Document:

Q3 FY06 Exhibit 10.1

    
      EXHIBIT
        10.1

      
        

      

       

       

      AGREEMENT

       

      THIS
        AGREEMENT
        (“Agreement”)
        dated as of
        October 1, 2005 (the “Effective Date”) is entered by and between _____________,
        an individual residing at ______________________ (“Executive”), and Schiff
        Nutrition Group, Inc., a Utah corporation
        with
        offices located at 2002 South 5070 West, Salt Lake City, Utah 84104 (the
        “Company”).

       

      RECITALS

       

      WHEREAS,
        Executive
        is a senior executive of the Company and has made and is expected to continue
        to
        make major contributions to the short and long term profitability, growth
        and
        financial strength of the Company;

       

      WHEREAS,
        the
        Company has entered into an employment-related agreement (the “Prior Agreement”)
        with Executive which includes, among other matters, change in control
        provisions;

       

      WHEREAS,
        the term
        of the Prior Agreement expired on September 30, 2005;

       

      WHEREAS,
        the
        Company and Executive desire to renew the Prior Agreement substantially in
        the
        same form as the Prior Agreement, thereby preserving the present and future
        continuity of management and providing additional inducement for the Executive
        to continue to remain in the employ of the Company.

       

      TERMS
        OF
        AGREEMENT

      

      NOW,
        THEREFORE, in
        exchange for good and valuable consideration, the receipt and sufficiency
        of
        which is hereby acknowledged, the Company and Executive agree as
        follows:

       

      1.  Certain
        Defined Terms.
        In addition to
        terms defined elsewhere herein, the following terms have the following meanings
        when used in this Agreement with initial capital letters: 

       

      (a)  “Affiliate”
shall
        mean a
        domestic or foreign business entity controlled by, controlling, under common
        control with, or in a joint venture with, the applicable person or entity.
        

       

      (b)  “Board”
shall
        mean the
        Board of Directors of the Company. 

       

      (c)  “Cause”
shall
        mean
        Executive’s: 

       

      (i)  Gross,
        fraudulent or willful misconduct of Executive at any time during Executive’s
        employment by the Company, or any such misconduct during any prior period
        of
        employment in an executive capacity with any person or entity if not disclosed
        to the Company in writing prior to the execution hereof;

       

      (ii)  Substantial
        and willful failure to perform specific and lawful directives of the Board
        or a
        superior employee of the Company;

       

      (iii)  Willful
        and knowing violation of any rules or regulations of any governmental or
        regulatory body, which is materially injurious to the financial condition
        of the
        Company; 

       

      
        
          
          

        

        
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      (iv)  Conviction
        of or
        plea of guilty or nolo contendere to a felony or fraud during Executive’s
        employment with the Company;

       

      (v)  Drug,
        alcohol or
        substance abuse (to the extent not inconsistent with the Americans with
        Disability Act or similar state law); or 

       

      (vi)  Material
        breach of
        the terms of this Agreement which is not corrected after written notice and
        a
        reasonable cure period not to exceed 15 days.

       

      (d)  “Change
        in
        Control”
means
        and
        includes each of the following:

       

      (i)  A
        transaction or series of transactions (other than an offering of SNI Class
        A
        common stock to the general public through a registration statement filed
        with
        the Securities and Exchange Commission) whereby any “person” or related “group”
of “persons” (as such terms are used in Sections 13(d) and
        14(d)(2) of the Securities Exchange Act of 1934, as amended) (other than
        SNI, any of its subsidiaries, an employee benefit plan maintained by SNI
        or any
        of its subsidiaries or a “person” that, prior to such transaction, directly or
        indirectly controls, is controlled by, or is under common control with, SNI)
        directly or indirectly acquires beneficial ownership (within the meaning
        of
        Rule 13d-3 under the Exchange Act) of securities of SNI possessing more
        than 50% of the total combined voting power of SNI’s securities outstanding
        immediately after such acquisition, excluding any transaction involving a
        distribution of SNI’s Class A common stock (or any substituted security) held by
        Weider Health and Fitness (“WHF”) to individual stockholders of WHF or their
        family trusts if and to the extent the Board finds such distribution to not
        be
        within the intent of this Section 1(d)(i);

       

      (ii)  During
        any period of two consecutive years, individuals who, at the beginning of
        such period, constitute the Board of Directors of SNI together with any new
        director(s) (other than a director designated by a person who shall have
        entered
        into an agreement with SNI to effect a transaction described in
        Section 1(d)(i) or Section 1(d)(iii)) whose election by the Board of
        Directors of SNI or nomination for election by SNI’s stockholders was approved
        by a vote of at least two-thirds of the directors then still in office who
        either were directors at the beginning of the two year period or whose election
        or nomination for election was previously so approved, cease for any reason
        to
        constitute a majority thereof;

       

      (iii)  The
        consummation by SNI (whether directly involving SNI or indirectly involving
        SNI
        through one or more intermediaries) of (x) a merger, consolidation,
        reorganization, or business combination or (y) a sale or other disposition
        of all or substantially all of SNI’s assets or (z) the acquisition of
        assets or stock of another entity, in each case other than a
        transaction:

       

      (A)  Which
        results in SNI’s voting securities outstanding immediately before the
        transaction continuing to represent (either by remaining outstanding or by
        being
        converted into voting securities of SNI or the person that, as a result of
        the
        transaction, controls, directly or indirectly, SNI or owns, directly or
        indirectly, all or substantially all of SNI’s assets or otherwise succeeds to
        the business of SNI (SNI or such person, the “Successor Entity”)) directly or
        indirectly, at least a majority of the combined voting power of the Successor
        Entity’s outstanding voting securities immediately after the transaction,
        or

       

      (B)  After
        which no person or group beneficially owns voting securities representing
        50% or
        more of the combined voting power of the Successor Entity; provided,
        however,
        that no person or
        group shall be treated forpurposes
        of this
        Section 1(d)(iii)(B) as beneficially owning 50% or more of combined
        voting power of the Successor Entity solely as a result of the voting power
        held
        in SNI prior to the consummation of the transaction; or

       

      
        
          
          

        

        
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      (iv)  SNI’s
        stockholders approve a liquidation or dissolution of SNI.

