Document:

Purchase Agreement between Mannatech and Larex, Inc

 Exhibit 10.18 
 *** Indicates omitted material that is the subject of a confidential treatment request filed separately with the Commission. 
 SALES AGREEMENT 
 This Agreement made and entered into this 1st day of January, 2006 (the
“Effective Date”) by and between MannatechTM Incorporated (“BUYER”) with its principle place of business at 600 S. Royal Lane, Suite 200, Coppell, Texas 75019 and Larex, Inc. (“SELLER”) with its principle place of
business located at 4099 White Bear Parkway, Suite 102, White Bear Lake, MN 55110 hereinafter collectively referred to as the “Parties”. 
 RECITALS 
 WHEREAS, BUYER develops and sells proprietary nutritional supplements and topical
products through a network marketing system throughout the United States, Canada, Australia, New Zealand, Korea, Taiwan, Germany, Denmark, Belgium, the United Kingdom and Japan by distributors referred to as Independent Associates
(“Associates”); 
 WHEREAS, SELLER is engaged in the development, manufacture and sale of products and possesses particular
technology and know-how which it is applying to develop products intended for human use; 
 WHEREAS, SELLER desires to sell the
Products (as defined below) exclusively to BUYER (even as to SELLER) within the Territory (as defined below) and during the Term (as defined below), and BUYER desires to be the exclusive BUYER (even as to SELLER) of the Products within the Territory
and during the Term; and 
 WHEREAS, SELLER has represented that it presently has the ability to manufacture and deliver all of the
Product that BUYER needs in accordance with the Specifications provided by BUYER. 
 NOW THEREFORE, promises considered, and in
consideration of the covenants, releases, and obligations of the Parties herein, the Parties agree as follows: 
  

	1.	Definitions. 

 As used in this Agreement, the
following terms shall have the meanings set forth below: 
  

	 	1.1	“Product” or “Products” means Manna 2000 and any other dietary supplement or food other similar product preparation or containing larch
arabinogalactans in which the arabinogalactan is combined with two or more of the following ingredients: 

  

	 	    	Naturally-derived gums and resins, including gum tragacanth and gum ghatti; 

  

	 	    	Aloe Vera, including any extracts, derivatives or fractions thereof; 

  

	 	    	Any type of algal derived extracts, and 

  

	 	    	Any form of glucosamine. 

  

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	 	    	The Product shall be intended as a dietary ingredient or food ingredient and/or dietary supplement or food (in capsule, powder, tablet or liquid form, as the case may be) intended
for sale to the ultimate consumer in the Territory (as defined herein) in which Mannatech conducts business. 

  

	 	1.2	“Price” means those prices on Exhibit “A” – “Product Pricing and Minimum Orders”. 

  

	 	1.3	“Territory” means global. 

  

	 	1.4	“Secondary Term” shall refer to a 365 day period commencing on, and on each anniversary of the Effective Date 

  

	 	1.5	“Vendors” shall refer to third party manufacturers who may from time to time be designated by BUYER to make purchases of the Product on BUYER’S behalf. SELLER
agrees that all purchases by Vendors pursuant to this Sales Agreement shall be credited on a monthly basis against any requirements by BUYER as set forth in this Sales Agreement. 

  

	2.	Term.  

  

	 	2.1	Primary Term. Unless terminated by either Party this Agreement shall be effective for a period of five (5) years (the “Initial Term”) commencing on the
Effective date of this Agreement. Within sixty (60) days of the termination date of the Initial Term, either party may provide notice to the other than it does not intend to extend the Agreement into the Secondary Term. If such sixty
(60) day notice does not occur, this Agreement may automatically extend for successive twelve (12) month terms (the “Secondary Term”). In the event the Agreement extends to any Secondary Term or successive terms thereafter,
either party may terminate the Agreement, upon sixty (60) days notice prior to the end of the then Secondary Term. Either Party may terminate this Agreement in the event that regulatory requirements, including but not limited to quality
assurance, good manufacturing practices and legality for sale are not met regarding product and manufacturing, such determination at its sole discretion. 

  

	 	2.2	At least thirty (30) days prior to the end of the Term, BUYER and SELLER mutually agree in writing on the price of the Product to be sold by SELLER and purchased by BUYER
hereunder during such additional one-year period. At least sixty (60) days prior to the end of the Term, SELLER and BUYER shall commence good faith negotiations to determine and agree upon such price for such additional one-year period. If
BUYER and SELLER are unable to so agree on such price, the Agreement shall terminate effective at the end of the then-current Term. Nothing contained in this Paragraph shall be deemed to (i.) obligate BUYER and SELLER to agree upon such price, (ii.)
obligate a party to negotiate with the other party regarding such price is such other part is then in breach of or in default under this Agreement or (iii.) limit the rights of BUYER and SELLER under Paragraph 13 hereof. 

  

	 	2.3	At the termination of this Agreement (or any renewal or extension thereof), BUYER shall have the right and ability to make products, particularly using its proprietary information
and formulae. 

  

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	3.	Products. 

  

	 	3.1	Product Exclusivity. BUYER shall have an exclusive right to purchase Products as defined in paragraph 1.1 hereof. 

  

	 	3.2	Validation of Claims. SELLER shall provide to BUYER all required scientific data to substantiate product claims (if any). SELLER and BUYER shall further ensure all aspects as
contemplated hereunder comport with regulatory guidelines in place by the Food and Drug Administration (“FDA”) and/or other country-specific regulatory agency during the term of this Agreement. 

  

	 	3.3	Specifications. 

  

	 	3.3.1	The Products specification shall include, among other things, those product specifications as provided by BUYER to SELLER, from time to time (the “Specifications”). Such
Specifications to be provided to BUYER by SELLER and may be amended by BUYER and SELLER by mutual written consent, from time-to-time, subject to variance within ranges of contents and other factors Exhibit “C” – “Current
Specifications”. 

  

	 	3.3.2	SELLER shall also provide formulation documentation for those countries outside of the United States in which BUYER conducts business and sells the Product. Such documentation shall
include, but is not necessarily limited to raw material specifications, certificates of analysis, manufacturing processing (e.g. to determine whether specific raw materials are allowable), amounts of ingredients (e.g. to determine whether the
ingredient in the formulation is within upper and lower limits allowable in the specified country. 

  

	 	3.4	Packaging. SELLER shall package the products in packaging that is approved by BUYER. Exhibit “D” - Current Packaging Specifications. 

  

	4.	Quality Control. 

  

	 	4.1	SELLER shall bear all responsibility for product and quality control for all Products. 

  

	 	4.2	SELLER warrants and represents that it has established procedures for the manufacture and supply of the Products. SELLER agrees that all Products manufactured, packaged, labeled,
supplied and delivered to BUYER (or its designee), will be manufactured in a professional, clean, safe and sanitary manner, in accordance with good manufacturing practices and the specifications established by BUYER and SELLER from time-to-time.

  

	 	4.3	BUYER has the right to inspect and test all Product as contemplated herein, to the extent practicable, at all places and times, including the period of manufacture, and in any event
prior to acceptance thereof. BUYER shall perform inspections and tests for quality assurance in a manner that will not unduly delay the production of the Product. BUYER may require repair, reformulation or replacement of nonconforming Product, those
constituting, without limitation of the foregoing, unacceptable formulation(s), scientific validation, safety, efficacy, shelf life and nonconformity with FDA regulations. BUYER reserves the right to run adequate tests to determine whether the
Product conforms to the specifications as contemplated hereby. Use of a portion of the Product shall not constitute acceptance thereof. 

  

	 	4.4	All books and records maintained by SELLER with respect to the Product shall be available at all reasonable times for inspection and verification by BUYER or any of its designated
agents or representatives. BUYER reserves the right, at any time, to examine SELLER’s books and records related to the Product at BUYER’s expense, and SELLER shall cooperate with any person making such examination on behalf of BUYER.

  

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	5.	Orders & Payment. 

  

	 	5.1	The purchase price(s) for the Products are set forth on Exhibit “A”. 

  

	 	5.1.1	The purchase price(s) include wrapping and packing labor. 

  

	 	5.1.2	Purchase Price(s) do not include any foreign, federal, state or local sales, value added, use or other taxes, all of which shall be borne by BUYER. 

  

	 	5.2	Orders. BUYER shall provide purchase orders for all production a minimum of thirty (30) days in advance of the requested delivery date. The purchase orders shall
designate the desired quantities, delivery dates and destinations. SELLER shall allow for up to three (3) shipping destinations per purchase order. Additional destinations may be accommodated for a shipping preparation fee to be negotiated
between BUYER and SELLER. 

  

	 	5.3	Payment. SELLER shall submit invoices to BUYER for the balance due on the Products when quantities of the Products are available for shipment to BUYER. SELLER’s invoices
are due on receipt of goods (net 45) and must be paid in USD. 

  

	6.	Delivery, Shipment. & Rejected Product  

  

	 	6.1	Delivery dates and quantities of the Products shall be as set forth on Purchase Order(s) – of sufficient quantity for SELLER’s batch processing, as acknowledged and
approved by SELLER. All quantities of the Products purchased by BUYER hereunder shall be shipped FOB SELLER’s manufacturing plant located at White Bear Lake, MN (the “Point of Delivery”). SELLER’s sole responsibility shall be to
deliver the ordered Products to the commercial carrier at the Point of Delivery. 

  

	 	6.2	BUYER shall be responsible for all costs of transportation, shipping, freight, insurance, import and export fees, and taxes for the quantities of the Products beyond the Point of
Delivery. Title to, and risk of loss associated with, the shipments shall pass to BUYER when SELLER delivers the shipments to the commercial carrier at the Point of Delivery. 

  

	 	6.3	Upon written notice to SELLER, BUYER may cancel any order, in whole or in part, that SELLER has previously accepted but not yet shipped to BUYER. 

  

	 	6.4	Rejected Product 

  

	 	6.4.1	In the event Product is rejected (“Rejected Product”) because of information, formulations or materials supplied by BUYER and SELLER has manufactured, tested, stored and
handled all materials and products in a manner consistent with current good manufacturing practices and good laboratory practices and has complied with all applicable laws and regulations, applicable written procedures and the requirements of this
agreement, BUYER shall bear 100% of all costs directly related to an invoice for Rejected Product, including cost of Rejected Product’s destruction, which shall be conducted by SELLER in accordance with all applicable laws and regulations.

  

	 	6.4.2	In the event Rejected Product is due to the failure of SELLER to manufacture, test, store or handle all material and products in a manner consistent with good manufacturing
practices and good laboratory practices and to comply with all applicable laws and regulations, applicable written procedures and the requirements of this Agreement, 

  

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	 	    	except for which any minor departures from specifications or nonconformities not impairing the safety or efficacy of products to which BUYER may reasonably waive objection, SELLER
shall bear 100% of the manufacturing fees, costs of materials supplied by SELLER, and costs of destruction. 

  

	 	6.4.3	In the event the Product does not meet the Specifications and Warranties, and such failure is not due to either (i.) information, formulations or materials supplied by BUYER, or
(ii) SELLER’s failure to follow written procedures or to manufacture, test, store and handle all materials and products in a manner consistent with good manufacturing practices and good laboratory practices, or (iii) in the event that
SELLER AND BUYER are both partially to blame, BUYER shall bear all material and destruction costs of Rejected Product and SELLER shall bear all manufacturing fees of Rejected Product. Destruction of Rejected Product shall be in conformance with all
applicable laws and regulations, and SELLER shall indemnify BUYER for any liability, costs or expense, including attorney’s fees and court costs relating to a failure to dispose of such Rejected product in accordance with applicable laws and
regulations. 

  

	 	6.4.4	BUYER shall pay for any Product that is rendered obsolete as a result of formula, artwork or packaging changes requested by BUYER or as required by any regulatory authority
governing those Products. 

  

	7.	Exclusivity. 

  

	 	7.1	SELLER shall not directly or indirectly develop, manufacture or market an “equivalent or derivative product” of the Product for any other multi-level marketing company
and/or direct selling company. For the purpose of this Agreement, “equivalent or derivative product” means any product formulated by SELLER which substantially replicates the Product. The foregoing notwithstanding, nothing in this
Agreement is deemed to preclude SELLER from developing, manufacturing or marketing any other type of product. 

  

	 	7.2	The Parties agree that as an inducement for BUYER to enter this Agreement and pay the funds hereunder, it shall have worldwide marketing rights to the Products as BUYER expands into
other countries, whether through the expansion within the normal course of marketing through its Associates or through a Personal Consumption Program, whatever the case may be. 

  

	 	7.3	The Parties agree that as an inducement for SELLER to enter this Agreement and offer Exclusivity of Product, BUYER shall submit Purchase Orders and take delivery of minimum amounts
per month as outlined in Exhibit “A”. If BUYER fails to purchase the minimum volume of Products required under this Section at any time during the term of the agreement, then the agreement becomes non-exclusive, allowing SELLER to provide
Product to other customers at SELLERS sole discretion. The minimum volume commitment for additional terms of this Agreement will be agreed upon within 90 days after the end of the prior term. If both parties are unable to agree on the minimum
volumes for the Secondary Term then the agreement becomes non-exclusive. 

  

	8.	Trademarks and Tradenames. 

  

	 	8.1	The Parties recognize that the name and/or respective marks of the other are valuable and that all goodwill associated with use of such names and marks shall inure to the benefit of
the other. BUYER shall have the right to terminate this Agreement immediately in the event that SELLER acts in a manner which would 

  

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	 	    	negatively impact the reputation of BUYER and/or of its name or marks (“BUYER Marks”) and/or would infringe or dilute the value of BUYER’s marks or which is not in
compliance with applicable law in the United States or any other country in which BUYER conducts business as the case may be. 

  

	 	8.2	BUYER shall be the sole owner and shall have perpetual use and control of all Promotional Materials produced for BUYER bearing its trade name and/or BUYER Marks related to the
Product. BUYER shall be free to dispose of and treat in any way all Promotional Materials under this Agreement, including but not limited to selling, advertising, distributing, and permitting their use in other mediums, whether for profit or
otherwise. SELLER has no right or license to use any of the trademarks or tradenames owned by, licensed to or associated with the BUYER Marks during the term of this Agreement without prior approval and express permission from BUYER, such approval
and permission is within the sole discretion of BUYER and may be withheld at any time. 

  

	 	8.3	The Parties agree that any idea, technology, know-how, process, patent, formula, product, composition, publication, tape, iteration, use, information, or other intellectual property
(“Intellectual Property”) which shall come to SELLER and/or be researched and developed related to the Product shall be the sole and exclusive property of BUYER, and any compensation therefore shall be embraced within the compensation
stated in paragraph 4 herein. SELLER specially represents and warrants that any of the Intellectual Property that is researched and developed for BUYER is of independent and novel origin, and does not rely in any aspect on other technologies and
ideas that SELLER has, in the past, conceived, researched and/or developed for Manufacturer or others. Further SELLER hereby represents and warrants as follows: 

  

	 	8.3.1	that none of the Intellectual Property of which SELLER conceives, researches or develops, and ultimately conveys to BUYER shall violate or infringe any patent, copyright, right of
privacy, nor constitute the misuse of misappropriation of any trade secret or confidential information which is the subject of an agreement or legal requirement involving a third-party; 

  

	 	8.3.2	that SELLER shall take reasonable steps to identify and secure any approvals or permissions required in connection with the production, manufacture, use or exploitation of the
Intellectual Property to the effect that the same have been or will have been obtained prior to any transfer of the Intellectual Property to BUYER (or if not reasonably obtainable, identified to BUYER in writing), and that to the extent the same are
secured, such shall remain in full force and effect with respect to such Intellectual Property during the period of ownership by BUYER. 

