitted for binding arbitration within the
      state of Utah. A single auditor shall be selected according to the
      arbitration rules set by the chosen arbitrator. The arbitration shall be
      conducted in English. The resolution of any dispute shall be
      non-appealable, final and conclusive on the Parties to such dispute and
      may be enforced and entered as a judgment in any court of law with
      jurisdiction thereof.

	(k) 	
      Language of this Agreement – The recognized
      language for this agreement and interpretation of this agreement shall be
      English.

3

	(l) 	
      Modification – Any changes to the terms,
      conditions and clauses of this agreement must be agreed by both parties.
      Any modification shall be agreed in writing will become effective upon
      signing and chopping of the appendix by both parties.

	(m) 	
      Unfinished Matters – any unfinished matters in
      this agreement may be settled separately in an additional appendix which
      must be signed and chopped by both parties. In case of conflict, any
      jointly signed appendix shall prevail over corresponding items in this
      agreement.

	(n) 	
      Term – This agreement shall remain valid until one
      year from the date of this agreement. The parties may agree (in writing)
      to annual extensions thereafter. It is agreed that JM will make no attempt
      to reproduce or recreate the Yolexury formula in any way. Any attempt by
      JM (or JM affiliates or directed by JM) to recreate the formula pertaining
      to the product known as Yolexury will violate not only this agreement but
      also strict laws in the United States of America. It is also agreed that
      RF as the right to pursue financial remedy if such a violation
    occurs.

	(o) 	
      Copy - This agreement is made out in four original copies
      and each party holds two.

PRODUCTION ORDERS 

	 	
      Individual product orders shall be
agreed by issuance and acceptance of a purchase order. Purchase Orders are
executed according to the General Terms of this Agreement and the details
received on the purchase order. JM and RF have established a regular process for
handling, documents and provision of purchase orders for product. Process and
documentation for PO 20140218NJ (not necessarily pricing) shall serve as
standard example for future purchase orders unless changed by both parties.
	(a) 	
      Items detailed on each purchase order – Items
      included in each purchase order shall include quantity, price per unit,
      date that product available for pick up is requested and any details or
      requests that are different than those outlined in this agreement. To
      assist in efficient purchase order processing both parties agree that all
      terms and conditions in this agreement are assumed and in effect for each
      purchase order unless a change is requested and agreed. There is no need
      to restate the terms of this agreement in each purchase order.

	(b) 	
      Purchase Order Acceptance – RF may have up to two
      weeks to accept or reject a purchase order from JM. Any reason for
      rejection will be provided to JM.

	(c) 	
      Ingredient List – To assure quality and
      consistency it is agreed that each purchase order will be made according
      to ingredient list PA10744-R9. Any changes to ingredient list must be
      agreed by both parties. As per Formula Ingredient List PA10744-R9,
      preservative levels of manufactured product must be not more than 325mg/kg
      of Ascorbic Acid and not more than 250mg/kg of Benzoic Acid as tested by
      Third Party Laboratory by US Standards. Any costs for development or
      testing of any changes to PA10744-R9 shall be paid by JM. Preservatives
      shall not exceed the amounts listed in PA10744-R9 and are detailed in the
      ingredient list to guarantee product quality. Any changes to ingredient
      list after the acceptance of the purchase order by RF must be agreed. RF
      will use best effort to make any change requested. JM may not reject
      product or cancel order if RF cannot make change requested by JM. JM may
      not reject product if reason for rejection is deemed to be related to the
      difference between the approved ingredient list and product
  label.

4

	
      (d) 
	
      Product Packaging – All product packaging
      including product labels will be designed by JM and placed on die lines
      provided by RF. Any changes to packaging from previous order will incur
      additional charges. RF shall provide a proof for review and signature
      approval by JM for each piece of packaging. Final artwork for each order
      should be submitted by JM with the purchase order document. Any delays or
      additional costs in production due to JM change of artwork after signed
      proof is received by RF will be charged to JM and may not be used as a
      reason for cancellation of order or to levy penalties for lack of timely
      production. 

	
      (e) 
	
      Product Inspection – RF will make a comprehensive
      inspection to the goods with regard to quality and quantity and that goods
      are in compliance with this Agreement prior to pick up of product at
      manufacturer. JM representatives may make their own additional inspection
      at the loading dock prior to pick up. Packing Lists for each container and
      other documentation including quantity, weight and quality testing results
      will be provided to JM prior to pick up for JM additional review and
      verification. 