       

      (e)  “Code”
        shall mean Internal Revenue Code of 1986, as amended.

       

      (f)  “Cure
        Deadline” shall mean the last day of the 15 day period during which the Company
        may cure the conduct or event that otherwise will result in “Good Reason” in
        accordance with Section 1(f).

       

      (g)  “Good
        Reason” shall mean any one of the following conduct or events which is not cured
        by the Company within 15 days after Executive’s notice in writing to the Company
        within 90 days of the first happening of the conduct or event:

       

      (i)  the
        Company’s material diminution of Executive’s job titles, responsibilities,
        duties, perquisites or compensation; or 

       

      (ii)  any
        involuntary relocation of Executive’s principal place of business to a location
        more than 50 miles from Executive’s current principal place of business with the
        Company.

       

      (h)  “Severance
        Payment Deadline” shall mean 15 days prior to the Severance Benefit Deadline (as
        defined in Section 4 below).

       

      (i)  “Termination
        Date” shall mean the effective date of the termination of Executive’s employment
        with the Company for any reason.

       

      (j)  “SNI”
        shall mean Schiff Nutrition International, Inc., a Delaware corporation and
        the
        parent of the Company.

       

      2.  Term
        of Agreement.
        The term of this
        Agreement shall commence on the Effective Date and shall continue through
        the
        full payment of all severance and other benefits to Executive in accordance
        with
        the terms and conditions of this Agreement. This Agreement shall be effective
        with respect to (a) the termination of Executive’s employment with the Company
        other than for Cause only if such termination occurs during the period
        commencing on the Effective Date and ending on September 30, 2008 or (b)
        the
        termination of Executive’s employment with the Company for Good Reason only if
        the event or conduct giving rise to Good Reason occurs during the period
        commencing on the Effective Date and ending on September 30, 2008.
        Notwithstanding the foregoing sentence, this Agreement shall be effective
        with
        respect to any “termination in connection with a Change in Control” (as defined
        in Section 3(b) below) if the Change in Control is (i) subject to a definitive
        written purchase, sale, merger or similar agreement entered into on or before
        September 30, 2008 and (ii) consummated on or prior to the expiration of
        six
        months following September 30, 2008. During the term of this Agreement,
        Executive shall be employed as an at-will employee of the Company.

       

      3.  Severance
        Payment/Benefits. 

       

      (a)  If
        Executive’s employment as an at-will employee of the Company shall be terminated
        either by the Company other than for Cause or by the Executive for Good
        Reason,then
        in
        consideration of and subject to the delivery by Executive to the Company
        of a
        release, in form and substance reasonably satisfactory to the Company, of
        any
        claims that Executive might have against the Company, the Company shall pay
        the
        Executive a severance benefit in an amount equal to the sum of (a) his then
        annual rate of base salary and (b) the greater of (i) his annual bonus paid
        or
        payable relating to the Company’s most recently completed fiscal year, (ii) the
        average of his annual bonuses paid or payable relating to the Company’s three
        most recently completed fiscal years, or (iii) 30% of his then annual rate
        of
        base salary. Subject to Section 4 of this Agreement, such amount shall be
        paid,
        without interest, in 24 equal semi-monthly installments payable in accordance
        with the Company’s customary payroll practices, with the first installment to be
        paid no later than 30 days following the later of (A) the Termination Date
        or
        (B) the date on which the release described above is executed by all parties
        thereto and ceases to be revocable by Executive; provided, however, that
        notwithstanding the foregoing, in no event shall any amounts owing to Executive
        pursuant to this Section 3(a) be paid to Executive later than the Severance
        Payment Deadline. 

       

      
        
          
          

        

        
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      (b)  If
        Executive’s
        employment as an at-will employee of the Company shall be terminated “in
        connection with a Change in Control” either by the Company other than for Cause
        or by the Executive for Good Reason, then in consideration of and subject
        to the
        delivery by Executive to the Company of a release, in form and substance
        reasonably satisfactory to the Company, of any claims that Executive might
        have
        against the Company and in lieu of the provisions of Section 3(a) above,
        the
        Company shall pay the Executive a severance benefit in an amount equal to
        [150%/125%] of the sum of (a) his then annual rate of base salary and (b)
        the
        greater of (i) his annual bonus paid or payable relating to the Company’s most
        recently completed fiscal year, (ii) the average of his annual bonuses paid
        or
        payable relating to the Company’s three most recently completed fiscal years, or
        (iii) 50% of his then annual rate of base salary. Subject to Section 4 of
        this
        Agreement, such amount shall be paid, without interest, in [36/30] equal
        semi-monthly installments payable in accordance with the Company’s customary
        payroll practices, with the first installment to be paid no later than 30
        days
        following the later of (A) the Termination Date or (B) the date on which
        the
        release described above is executed by all parties thereto and ceases to
        be
        revocable by Executive; provided, however, that notwithstanding the foregoing,
        in no event shall any amounts owing to Executive pursuant to this Section
        3(b)
        be paid to Executive later than the Severance Payment Deadline. For purposes
        of
        this Agreement, any termination “in connection with a Change in Control” shall
        mean any termination either by the Company other than for Cause or by the
        Executive for Good Reason during the period beginning 90 days prior to and
        concluding 120 days subsequent to the consummation of a Change in
        Control.

       

      (c)  Upon
        the occurrence
        of a Change in Control, all restricted stock, options to purchase shares
        of
        Class A Common Stock of SNI or other equity awards granted to Executive under
        SNI’s 1997 Equity Participation Plan or 2004 Incentive Plan, as either may be
        amended from time to time, shall become vested and exercisable as of the
        effective date of the Change in Control.