  

	 	8.3.3	SELLER agrees to execute any document, accurately prepared by counsel of BUYER, which shall serve to preserve the rights to the Intellectual Property of BUYER, including patent
applications and related documents, and transfers and evidences of ownership of such rights in BUYER. The obligation to acknowledge ownership of the Intellectual Property in BUYER and to participate in the execution of documents to obtain, evidence
and secure rights pertaining to the same, shall survive this agreement, and shall bind SELLER and its successors, and if applicable, assigns. Accordingly, SELLER affirm that any rights which might vest in it with regard to any Intellectual Property
which shall come to SELLER and/or be researched and developed during the term of this Agreement for BUYER, including without limitation the 

  

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	 	    	rights to manufacture, reproduce, use, publish, distribute, market, sell, license or otherwise exploit, shall be transferred, at various times, at the request of BUYER, to it, as
its sole property, with no rights, except to the right of compensation, set forth herein, remaining within your ownership. 

  

	9.	Confidential Information. 

  

	    	The Parties recognize and acknowledge that their respective tradenames(s), trademarks, copyrights, marketing plans, identity and related information regarding Associates, product
formulations and other proprietary product information contemplated hereby and any information of either relating to the management/operations of the other or designated by the other as confidential and/or proprietary (as to each, “Confidential
Information”) is the sole property and trade secret of the party to whom it belongs. Each party agrees that the Confidential Information of the other shall not be used, sold, disclosed or assigned by such party for any purpose, except to the
extent necessary to the performance of this Agreement. Upon termination of this Agreement, each party agrees to return to the other party all written materials, software, customer/member/representative lists and other information that contain
Confidential Information of such other party and further agrees not to use such Confidential Information. In the event of breach or threatened breach of this Section by either Party, the non-breaching party will be entitled to an injunction
restraining the other party from disclosing, in whole or in part, any Confidential Information to any person, firm, corporation, association or other entity to whom the non-breaching party’s Confidential Information, in whole or in part, has
been disclosed or threatened to be disclosed. Nothing contained herein will be construed as limiting the non-breaching party from, or prohibiting the non-breaching party from, pursuing any other remedies available to it for such breach, or
threatened breach, including recovery of damages from the breaching party. This section shall survive the termination of this Agreement. 

  

	10.	Indemnification by BUYER and SELLER. 

  

	 	10.1	SELLER hereby agrees to indemnify and save BUYER and hold BUYER harmless in respect of all causes of action, liabilities, costs, charges and expenses, loss and damage (including
consequential loss) suffered or incurred by BUYER or any end consumer of the Product (including legal fees) arising from any willful or grossly negligent act or omission of SELLER or its employees, servants and agents and arising from contravention
by SELLER of any of its employees, servants, and agents of any of the terms and conditions imposed on SELLER pursuant to this Agreement. This section will not be construed to limit or exclude any other claims or remedies that BUYER may assert under
this Agreement or by law. 

  

	 	10.2	SELLER hereby agrees to indemnify and save BUYER and hold BUYER harmless in respect of all causes of action, liabilities, costs, charges and expenses, loss and damage (including
consequential loss) suffered or incurred by BUYER (including legal fees) arising from the infringement of other marks and affects of using marks and contents without prior review as required herein. 

  

	 	10.3	BUYER will indemnify and hold SELLER harmless against any and all liability, damage, loss, cost or expense (including reasonable attorney’s fees) resulting from third-party
claims made or suits brought against SELLER which are related to BUYER’s Associates’ claims, distribution and promotion. 

  

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	11.	Representations and Warranties. 

  

	    	The following representations and warranties are made by SELLER and are true and correct and shall remain true and correct during the term of this Agreement and have been made to
induce BUYER to enter into this Agreement. 

  

	 	11.1	Production. SELLER warrants that the Products conform to the specifications and to be free from contaminants. If BUYER is asked to provide a warranty as to shelf-life, such
warranty shall only be made upon successful testing as to shelf life and shall in any event not exceed a twelve (12) month period. 

  

	 	11.2	Products. SELLER warrants that all Products manufactured, held for sale, sold and shipped pursuant to this Agreement shall be manufactured and shipped by SELLER in compliance
with applicable FDA regulations and current Good Manufacturing Practices as that term is defined under the Federal Food, Drug and Cosmetic Act. 

  

	 	11.3	Organization. SELLER is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation as to the United States and as to the
region in which it does business and has full power and authority to carry on its business as now being conducted. 

  

	 	11.4	Authorization and Agreement. The execution, delivery and performance of this Agreement by SELLER have been authorized by all necessary corporate action on its part. The
consummation of the transactions contemplated by this Agreement will not result in the breach of, or constitute a default under, any indenture, mortgage, note, agreement or other financing agreement to which SELLER is a party or to which it or its
properties or rights are subject and will not be in violation of the rights of any other party. 

  

	 	11.5	No Consent. No consent of any party and no consent, license, approval or authorization of, or exemption by, or registration or declaration with, any governmental authority,
bureau or agency is required in connection with the execution, delivery, validity or enforceability of this Agreement with respect to SELLER and the consummation of the transactions contemplated hereby. 

  

	 	11.6	Insurance. Exhibit “B” – “Insurance” attached hereto provides a complete list and brief description (specifying the insurer, the policy number or
covering note number with respect to binders, and describing each pending claim thereunder) of all policies or binders of product liability insurance held by or on behalf of each of SELLER or in which it is listed as a co-insured or loss payee
respecting the Product or any constituent component of any such Product. Such policies and binder shall be and shall continue in full force and effect, unless BUYER shall be notified as to their cancellation at least thirty (30) days prior to
the same. SELLER shall cause BUYER to be listed as loss payee or co-insured on each such policy set forth on Exhibit “B” upon the development of the Product, and to continue on such policy in such capacity during the term of this
Agreement. 

  

	 	11.7	Validity and Enforceability. This Agreement is valid and enforceable against SELLER in accordance with its terms, except as enforcement may be limited by applicable
bankruptcy, insolvency or other laws affecting the rights of creditors generally. The execution, delivery and performance of this Agreement by SELLER does not violate any law or rule or regulation or give rise to a cause of action in favor of any
person which will result in any liability to any of the Parties. 

  

	 	11.8	No Breach. Neither the execution nor delivery of this Agreement nor the consummation of the transactions contemplated hereby will (i.) violate any provision of the Articles
of Incorporation or By-Laws of SELLER (ii.) violate, conflict with or result in the breach or termination of, or otherwise give any other contracting party the right to terminate or constitute a default (by way of 

  

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	 	    	substitution, novation or otherwise) under the terms of any mortgage, lease, bond, indenture, agreement, franchise or other instrument or obligation to which SELLER is a party or by
which it may be bound or by which any of the property or assets of SELLER may be bound or materially affected, (iii.) result in the creation of any lien, charge or encumbrance upon the assets or properties of SELLER as it relates to its business or
the pending business of BUYER, (iv.) violate any judgment, order, injunction, decree or award of any court, arbitrator, administrative agency or governmental body against, or binding upon SELLER or upon the property, assets or business of SELLER or
(v.) constitute a violation by SELLER of any law or regulation of any jurisdiction as such law or regulation relates to it or to the property or business of SELLER. 

  

	 	11.9	Compliance with Laws. The business and operations of SELLER and any of its other affiliates and subsidiaries, if any, have not been, and are not, conducted in violation of
any applicable judgment, order, injunction, award, tariff or decree. SELLER has not received notice of, nor does SELLER have any knowledge of or any reasonable grounds to know after due inquiry that the business and its operations have not been and
are not, conducted in violation of any Federal, state or local law, ordinance, regulations, or any other requirement of any governmental body, court or arbitrator applicable to SELLER or pursuant to which they conduct their business and operations.
SELLER has all permits, licenses, orders, authorizations or approvals of any Federal, state, local or foreign governmental or regulatory body to carry on its business in the places and in the manner now and heretofore conducted, and all such
licenses, authorizations and permits are in full force and effect. SELLER has neither received notice of nor have any knowledge of or any reasonable grounds to know after due inquiry that the business and operations of SELLER have not and are not,
conducted in material violation of any such licenses, authorizations and permits, and no proceeding is pending or threatened to revoke or limit any such license, authorizations or permits. 

  

	 	11.10	Suppliers and Customers. The relationships of SELLER with its suppliers and customers are generally good. No material customer or supplier has cancelled or otherwise
terminated, or threatened to cancel or otherwise terminate its relationship with SELLER or has actually notified that it will decrease its services or supplies to SELLER. 

  

	12.	Disclaimer of Warranties 

  

	    	SELLER AND BUYER MAKE NO OTHER WARRANTIES, EXPRESS OR IMPLIED WITH RESPECT TO THE PRODUCT, LABELING OR PACKAGING. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY DISCLAIMED. THE BUYER AND SELLER AGREE THAT IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR CONSEQUENTIAL DAMAGES.

  

	13.	Termination. 

  

	 	13.1	Termination by SELLER. SELLER will have just cause to terminate this Agreement immediately upon written notice to BUYER or to refuse to renew this Agreement, without judicial
or administrative notice or resolution, upon the occurrence of any termination event specified below: 

  

	 	13.1.1	Breach. BUYER or any of its employees (i) breaches any obligation under the terms of this Agreement or (ii) breaches any other obligation under this Agreement and
fails to cure the breach within 90 days after SELLER demands its cure in writing. 

  

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	 	13.1.2	Normal Business. BUYER ceases to conduct business in the normal course, becomes insolvent, enters into suspension of payments, moratorium, reorganization or bankruptcy, makes
a general assignment for the benefit of creditors, admits in writing its inability to pay debts as they mature, suffers or permits the appointment of a receiver for its business or assets, or avails itself of or becomes subject to any other judicial
or administrative proceeding that relates to insolvency or protection of creditors’ rights. 

  

	 	13.2	Termination by BUYER. BUYER will have just cause to terminate this Agreement immediately upon written notice to SELLER or to refuse to renew this Agreement, without judicial
or administrative notice or resolution, upon the occurrence of any termination event specified below or elsewhere in this Agreement: 

  

	 	13.2.1	Breach. SELLER or any of its employees breaches any obligation under this Agreement and fails to cure the breach to BUYER’s satisfaction within ninety (90) days
after BUYER demands its cure in writing. 

  

	 	13.2.2	Normal Business. SELLER ceases to conduct business in the normal course, becomes insolvent, enters into suspension of payments, moratorium, reorganization or bankruptcy,
makes a general assignment for the benefit of creditors, admits in writing its inability to pay debts as they mature, suffers or permits the appointment of a receiver for its business or assets, or avails itself of or becomes subject to any other
judicial or administrative proceeding that relates to insolvency or protection of creditors’ rights. 

  

	 	13.2.3	Increase in SELLER Price. The SELLER Price of the Products increases for more than five percent (5 %) within one Contract Year. 

  

	 	13.2.4	Failure to Meet Quality Control Standards. The Products fail to meet the Quality Control Standards provided by BUYER to SELLER in the form of product specifications, as set
forth in Schedule A or as BUYER may provide to SELLER from time to time. 

  

	 	13.2.5	Fair Trade Practices. The SELLER shall at all times comply with international fair trade practices. BUYER shall have the right to terminate this Agreement upon seven
(7) days prior written notice to SELLER or his or her legal representative in the event that SELLER, its officers, executives, partners, directors, principals, employees, attorneys or agents, does any of the following: engages in illegal,
immoral, or criminal conduct resulting in a criminal indictment with a substantial likelihood of conviction; misrepresents or conceals anything in its background that could be detrimental to the value of BUYER’s goodwill, name, reputation or
stock; engages in conduct contrary to the best interests of BUYER; engages in conduct that offends the sensitivities of a significant portion of the population, including, without limitations, use of child labor, acts contrary to international
standards for the treatment of employees or the environment, abrogates the rights of employees to congregate and the like; or engages in conduct that could bring BUYER into public disrepute. 

  

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	14.	Consequences of Termination. 

  

	 	14.1	Termination Obligations. Without waiving any rights or remedies a party may have hereunder, upon the expiration or termination of this Agreement, all rights granted to either
party hereunder will immediately cease, and the Parties will (i) promptly comply with the termination obligations specified below and (ii) otherwise cooperate with the other party to terminate relations in an orderly manner.

  

	 	14.2	Payments. BUYER shall pay SELLER all due and outstanding amounts. There shall be no liquidated, consequential or incidental damages or payments due of any kind.

  

	15.	Notice. 

  

	    	Any notice or other communications between the Parties hereto shall be sufficiently given if sent by Federal Express or by telecopy, if to BUYER addressed to it at 600 South Royal
Lane, Suite 200 Coppell, Texas 75019 ATTN: General Counsel, or if to SELLER addressed to it at 4099 White Bear Parkway, Suite 102, White Bear Lake, MN 55110 or to other such addresses hereafter designated in writing by one party to the other. Such
notice or other communications shall, if sent by telecopy, be deemed to be given upon receipt of the confirmation of its proper transmission and if outside the hours of 9:00 a.m. to 5:00 p.m. on any business day in the jurisdiction of the addressee,
shall be deemed to be given at 9:00 a.m. on the next business day. Notices sent by Federal Express shall be deemed to be received (3) days after the date of forwarding the same. For the purposes of this Agreement, “business day” shall
refer to a day in which trading banks are open for business. 

  

	16.	Attorney’s Fees.  

  

	    	In the event any party hereto shall institute an action, including arbitration pursuant to Section 20 of this Agreement, to enforce any rights hereunder, the prevailing party
in such action shall be entitled, in addition to any other relief granted, to reasonable attorneys’ fees and costs. 

  

	17.	Severability. 

  

	    	Any portion of this Agreement which may be prohibited or unenforceable in any applicable jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability, but shall not invalidate the remaining portions of such provisions or the other provisions hereof or affect any such provisions or portion thereof in any other jurisdiction. 

  

	18.	Modification. 

  

	    	This Agreement and the Exhibits attached hereto may be revised from time to time and may be modified by mutual written agreement of the Parties. 

  

	19.	Waivers. 

  

	    	Any failure by any of the Parties to comply with any of the obligations, agreements or conditions set forth in this Agreement may be waived by the other party, but any such waiver
will not be deemed a waiver of any other obligations, agreement or conditions contained herein. 

  

	20.	Arbitration.  

	    	Any controversy or claim arising out of or relating to this Agreement or the existence, validity, breach or termination thereof, whether during or after its term, will be finally

  

 11 

	    	settled by compulsory arbitration in accordance with the Commercial Arbitration Rules and Supplementary Procedures for Commercial Arbitration of the American Arbitration Association
(“AAA”); provided, however, that in the event of any such controversy or claim, (i) neither party will initiate arbitration within the first thirty (30) days after the aggrieved party first notifies the other party of the
controversy or claim and (ii) during such thirty (30) day period, the chief executive officers of both parties convene at least once in Dallas, Texas, to endeavor in good faith to amicably resolve the controversy or claim.

  

	    	To initiate arbitration, either party will file the appropriate notice at the appropriate Regional Office of the AAA. The arbitration proceeding will take place during a period not
exceeding three (3) days. The arbitration panel will consist of three (3) arbitrators, one arbitrator appointed by each party and a third neutral arbitrator appointed by the AAA. Any communication between a party and any arbitrator will be
directed to the AAA for transmittal to the arbitrator. 