	
      (f) 
	
      Order Documents – for each purchase order, the
      following documents will be provided to JM. Scanned copies will be
      provided in advance of product pick up for JM review and originals in the
      number listed with each document will be sent via courier to JM within 10
      business days following product pick up. 

	
      1) 
	
      FULL SET OF CLEAN ON BOARD OCEAN BILL/L MADE OUT TO
      ORDER AND BLANK ENDORSED, MARKED FREIGHT TO COLLEGEC AND NOTIFYING
      NANJING JOYMAIN INDUSTRY DEVELOPMENT CO. LTD. 

	2) 	COMMERCIAL INVOICE (2 originals) 
	
      3) 
	
      PACKING LIST (1 signed original and 1 copy) JM
      Shipping Agent Representative signs and receives a copy of the Packing
      List signed by Manufacturer and JM Shipping Representative. 

	
      4) 
	
      CERTIFICATE OF ORIGIN (2 originals signed by the
      Chamber of Commerce). The relative information indicated on this
      certificate such as consignee and purchase order number must be provided
      and determined by JM and delivered to RF at the time Purchase Order is
      issued. 

	
      5) 
	
      FREE SALE CERTIFICATE – FOOD (OR CERTIFICATE OF
      FREE SALE) ISSUED BY DEPARTMENT OF HEALTH SERVICES OR APPLICABLE
      STATE GOVERNMENT AUTHORITY OR FDA IF POSSIBLE. As per General
      Terms of this agreement, two hand signed and notarized originals of the
      Certificate of Free Sale will be issued annually per product. If JM
      requires CFS to be provided with each order, that should be requested on
      the Purchase Order from JM. JM will pay costs of any documents requested
      that are in additional to the annual CFS provided certificate by RF.
    

	
      6) 
	
      CERTIFICATE OF NON-WOODEN PACKING ISSUED BY
      MANUFACTURER OR IPPC MARK SHOULD BE SHOWN ON THE WOODEN PACKING AND
      PURCHASE ORDER DOCUMENTS ISSUED MUST CERTIFY TO THIS EFFECT.
      

	
      7) 
	
      THIRD PARTY TESTING DOCUMENTS (2 signed originals
      per product lot) - As required by the CIQ/Entry & Exit Quarantine
      Bureau of the People’s Republic of China, Lab Test report of the nutrition
      facts issued by an authoritative third party test institution will be
      provided. Test result for items included on the nutrition panel of the
      label of the product will be provided. Third party test institution
      reports issued for PO # 20140218NJ will serve as the example of items to
      be tested. If other tests are required, this request should be included in
      JM purchase order. All testing is performed by US Lab using US Standard
      Testing methods. RF, manufacturer and third party institution have no
      knowledge of ever changing CIQ or other Chinese testing standards or
      methods and cannot perform tests by methods not known and understood. All
      certificates and production of product relate to Formula No: PA10744-R9.
      JM will pay for cost of all third party institution
  testing.

5

	8) 	
      MARKINGS ON PRODUCT CONTAINERS - Only Lot number
      and Production Date should be shown on the bottom of each 750ml bottles
      and gel pack (for Travel Pack orders). Production Date will be stated in
      format YYYY/MM/DD. It is understood by RF that product expiration
      information is listed within label artwork provided by JM. RF Manufacturer
      Expiration Date is advised on Certificate of Analysis for each
  Lot.

	9) 	
      HEALTH CERTIFICATE (Two Originals signed and
      stamped by Chamber of Commerce) Health Certificate provided for PO
      20140218NJ shall be accepted as format for all Purchase Orders.

	10) 	
      COUNTRY OF ORIGIN AND MANUFACTURER NAME – this
      information shall be provided on Certificate of Origin and other documents
      as requested.

	11) 	
      OTHER DOCUMENTS OR CERTIFICATES - RF will provide
      other documents or certificates verifying product and product order
      details when requested during China Customs Clearing at destination
      port.

	12) 	
      PACKING – All goods stipulated in this agreement
      should be packed as per export standard. Goods shall be packed well and
      suitable for shipping long distance inland transportation and domestic
      venture inland transportation. RF will bear cost of any packing changes
      requested by JM before product has been picked up by JM shipping
      representative at manufacturer dock. JM shipping representative and
      Manufacturer shipping manager will work closely together in advance of the
      product pick up to coordinate all details of packing. Process and packing
      for PO 20140218NJ shall serve as an example of practice accepted by both
      parties.

	13) 	
      SHIPPING PACKAGE MARK – Manufacturer will provide
      markings on four surface of each cube or two surface of each cylinder. The
      shipping package mark should be kept clean, clear and strong, significant,
      waterproof and resist fading.