       

      (d)  In
        the event
        Executive’s employment as an at-will employee of the Company shall be terminated
        pursuant to Section 3(a), subject to Section 4 of this Agreement, Executive
        shall be entitled to continue to receive, at the expense of the Company (other
        than Executive’s continued payments of his current portion of such costs), and
        participate in, for a period of 12 months from the Termination Date, any
        life
        insurance, disability insurance, health insurance or hospital plans or other
        benefit plans of the Company in effect at the time oftermination
        (as
        such plans may be amended from time to time thereafter); provided, however,
        that
        car allowances, if any, or Company matching of individual 401(k) plan
        contributions shall not be continued. In the event Executive’s employment as an
        at-will employee of the Company shall be terminated pursuant to Section 3(b),
        subject to Section 4 of this Agreement, Executive shall be entitled to continue
        to receive, at the expense of the Company (other than Executive’s continued
        payments of his current portion of such costs), and participate in, for a
        period
        of [18/15] months from the Termination Date, any life insurance, disability
        insurance, health insurance or hospital plans or other benefit plans of the
        Company in effect at the time of termination (as such plans may be amended
        from
        time to time thereafter); provided, however, that car allowances, if any,
        or
        Company matching of individual 401(k) plan contributions shall not be continued.
        Notwithstanding the foregoing, any continued benefits or participation in
        the
        plans of the Company under this Section 3(d) shall cease on the Severance
        Payment Deadline, to the extent such continued benefits or participation
        in
        plans of the Company would constitute a nonqualified deferred compensation
        plan
        subject to Code Section 409A. 

       

      
        
          
          

        

        
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      4.  Code
        Section 409A.
        This Agreement is
        not intended to provide for any deferral of compensation subject to Code
        Section
        409A and, accordingly, notwithstanding any other provision of this Agreement
        to
        the contrary, any and all amounts payable under this Agreement shall be paid
        not
        later than the later of: (a) two and one-half (21⁄2) months from the end of the
        Executive’s tax year in which the Termination Date (or, if earlier, the Cure
        Deadline) occurs, and (b) two and one-half (21⁄2) months from the end of the
        Company’s fiscal year in which the Termination Date (or, if earlier, the Cure
        Deadline) occurs (the later of (a) and (b), the “Severance Benefit Deadline”),
        as determined by the Company in accordance with Code Section 409A and any
        applicable Treasury Regulations. 

       

      5.  Parachute
        Payments. 

       

      (a)  If
        it is determined (as hereafter provided) that Executive would be subject
        to the
        excise tax imposed by Code Section 4999 (a “Parachute Tax”) to which Executive
        would not have been subject but for any payment or stock option or restricted
        stock vesting occurring pursuant to the terms of this Agreement or otherwise
        upon a Change in Control or any tax, interest, penalty or other expense incurred
        by Executive pursuant to Code Section 409A (a “Deferred Compensation Tax”) to
        which Executive would not have been subject but for the Company’s failure to pay
        any severance amounts pursuant to the provisions of Section 3 and Section
        4 of
        this Agreement or other failure to make such payments in a manner that avoids
        such payments qualifying as deferred compensation under Section 409A of the
        Code
        (collectively, a “Payment”), then Executive shall be entitled to receive an
        additional payment or payments (a “Gross-Up Payment”) in an amount such that,
        after payment by Executive of all taxes (including any Parachute Tax or Deferred
        Compensation Tax) imposed upon the Gross-Up Payment, Executive retains an
        amount
        of the Gross-Up Payment equal to the Parachute Tax or Deferred Compensation
        Tax
        imposed upon the Payment.

       

      (b)  Subject
        to the provisions of Section 5(a) hereof, all determinations required to
        be made
        under this Section 5, including whether a Parachute Tax or Deferred Compensation
        Tax is payable by Executive with regard to a Payment and the amount of such
        Parachute Tax or Deferred Compensation Tax and whether a Gross-Up Payment
        is
        required and the amount of such Gross-Up Payment, shall be made by the
        nationally recognized firm of certified public accountants (the “Accounting
        Firm”) used by the Company prior to the Change in Control (or, if such
        Accounting Firm declines to serve, the Accounting Firm shall be a nationally
        recognized firm of certified public accountants selected by the Company).
        For
        purposes of making the calculationsrequired
        by this
        Section, the Accounting Firm may make reasonable assumptions and approximations
        concerning applicable taxes and may rely on reasonable, good faith
        interpretations concerning the application of Sections 280G, 4999 and 409A
        of
        the Code, provided that the Accounting Firm’s determinations must be made with
        substantial authority (within the meaning of Section 6662 of the Code). The
        Accounting Firm shall be directed by the Company or Executive to submit its
        preliminary determination and detailed supporting calculations to both the
        Company and Executive within 15 calendar days after the determination date,
        if
        applicable, and any other such time or times as may be requested by the Company
        or Executive. If the Accounting Firm determines that any Parachute Tax or
        Deferred Compensation Tax is payable by Executive with regard to a Payment,
        the
        Company shall pay the required Gross-Up Payment to, or for the benefit of,
        Executive within five business days after receipt of such determination and
        calculations. If the Accounting Firm determines that no Parachute Tax or
        Deferred Compensation Tax is payable by Executive with regard to a Payment,
        it
        shall, at the same time as it makes such determination, furnish Executive
        with
        an opinion that he has substantial authority not to report any Parachute
        Tax or
        Deferred Compensation Tax on his federal tax return. Any good faith
        determination by the Accounting Firm as to whether a Gross-Up Payment is
        to be
        made with regard to a Payment and the amount of the Gross-Up Payment shall
        be
        binding upon the Company and Executive absent a contrary determination by
        the
        Internal Revenue Service or a court of competent jurisdiction; provided,
        however, that no such determination shall eliminate or reduce the Company’s
        obligation to provide any Gross-Up Payments that shall be due as a result
        of
        such contrary determination. As a result of the uncertainty in the application
        of Code Section 4999 or Code Section 409A at the time of any determination
        by
        the Accounting Firm hereunder, it is possible that Gross-Up Payments that
        will
        not have been made by the Company should have been made (an “Underpayment”),
        consistent with the calculations required to be made hereunder. In the event
        that the Company exhausts or fails to pursue its remedies pursuant to Section
        5(f) hereof and Executive thereafter is required to make a payment of any
        Parachute Tax or Deferred Compensation Tax, Executive shall direct the
        Accounting Firm to determine the amount of the Underpayment that has occurred
        and to submit its determination and detailed supporting calculations to both
        the
        Company and Executive as promptly as possible. Any such Underpayment shall
        be
        promptly paid by the Company to, or for the benefit of, Executive within
        five
        business days after receipt of such determination and calculations.