  

	    	The arbitral award will be the exclusive remedy of the parties for all claims, counterclaims, issues or accountings presented or plead to the arbitrators. The award will (i) be
granted and paid in U.S. Dollars exclusive of any tax, deduction or offset and (ii) include interest from the date of breach or other violation of the Agreement until the award is fully paid, computed at the then-prevailing LIBOR rate. Judgment
upon the arbitral award may be entered in any court that has jurisdiction thereof. Any additional costs, fees or expenses incurred in enforcing the arbitral award will be charged against the party that resists its enforcement.

  

	21.	Counterparts. 

  

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

  

	22.	Compliance. 

  

	    	Each party will comply with all laws relating to the performance of this Agreement including federal and state laws, rules and regulations and represents and warrants that execution
of this Agreement and performance of its obligations under this Agreement does not and will not breach any other agreement to which it is or will be a party, including but not limited to any agreements with its customers. 

 

	23.	No Agency. 

  

	    	Neither party shall purport or shall be deemed an agent, employee, partner, or joint venture with the other party. 

  

	24.	Governing Law.  

  

	    	The Parties hereto agree that this Agreement shall be enforced and governed by the laws of the State of Texas without regard to the conflicts of law principals. Each party consents
to personal jurisdiction in Dallas County, Texas, for any action to enforce arbitration including any further rules provided for emergency or extraordinary relief, as to this Agreement. 

  

	25.	Authority. 

  

	    	The Parties represent that they have full capacity and authority to grant all rights and assume all obligations they have granted and assumed under this Agreement.

  

 12 

	26.	Assignment. 

  

	    	This Agreement and the rights hereunder may not be assigned by any party (except by operation of law) without prior written consent of the other party, but, subject to the foregoing
limitation, this Agreement shall be binding and inure to the benefit of the respective successors, assigns, and legal representatives of the Parties. 

  

	27.	Force Majeure. 

  

	    	Neither party shall be liable for any failure, inability or delay to perform hereunder, if such failure, inability or delay is due to war, strike or other labor stoppage or
slowdown, flood, fire, explosion or accident, transportation stoppage, materials shortage, government law, order or regulation or energy allocation or shortage; provided, however that BUYER shall under no circumstances be relieved of the obligation
to pay amounts then due to SELLER. If delay or failure caused by such force majeure condition shall continue for more than ninety (90) days, either party shall have the right, at its sole discretion, to terminate this Agreement, by giving
notice to the other of its election to terminate. For the purposes of this Agreement, the term “force majeure” shall mean any event beyond the control of the parties, including, without limitation, fire, flood, riots, strikes, epidemics,
war (declared or undeclared and including the continuation, expansion or new outbreak of any war or conflict now in effect), terrorist acts, export controls, embargoes, changes in government and governmental actions or decrees.

  

	28.	Captions. 

  

	    	The headings of the sections in this Agreement are intended solely for convenience of reference and are not intended and shall not be deemed for any purpose whatsoever to modify or
explain or place constriction upon any of the provisions of this Agreement. 

  

	29.	Incorporation of Recitals. The recitals of this Agreement shall be construed and interpreted as comprising an essential portion of this Agreement.

  

	30.	Non-competition. During the term of this Agreement, neither SELLER, nor any of its sub-distributors, sales representatives, their agents, assigns, executives or anyone
in privity therewith, shall serve as manufacturer, distributor, marketing or sales representative in connection with any product that is directly or indirectly competitive with the product or products that BUYER is distributing, promoting, or
selling on behalf of BUYER without first obtaining BUYER’s written consent. 

  

	31.	Publicity of Agreement. This Agreement is confidential. Neither party shall engage in any type of publicity in any way connected with this Agreement without the
other party’s prior written approval, which approval shall not be unreasonably withheld. However, approval to disclose is hereby given by both Parties to the extent required for compliance with any governmental rule, regulation or other
requirement. In the event of any disclosure, the publishing party shall furnish a copy of such disclosure to the other party. 

  

	32.	Entire Agreement.  

  

	    	This Agreement constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements and
understanding of the Parties, and there are no representations, warranties, or other agreements between the Parties in connection with the subject matter hereof except as specifically set forth herein. No supplement, modification, amendment, waiver
or termination of this Agreement shall be binding unless executed in writing by the Parties hereto. 

  

 13 

 [Remainder of Page Intentionally Left Blank] 
  

 14 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date first
written above. 
  

			
	MannatechTM Incorporated (BUYER)
		
	By:	 	 /s/ Terry Persinger

		 	Terry Persinger
	Its:	 	Chief Operating Officer
	
	Larex, Inc. (SELLER)
		
	By:	 	 /s/ Robert (Bo) M. Nickoloff

	Its:	 	President and CEO

  

 15 

 Exhibit “A” – 
 Product Pricing and Ordering 
 Price per KG (***) 
 Year 1-5 of the Term: 3,000 Kg. minimum order per month 
 Secondary Term: The minimum volume commitment will be agreed upon within 90 days after the end of the prior term. If both parties are unable to agree on the minimum volumes for the Secondary Term then the agreement
becomes non-exclusive. 
  

 16 

 Exhibit “B” – Insurance 
  

 17 

 Exhibit “C” – Manna 2000 Specifications 
 Chemical Name: Arabinogalactan 
 Botanical Source: Larch Tree 
 Characteristics 
 *** 
 Specifications

 *** 
 Exhibit
“D” – Manna 2000 Packaging 
 Manna 2000 packaging specification 
 Date: 10/26/2005 
  

			
	Product Info	  	 
		
	Name	  	Manna 2000
		
	Packaging Info	  	
		
	Package Type	  	Multiwall bag
	Package Size	  	21 x 5 x 44
	Closure	  	Heat seal
	Fill Weight	  	25 kg
	Product Labels	  	One per bag, center of bag face
	Lot Number Stencil	  	~ 1” font on bottom of bag, visible when on pallet
	Number the Bags	  	Hand write ~ 1” number, lower right corner
	Pallet Size	  	40 x 48 GMA
	Pallet Configuration	  	3 bags per row, 5 rows high + 1 (16 bags total)
	Protection	  	Cardboard tray, top and bottom.
	Protection	  	ect 51 cardboard sleeves
	Protection	  	Stretch wrap
	Pallet Labels	  	One on each side of pallet, between layers of stretch wrap
	Do Not Top Load Labels	  	YES

  

 18Purchase Agrreement  between  Mannatech And Wellness Enterprises, LLC

 Exhibit 10.19 
 *** Indicates omitted material that is the subject of a confidential treatment request filed separately with the Commission. 
 COMMERCIAL LICENSING & ROYALTY AGREEMENT 
 by and between 
 Mannatech, Incorporated (“Mannatech”), a Texas (USA) corporation 
 and

 Wellness Enterprises, LLC (“Wellness”), a Delaware (USA) company 

 TABLE OF CONTENTS 
  

											
	 1.
	  	DEFINITIONS	  	1
	 2.
	  	SUPPLY OF MANNATECH MATERIALS	  	4
	 3.
	  	WATER TECHNOLOGY	  	4
		  	3.1	  	Technology	  	4
		  	3.2	  	Product Specifications per Country.	  	4
		  	3.3	  	Mannatech Representative in Facility	  	4
		  	3.4	  	Time Schedule	  	5
		  	3.5	  	Supply of Raw Materials for Product	  	5
		  	3.6	  	Licenses and Permits	  	5
		  	3.7	  	Health and Safety	  	5
	 4.
	  	TRANSPORTATION OF PRODUCT AND DEFECTS	  	6
		  	4.1	  	Shipping Instructions	  	6
		  	4.2	  	Risk of Loss	  	6
	 5.
	  	QUALITY ASSURANCE AND REGULATORY	  	6
		  	5.1	  	Specifications	  	6
		  	5.2	  	Regulatory Responsibilities	  	6
		  	5.3	  	Regulatory Requirements	  	6
		  	5.4	  	Regulatory Agency Inspections and Interactions	  	6
		  	5.5	  	Storage Requirements	  	7
		  	5.6	  	Nonconforming Materials	  	7
		  	5.7	  	Quality Tests and Checks	  	7
		  	5.8	  	Production Codes and Records	  	7
		  	5.9	  	Training	  	7
		  	5.10	  	Inspections and Audits	  	7
		  	5.11	  	Retention of Records and Samples	  	7
		  	5.12	  	Government Inspections and Seizures	  	8
		  	5.13	  	Legal/and Regulatory Filings and Requests	  	8
		  	5.14	  	Quality Responsibilities	  	8
		  	5.15	  	Lot Documentation	  	8
		  	5.16	  	Lot and Batch Release	  	8
		  	5.17	  	Laboratory Services	  	8
		  	5.18	  	Use of Subcontractors	  	8
		  	5.19	  	Reprocessing	  	8
		  	5.20	  	Product Complaints, Adverse Events, and Product Recalls	  	9
	 6.
	  	PRICE, TERMS OF PAYMENT, ROYALTIES & LICENSE	  	9
		  	6.1	  	Payment Terms	  	9
		  	6.2	  	Taxes	  	9
		  	6.3	  	Invoicing of Product	  	9
		  	6.4	  	Invoice Disputes	  	9
		  	6.5	  	Financial Recordkeeping	  	10
		  	6.6	  	Initial Price and Annual Price Adjustments	  	10
		  	6.7	  	Estimates/Forecasting	  	10
		  	6.8	  	Orders	  	10
		  		  	6.8.1	  	Initial Order	  	10
		  		  	6.8.2	  	Purchase Orders	  	10
		  	6.9	  	Royalties	  	11
		  		  	6.9.1	  	Payment of Royalties	  	11

											
		  	6.10	  	License of Haru Naito’s Story	  	11
	 7.
	  	INTELLECTUAL PROPERTY	  	11
		  	7.1	  	Protection of Technology	  	11
		  	7.2	  	Confidentiality	  	12
		  	7.3	  	Rights to Mannatech Technology and Mannatech Materials	  	12
		  	7.4	  	Title to Inventions	  	12
		  	7.5	  	Notice of Infringement	  	12
		  	7.6	  	Notice of Infringement by One or Both Parties	  	12
		  	7.7	  	Wellness Intellectual Property Representations	  	13
		  	7.8	  	Survival	  	13
		  	7.9	  	Trademarks and Tradenames	  	13
	 8.
	  	FORCE MAJEURE	  	14
		  	8.1	  	Force Majeure	  	14
		  	8.2	  	Term of Force Majeure	  	14
	 9.
	  	REPRESENTATIONS AND WARRANTIES	  	15
		  	9.1	  	Mannatech Representations and Warranties	  	15
		  	9.2	  	Wellness Representations and Warranties	  	15
		  		  	9.2.1	  	Production	  	15
		  		  	9.2.2	  	Organization	  	15
		  		  	9.2.3	  	Wellness Authorization and Agreement	  	15
		  		  	9.2.4	  	No Consent	  	15
		  		  	9.2.5	  	Insurance	  	15
		  		  		  	9.2.5.1	  	Commercial General Liability	  	16
		  		  		  	9.2.5.2	  	Auto Liability	  	16
		  		  		  	9.2.5.3	  	Worker’s Compensation	  	16
		  		  		  	9.2.5.4	  	Commercial Umbrella Liability	  	16
		  		  		  	9.2.5.5	  	Insurance to Wellness	  	16
		  		  	9.2.6	  	Validity and Enforceability	  	16
		  		  	9.2.7	  	No Breach	  	16
		  		  	9.2.8	  	Compliance with Laws	  	17
		  	9.3	  	Notice of Material Events	  	17
		  	9.4	  	Survival	  	17
	 10.
	  	DISCLAIMER; LIMITATION OF LIABILITY	  	17
	 11.
	  	INDEMNIFICATION	  	18
		  	11.1	  	Wellness’ Indemnification of Mannatech	  	18
		  	11.2	  	Indemnification Procedure	  	18
		  	11.3	  	Survival	  	19
	 12.
	  	CONFIDENTIALITY OBLIGATIONS	  	19
		  	12.1	  	Parties Confidential Information	  	19
		  	12.2	  	Exclusions from Confidential Information	  	19
		  	12.3	  	Term of Confidentiality	  	20
		  	12.4	  	Necessary Disclosures	  	20
		  	12.5	  	Limited Disclosure	  	20
		  	12.6	  	Press Releases	  	20
		  	12.7	  	Remedies	  	21
	 13.
	  	TERM AND TERMINATION	  	21
		  	13.1	  	Term	  	21
		  	13.2	  	Termination with Cause	  	21
		  		  	13.2.1	  	Material Breach	  	21

  

 ii 

											
		  		  	13.2.2	  	Inaccurate Warranty	  	21
		  		  	13.2.3	  	Termination Upon Insolvency or Sale of the Ass	  	21
		  	13.3	  	Termination Date	  	22
		  	13.4	  	Termination by Mannatech	  	22
		  		  	13.4.1	  	Breach	  	22

  

											
		  		  	13.4.2	  	Failure to Meet Quality Control Standards	  	22
		  		  	13.4.3	  	Illegality	  	22
		  		  	13.4.4	  	Fair Trade Practices	  	22
		  		  	13.4.5	  	Termination Due to Regulatory Requirements	  	22
		  		  	13.4.6	  	Termination for Failure to Meet Mannatech’s Production Requirements	  	23
		  	13.5	  	Obligations of Mannatech upon Termination for Withdrawal from Commercial Product Sale	  	23
		  	13.6	  	Obligations of Wellness upon Termination for Breach	  	23
		  		  	13.6.1	  	Obligations of Wellness upon Termination for Breach	  	23
		  	13.7	  	Termination of the Agreement with or without Cause	  	23
		  	13.8	  	Infeasibility/Replacement	  	23
		  	13.9	  	Termination by Wellness	  	23
		  		  	13.9.1	  	Breach	  	23
		  		  	13.9.2	  	Fair Trade Practices	  	23
	 14.
	  	MISCELLANEOUS	  	24
		  	14.1	  	Assignment	  	24
		  	14.2	  	Information Sharing	  	24
		  	14.3	  	Information in Support of this Agreement	  	24
		  	14.4	  	Governing Law	  	24
		  	14.5	  	Notices	  	24
		  	14.6	  	Waiver	  	25
		  	14.7	  	Severability	  	25
		  	14.8	  	No Implied Licenses	  	25
		  	14.9	  	Independent Contractors	  	25
		  	14.10	  	Compliance With Laws	  	25
		  	14.11	  	Entire Agreement	  	25
		  	14.12	  	Counterparts	  	26
		  	14.13	  	Schedules and Attachments	  	26
		  	14.14	  	Independent Judgment	  	26
		  	14.15	  	Ambiguities	  	26
		  	14.16	  	Approval	  	26
		  	14.17	  	Condition Precedent.	  	26

  

 iii 

 COMMERCIAL LICENSING & ROYALTY AGREEMENT 
 This Commercial Supply Agreement (“Agreement”) effective as of the Effective Date defined herein (“Effective Date”) by and between Mannatech,
Incorporated (“Mannatech”), a Texas (USA) corporation, with its primary place of business located at 600 S. Royal Lane, Suite 200, Coppell, Texas 75019, and Wellness Enterprises, LLC (“Wellness”), a Delaware (USA) company, with
its primary place of business located at 418 SW 140th Terrace, Newberry, Florida 32669, hereinafter collectively referred to as the “Parties”. 
 RECITALS 
 WHEREAS, Mannatech develops and sells proprietary nutritional supplements and
topical products through a network marketing system throughout the United States, Canada, Australia, New Zealand, the United Kingdom, Denmark, S. Korea, Taiwan and Japan by distributors referred to as Independent Associates (“Associates”);

 WHEREAS, Mannatech desires to enter into this Agreement to obtain commercial manufacture of an exclusive line of skin care products
by which Wellness will license its proprietary Tensa Water (the “Water Technology”) for the development of a proprietary skin care line as set forth in Attachment 1 – “Product” to be manufactured and supplied by Fine
Chemetics Ltd. (“FCL”) using FCL’s existing technology and may use Mannatech’s existing glyconutrient formulations (defined herein as “Product”) for Mannatech; 
 WHEREAS, Wellness has represented that it will license to Mannatech Haru Naito’s personal story and the story surrounding the discovery of
the Water Technology (collectively, the “Story”) and further that Wellness possesses the right and title to license the Story to Mannatech; 
 WHEREAS, Wellness has represented that its Water Technology is specially processed and hyper -enhanced and is proprietary in nature and that it further has all right, title and license in such technology;.