	14) 	
      SHIPMENT NOTIFICATION AND DELIVERY – Due to
      product quality testing (Post Production Microbial Test required by GMP
      and Third Party Institution Test required by JM and CIQ) the exact days of
      goods availability will vary. RF will commit to act in Good Faith to
      notify JM of the exact volume of goods so JM can order the container and
      shipping space. RF will direct manufacturer shipping department to provide
      all necessary information after final container loading for the Purchase
      Order. All shipping for purchase orders is EXWORKS. RF shall not bear
      responsibility of loss or damage once product is picked up by JM
      representative at the manufacturer dock or if JM fails to secure insurance
      after RF has provided documents for JM review and approval. Designated
      place of pick up for all product is manufacturer’s dock. In the event JM
      is not able to pick up product in a timely manner, JM shall bear the
      responsibility for making arrangements and cost for storage and
      transportation to storage for product and any late pick up penalties
      charged to RF by the manufacturer. Documents issued are considered final
      once product is moved from manufacturer’s dock. RF will make request to
      factory to adjust documents for pick up by JM from JM storage, but cannot
      guarantee this will be possible as order is considered final by the
      manufacturer on pick up from manufacturer dock. RF will provide an invoice
      for all payments due once the count and production charges are known. All
      orders must be paid in full by JM in a timely manner to allow payment to
      be received by RF and manufacturer. Proof of sending of payment to RF is appreciated, but may
      not be recognized by manufacturer to release product for pick up. At least
      6 business days in USA should be allowed from time of sending of wire
      transfer to RF to allow payment to reach manufacturer account.

6

	15) 	
      INLAND TRANSPORTATION AND INSURANCE – RF will
      ensure that all goods stipulated in this agreement be timely and safely
      delivered for pick up at manufacturer’s shipping dock . Cost of losses of
      goods, inland transportation and insurance for product after pickup at
      manufacturer’s dock will be responsibility of JM.

	16) 	
      LATE DELIVERY AND PENALTY – RF will review
      purchase order from JM immediately upon receipt. Included in RF review
      shall be availability of ingredients and factory schedule needed to meet
      JM requested product delivery date. RF will make every effort to assure
      quick production and delivery of product under the purchase order.
      Acceptance of the purchase order is not a guarantee that product will be
      available on date requested by JM on purchase order. Production period may
      take as long as 12 weeks (excluding holiday periods) to manufacture and
      deliver. The twelve week production period will begin on full execution of
      purchase order document signified by receipt of signed/chopped purchase
      order document by both parties and receipt of deposit required by RF in RF
      bank account. Product delivery date will be discussed and agreed by both
      parties in Good Faith with the understanding that quality of product is
      top consideration and that production may not be rushed. RF will provide
      updates of production status throughout the production period similar to
      the current updates provided for PO 20140218NJ. In the event that there is
      a delay in product delivery beyond the twelve week period anticipated due
      to circumstances outside of RF control or force majeure, both parties will
      discuss problem in good faith and friendly manner to find a good solution.
      If product availability is delayed for more than 2 weeks beyond
      anticipated 12 week period, RF will pay a penalty of 2% of product order
      value for amount of goods not available within agreed period per week of
      delay. In the event that product order is delayed more than 10 weeks
      following 12 week production period, JM many cancel the order for any
      product not available to JM during that 22 week period. It is recognized
      that any product orders not already in production may be cancelled by JM
      and this agreement may be terminated by JM following conclusion of
      production and satisfactory timely delivery according to the terms of this
      agreement.

It is understood by both parties that
the production of product and import of same is a difficult and challenging
business. It is understood that RF cannot be responsible for changes in Chinese
law or inspection requirements once a purchase order has been accepted by RF. If
there is a change, JM will advise RF immediately in English of the changes and
RF will use best efforts to make product or testing changes needed, but cannot
guarantee change can be accomplished. Both parties agree to work productively
together to achieve good results in each order and the business relationship
overall.

This agreement is in effect at the time
that a fully executed agreement signed and chopped by authorized company
representatives for all future orders of product.

SIGNATURES WILL BE ON THE PAGE WHICH
FOLLOWS. 

7

AGREED:

Date:

-----------------------------------------------
Jian
(David) Shao
Title: Chief Business Development Officer
Joymain
International Development Group, Ltd.

Date:

------------------------------------------------
Phillip C.
Hutchings
Manager
Right Fortune International Limited

8

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