       

      
        
          
          

        

        
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      (c)  The
        Company and
        Executive shall each provide the Accounting Firm access to and copies of
        any
        books, records and documents in the possession of the Company or Executive,
        as
        the case may be, reasonably requested by the Accounting Firm, and otherwise
        cooperate with the Accounting Firm in connection with the preparation and
        issuance of the determination contemplated by Section 5(b) hereof.

       

      (d)  The
        federal tax
        returns filed by Executive (or any filing made by a consolidated tax group
        which
        includes the Company) shall be prepared and filed on a basis consistent with
        the
        determination of the Accounting Firm with respect to the Parachute Tax or
        Deferred Compensation Tax payable by Executive. Executive shall make proper
        payment of the amount of any Parachute Tax or Deferred Compensation Tax,
        and at
        the request of the Company, provide to the Company true and correct copies
        (with
        any amendments) of his federal income tax return as filed with the Internal
        Revenue Service, and such other documents reasonably requested by the Company,
        evidencing such payment. If prior to the filing of Executive’s federal income
        tax return, the Accounting Firm determines in good faith that the amount
        of the
        Gross-Up Paymentshould
        be reduced,
        Executive shall within five business days pay to the Company the amount of
        such
        reduction.

       

      (e)  The
        fees and
        expenses of the Accounting Firm for its services in connection with the
        determinations and calculations contemplated by Sections 5(b) and (d) hereof
        shall be borne by the Company. If such fees and expenses are initially advanced
        by Executive, the Company shall reimburse Executive the full amount of such
        fees
        and expenses within five business days after receipt from Executive of a
        statement therefor and reasonable evidence of his payment thereof.

       

      (f)  In
        the event that
        the Internal Revenue Service claims that any payment or benefit received
        under
        this Agreement constitutes an “excess parachute payment” within the meaning of
        Code Section 280G(b)(1), Executive shall notify the Company in writing of
        such
        claim. Such notification shall be given as soon as practicable but not later
        than 10 business days after Executive is informed in writing of such claim
        and
        shall apprise the Company of the nature of such claim and the date on which
        such
        claim is requested to be paid. Executive shall not pay such claim prior to
        the
        expiration of the 30 day period following the date on which Executive gives
        such
        notice to the Company (or such shorter period ending on the date that any
        payment of taxes with respect to such claim is due). If the Company notifies
        Executive in writing prior to the expiration of such period that it desires
        to
        contest such claim, Executive shall (i) give the Company any information
        reasonably requested by the Company relating to such claim; (ii) take such
        action in connection with contesting such claim as the Company shall reasonably
        request in writing from time to time, including without limitation, accepting
        legal representation with respect to such claim by an attorney reasonably
        selected by the Company and reasonably satisfactory to Executive; (iii)
        cooperate with the Company in good faith in order to effectively contest
        such
        claim; and (iv) permit the Company to participate in any proceedings relating
        to
        such claim; provided, however, that the Company shall bear and pay directly
        all
        costs and expenses (including, but not limited to, additional interest and
        penalties and related legal, consulting or other similar fees) incurred in
        connection with such contest and shall indemnify and hold Executive harmless,
        on
        an after-tax basis, for and against for any Parachute Tax or income tax or
        other
        tax (including interest and penalties with respect thereto) imposed as a
        result
        of such representation and payment of costs and expenses. 

       

      (g)  The
        Company shall
        direct Executive with regard to all proceedings taken in connection with
        such
        contest and, at its sole option, may pursue or forgo any and all administrative
        appeals, proceedings, hearings and conferences with the taxing authority
        in
        respect of such claim and may, at its sole option, either direct Executive
        to
        pay the tax claimed and sue for a refund or contest the claim in any permissible
        manner and Executive agrees to prosecute such contest to a determination
        before
        any administrative tribunal, in a court of initial jurisdiction and in one
        or
        more appellate courts, as the Company shall determine; provided, however,
        that
        if the Company directs Executive to pay such claim and sue for a refund,
        the
        Company shall advance the amount of such payment to Executive on an
        interest-free basis (to the extent permitted by applicable law), and shall
        indemnify and hold Executive harmless, on an after tax basis, from any Parachute
        Tax or Deferred Compensation Tax (or other tax including interest and penalties
        with respect thereto) imposed with respect to such advance or with respect
        to
        any imputed income with respect to such advance; and provided, further, that
        if
        Executive is required to extend the statue of limitations to enable the Company
        to contest such claim, Executive may limit this extension solely to such
        contested amount. The Company’s right to direct Executivewith
        regard to the
        contest shall be limited to issues with respect to whether and the extent
        to
        which a payment or benefit is an “excess parachute payment” pursuant to Code
        Section 280G(b)(1), the imposition of the Parachute Tax under Code Section
        4999
        and the imposition of the Deferred Compensation Tax under Code Section 409A,
        and
        Executive shall be entitled to settle or contest, as the case may be, any
        other
        issue raised by the Internal Revenue Service or any other taxing authority.
        In
        addition, the Company shall not direct Executive to take a position or agree
        to
        any final resolution if such position or resolution could reasonably be expected
        to adversely affect Executive unrelated to matters covered hereto, unless
        Executive consents in writing to such position or agreement.