 WHEREAS, Wellness has represented that it presently has the ability to supply the Water Technology in the quantities needed and in
accordance Mannatech’s quality control specifications; attached hereto as Attachment “2”; 
 WHEREAS, Wellness has
represented that it presently has the ability to develop the Water Technology in the quantities needed and in accordance Mannatech’s quality control specifications; attached hereto; 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements hereinafter contained, and for good and
valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
 1. DEFINITIONS 
 For the purposes of the Agreement, the following words and phrases shall be defined as follows: 
 1.1 “Affiliate” means any corporation, company, joint venture, partnership or other entity, which, directly or indirectly, is controlled by, or is
under common control with a Party to this Agreement. “Control” means the ownership of more than fifty percent (50%) of the issued share capital or business assets of another entity, the power to exercise more than fifty percent
(50%) of the voting rights of another entity, the 

 power to appoint more than fifty percent (50%) of the Board of Directors of another entity, or the right to control
the affairs of another entity. Each Party acknowledges that the direct or indirect ownership of a lesser percentage of such shares shall not necessarily preclude the existence of control. 
 1.2 “Agreement” means this Commercial License and Royalty Agreement between Wellness and Mannatech and the Attachments attached hereto for the
commercial development, licensing and supply of Product and its related Story. 
 1.3 “Batch” means a specific quantity of an
ingredient that is intended to meet specifications for identity, purity, quality, strength, and composition and is produced during a specified time period according to a single manufacturing record during the same cycle of manufacture. 

1.4 “Bill of Materials” means a list of raw materials that are specific and identifiable for the manufacture of the Product. 
 1.5 “GMP” means all requirements imposed on a licensed manufacturer and distributor of cosmetics in Japan under the Pharmaceutical Affairs Law
(Law No. 145 of 1960) and related regulations, including, without limitation, (i) Article 13 of the Pharmacy, Etc. Structure and Facilities Regulations (providing standards for the structure and facilities of places of manufacture of
ordinary cosmetics), (ii) Chapter III of the Ministerial Ordinance Concerning Quality Control Standards for Pharmaceuticals, Quasi-Pharmaceuticals, Cosmetics and Medical Equipment, (iii) Article 3 of the Ministerial Ordinance Concerning
Post-Manufacture / Sale Safety Control Standards for Pharmaceuticals, Quasi-Pharmaceuticals, Cosmetics and Medical Equipment, (iv) the “Negative / Positive List” of Cosmetics Standards under Ministry of Health Labor & Welfare
Notification No. 331 of September 29, 2000, and (v) labeling standards concerning the ingredients and shelf life of cosmetics as contained in Ministry of Health Labor & Welfare Notification No. 332 of September 29,
2000 and Ministry of Health Labor & Welfare Notification No. 66 of September 26, 1980, as the same may be amended or re-enacted from time to time. Wellness’ operational quality standards are defined in internal GMP documents.

 1.6 “Change Control” means a process defined in a standard operating procedure (“SOP”) agreed to and followed by
Wellness in accordance with Mannatech’s requirements to identify, review, track, approve and implement changes to a production process, raw materials, quality control, quality assurance, documentation, equipment, responsible personnel,
packaging, specifications, software/hardware, and other systems used in the manufacture of Product, which may be provided to Mannatech by Wellness from time to time. 
 1.7 “Mannatech Materials” means any and all materials, including the specifications, know-how or other suggestions for improving the processing and Product packaging and shipping in which
Mannatech provides know-how and/or has intellectual property rights, including, but not limited to patent rights, trade secret rights and copyrights, or which Mannatech is otherwise authorized to use. 
 1.8 “Mannatech Technology” means all technical and other information and know-how not known to WELLNESS prior to the commencement of this
Agreement relating to Mannatech and its current and projected operation, including without limitation those Specifications relating to the Processes and the Product that may be supplied by Mannatech to Wellness from time to time. 
 1.9 “Mannatech Tests” means the tests to be carried out by Mannatech or by a third party as directed by Mannatech, on the Product during or
following production of such Product. 
  

	1.10	“Delivery Point” means the location as designated by Mannatech in each purchase order for Water Technology. 

  

 2 

 1.11 “Effective Date” means the date on which this Agreement is executed and all the conditions
precedent are met. 
 1.12 “Facility” means Wellness’ enhanced water production facility located in Oneonta, NY. 
 1.13 “Initial Term” means the period commencing with the Effective Date and expiring at the end of two (2) full calendar years. 

1.14 “Lot” or “Lots” means a Batch, or specifically identified portion of a Batch, intended to have uniform identity,
purity, quality, strength and composition. 
 1.15 “Manufacturer” means FCL or a third-party firm that FCL shall contract with and
oversee the manufacturing and packaging of the final Product or any other manufacturer selected by Mannatech in its sole discretion to manufacture and package the Product. 
 1.16 “Parties” means Wellness, Mannatech and their Affiliates and Companies. 
 1.17
“Price” means for any particular unit of Water Technology, the price as set forth herein. 
 1.18 “Processes”
means the methods for developing the Product, including any improvements thereto from time to time, the details of which are contained in Wellness’ standard operating procedures. 
 1.19 “Product” means any proprietary cosmetics, body care products, skin care products, including but not limited to cleansers, lotions and creams, evidence and specifications, developed by
Wellness using Water Technology, FCL proprietary technology, incorporated herein as Attachment 1 and agreed to in advance by Mannatech. 
 1.20
“Recall” means an instance where: (i) a request, directive or order of any government authority is received by Wellness or Mannatech that Product be recalled; (ii) a court of competent jurisdiction orders such a
Recall; or (iii) Mannatech reasonably determines that Product should be recalled due to evident facts which would otherwise lead to actions referred to under (i) and/or (ii). 
 1.21 “Services” means any and all of the work to be performed by Wellness pursuant to this Agreement. 
 1.22 “Specifications” means the technical criteria in process tests, and Product Tests and any additional or supplemental specifications and conditions from time to time agreed in writing between Wellness and
Mannatech. All Specifications to be contained in the Product Specification attached. 
 1.23 “Territory” shall mean Japan, Taiwan, S.
Korea and future markets as may be agreed to between the Parties by separate written agreement from time-to-time. The Parties agree that Mannatech will have right of first refusal to licensing Water Technology for use in skin care products for the
network marketing and direct selling industry in those non-licensed countries in which Mannatech currently sells its products. 
 1.24 “Testing
Laboratory” means any third party selected by Mannatech to carry out tests that are not otherwise performed by FCL or which are required by Mannatech. 
 Unless the content requires otherwise, words and phrases as defined above shall bear the same meaning in any other part of this Agreement. References to the singular number include the plural and vice versa, references to clauses are
references to clauses of this Agreement. 
  

 3 

 2. SUPPLY OF MANNATECH MATERIALS The Parties understand and agree that Mannatech will not supply any of its
technology to Wellness under the terms of this Agreement. 
 3. WATER TECHNOLOGY 
 3.1 Technology. 
 3.1.1 Wellness represents that is currently owns all technology and intellectual property, and pieces of equipment dedicated to the supply of its Water Technology (for patents, copyrights, trademarks, proprietary formulations, vats,
processing tanks, processing facilities, freezers, refrigerators, and storage containers) that may be required to perform its obligations under this Agreement. 
 3.1 2. Subject to 3.3 hereof, the Water Technology shall be supplied and licensed by Wellness for the exclusive use and benefit of Mannatech in the Product formulations represented in Appendix 1. Wellness shall not
make or enter into an agreement to make these product formulations for itself or any third party in the licensed territory throughout the term of this Agreement or any extension thereof. Mannatech acknowledges that Wellness is the business of
producing Water Technology for skin and body care products, which may perform similar functions to those of the unique Product being licensed to Mannatech without being the same formulation. Such products shall not be deemed to violate this section
3.1.2 merely because they contain the Water Technology unless they consist of the same formulations  
 3.1.3 Mannatech shall retain
exclusive rights to the Water Technology for the purposes of production of the Product developed by Wellness throughout the Territory provided Mannatech places a minimum order of 800 gallons of Water Technology per month (“Minimum
Order”) beginning in April 2006 through December 2006. In January 2007, all purchase obligations of the Water Technology will be suspended until such time that the Parties can account for balance on hand and project amounts (if any) required
for the next year of the Term. If, at the end of year 1, Mannatech’s inventory of the Water Technology exceeds its projected requirements for the second year of the Initial Term, Wellness agrees it will adjust the Minimum Order and continue the
exclusive License. The Parties agree to cooperate fully in the event an adjustment to the Minimum Order is requested by Mannatech. The Parties agree that so long as Mannatech places such Minimum Order in April through December 2006, it will retain
an exclusive license to the Product throughout the Territory. 
 3.2 Product Specifications per Country. Wellness acknowledges that Mannatech is a
multi-national nutritional supplement company that must comply with the cosmetics and skin care laws and regulations of each country (present and future) in which it conducts business, which regulations may change from time to time. Wellness shall
comply with the GMP (if any) with respect to Water Technology manufactured for inclusion in the Product in the Territory and any variations to the specifications, marking, packaging, labeling, and the like as may be presented from time-to-time by
Mannatech to meet or exceed the applicable cosmetic and skin care laws and regulations of each country where the Product is sold. 
 3.3 Mannatech
Representative in Facility. Mannatech will have the right to have a representative in Wellness’ Facility provided that the Mannatech representatives shall not be in attendance on a fulltime basis. Mannatech shall have no more than one
(1) person on site at any time unless mutually agreed to by the Parties. Mannatech shall give Wellness reasonable notice as to the scheduling of Mannatech personnel in the Facility. Wellness retains the right to limit access should risk be
posed to existing operations, such access not to be unreasonably denied. The Parties shall work together to maintain confidentiality and the confidentiality of other and to keep strictly confidential any information received, learned or viewed while

  

 4 

 
in the Facility or the others’ premises. While in the Facility, Mannatech employee shall be primarily observing and providing advice, and shall
have no direct control or decision-making authority over Wellness employees or their activities. Mannatech agrees that Wellness may request individual Mannatech employees to enter into confidentiality agreements according to their own
confidentiality terms and conditions, individually and on behalf of Mannatech, subject to prior review by Mannatech’s Legal Department. Mannatech shall be responsible for all costs associated with this Section 3 including but not limited
to meals, transportation, accommodation and office support services as may be incurred while Mannatech personnel are located at the Facility. 
 3.4
Time Schedule. The time schedule for delivery of Water Technology to FCL shall be included in each purchase order from Mannatech. 
 3.5 Supply of
Raw Materials for Product. All cleaning equipment, processing stations, vats, processing equipment, storage, freezers, storage facilities, docks and the like required to manufacture, store and deliver the Water Technology shall be under the
control of Wellness or its Affiliates in sufficient quantities or availability to fulfill its Minimum Order obligations. Mannatech agrees to provide reasonable notice to Wellness in the event it anticipates demand for the Water Technology will
significantly increase over the Minimum Order obligations. 
 3.6 Licenses and Permits. 
 3.6.1 Wellness shall be responsible for using commercially reasonable efforts to obtain all licenses and permits required by law in order for Wellness to
meet its obligations under this Agreement. Wellness shall supply Mannatech with all governmental permits and licenses applications, including but not limited to environmental permits, necessary for its production and delivery, F.O.B. Delivery Point,
of Water Technology in accordance with this Agreement. Upon written prior approval by Mannatech, Mannatech will reimburse Wellness for reasonable costs for governmental permits and licenses necessary for Wellness delivery of Water Technology in
accordance with this Agreement. Wellness agrees to provide Mannatech, via overnight delivery, with copies of all governmental permits and licenses necessary for its production delivery of its Water Technology in accordance with this Agreement upon
request by Mannatech. 
 3.6.2 The Parties agree that this Agreement is contingent upon FCL providing Mannatech with certification
from the Japanese Ministry of Health that the Product(s) developed, produced and manufactured for Mannatech are preservative-free skin care products (the “Certification”) In the event FCL fails to produce the
Certification within a reasonable amount of time after execution hereof, such time frame at Mannatech’s sole discretion and to Mannatech’s satisfaction, this Agreement shall be null and void. 
 3.7 Health and Safety. Upon Mannatech’s request, Wellness shall provide to Mannatech all required Material Safety Data Sheets (MSDS) or equivalents for Water
Technology supplied to Mannatech (if applicable). The Parties agree to coordinate with one another to develop specifications acceptable to Mannatech’s Quality Assurance Department, the approval of which shall not be unreasonably withheld. If
required by Japanese law or the respective laws, rules and regulations of the Territory, Wellness will manufacture its Water Technology in accordance with Pharmaceutical Affairs Law (Law No. 145 of 1960), the GMP, and all other health and
safety laws and regulations applicable to the Product or any material in question having regard to the location at which it is produced or to which is will be delivered, used or consumed. 
  

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 4. TRANSPORTATION OF PRODUCT AND DEFECTS 
 4.1 Shipping Instructions. Wellness shall arrange the transportation of Water Technology by ocean cargo from its premises to FCL (Delivery Point) indicated in the purchase order by Mannatech together with
insurance to cover the Water Technology in transit, at its invoiced value. 
 4.2 Risk of Loss. Risk in and title to Water Technology shall pass on
delivery to the shipping agents F.O.B. Delivery Point, as set-forth in each purchase order. All ocean freight, insurance, handling and forwarding agent’s fees, taxes, storage and all other charges applicable to the Water Technology, if any,
shall be the responsibility of Wellness. The foregoing notwithstanding, Wellness warrants and represents that the Water Technology will comply with the Specifications and will retain its preservative-free characteristics through final delivery to
FCL. 
 5. QUALITY ASSURANCE AND REGULATORY 
 5.1
Specifications. The Specifications may be modified or changed only by Change Control, which modification or change shall address any related price increases or decreases arising from such modification or change. The Specifications contained
in Attachment 2 herein represent the current Specifications for the Product. 
 5.2 Regulatory Responsibilities. A Mannatech official will be the
primary contact person for regulatory authorities, except during facility inspections where Wellness official will be the primary contact. 
 5.3
Regulatory Requirements. Wellness shall comply with the regulatory requirements applicable to the manufacture of its Water Technology. If Mannatech requests Wellness to comply with any other regulatory or statutory requirements of any foreign
government body, Wellness shall use all reasonable commercial endeavors to do so, provided that: 
  

	 	5.3.1	Mannatech shall be responsible for informing Wellness in writing of the precise foreign requirements that Mannatech is requesting them to observe; 

  

	 	5.3.2	Such foreign requirements do not conflict with any applicable laws of the United States of America or any of the States; 

  

	 	5.3.3	Wellness shall use reasonable commercial efforts to ensure that any written information complies with the applicable requirements of any foreign jurisdiction; and

  

	 	5.3.4	All reasonable costs and expenses incurred by Wellness in complying with such foreign requirement shall be negotiated between the Parties. Mannatech shall provide prior written
consent of the expenditures prior to Wellness executing Mannatech’s request. 