       

      
        
          
          

        

        
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      (h)  If,
        after the
        receipt by Executive of an amount advanced by the Company in connection with
        the
        contest of the Parachute Tax or Deferred Compensation Tax claim, Executive
        receives any refund with respect to such claim, Executive shall promptly
        pay to
        the Company the amount of such refund (together with any interest paid or
        credited thereon after taxes applicable thereto); provided, however, if the
        amount of that refund exceeds the amount advanced by the Company Executive
        may
        retain such excess. If, after the receipt by Executive of an amount advanced
        by
        the Company in connection with a Parachute Tax or Deferred Compensation Tax
        claim, a determination is made that Executive shall not be entitled to any
        refund with respect to such claim and the Company does not notify Executive
        in
        writing of its intent to direct Executive to contest the denial of such refund
        prior to the expiration of 30 days after such determination such advance
        shall
        be deemed to be in consideration for services rendered after the Termination
        Date.

       

      6.  Confidential
        Information and Inventions.

       

      (a)  Except
        as otherwise required by Executive’s employment duties for the Company,
        Executive shall maintain in strict confidence and shall not directly, indirectly
        or otherwise, use, publish, disclose or disseminate, or use for Executive’s
        benefit or the benefit of any person, firm, corporation or entity, any
        Confidential Information of or relating to the Company or its affiliates
        (or
        which the Company or its affiliates has a right to use). For purposes of
        this
        Agreement, AConfidential
        Information@
        shall mean all
        confidential and proprietary information of the Company and its parents,
        subsidiaries and affiliates, whether in oral, written or electronic form
        or
        obtained by observation or otherwise, whether or not legended or otherwise
        identified as confidential or proprietary information, and whether or not
        discovered or developed by Executive or known or obtained by Executive as
        a
        consequence of Executive’s employment with the Company at any time as employee
        or agent. Confidential Information shall include, without limitation, all
        scientific, clinical, engineering, technical, process, method or commercial
        data, information or know-how, relating to the research, development,
        manufacture, distribution, sale or marketing of any vitamins, minerals,
        nutritional supplements, sports nutrition products, beverages, food bars,
        powdered food supplements, or other products or product lines of the Company.
        Confidential Information shall also include, without limitation, all customer
        lists, pricing data, sources of supply and related supplier and vendor
        information, purchasing, operating or other cost data, manufacturing methods,
        quality control information, regulatory information, employee and compensation
        information, financial data, trade secrets, formulas, intellectual property,
        manuals, financial data, forecasts, business plans, expansion or acquisition
        plans and product development information and plans. Notwithstanding the
        foregoing, Confidential Information shall not include (i) information, from
        a
        source other than the Company, which is in Executive’s possession on the date
        hereof or subsequently becomes available to Executive so longas
        such information
        was lawfully obtained and is not, to the knowledge of Executive, subject
        to
        another confidentiality agreement or obligation of secrecy to the Company
        or
        another person, or (ii) information which becomes generally available to
        the
        public other than directly or indirectly as a result of disclosure by Executive
        or another party bound by legal obligations prohibiting such
        disclosure.

       

      (b)  Executive
        hereby
        assigns and transfers to the Company any and all works of authorship, inventions
        and innovations (whether deemed patentable or not), which relate to the business
        of the Company and which are made by Executive (or by Executive jointly with
        others) during the term of Executive’s employment and/or within one year after
        the termination of Executive's employment with the Company, if such work
        of
        authorship, invention, or innovation is based upon or relates to Confidential
        Information acquired by Executive during the term of employment with the
        Company. For purposes of copyright law, any such work of authorship shall
        be
        deemed a work made for hire. Executive agrees to promptly disclose to the
        Company all such works of authorship, inventions, and innovations. Executive
        agrees to execute any document reasonably requested by the Company that is
        necessary or appropriate to document, perfect, or effect the intention of
        this
        Section 6 or to secure any patent, copyright registration (as a work made
        for
        hire), trademark registration or other protection thereof for the
        Company.

       

      (c)  Upon
        termination of
        Executive’s employment, Executive shall immediately deliver to the Company all
        Confidential Information embodied in any form (including any form of computer
        media), including all copies, then in Executive’s possession or control, whether
        prepared by Executive or others, as well as other Company property in
        Executive’s possession or control.

       

      
        
          
          

        

        
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            7 -

          
            

          

        

        
          
          

        

      

       

       

      7.  Successors
        and Binding Agreement.
        

       

      (a)  The
        Company will require any successor (whether direct or indirect, by purchase,
        merger, consolidation, reorganization or otherwise, including, without
        limitation, any successor due to a Change in Control) to the business or
        assets
        of the Company, by agreement in form and substance reasonably satisfactory
        to
        the Executive, expressly assume and agree to perform this Agreement in the
        same
        manner and to the same extent the Company would be required to perform if
        no
        such succession had taken place. This Agreement will be binding upon and
        inure
        to the benefit of the Company and any successor to the Company, including,
        without limitation, any person directly or indirectly acquiring the business
        or
        assets of the Company in a transaction constituting a Change in Control (and
        such successor shall thereafter be deemed the “Company” for the purpose of this
        Agreement), but will not otherwise be assignable, transferable or delegable
        by
        the Company.

       

      (b)  This
        Agreement will inure to the benefit of and be enforceable by the Executive’s
        personal or legal representatives, executors, administrators, successors,
        heirs,
        distributees and legatees, but will not otherwise be assignable, transferable
        or
        delegable by Executive.

       

      8.  Validity.
        If any provision
        of this Agreement or the application of any provision hereof to any person
        or
        circumstances is held invalid, unenforceable or otherwise illegal, the remainder
        of this Agreement and the application of such provision to any other person
        or
        circumstances will not be affected, and the provision so held to be invalid,
        unenforceable or otherwise illegal will be reformed to the extent (and only
        to
        the extent) necessary to make it enforceable, valid or legal. 

      

        9.  Governing
          Law; Jurisdiction.
          The laws of the
          state of Utah shall govern the interpretation, validity and performance
          of the
          terms of this Agreement, regardless of the law that might be applied under
          principles of conflicts of law. Any suit, action or proceeding against
          Executive, with respect to this Agreement, or any judgment entered by any
          court
          in respect of any of such, may be brought in any court of competent jurisdiction
          in the State of Utah, and Executive hereby submits to the jurisdiction
          of such
          courts for the purpose of any such suit, action, proceeding or
          judgment.