 5.4 Regulatory Agency Inspections and Interactions.
Wellness agrees to inform Mannatech of any regulatory inspection and/or communications that might, in its best judgment, affect the manufacture of the Water Technology. In the event of an inspection by any government agency that affects the Water
Technology, Mannatech shall be immediately informed of the issuance of the notice inspection or the presence of an inspector. Mannatech shall have the right to attend the inspection at the Facility. In the event there are written observations by any
agency that involve any of the Product Substances or the Product, Mannatech shall have the opportunity to review and have input to the response. Wellness shall be responsible for responding to any notices of deficiencies and observations. If
Mannatech elects to provide input to the response, that input shall be provided by Mannatech to Wellness as promptly as practicable. 
  

 6 

 5.5 Storage Requirements. Wellness shall cause all Mannatech Materials and its Water Technology to be stored in
accordance with the Specifications, rules, laws and regulations, where they apply. 
 5.6 Nonconforming Materials. Wellness shall not knowingly use
any materials that do not comply with the Specifications. Wellness shall promptly contact Mannatech in the event that Wellness anticipates making changes to the Water Technology or in the event they consider any such material to be nonconforming or
unacceptable. If Wellness uses any nonconforming material without prior written approval by Mannatech, Wellness shall be responsible for all losses, costs and expenses suffered or incurred by Mannatech as a result of such use and any expenses
incurred by Wellness in the correction thereof, provided that such nonconformance did not arise due to the scheduling of planned manufacturing that was postponed or cancelled by Mannatech. 
 5.7 Quality Tests and Checks. In accordance with paragraph 3.7 hereof, Wellness shall perform all in-process and tests required of its Water Technology or checks
required by the Specifications, if applicable. For purposes of this Agreement, such tests shall be considered routine and shall, where internal testing is required, be performed by FCL at its facilities. All tests and test results shall be
performed, documented and summarized by Wellness in accordance with the Specifications. Test results shall be reviewed by Wellness prior to release of test results to Mannatech. 
 5.8 Production Codes and Records. Wellness shall maintain detailed records on the Water Technology material usage, including, but not limited to, Raw Materials, batch records, quality control reports, test
data, including technical, analytical, quantitative, and qualitative test results in connection with the supply of the Water Technology. Records shall be maintained according to requirements such that Wellness shall be capable of responding to
inquiries by Mannatech within twenty-four (24) hours of notification. 
 5.9 Training. Where necessary, Wellness shall educate and train those
employees and subcontractors of applicable requirements responsible for performing the Services provided under this Agreement. 
 5.10 Inspections and
Audits. Subject to 3.3 hereof, Mannatech, or a designated representative shall have access to the Facility, for the purpose of conducting inspections, performing quality control audits or witnessing the storage or transportation of the Water
Technology or materials related to or used in the qualification and development of Products. Mannatech shall have access to the results of any tests performed by Wellness or at its direction. Wellness shall use commercially reasonable efforts to
ensure that Mannatech has similar access to the facilities, data and records of its suppliers or manufacturers. Such inspections do not relieve Wellness of any of its obligations under this Agreement or create new obligations on the part of
Mannatech. Inspections and audits by Mannatech personnel hereunder shall be conducted upon reasonable notice, during normal business hours and in compliance with the confidentiality provisions set out in Section 12 hereof and Wellness’
rules and regulations relating to facility security, health and safety and confidentiality. Mannatech shall be entitled to one (1) audit per year at no charge to Mannatech. 
  

	 	5.10.1	Additional audits shall be performed at Wellness’ expense in the event of (a) recurring Water Technology failure, (b) notification of non-compliance by regulatory
authorities, (c) review of any significant items identified in an annual audit for which confirmation of conformance is required. 

 5.11
Retention of Records and Samples. Wellness shall for the duration required by any governing regulatory agency, or as specified otherwise by Mannatech in writing, whichever is longer, retain, and upon request by Mannatech make available to
Mannatech, (a) copies of the Batch Records, quality control records maintained in accordance with Section 5.13 and otherwise in relation to the Water Technology (b) copies of testing results of all the tests performed in relation to
the Services or the Water Technology. 
  

 7 

 At the termination of this Agreement, Mannatech shall, upon the written request of Wellness, return all copies of all
documents, writings, invoices, test reports, and other memos which are the property of Wellness and which have been shared with Mannatech. The foregoing notwithstanding, Mannatech will be permitted to retain batch records for a period of time in
accordance with its own policies and procedures and upon expiration of such time period shall return the records to Wellness. 
 5.12 Government
Inspections and Seizures. If the any federal, state or local governmental authority makes an inspection of that portion of Wellness’ premises used to manufacture the Water Technology or Water Technology, Wellness shall immediately notify
Mannatech thereof. The seized party shall promptly send retained samples of the seized Water Technology by such authority and duplicate reports relating to such inspections to Mannatech, provided such action does not violate any applicable federal,
state or local governmental authority. 
 5.13 Legal/and Regulatory Filings and Requests. Wellness and Mannatech shall cooperate and be diligent in
responding to all requests for information from, and on making all required filings with, regulatory authorities having jurisdiction to make such requests or require such filings. Wellness shall obtain and comply with all licenses, consents, permits
and regulations which may from time to time be required by appropriate legal and regulatory authorities with respect to the performance of its obligations hereunder. 
 5.14 Quality Responsibilities. Wellness will ensure that the manufacture of its Water Technology is performed in accordance with all applicable requirements and internal Wellness procedures and practices.
Wellness shall ensure that it maintains its facilities to comply with all laws, rules and regulations. Mannatech and Wellness will each designate contact persons relating to manufacture and quality control of the Water Technology. 
 5.15 Lot Documentation. Wellness shall keep such documentation as described in their internal procedures to adequately conform to applicable requirements. Each
shipment of Water Technology as designated by Wellness to FCL or to the destination as instructed by FCL shall be accompanied by documentation (Certificate of Analysis). Wellness will designate internally its own Lot numbers for the Water Technology
produced pursuant to the Agreement. 
 5.16 Lot and Batch Release. Wellness shall test the Water Technology against the Specifications described in
the product specification. Wellness Quality Assurance shall be responsible for review of the Water Technology batch record and approval and release of the Water Technology. Upon Lot approval by Wellness, a Certificate of Analysis for each Lot shall
be sent by Wellness to Mannatech. 
 5.17 Laboratory Services. Wellness shall test the Water Technology against the pre-determined release
Specification. Wellness Quality Assurance shall be responsible for review of the batch record and approval and release of the Water Technology. Upon Lot approval by Wellness, a Certificate of Analysis for each Lot shall be sent by Wellness to
Mannatech. 
 5.18 Use of Subcontractors. In the event that Wellness proposes use of subcontractors for particular laboratory services, Mannatech may
require access to these subcontractors for audit purposes. A Wellness representative may accompany Mannatech on such audits. Any subcontractors shall be subject to the confidentiality and other provisions set forth herein. 
 5.19 Reprocessing. Reworking or reprocessing of Batches or Lots will only be acceptable only if approved by Mannatech QA. 
  

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 5.20 Product Complaints, Adverse Events, and Product Recalls. Wellness shall have responsibility for handling of
complaints and adverse events related to its Water Technology. Wellness shall provide technical support as needed in the investigation of these events inasmuch as they relate to the Water Technology manufactured at Wellness’ sole expense. In
the event of a Recall of Product, Mannatech shall be responsible for the coordination of all Recall activities and have sole decision regarding Recall of Product. For each Recall event, and where the Recall is caused by Wellness’ gross
negligence or willful misconduct or its material breach of this Agreement, prior to any reimbursement, Mannatech shall provide Wellness with supporting documentation of all reimbursable costs and expenses, respectively. Wellness’ sole
responsibility, as it relates to the costs of such Recall, shall be fully reimbursement to Mannatech for all costs incurred for each Recall event. 
 5.20.1 If the Recall is not caused by Wellness’ gross negligence, willful misconduct or material breach under this Agreement, Mannatech shall pay all of the costs and expenses of whatever nature for such Recall, and Wellness shall have
no responsibility to replace any of the recalled Product Lots at its own expense. 
 5.20.2 Mannatech shall provide Wellness with notice
describing in reasonable detail any Recall. If Wellness does not believe its actions or inactions caused the Recall, then the Parties shall meet to determine in good faith which Party should be liable for the Recall. Any situation un-resolvable
within thirty (30) days of the date of Recall will then be forwarded to senior management sponsors of each Party for resolution. If resolution is not resolvable within thirty (30) days of such date, then each Party agrees to the following:
(a) each Party shall select an independent consultant or laboratory; (b) the consultant or laboratory selected by each Party shall mutually select a third independent consultant or laboratory (the “Deciding Laboratory”) and
(c) the Deciding Laboratory shall review all relevant data and determine which Party’s action or inaction resulted in the need for a Recall. Mannatech shall provide Wellness with the right to audit documents relating to direct costs
incurred in connection with a Recall subject to audit provisions in Section 5 of this Agreement. 
 6. PRICE, TERMS OF PAYMENT, ROYALTIES &
LICENSE 
 6.1 Payment Terms. Mannatech will purchase from Wellness its Water Technology at $.0161per ml. Pricing shall include the cost of
transportation via sea cargo ship from Wellness’ production operation to the Manufacturer. Payment terms are 50% down payment at the time of issuance of the P.O. and the balance of 50% net 30 days delivery to Manufacturer. Invoicing and payment
shall be made in U.S. Dollars (USD). 
 6.2 Taxes. The price set forth in Section 6.1 is exclusive of sales taxes or any other applicable taxes,
levies, duties and fees imposed by or under the authority of any government or public authority, which shall be paid by Mannatech, either directly or as invoiced by Wellness. Mannatech, however, is not responsible for taxes based on the income of
Wellness. 
 6.3 Invoicing of Product. The Water Technology shall be invoiced per purchase order. 
 6.4 Invoice Disputes. In the event that Mannatech in good faith believes there is a dispute concerning the applicability or accuracy of any invoice amount,
Mannatech will notify Wellness immediately in writing of the nature of such dispute, and will provide detailed written support for such disputed invoice amount, within ten (10) business days from the receipt of the invoice. In such an event,
the Parties shall resolve such disputed amounts within thirty (30) days from the receipt by Wellness of Mannatech’s written notice of the disputed amount and Mannatech may withhold fifty percent (50%) of the payment of such disputed
amount for such thirty (30) day period which withholding shall not be considered as a breach, or default or as grounds for termination under this Agreement. 
  

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 6.5 Financial Recordkeeping. Wellness shall maintain financial records relating to the terms of this Agreement and
agrees that such records may be audited by an independent public accountant selected by Mannatech and at Mannatech’s expense, during normal business hours within a three-month period following the initial Price calculation and subsequent price
adjustments. In addition, within the term of this Agreement, Mannatech’s independent public accountant may inspect Wellness’ time sheet records for the preceding year for the purpose of determining costs paid in addition to the price to
Wellness by Mannatech. The independent public accountant shall keep confidential any information obtained during such inspection and shall report to Mannatech only the correctness of the information given by Wellness. 
 6.6 Initial Price and Annual Price Adjustments. The Initial Price for the first-year of Water Technology is $.0161 per ml. Every year thereafter, the Price shall
be negotiated between the Parties, but in no event shall the price increase more that five percent (5%) per annum unless Wellness can demonstrate that real costs have increased beyond the five percent (5%) per annum level. The Initial
Price shall remain valid for one year from the Effective Date. Two (2) months prior to the anniversary date of the Effective Date and every twelve (12) month period thereafter, the Price shall be negotiated. Annual price adjustments shall
be effective on the anniversary date of the Effective Date. Wellness shall maintain financial records relating to any increases in the cost to manufacture Water Technology and agrees that such records may be audited by an independent public
accountant selected by Mannatech during normal business hours within a three (3) month period following the initial Price calculation and subsequent Price adjustments. 
 6.7 Estimates/Forecasting. On an annual basis, Mannatech and Wellness shall meet and discuss Mannatech’s forecasted contract requirements for the Water Technology. Mannatech shall provide Wellness with an
estimate of the quantity of the Water Technology that Mannatech anticipates may be required from Wellness during the following year of the Term. The Parties acknowledge that this estimate is for planning purposes only and does not constitute a
commitment to manufacture and supply by Wellness or a commitment by Mannatech to take delivery of such quantities. 
 6.8
Orders. 
  

	 	6.8.1	Initial Order. Upon satisfaction of the condition precedent in paragraph 3.6.2 hereof, Mannatech will place an initial order of 1,606 gallons of Water Technology for the
initial run (the “Initial Order”). After the Initial Order, Mannatech will be under no obligation to place subsequent minimum orders except to maintain exclusivity as indicated in 3.1.3. Beyond this initial order, minimum
monthly quantities shall begin in April, 2006. 

  

	 	6.8.2	Purchase Orders. Purchase orders for Water Technology shall be the sole firm commitment by Mannatech to purchase a designated amount with the exception of minimum monthly
amounts as indicated in paragraph 3.1.3. If, following acceptance of a firm order from Mannatech, Wellness indicates that it will not be able to supply Mannatech with all or any portion of Mannatech’s firm orders for that have been accepted by
Wellness for its Water Technology the Parties shall meet and in good faith attempt to reach a resolution to the respective parties’ capacity shortfall. Wellness shall use commercially reasonable efforts to deliver the shortfall in future
months; however, if Wellness is able to demonstrate technical or scientific reasons for the shortfall and Mannatech accepts those reasons, such shortfall shall be excused. However, subject to Force Majeure and excused shortfall above, Mannatech will
not forward Wellness shortfall into subsequent periods if orders by Mannatech are approaching market capacity. Subject to the above understanding by Mannatech, if Wellness is unable to meet Mannatech’s firm orders, the Parties agree to
formulate a strategic plan to increase the capacity of the Wellness facility to the benefit of all Parties. 

  

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 6.9 Royalties. Mannatech will pay Wellness a royalty of four percent (4%) on the total cost of skin
care products listed on Attachment 1 sold (“TCOGS”) inclusive of packaging for each of the Products sold by Mannatech. Specifically excluded from the Royalty payable on TCOGS will be the cost of the Water Technology,
shipping, handling, taxes, tariffs, duties, storage and any markup for distribution. For purposes of this Agreement, goods shall be deemed sold only if Mannatech has received payment for the Product from a Purchaser. Wellness shall not be entitled
to receive Royalties for any Products donated by Mannatech, distributed gratuitously by Mannatech in an effort to promote sales or for those Products reserved for internal purposes or use. 
  

	 	6.9.1	Payment of Royalties. At the end of each quarter and by the last day of each month after the end of the prior quarter, Mannatech shall compute the total number of Products
sold during the prior quarter and, on making that determination, shall remit promptly the Royalty payment and a copy of the compensation statement (“Statement”) thirty (30) days after the computation date and on a quarterly basis,
throughout the Term of this Agreement to Wellness. If Wellness, for any reason, objects to any Statement submitted by Mannatech, Wellness shall set forth the objection with specificity in writing and submit it to Mannatech within thirty
(30) days from the date of the Statement. Any objection Wellness may have to any Statement shall be deemed waived unless it is transmitted in accordance with the terms of this paragraph. 

 6.10 License of Haru Naito’s Story. Wellness warrants and represents that it has full title and right to license Haru Naito’s Story. Subject to the
terms and conditions specified in this Agreement, Wellness hereby grants to Mannatech a royalty free, non-exclusive and revocable right to use the Story in connection with the promotion of the Product. During the Term of this Agreement, Wellness
agrees that it will not license the Story for use in promoting skin care products within the licensed Territory to any other network marketing, multi-level marketing, or direct sales marketing company engaged in the same or similar business as
Mannatech. Mannatech shall have the right to use the Story, and Haru Naito’s name, voice, likeness, and similar characteristics for the purposes of advertising and promoting the Product in the Territory. During the term of this Agreement,
Mannatech shall be the sole owner and have use and control of all promotional materials and trade literature (“Promotional Materials”) produced for Mannatech in which the Story is featured and such Promotional Materials shall
be reviewed for compliance with applicable laws, rules and regulations in accordance with Mannatech’s policies and procedures. Mannatech shall be free to dispose of and treat in any way all Promotional Materials, including but not limited to
selling, advertising, distributing, and permitting use in other mediums without prior approval of Wellness. Notwithstanding the above, Wellness shall have final editorial approval of any promotional materials that are produced regarding Haru
Naito’s story; whether it be written, printed, internet, video or audio. Wellness understands and agrees that Mannatech is involved in multi-level marketing and sells its products through its Associates acting as independent contractors. As
such, Mannatech has no control in the operation of such independent contractors’ businesses other than the Associates having a contractual obligation to abide by Mannatech’s Associate Policies & Procedures. Mannatech will use its
best efforts to ensure its Associates do not use the Promotional Materials in the promotion of their Mannatech business in a manner which would violate its Policies and Procedures; however, such unapproved use by Associates shall not be considered a
breach of this agreement 
 7. INTELLECTUAL PROPERTY 
 7.1
Protection of Technology. Wellness acknowledges that Mannatech Technology and Mannatech Materials may be provided subject to the confidentiality provisions of Section 12, and Wellness agrees to keep such Mannatech Technology and
Mannatech Materials secret and confidential, to respect Mannatech’s proprietary rights therein and not at any time for any reason whatsoever to disclose or permit Mannatech Technology and Mannatech Materials to be disclosed to any third party,
including Affiliates of Wellness, except as expressly provided herein. 
  

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 7.2 Confidentiality. Wellness agrees that all its employees, consultants and contractors having access to
confidential Mannatech Technology and Mannatech Materials, shall be subject to the same confidentiality obligations as the principals pursuant to the confidentiality provisions of Section 12 and shall enter into secrecy agreements in support of
such obligations. Insofar as this is not reasonably practicable, Wellness shall take all reasonable steps to ensure that any such employees, consultants and contractors are made aware of such confidentiality obligations. 
 7.3 Rights to Mannatech Technology and Mannatech Materials. Wellness shall not by virtue of this Agreement at any time have or request to have any right, title,
license or interest in or to the Mannatech Technology or Mannatech Materials, know-how, specifications, Associate information, downline information, software, business plans, marketing plans, advertising plans, copyrighted material, patents or
patent application, trademark or trademark applications, or any other intangible rights or any other intellectual property rights of whatever nature relating to the Product or Product Specifications, suppliers, manufacturers, or otherwise which are
vested in Mannatech or to which Mannatech is otherwise entitled. No rights are granted to Wellness except as expressly provided herein, and no rights in addition thereto shall be deemed to have arisen or been implied by way of estoppel or otherwise.
Nothing herein shall be construed as preventing Mannatech from developing its own product formulations. 
 7.4 Title to Inventions. Title to all
inventions (whether or not patentable) conceived or reduced to practice and arising out of the Services performed under this Agreement shall be as follows: 
  

	 	7.4.1	Mannatech will be the sole owner of intellectual property rights in any invention of which only Mannatech’s and its Affiliates’ employees and third-party contractors are
inventors. 

  

	 	7.4.2	Wellness and FCL as they may determine or their rights otherwise appear, shall own the intellectual property rights of all inventions of which Wellness and/or FCL (and their
Affiliates’ employees and third party contractors) are inventors or of which both Wellness and/or FCL and their Affiliates’ employees are inventors. Any assignments or other documents necessary to accomplish the foregoing are hereby made
and each Party will execute such further documents as may be reasonably requested by the other with respect thereto. 

  

	 	7.4.3	Wellness further agrees to provide Mannatech reasonable notice of any inventions conceived, developed, discovered or reduced to practice by Wellness’ employees, and/or
third-party contractors, or its Affiliates and/or employees of its Affiliates, arising out of the services under this Agreement. 

  

	 	7.4.4	The cost for filing patent applications that are jointly owned shall be shared equally by the Parties and Mannatech shall be responsible for managing the patent applications
directed to any joint inventions. 

 7.5 Notice of Infringement. Wellness shall promptly notify Mannatech of its knowledge of any
potential infringement of Mannatech Technology and Mannatech Materials by a third party. Each Party agrees to render such reasonable assistance as the enforcing Party may request at the expense of the enforcing Party. 
 7.6 Notice of Infringement by One or Both Parties. Each Party shall promptly notify the other of its knowledge of any potential claim of infringement, whether
threatened or not, of any intellectual property, including, without limitation, patents, trademarks and copyrights, owned or under the control of a third party. 

  

 12 

 
Each Party has the right, but not the obligation, to take reasonable legal action necessary against such infringement of third party intellectual property
related to the Product. Each Party agrees to render such reasonable assistance as the enforcing Party may request at the expense of the enforcing Party. Wellness shall be solely responsible for all costs of defense for any claim of infringement,
including without limitations, attorney’s fees, court costs, travel and related expenses, expert fees, and the like in connection with any claims with respect to Wellness proprietary ingredients. 
 7.7 Wellness Intellectual Property Representations. Wellness represents and warrants that as of the Effective Date of this Agreement it has no knowledge of any
patent or any other third party intellectual property right that would be infringed by the Water Technology or Product in the exercise or practice of this Agreement. Wellness shall have a continuing duty to inform Mannatech if it receives any
information regarding: (i) the publication or issuance of any patent; or (ii) litigation, pending or threatened, relating to Water Technology and/or Product. 
 7.8 Survival. The obligations, rights and acknowledgments of the Parties under Section 7 shall survive ten (10) years or the life of the relevant patents, whichever is longer, the termination for
whatever reason of the Agreement. 
 7.9 Trademarks and Tradenames. The Parties recognize that the name and/or respective marks of the other are
valuable and that all goodwill associated with use of such names and marks shall inure to the benefit of the other. Mannatech shall have the right to terminate this Agreement immediately in the event that Wellness acts in a manner that would
negatively impact the reputation of Mannatech and/or of its name or marks (“Mannatech Marks”) and/or would infringe or dilute the value of Mannatech’s marks or which is not in compliance with applicable law in the United States or any
other country in which Mannatech conducts business as the case may be. Likewise, Wellness shall have the right to terminate this Agreement immediately in the event that Mannatech acts in a manner that would negatively impact the reputation of
Wellness and/or of its name or marks (“Wellness Marks”) and/or would infringe or dilute the value of’ Wellness’ marks or which is not in compliance with applicable law in the United States or any other country in which Wellness
conducts business as the case may be. 
  

	 	7.9.1	Mannatech shall be the sole owner and shall have perpetual use and control of all Promotional Materials produced for Mannatech bearing its trade name and/or Mannatech Marks related
to the Product. Mannatech shall be free to dispose of and treat in any way all Promotional Materials under this Agreement, including but not limited to selling, advertising, distributing, and permitting their use in other mediums, whether for profit
or otherwise. and Wellness has right or license to use any of the trademarks or tradenames owned by, licensed to or associated with the Mannatech Marks during the Term without prior written approval and express permission from Mannatech, such
approval and permission is within the sole discretion of Mannatech and may be withheld at any time. 

  

	 	7.9.2	Quality Control. Wellness shall use the Mannatech Marks only in connection with Products provided in accordance with the standards of quality in: materials, design, performance,
workmanship, use, advertising and promotion as set forth by Mannatech. Mannatech’s tradename and trademarks are an extremely valuable asset and breach of this section shall cause irreparable damage to Mannatech and its goodwill; as such,
Mannatech shall have the right to immediately terminate this Agreement if any Product fails to comply with Mannatech’s standards of quality in: materials, design, performance, workmanship, use, advertising or promotion. Wellness shall comply
with the same conditions with respect to the style, appearance and manner of use of the trademark as set forth by Mannatech. All such marketing materials that use the Mannatech Marks, at Mannatech option, will be subject to prepublication review and
approval with respect to, but not limited to, context, style, appearance, composition, timing and media. 

  

 13 

	 	7.9.3	Protection of Trademarks. Wellness admits the validity of and agrees not to challenge the Mannatech Marks. Wellness also agrees that any and all rights that may be acquired by the
use of the Mannatech Marks by Wellness shall inure to the sole benefit of Mannatech. Wellness agrees not to assist others to contest the registration of any Mannatech trademark or to take any action or assist any others to take any action which
would impair the value of the Mannatech Marks or the business, assets, or goodwill associated therewith or appurtenant thereto. Mannatech admits the validity of and agrees not to challenge the Wellness Marks. Mannatech also agrees that any and all
rights that may be acquired by the use of the Wellness Marks by Mannatech shall inure to the sole benefit of Mannatech. Mannatech agrees not to assist others to contest the registration of any Wellness trademark or to take any action or assist any
others to take any action which would impair the value of the Wellness Marks or the business, assets, or goodwill associated therewith or appurtenant thereto. 

  

	 	7.9.4	Mannatech expressly reserves the sole and exclusive ownership of the trademark “Mannatech”. Wellness agrees not to use any of Mannatech’s trademarks or any
combination thereof, with or without any other words, logos, or images, as part of its corporate name, or for the purpose of advertising its business, without the prior written consent of Mannatech. Further, Wellness shall not market or make
available any other products to Mannatech Associates without first receiving prior written approval from a designated officer of Mannatech. On the termination of this Agreement, or on the request of Mannatech, Wellness shall immediately and
completely discontinue all use of the Mannatech Marks. Mannatech agrees not to use any of Wellness’ trademarks or any combination thereof, with or without any other words, logos, or images, as part of its corporate name, or for the purpose of
advertising its business, without the prior written consent of Wellness. On the termination of this Agreement, Mannatech shall immediately and completely discontinue all use of the Wellness’ Marks, Haru Naito’s Story or the claims
associated with the Water Technology. 

 8. FORCE MAJEURE 
 8.1 Force Majeure. “Force Majeure” shall mean any cause beyond the reasonable control of the Party affected which prevents or delays the development, manufacture, sale or shipment of the
Water Technology by Wellness (as the case may be) or its Affiliates to Mannatech or its assigns , or the acceptance thereof by Mannatech, including but not limited to any act of God; fire; casualty; flood; war; strike, lockout or other labor
dispute; failure of public utilities; injunction, act, exercise, assertion or requirement of a governmental authority (whether federal, state, local or foreign); accident; epidemic; destruction of production or transportation facilities; riot or
insurrection; inability to procure materials, equipment or energy sufficient to meet manufacturing needs; failure of third parties to supply essential raw materials. 
 8.2 Term of Force Majeure. In the event that any Party is prevented or delayed from performing any of its obligations under this Agreement (except for the payment of money) due to Force Majeure, such Party
shall give notice thereof to the other Party advising of the anticipated period for which it is estimated that such prevention or delay will continue. Upon receipt of such notice, the non-performing Party shall be excused from performance from the
date of such notice for so long as such cause of the prevention or delay shall continue due to such Force Majeure. All such periods of prevention or delay shall extend the Term of this Agreement for a total period equal to the sum of all periods of
prevention or delay caused by such events. The non-performing Party shall keep the other Party informed on a timely basis of developments 

  

 14 

 
during any such period of prevention or delay. If any delay due to Force Majeure exceeds two (2) months, the other Party may terminate this Agreement
according to the terms. In no event shall a Force Majeure be considered a breach, material or otherwise, to this Agreement. 
 9. REPRESENTATIONS AND
WARRANTIES 
 9.1 Mannatech Representations and Warranties. The following representations and warranties are made by Mannatech and are true and
correct and shall remain true and correct during the term of this Agreement: 
 9.1.1 Mannatech is a corporation, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization, and has full power and authority to carry on its business where and as now conducted, and has the legal right and authority to execute and deliver this Agreement
and to perform its obligations hereunder. 
 9.1.2 Mannatech has not previously granted, and during the term of this Agreement will not make
any commitment of, or grant any rights that are inconsistent in any material way with terms of this Agreement. 
 9.2 Wellness Representations and
Warranties. The following representations and warranties are made by Wellness and are true and correct and shall remain true and correct during the term of this Agreement and have been made to induce Mannatech to enter into this Agreement.

  

	 	9.2.1	Production. Subject to 3.7 hereof; Wellness warrants that the Water Technology conforms to the Specifications, quality control and to be free from contaminants, as may be
modified by Mannatech from time to time, at Mannatech’s exclusive and sole discretion. 

  

	 	9.2.2	Organization. Wellness is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware or as to the region in which it does
business and has full power and authority to carry on business as now being conducted. 

  

	 	9.2.3	Wellness Authorization and Agreement. The execution, delivery and performance of this Agreement by Wellness has been authorized by all necessary corporate action on its part.
The consummation of the transactions contemplated by this Agreement will not result in the breach of, or constitute a default under, any indenture, mortgage, note, agreement or other financing agreement to which either is a party or to which it or
its properties or rights are subject and will not be in violation of the rights of any other party. 

  

	 	9.2.4	No Consent. No consent of any party and no consent, license, approval or authorization of, or exemption by, or registration or declaration with, any governmental authority,
bureau or agency is required in connection with the execution, delivery, validity or enforceability of this Agreement with respect to Wellness and the consummation of the transactions contemplated hereby. 

  

	 	9.2.5	Insurance. It is expressly understood and agreed by and between the parties hereto that this Agreement does not take effect until Wellness delivers to Mannatech satisfactory
and acceptable evidence of insurance coverages as specified below. Such policies shall name Mannatech, and its subsidiaries as additional insureds on a primary basis, and shall include a severability of interest provision. The certificate of
insurance pertaining to general liability coverage shall specifically state that Mannatech, its subsidiaries and its affiliates are named as an additional insured on a primary basis and that to the extent permissible by law the insurer has insured
Wellness for all risks and liabilities assumed by Wellness pursuant to 

  

 15 

	 	    	paragraph 10. Such evidence of insurance shall specify the date when such insurance expires. Wellness further agrees that all insurance coverages will not be canceled without giving
Mannatech thirty (30) days advance written notice. In the event such notice of cancellation is given, within said 30 day period prior to cancellation, new insurance acceptable to Mannatech must be obtained and delivered to Mannatech or Wellness
shall have committed a material breach of this Agreement. Any breach of infraction by Wellness of the aforesaid requirements shall result in the immediate termination, or at the option of Mannatech, suspension of all authorized purchases of Product
without penalty or additional expense to Mannatech. Wellness shall provide insurance coverages applicable to the work with the following minimum limits for the duration of this contract and, except for the Workers’ Compensation coverage, with
Mannatech and its subsidiaries and their affiliates named as additional insureds on a primary basis. 