         

      

      10.  Notices.
        Any notices or
        communications given by any party hereto to the other party shall be in writing
        and personally delivered or mailed by registered or certified mail, return
        receipt requested, postage prepaid. Notices shall be addressed to the parties
        at
        the addresses set forth above. Notices shall be deemed given when received.
        Either party may designate in writing, by notice to the others, such other
        address to which notices to such party shall thereafter be sent.

       

      11.  Further
        Assurances.
        Each party agrees
        at any time, and from time-to-time, to execute, acknowledge, deliver and
        perform, and/or cause to be executed, acknowledged, delivered and performed,
        all
        such further acts, deeds assignments, transfers, conveyances, powers of attorney
        and/or assurances as may be necessary, and/or proper to carry out the provisions
        and/or intent of this Agreement.

       

      12.  Amendment;
        Waiver; Entire Agreement.
        No provision of
        this Agreement may be modified, waived or discharged unless such waiver,
        modification or discharge is agreed to in writing signed by the Executive
        and
        the Company. No waiver by either party hereto at any time of any breach by
        the
        other party hereto or compliance with any condition or provision of this
        Agreement to be performed by such other party will be deemed a waiver of
        similar
        or dissimilar provisions or conditions at the same or at any prior or subsequent
        time. This Agreement constitutes the entire agreement of the parties with
        respect to the subject matter hereof and supersedes any and all prior agreements
        of the parties with respect to such subject matter.

       

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

       

      
        
           

          

          
          

        

        
          -
            8 -

          
            

          

        

        
          
          

        

      

      

        

         

        IN
          WITNESS WHEREOF,
          the parties have caused this Agreement to be duly executed and delivered
          on the
          date set forth below.

         

         

                                         SCHIFF
          NUTRITION GROUP,
          INC.

         

         

         

        
          	
                   

                  By:

                	
                   

                
	 	
                
	
                  Title:

                	
                   

                
	 	
                
	
                  Date:

                	 
	 	
                

        

         

         

         

                                   EXECUTIVE

         

         

        

          
            	 	 
	 	 
	
                    Date:

                  	 
	
                     

                     

                  	
                  

          

        

         

         

        
          
            
               

              

              
              

            

            
              -
                9 -Q3 FY06 Exhibit 10.2

    

      EXHIBIT
        10.2

      
        
          

        

      

      AGREEMENT

       

      THIS
        AGREEMENT
        (“Agreement”) dated as of October 1, 2005 (the “Effective Date”) is entered by
        and between Bruce J. Wood, 3983 East Alta Approach Road, Sandy, Utah 84092
        (“Executive”), and Schiff Nutrition Group, Inc., a Utah corporation
        (the
“Company”).

       

      WITNESSETH:

       

      WHEREAS,
        Executive
        is a senior executive of the Company and has made and is expected to continue
        to
        make major contributions to the short and long term profitability, growth
        and
        financial strength of the Company;

       

      WHEREAS,
        the
        Company has entered into an Amended and Restated Change in Control Agreement
        with Executive dated as of October 1, 2002 (the “Prior Agreement”) to provide
        for both present and future continuity of management and to assure itself
        that
        Executive is not practically disabled from discharging his duties in respect
        of
        a proposed or actual transaction involving a Change in Control;

       

      WHEREAS,
        the Prior
        Change in Control Agreement expired on September 30, 2005;

       

      WHEREAS,
        the
        Company has entered into an Employment Agreement with Executive dated as
        of June
        1, 2002, as the same may be amended from time to time (the “Employment
        Agreement”) that provides certain benefits to executive, including certain
        severance payments;

       

      WHEREAS,
        the
        Company and Executive desire to renew the Prior Agreement substantially in
        the
        same form as the Prior Agreement, thereby preserving the present and future
        continuity of management and providing additional inducement for the Executive
        to continue to remain in the employ of the Company; and

       

      WHEREAS,
        the
        Company and Executive desire to amend certain provisions of the Employment
        Agreement to ensure that severance payments under the Employment Agreement
        would
        not qualify as deferred compensation under Section 409A of the Code and to
        otherwise clarify certain provisions thereof;

       

      AGREEMENT

       

      NOW,
        THEREFORE, in
        exchange for good and valuable consideration, the receipt and sufficiency
        of
        which is hereby acknowledged, the Company and Executive agree as
        follows:

       

      1.  Certain
        Defined Terms.
        In addition to
        terms defined elsewhere herein, the following terms have the following meanings
        when used in this Agreement with initial capital letters: 

       

      (a)  “Affiliate”
shall
        mean a
        domestic or foreign business entity controlled by, controlling, under common
        control with, or in a joint venture with, the applicable person or
        entity.

       

      (b)  “Board”
shall
        mean the
        Board of Directors of the Company.

       

      (c)  “Change
        in
        Control”
means
        and
        includes each of the following:

       

      
        
          
          

        

        
          -
            1 -

          
            

          

        

        
          
          

        

      

       

       

      (i)  A
        transaction or
        series of transactions (other than an offering of SNI Class A common stock
        to
        the general public through a registration statement filed with the Securities
        and Exchange Commission) whereby any “person” or related “group” of “persons”
(as such terms are used in Sections 13(d) and 14(d)(2) of the
        Securities Exchange Act of 1934, as amended) (other than SNI, any of its
        subsidiaries, an employee benefit plan maintained by SNI or any of its
        subsidiaries or a “person” that, prior to such transaction, directly or
        indirectly controls, is controlled by, or is under common control with, SNI)
        directly or indirectly acquires beneficial ownership (within the meaning
        of
        Rule 13d-3 under the Exchange Act) of securities of SNI possessing more
        than 50% of the total combined voting power of SNI’s securities outstanding
        immediately after such acquisition, excluding any transaction involving a
        distribution of SNI’s Class A common stock (or any substituted security) held by
        Weider Health and Fitness (“WHF”)
        to individual
        stockholders of WHF or their family trusts if and to the extent the Board
        finds
        such distribution to not be within the intent of this
        Section 1(d)(i);

       

      (ii)  During
        any period
        of two consecutive years, individuals who, at the beginning of such period,
        constitute the Board of Directors of SNI together with any new director(s)
        (other than a director designated by a person who shall have entered into
        an
        agreement with SNI to effect a transaction described in Section 1(d)(i) or
        Section 1(d)(iii)) whose election by the Board of Directors of SNI or
        nomination for election by SNI’s stockholders was approved by a vote of at least
        two-thirds of the directors then still in office who either were directors
        at
        the beginning of the two year period or whose election or nomination for
        election was previously so approved, cease for any reason to constitute a
        majority thereof;

       

      (iii)  The
        consummation by
        SNI (whether directly involving SNI or indirectly involving SNI through one
        or
        more intermediaries) of (x) a merger, consolidation, reorganization, or
        business combination or (y) a sale or other disposition of all or
        substantially all of SNI’s assets or (z) the acquisition of assets or stock
        of another entity, in each case other than a transaction:

       

      (A)  Which
        results in SNI’s voting securities outstanding immediately before the
        transaction continuing to represent (either by remaining outstanding or by
        being
        converted into voting securities of SNI or the person that, as a result of
        the
        transaction, controls, directly or indirectly, SNI or owns, directly or
        indirectly, all or substantially all of SNI’s assets or otherwise succeeds to
        the business of SNI (SNI or such person, the “Successor
        Entity”))
        directly or
        indirectly, at least a majority of the combined voting power of the Successor
        Entity’s outstanding voting securities immediately after the transaction,
        or

       

      (B)  After
        which no
        person or group beneficially owns voting securities representing 50% or more
        of
        the combined voting power of the Successor Entity; provided,
        however,
        that no person or
        group shall be treated for purposes of this Section 1(d)(iii)(B) as
        beneficially owning 50% or more of combined voting power of the Successor
        Entity
        solely as a result of the voting power held in SNI prior to the consummation
        of
        the transaction; or

       

      (iv)  SNI’s
        stockholders approve a liquidation or dissolution of SNI.

       

      (d)  “Code”
shall
        mean the
        Internal Revenue Code of 1986, as amended.

       

      
        
          
          

        

        
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            2 -

          
            

          

        

        
          
          

        

      

       

       

      (e)  “Cure
        Deadline”
shall
        mean the
        day on which the material breach or event occurs resulting in “cause” pursuant
        to Section 5.2 of the Employment Agreement.

       

      (f)  “Severance
        Payment Deadline”
shall
        mean 15
        days prior to the Severance Benefit Deadline (as defined in Section 4
        below).

       

      (g)  “Termination
        Date”
shall
        mean the
        effective date of the termination of Executive’s employment with the Company for
        any reason.

       

      (h)  “SNI”
shall
        mean Schiff
        Nutrition International, Inc., a Delaware corporation and the parent of the
        Company. 

       

      2.  Term
        of Agreement.
        The term of this
        Agreement shall commence on the Effective Date and shall continue through
        the
        full payment of all severance and other benefits to Executive in accordance
        with
        the terms and conditions of this Agreement. This Agreement shall be effective
        with respect to any termination of Executive’s employment with the Company
        pursuant to Section 5.2 or 5.3 of the Employment Agreement only if such
        termination occurs (a) during the period commencing on the Effective Date
        and
        ending on September 30, 2008 and (b) “in connection with a Change in Control”
(as defined in Section 3). 

       

      3.  Severance
        Payment/Health Benefits. 

       

      (a)  In
        addition to any severance payments Executive may be entitled to receive under
        the Employment Agreement, if Executive’s employment with the Company is
        terminated pursuant to Section 5.2 or 5.3 of the Employment Agreement and
        such
        termination is made “in connection with a Change in Control,” then in
        consideration of and subject to the delivery by Executive to the Company
        of a
        release, in form and substance reasonably satisfactory to the Company, of
        any
        claims that Executive might have against the Company, the Company shall pay
        to
        Executive an amount equal to his then current Base Salary (as defined in
        the
        Employment Agreement). Subject to Section 4 of this Agreement and to execution
        and non-revocation by Executive of the release described above, such amount
        shall be paid to Executive, without interest, in 24 equal semi-monthly
        installments, beginning on the month following the last month Executive receives
        any payments under Section 6 of the Employment Agreement; provided, however,
        that notwithstanding the foregoing, in no event shall any amounts owing to
        Executive pursuant to this Section 3(a) be paid to Executive later than the
        Severance Payment Deadline. For purposes of this Agreement, any termination
“in
        connection with a Change in Control” shall be any termination pursuant to
        Section 5.2 or 5.3 of the Employment Agreement during the period beginning
        90
        days prior to and concluding 120 days subsequent to the consummation of a
        Change
        in Control, provided that the Change in Control is both (i) subject to a
        definitive written purchase, sale, merger or similar agreement entered into
        during the period beginning on the Effective Date and ending on September
        30,
        2008 and (ii) consummated on or prior to the expiration of six months following
        September 30, 2008. The payments provided herein are expressly in addition
        to
        and not a supplement for any payments Executive is entitled to receive under
        Section 6.1 of the Employment Agreement for such terminations.

       

      (b)  In
        the event Executive’s employment with the Company is terminated pursuant to
        Section 5.2 or 5.3 of the Employment Agreement, regardless of whether such
        termination is in connection with a Change in Control, subject to Section
        4 of
        this Agreement, Executive shall be entitled to continue to receive, at the
        expense of the Company (other than Executive’s continued payments of his current
        portion of such costs), and participate in, for a period of 12 months from
        the
        Termination Date, any life insurance, disability insurance, health insurance
        or
        hospital plans or other benefit plans of the Company in effect at the time
        of
        termination (as such plans may be amended from time to time thereafter);
        provided, however, that car allowances, if any, or Company matching of
        individual 401(k) plan contributions shall not be continued. Notwithstanding
        the
        foregoing, any continued benefits or participation in the plans of the Company
        under this Section 3(b) shall cease on the Severance Payment Deadline, to
        the
        extent such continued benefits or participation in plans of the Company would
        constitute a nonqualified deferred compensation plan subject to Code Section
        409A.