  

	 	9.2.5.1	Commercial General Liability. $1,000,000 USD Combined Single Limit for Bodily Injury and Property Damage including product liability. 

  

	 	9.2.5.2	Auto Liability. $1,000,000 USD Combined Single Limit for Bodily Injury and Property Damage. Policy shall include owned and blanket non-owned vehicles and hired coverage.

  

	 	9.2.5.3	Worker’s Compensation. Statutory Limits and Employer’s Liability insurance with limits of not less than $500,000 USD per accident or disease.

  

	 	9.2.5.4	Commercial Umbrella Liability. Limit of not less than $2,000,000 USD per occurrence and excess of GL, AL and EL. 

  

	 	9.2.5.5	Insurance to Wellness: Mannatech shall provide insurance coverages applicable to its obligations under this contract with Wellness and its subsidiaries and their affiliates named as
additional insured’s on a primary basis as above provided at 9.2.5.1 – 9.2.5.4 

  

	 	9.2.6	Validity and Enforceability. This Agreement is valid and enforceable against Wellness in accordance with its terms, except as enforcement may be limited by applicable
bankruptcy, insolvency or other laws affecting the rights of creditors generally. The execution, delivery and performance of this Agreement by Wellness does not violate any law or rule or regulation or give rise to a cause of action in favor of any
person which will result in any liability to any of the Parties. 

  

	 	9.2.7	No Breach. Neither the execution or delivery of this Agreement, nor the consummation of the transactions contemplated hereby will: (i) violate any provision of the
Articles of Incorporation or By-Laws of Wellness; (ii) violate, conflict with or result in the breach or termination of, or otherwise give any other contracting party the right to terminate or constitute a default (by way of substitution,
novation or otherwise) under the terms of any mortgage, lease, bond, indenture, agreement, franchise or other instrument or obligation to which Wellness is a party or by which it may be bound or by which any of the property or assets of Wellness may
be bound or materially affected; (iii) result in the creation of any lien, charge or encumbrance upon the assets or properties of Wellness as it relates to its business or the pending business of Mannatech; (iv) violate any judgment,
order, injunction, decree or award of any court, arbitrator, administrative agency or governmental body against, or binding upon Wellness or upon the property, assets or business of Wellness; or (v) constitute a violation by Wellness of any law
or regulation of any jurisdiction as such law or regulation relates to it or to the property or business of Wellness. 

  

 16 

	 	9.2.8	Compliance with Laws. The business and operations of Wellness and any of its affiliates and subsidiaries, if any, have not been, and are not, conducted in violation of any
applicable judgment, order, injunction, award, tariff or decree. Wellness has not received notice of, nor does it have any knowledge of or any reasonable grounds to know after due inquiry that the business and its operations have not been and are
not conducted in violation of any Federal, state or local law, ordinance, regulations, or any other requirement of any governmental body, court or arbitrator applicable to Wellness or pursuant to which it conducts business and operations. Wellness
has all permits, licenses, orders, authorizations or approvals of any Federal, state, local or foreign governmental or regulatory body to carry on business in the places and in the manner now and heretofore conducted, and all such licenses,
authorizations and permits are in full force and effect. Wellness has neither received notice of nor has any knowledge of or any reasonable grounds to know after due inquiry that the business and operations of Wellness have not and are not conducted
in material violation of any such licenses, authorizations and permits, and no proceeding is pending or threatened to revoke or limit any such license, authorizations or permits. 

 9.3 Notice of Material Events. Wellness hereby agrees to notify Mannatech promptly of any actual or anticipated events that are reasonably likely to have a
material adverse effect on the Product or on Wellness’ ability to provide Water Technology to produce Product in accordance with the provisions set forth herein, including any labor difficulties, strikes, shortages in materials, plant closings
and other interruptions in activity. Wellness shall promptly notify Mannatech of notice by government agencies, and if such notice relates specifically to a Product, provide copies of such notice along with a copy of Wellness’ response to such
notice for Mannatech’s review prior to sending it to any government agency. 
 9.4 Survival. The warranties of the Parties under this
Section 9 shall survive the termination for whatever reason of this Agreement. 
 10. DISCLAIMER; LIMITATION OF LIABILITY 
 NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, NO WARRANTIES ARE GIVEN IN RESPECT OF THE SUCCESSFUL SALE OF ANY PRODUCT, OR THE SUITABILITY OF ANY PRODUCT
PRODUCED UNDER THIS AGREEMENT FOR ANY PARTICULAR PURPOSE OR USE UNDER ANY CONDITIONS. ANY IMPLICATION OF SUCH WARRANTY IS HEREBY EXCLUDED. 
 EXCEPT AS
OTHERWISE PROVIDED HEREIN IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR THE INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OF THE OTHER PARTY, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, ARISING OUT OF THE PERFORMANCE OF, OR THE
FAILURE TO PERFORM, ANY OBLIGATION(S) SET FORTH HEREIN. 
 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR ANY LOSS OF PROFITS, LOSS OF USE, INTERRUPTION OF BUSINESS, OR ANY INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
 NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, THE LIABILITY FOR ANY LOSS OR DAMAGE SUFFERED BY WELLNESS AS A DIRECT RESULT OF ANY MATERIAL 
  

 17 

 BREACH OF THIS AGREEMENT (INCLUDING MISREPRESENTATION AND NEGLIGENCE) IN RESPECT OF THE MANUFACTURE AND DELIVERY OF
PRODUCT BY MANNATECH SHALL BE LIMITED TO THE PAYMENT OF ACTUAL DAMAGES BASED ON A PURCHASE ORDER, PROVIDED THAT, HOWEVER, ANY REMEDY FOR BREACH OF CONFIDENTIAL INFORMATION SHALL BE GOVERNED BY SECTION 10. 
 11. INDEMNIFICATION 
 11.1 Wellness’ Indemnification of
Mannatech. Wellness shall, defend, indemnify and hold Mannatech harmless from and against any and all claims, actions, losses, damages, expenses (including court costs and attorney’s fees) arising out of any act or omission by Wellness in
favor of Mannatech and its Affiliates and their directors, officers, employees and agents harmless from and against any and all liabilities in relation to the use, processing, storage or sale of the Water Technology or Product that may be incurred
by Mannatech arising out of: 
  

	 	11.1.1	Any claim, action or proceeding brought by any governmental or regulatory authority arising out of or resulting from Wellness’ failure to perform its obligations in accordance
with the requirements of this Agreement; or 

  

	 	11.1.2	Breach by Wellness of any of its obligations, representations or warranties under this Agreement; or 

 11.2 Indemnification Procedure. Mannatech agrees to inform Wellness promptly of any claim, action, loss, damage, expense or liability suffered by it for any breach of this Agreement on the part of Wellness
asserted by Mannatech or a third party. If the manufacture, sale or use of the Water Technology pursuant to this Agreement or any alleged or potential infringement of Water Technology or other breach of this Agreement results in any claim, suit or
proceeding by any third party against Mannatech (or its Affiliates) for which Mannatech asserts a claim to indemnification hereunder, Mannatech shall promptly notify Wellness in writing setting forth the facts of such claim in reasonable detail.
Wellness (the “Indemnitor”) shall have the right and obligation to defend of any such claim, suit or proceeding, at its own expense, shall engage counsel reasonably satisfactory to Mannatech to assume the investigation and defense of the
claim; provided, however: (i) the Indemnitor shall not enter into any settlement that makes any admission or concession in relation to the Product or the Confidential Information of the indemnified Party, without the prior written consent of
the Mannatech (“Indemnitee”); and (ii) if the Indemnitor fails to timely assume such defense, the Indemnitee shall have the right to assume and control the defense. The Indemnitor shall keep the Indemnitee reasonably informed of all
material developments in connection with any such claim, suit or proceeding. The Indemnitee agrees to render such reasonable assistance as the Indemnitor may request, at the full cost and expense of the Indemnitor. The Indemnitee may participate in
any such proceeding by counsel of its own choice at its own expense. The Indemnitor shall not settle any claim, action or proceeding for which indemnification is or may be sought without the Indemnitee’s prior written approval, which shall not
be unreasonably withheld or delayed. 
 This indemnification shall not apply: (i) if Indemnitee fails to give the Indemnitor prompt notice of claim as
required above and such failure materially prejudices the Indemnitor; or (ii) unless the Indemnitor is given the opportunity to approve any settlement, which approval shall not be unreasonably withheld. Furthermore, the Indemnitor shall only be
responsible for the legal fees and litigation expenses of the attorneys it designates to assume control of the litigation. In no event shall the Indemnitor assume responsibility for legal fees and litigation expenses of attorneys hired by Mannatech
to defend any claim covered hereunder, unless the Indemnitor fails to perform its obligations hereunder. 
  

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 11.3 Survival. The obligations and rights of the Parties under this Section 11 shall survive the termination
for whatever reason of the Agreement for a period of ten (10) years. 
 12. CONFIDENTIALITY OBLIGATIONS 
 12.1 Parties Confidential Information. The Parties recognize and acknowledge that Mannatech and Wellness have invested and continue to invest in protecting that
their respective Intellectual Property and the validity and enforceability thereof, which are valuable assets belonging to each respective party and as such are the sole property of Mannatech (hereinafter referred to as “Mannatech Confidential
Information”) and Wellness (hereinafter referred to as “Wellness Confidential Information”) respectively. Prior to and during the performance of this Agreement, Wellness may have or had access to certain Mannatech Confidential
Information and Mannatech may have or had access to certain Wellness Confidential Information. Mannatech shall not at any time, during or after the performance of this Agreement, in any manner, either directly or indirectly, use, divulge, disclose,
or communicate to any person, firm or corporation, any confidential information of any kind, nature, or description concerning any matters affecting or relating to the business of the . Wellness Confidential Information, whether in written,
electronic or other form includes but is not limited to: pending trade name(s) and trademarks, processes, patent applications, invention disclosures, research and development, formulations, proprietary ingredients, trade secrets, marketing plans,
and any other related proprietary product or business information. Wellness shall not at any time, during or after the performance of this Agreement, in any manner, either directly or indirectly, use, divulge, disclose, or communicate to any person,
firm or corporation, any confidential information of any kind, nature, or description concerning any matters affecting or relating to the business of the Mannatech. Mannatech Confidential Information, whether in written, electronic or other form
includes but is not limited to: trade name(s), trademarks, copyrights, patents, patent applications, invention disclosures, research and development, marketing plans, identity of and related information regarding its Associates, product formulations
and other proprietary product information and any information relating to the management/operations of Mannatech; Mannatech genealogies (being the information held by Mannatech in connection with any current or former Associate) related to its
Associates including without limitation its relationship with each of its Associates, the Associate’s name, upline and downline, charts, data reports, proprietary product information which may from time-to-time be made known to Mannatech, the
names or practices of Mannatech’s customers or Associates; Mannatech’s marketing methods and related data; the names of Mannatech’s vendors or suppliers; costs of materials; costs of its products generally, the prices Mannatech
obtains or has obtained or at which it sells or has sold its products or services; manufacturing and sales costs; lists or other written records used in Mannatech’s business; compensation paid to its Associates, details of training methods, new
products or new uses for old products, merchandising or sales techniques, contracts and licenses, business systems, computer programs, or any other confidential information of, about, or concerning the business of Mannatech; its manner of operation
or other confidential data of any kind, nature or description and the like. 
 12.2 Exclusions from Confidential Information. Notwithstanding the
above, Confidential Information shall not include any information that: 
  

	 	12.2.1	is or has become readily publicly available or in the public domain without restriction through no fault of the Recipient or its employees or agents; or 

  

	 	12.2.2	is received at any time from a third party lawfully empowered to disclose such information without restriction and without breach of a non-disclosure obligation to Discloser; or

  

	 	12.2.3	is shown through proper documentation to have been developed independently by Recipient without use of the Confidential Information and without use of reverse engineering of same;
or 

  

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	 	12.2.4	was already known to Recipient without restriction at the time of such disclosure; or 

  

	 	12.2.5	is readily discernible from publicly-available products or literature; or 

  

	 	12.2.6	is approved for disclosure by prior written permission of Discloser. 

 The
Parties further acknowledge and agree that all Confidential Information developed by Wellness for Mannatech in connection with this Agreement shall be deemed Confidential Information of Mannatech and exceptions contained in Sections 12.2.1 and
12.2.2 above shall not be applicable thereto. 
 12.3 Term of Confidentiality. The Parties agree that for the term of the Agreement, and for ten
(10) years following termination of this Agreement, each Party shall maintain in confidence all Confidential Information disclosed and identified as being Confidential by the other Party pursuant to this Agreement and shall not, except as
contemplated by this Agreement, use such Confidential Information’ for its benefit or the benefit of others, without the consent of the disclosing Party. Documents made available to the non-disclosing shall remain the property of the disclosing
Party and shall be returned upon written request, except that one copy of all such information may be retained for legal archival purpose by the non-disclosing Party. 
 12.4 Necessary Disclosures. Each Party hereto may use or disclose Confidential Information disclosed to it by the other Party only to the extent such use or disclosure is reasonably necessary and permitted in
the exercise of such rights granted hereunder (i) in filing or prosecuting patent applications, or prosecuting or defending litigation, (ii) complying with applicable governmental regulations or court order, (iii) submitting
information to IRS, SEC or other governmental authorities, (iv) conducting clinical trials, (v) making a permitted sublicense or otherwise exercising license rights expressly granted by the other Party to it pursuant to the terms of this
Agreement; or (vi) obtaining raw materials or equipment necessary to perform this Agreement; provided, however, that if a Party is required to make any such disclosure of another Party’s Confidential Information as set forth herein, such
Party will give reasonable advance notice to the other Party of such disclosure and will use its reasonable best efforts to secure confidential treatment of such information in consultation with the other Party prior to its disclosure (whether
through protective orders or otherwise) and disclose only the minimum necessary to comply with such requirements. 
 12.5 Limited Disclosure.
Notwithstanding anything herein to the contrary, either Party shall be permitted to disclose Confidential Information to the extent reasonably necessary (i) to such Party’s attorneys, accountants and other professional advisors under an
obligation of confidentiality to such Party, (ii) existing and prospective banks and other financial institutions, investors and other entities for the purpose of raising capital or borrowing money, establishing a collaborative arrangement for
research and development marketing or other purpose or maintaining compliance with agreements, arrangements and undertakings relating thereto, if such person or entity agrees to maintain the confidentiality of such Confidential Information pursuant
to a written agreement having terms substantially equivalent to the confidentiality obligations provided herein and (iii) to any person or entity who proposes to purchase or otherwise succeed (by merger, operation of law or otherwise) to all of
such Party’s right, title and interest in, to and under this Agreement, if such person or entity agrees to maintain the confidentiality of such Confidential Information pursuant to a written agreement having terms substantially equivalent or
the confidentiality obligations provided herein. 
 12.6 Press Releases. All press releases or other communications with the media, and all other
public disclosures related to this Agreement, are subject to approval in advance by the Parties and such approval shall not be unreasonably withheld or delayed. Press releases required by the Securities and Exchange Commission shall, to the extent
possible, be delivered to Wellness for review. 
  

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 12.7 Remedies. The Parties acknowledge that monetary damages may not be an adequate remedy for breach of the
confidentiality obligations of this Agreement and that any breach of such obligations may cause irreparable injury to the non-breaching Party. If a Party is in breach, or threatens to commit a breach, of its confidentiality obligations under this
Section 12, the non-breaching Party will have the right and remedy, which right and remedy will be in addition to and not in lieu of any other rights and remedies available to the non-breaching Party at law or in equity, to have such
confidentiality obligations specifically enforced by any court having equity jurisdiction without the need to post a bond or any other security, or to prove any amount of actual damage, or that money damages would not provide an adequate remedy.

 13. TERM AND TERMINATION 
 13.1 Term. Except as
set forth to the contrary below, the term of this Agreement shall be for the Initial Term. 
 This Agreement shall renew
automatically in consecutive one (1) year terms thereafter, unless: 
  

	 	13.1.1	Mannatech provides at least six (6) months prior notification of its intention to terminate, or 

  

	 	13.1.2	Wellness provides at least six (6) months prior notification of its intention to terminate. 

 13.2 Termination with Cause. Either Party may terminate the Agreement forthwith by notice in writing to the other upon the occurrence of any of the following events: 
  

	 	13.2.1	Material Breach. If the other Party commits a material breach of any provision of this Agreement and if such breach is not cured within ninety (90) calendar days after
receipt of written notice thereof by the breaching Party. 

  

	 	13.2.2	Inaccurate Warranty. If, when made, any representation or warranty is inaccurate in any material respect, the other Party has the option to terminate.

  

	 	13.2.3	Termination Upon Insolvency or Sale of the Assets. To the extent permitted by Federal and State Bankruptcy laws, the other party may terminate this agreement, if:

  

	 	(a)	the other Party ceases for any reason to carry on business or convenes a meeting of its creditors or has a receiver or manager appointed in respect of all or any part of its assets
or is the subject of an application for an administrative order or of any proposal for a voluntary arrangement or enters into liquidation (whether compulsorily or voluntarily) or undergoes any analogous act or proceedings, which is not remedied
within sixty (60) days’ written notice; or 

  

	 	(b)	a court having jurisdiction in the premises enters a decree or order for relief in respect of the other Party in any involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or appointing a receiver, liquidation, assignee, custodian, trustee or sequestrator (or similar official) of the other Party or for any substantial part of its property, or ordering the winding-up or
liquidation of its affairs, which decree or order for relief remains unstayed and in effect for more than sixty (60) days; or 

  

	 	(c)	the other Party commences a voluntary case under any applicable bankruptcy insolvency or other similar law now or hereafter in effect, or consents to the entry of any order for
relief in an involuntary case under any such law, or consents to the 

  

 21 

	 	    	appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian or sequestrator (or similar official) of the other Party or for any substantial part of
its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts as they become due; or 

  

	 	(d)	any order, judgment or decree is entered in any proceeding against the other Party decreeing the dissolution of the other Party and such order, judgment or decree remains unstayed
and in effect for more than sixty (60) days; or 

  

	 	(e)	any other event causing the dissolution and/or liquidation of the other Party shall occur. 

 13.3 Termination Date. The Termination Date shall be the date on which notice of termination is received by the affected Party. 
 13.4 Termination by Mannatech. Mannatech will have just cause to terminate this Agreement immediately upon written notice to Wellness or to refuse to renew this Agreement, without judicial or administrative
notice or resolution, upon the occurrence of any termination event specified below or elsewhere in this Agreement: 
  

	 	13.4.1	Breach. Wellness or any of its employees breach any obligation under this Agreement and fails to cure the breach to Mannatech’s satisfaction within thirty (30) days
after Mannatech demands its cure in writing. 

  

	 	13.4.2	Failure to Meet Quality Control Standards. Subject to 3.1.3; the Water Technology fails to meet the Quality Control Standards provided by Mannatech in the form of Product
Specifications, as set forth in Attachment 2 or as Mannatech may provide to Wellness from time to time, Mannatech shall be entitled to immediately terminate this Agreement. 

  

	 	13.4.3	Illegality. If, continued use of the Water Technology would result in harm to its consumers, give rise to a regulatory investigation or is otherwise determined to be illegal
or unsafe for use anywhere in the Territory. 

  

	 	13.4.4	Fair Trade Practices. Wellness shall at all times comply with international fair trade practices. Mannatech shall have the right to terminate this Agreement upon seven
(7) days prior written notice to Wellness or its representatives in the event that Wellness, its officers, executives, partners, directors, principals, employees, attorneys or agents, does any of the following: engages in illegal, immoral, or
criminal conduct resulting in a criminal indictment with a substantial likelihood of conviction; misrepresents or conceals anything in its background that could be detrimental to the value of Mannatech’s goodwill, name, reputation or stock;
engages in any conduct contrary to the best interests of Mannatech; engages in conduct that offends the sensitivities of a significant portion of the population, including, without limitations, use of child labor, acts contrary to international
standards for the treatment of employees or the environment, abrogates the rights of employees to congregate and the like; or engages in conduct that could bring Mannatech into public disrepute. 

  

	 	13.4.5	Termination Due to Regulatory Requirements. Mannatech may terminate this Agreement in the event that government regulatory requirements, or Mannatech’s Specifications,
including but not limited to quality assurance, good manufacturing practices and legality for sale, are not met regarding Product and manufacturing, such determination at Mannatech’s sole discretion. 

  

 22 

	 	13.4.6	Termination for Failure to Meet Mannatech’s Production Requirements. Mannatech may terminate this Agreement if Wellness is unable to meet Mannatech’s minimum production
requirements of the Water Technology or if Wellness is unable to meet Mannatech’s reasonable future requirements. 

 13.5 Obligations
of Mannatech upon Termination for Withdrawal from Commercial Product Sale. In the event this Agreement is terminated by Mannatech, Mannatech shall be solely responsible for payment of outstanding invoices for Water Technology delivered and
accepted by Mannatech. In the event of termination, Mannatech will have no further obligation with respect to this Agreement and Wellness will immediately return to Mannatech all Mannatech Technology and Mannatech Materials. 
 13.6 Obligations of Wellness upon Termination for Breach 
  

	 	13.6.1	Obligations of Wellness upon Termination for Breach. In the event this Agreement is terminated by Mannatech for breach by Wellness, Wellness shall return to Mannatech all Mannatech
Materials and Mannatech Technology and all work-in-process commenced by Wellness. Mannatech shall have no further obligation of any kind to Wellness except as follows: Mannatech shall pay the Price for Water Technology delivered and accepted by
Mannatech. 

 13.7 Termination of the Agreement with or without Cause. Termination shall not release either Party hereto from any
liability which, at the time of such termination, has already accrued to the other Party or which is attributable to a period prior to such termination, nor preclude either Party from pursuing any rights, indemnities and remedies it may have herein
or at law or in equity with respect to any breach of the agreement. All provisions that are expressed to survive the agreement shall remain in full force and effect. 
 13.8 Infeasibility/Replacement. If Mannatech reasonably and in good faith determines that Water Technology and/or the Product is technically or commercially not feasible, Mannatech shall have the option to
specify a replacement product reasonably acceptable to the Parties within thirty (30) days after providing written notice of such determination. 
 13.9
Termination by Wellness. Wellness will have just cause to terminate this Agreement immediately upon written notice to Mannatech or to refuse to renew this Agreement, without judicial or administrative notice or resolution, upon the occurrence
of any termination event specified below or elsewhere in this Agreement: 
  

	 	13.9.1	Breach. Mannatech or any of its employees breach any obligation under this Agreement and fails to cure the breach to Wellness’ satisfaction within thirty (30) days
after Wellness demands its cure in writing. 

  

	 	13.9.2	Fair Trade Practices. Mannatech shall at all times comply with international fair trade practices. Wellness shall have the right to terminate this Agreement upon seven
(7) days prior written notice to Mannatech or its representatives in the event that Mannatech, its officers, executives, partners, directors, principals, employees, attorneys or agents, does any of the following: engages in illegal, immoral, or
criminal conduct resulting in a criminal indictment with a substantial likelihood of conviction; misrepresents or conceals anything in its background that could be detrimental to the value of Wellness’ goodwill, name, reputation or stock;
engages in any conduct contrary to the best interests of Wellness; 

  

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	 	    	engages in conduct that offends the sensitivities of a significant portion of the population, including, without limitations, use of child labor, acts contrary to international
standards for the treatment of employees or the environment, abrogates the rights of employees to congregate and the like; or engages in conduct that could bring Wellness into public disrepute. 

 14. MISCELLANEOUS 
 14.1 Assignment. Wellness shall not assign
or transfer this Agreement without the express, written consent of Mannatech, which consent shall not be unreasonably withheld. In the event of an unapproved assignment, Mannatech may, at its option, terminate this Agreement or treat such attempted
assignment as having no force or effect. Assignments to Affiliates are expressly permitted without the other Party’s consent, so long as such Affiliate expressly agrees in writing, with copy to Mannatech, to be bound by the terms and conditions
of this Agreement. Wellness shall remain liable to Mannatech for all actions of the third party. Mannatech may assign its rights and responsibilities under this Agreement to a subsidiary or other corporation owned by Mannatech, without prior notice
to Wellness. In such an event, all of the terms and provisions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the respective heirs, representatives, successors (including, without limitation, any successor as
a result of a merger or similar reorganization) and assigns of Mannatech. Mannatech will notify Wellness as soon as practicable after the assignment. 
 14.2
Information Sharing. The Parties will share information necessary or helpful in accomplishing the purpose of the Agreement, including process information, yield, and output data, forecasts, general market conditions and technology. Each Party
will limit the dissemination of information stemming from the others to those persons within the Party’s organization who need to know such information in order to accomplish the purpose of the Agreement. Any Confidential Information provided
will be subject to the confidentiality obligations set forth in Section 12. 
 14.3 Information in Support of this Agreement. The Parties will
share information necessary or helpful in accomplishing the purpose of the Agreement, including information relating to changes in the Parties’ business entity structure, business control, suits, judgments and notices. Any Confidential
Information provided will be subject to the confidentiality obligations set forth in Section 12. 
 14.4 Governing Law. The laws of the State of
Texas shall govern the construction, validity and performance of the Agreement. Any law suits brought by Mannatech herein shall be brought in the state or federal courts located in Dallas, Texas in the State of Texas and any law suits brought by
Wellness shall be brought in the state or federal courts located in the Northern District of the State of Texas, the Parties hereto waive any claim or defense that such forum is not convenient or proper. The Parties agree that such court shall have
personal jurisdiction over it and consents to service of process by any means authorized by Texas law. 
 14.5 Notices. All notices, requests, demands
or other communications to or upon the respective parties hereto shall be deemed to have been given or made when deposited in the mail, registered mail or certified, return receipt requested, postage prepaid, or overnight courier or by facsimile
transmission, the receipt of which is confirmed by telephone, addressed to the respective Party to the following address (or to such other person or address as is specified elsewhere in this Agreement for specific purposes): 
 In the case of Mannatech, addressed to: 
 Mannatech Incorporated 
 Attn: Bettina Simon, Senior Vice-President and General Counsel

 600 South Royal Lane, Suite 200 Coppell, Texas 75019 
 Tel: 972-471-4700 
 Fax: 972-471-7387 
  

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 In the case of Wellness, addressed to: 
 Wellness Enterprises, LLC 

	Attn:	David Fowler, CEO 

 399 County Highway 58,

 Oneonta, NY 13820 
 Tel: 352-376-6142 
 Fax: 352-375-7065 
 or to such other destination as either Party hereto may hereafter notify to the other in accordance with the provisions of this clause. 
 14.6 Waiver. A waiver by either Party of any of the terms and conditions of this Agreement in any instance shall not be deemed or construed to be a waiver of such
term or condition for the future. 
 14.7 Severability. If and to the extent that any court of competent jurisdiction holds any provision or part of
this Agreement to be invalid or unenforceable, such holding shall in no way affect the validity of the remainder of this Agreement. Each such term, condition, covenant or provision of this Agreement shall be valid and enforceable to the fullest
extent permitted by applicable law. The Parties shall cooperate in amending this Agreement in such an event in order to overcome any difficulties thereby occasioned. Notwithstanding the foregoing, if such term, condition, covenant or provision or
such application is fundamental to the expectations or rights of either Party herein, and no amendment to give equivalent effect is possible, then such Party may forthwith terminate this Agreement. 
 14.8 No Implied Licenses. Only the licenses or rights granted pursuant to the express terms of this Agreement shall be of any legal force or effect. No other
license rights shall be created by implication, estoppel or otherwise. 
 14.9 Independent Contractors. The relationship of the Parties hereto is that
of independent contractors. The Parties hereto are not deemed to be agents, partners or joint ventures of the other for any purpose as a result of this Agreement or the transactions contemplated hereby. 
 14.10 Compliance With Laws. In exercising their rights under this Agreement, the Parties shall fully comply in all material respects with the requirements of any
and all applicable laws, regulations, rules and orders of any governmental body having jurisdiction over the exercise of rights under this Agreement, including, without limitation, those applicable to the discovery, development, manufacture,
distribution, import and export and sale of products pursuant to this Agreement. 
 14.11 Entire Agreement. This Agreement contains the entire
understanding of the Parties, superseding in all respects any and all prior oral or written agreements or understandings pertaining to the subject matter hereof. This Agreement can be amended, modified or supplemented only by an agreement in
writing, which is signed by the Parties. Unless otherwise agreed in writing, the terms and provisions of this Agreement shall be controlling to the exclusion of all terms and conditions of any purchase order, except as to quantity, delivery
schedule, and shipping point. 
  

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 14.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
 14.13 Schedules and Attachments. The schedules and attachments
attached to or to be attached to this Agreement shall form an integral part of the same. 
 14.14 Independent Judgment. The Parties acknowledge that:
(a) they have read this Agreement; (b) they understand the terms and conditions of this Agreement; (c) they have had the opportunity to seek legal counsel and advice; (d) they are of equal bargaining power; and (e) they have
relied on their own judgment in entering into this Agreement, as such, none of the sections, paragraphs or clauses contained herein may be construed to the disadvantage of a party because that party was responsible for its preparation. 

14.15 Ambiguities. The Parties hereto mutually acknowledge that each of them has reviewed this Agreement in its entirety and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation or application of this Agreement. 
 14.16 Approval. This Agreement is subject to approval by the Board of Directors of Mannatech, Inc., and the Board of Directors of Wellness Enterprises, LLC. 
 14.17 Condition Precedent. This Agreement is subject to the execution of an Agreement between Mannatech and FCL for the manufacture of skin care products and
further subject to completion of agreed upon “specifications” listed on Attachment 2 and incorporated herein. 
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. 
  

					
	Mannatech Incorporated	 	
			
	By:	 	 /s/ Sam Caster
	 	Date: February 1, 2006
		 	Sam Caster	 	
	Its:	 	Chairman and Chief Executive Officer	 	
		
	Wellness Enterprises, LLC	 	
			
	By:	 	 /s/ David E. Fowler
	 	Date: February 1, 2006
		 	David E. Fowler	 	
	Its:	 	President and Chief Executive Officer	 	

  

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 Attachment 1 
 “Wellness Product Development” 
 Optimal Face Cleansing Cream 
 Optimal Skin Lotion 
 Optimal Skin
Serum 
 Optimal Eye Cream 
 Optimal Aftershave Milk 
  

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 Attachment 2 
 “Specifications” 
 *** 
  

 28

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