       

      
        
          
          

        

        
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            3 -

          
            

          

        

        
          
          

        

      

       

       

      4.  Code
        Section 409A.
        Neither this
        Agreement nor the Employment Agreement is intended to provide for any deferral
        of compensation subject to Code Section 409A and, accordingly, notwithstanding
        any other provision of this Agreement or the Employment Agreement to the
        contrary, any and all amounts payable under this Agreement or the Employment
        Agreement shall be paid not later than the later of: (a) two and one-half
        (21⁄2)
        months from the end of the Executive’s tax year in which the Termination Date
        (or, if earlier, the Cure Deadline) occurs, and (b) two and one-half (21⁄2) months
        from the end of the Company’s fiscal year in which the Termination Date (or, if
        earlier, the Cure Deadline) occurs (the later of (a) and (b), the “Severance
        Benefit Deadline”), as determined by the Company in accordance with Code Section
        409A and any applicable Treasury Regulations.

       

      5.  Parachute
        Payments.

       

      (a)  If
        it is determined (as hereafter provided) that Executive would be subject
        to the
        excise tax imposed by Code Section 4999 (a “Parachute Tax”) to which Executive
        would not have been subject but for any payment or stock option or restricted
        stock vesting occurring pursuant to the terms of this Agreement or otherwise
        upon a Change in Control or any tax, interest, penalty or other expense incurred
        by Executive pursuant to Code Section 409A (a “Deferred Compensation Tax”) to
        which Executive would not have been subject but for the Company’s failure to pay
        any severance amounts pursuant to the provisions of Section 3 and Section
        4 of
        this Agreement or and the related provisions of the Employment Agreement
        or
        other failure to make such payments in a manner that avoids such payments
        qualifying as deferred compensation under Section 409A of the Code
        (collectively, a “Payment”), then Executive shall be entitled to receive an
        additional payment or payments (a “Gross-Up Payment”) in an amount such that,
        after payment by Executive of all taxes (including any Parachute Tax or Deferred
        Compensation Tax) imposed upon the Gross-Up Payment, Executive retains an
        amount
        of the Gross-Up Payment equal to the Parachute Tax or Deferred Compensation
        Tax
        imposed upon the Payment.

       

      (b)  Subject
        to the provisions of Section 5(a) hereof, all determinations required to
        be made
        under this Section 5, including whether a Parachute Tax or Deferred Compensation
        Tax is payable by Executive with regard to a Payment and the amount of such
        Parachute Tax or Deferred Compensation Tax and whether a Gross-Up Payment
        is
        required and the amount of such Gross-Up Payment, shall be made by the
        nationally recognized firm of certified public accountants (the “Accounting
        Firm”) used by the Company prior to the Change in Control (or, if such
        Accounting Firm declines to serve, the Accounting Firm shall be a nationally
        recognized firm of certified public accountants selected by the Company).
        For
        purposes of making the calculations required by this Section, the Accounting
        Firm may make reasonable assumptions and approximations concerning applicable
        taxes and may rely on reasonable, good faith interpretations concerning the
        application of Sections 280G, 4999 and 409A of the Code, provided that the
        Accounting Firm’s determinations must be made with substantial authority (within
        the meaning of Section 6662 of the Code). The Accounting Firm shall be directed
        by the Company or Executive to submit its preliminary determination and detailed
        supporting calculations to both the Company and Executive within 15 calendar
        days after the determination date, if applicable, and any other such time
        or
        times as may be requested by the Company or Executive. If the Accounting
        Firm
        determines that any Parachute Tax or Deferred Compensation Tax is payable
        by
        Executive with regard to a Payment, the Company shall pay the required Gross-Up
        Payment to, or for the benefit of, Executive within five business days after
        receipt of such determination and calculations. If the Accounting Firm
        determines that no Parachute Tax or Deferred Compensation Tax is payable
        by
        Executive with regard to a Payment, it shall, at the same time as it makes
        such
        determination, furnish Executive with an opinion that he has substantial
        authority not to report any Parachute Tax or Deferred Compensation Tax on
        his
        federal tax return. Any good faith determination by the Accounting Firm as
        to
        whether a Gross-Up Payment is to be made with regard to a Payment and the
        amount
        of the Gross-Up Payment shall be binding upon the Company and Executive absent
        a
        contrary determination by the Internal Revenue Service or a court of competent
        jurisdiction; provided, however, that no such 

       

       

      
        
          
          

        

        
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            4 -

          
            

          

        

        
          
          

        

         

         

        determination
          shall eliminate or reduce the Company’s obligation to provide any Gross-Up
          Payments that shall be due as a result of such contrary determination.
          As a
          result of the uncertainty in the application of Code Section 4999 or Code
          Section 409A at the time of any determination by the Accounting Firm hereunder,
          it is possible that Gross-Up Payments that will not have been made by the
          Company should have been made (an “Underpayment”),
          consistent with the calculations required to be made hereunder. In the
          event
          that the Company exhausts or fails to pursue its remedies pursuant to Section
          5(f) hereof and Executive thereafter is required to make a payment of any
          Parachute Tax or Deferred Compensation Tax, Executive shall direct the
          Accounting Firm to determine the amount of the Underpayment that has occurred
          and to submit its determination and detailed supporting calculations to
          both the
          Company and Executive as promptly as possible. Any such Underpayment shall
          be
          promptly paid by the Company to, or for the benefit of, Executive within
          five
          business days after receipt of such determination and
          calculations.

      

       

      (c)  The
        Company and
        Executive shall each provide the Accounting Firm access to and copies of
        any
        books, records and documents in the possession of the Company or Executive,
        as
        the case may be, reasonably requested by the Accounting Firm, and otherwise
        cooperate with the Accounting Firm in connection with the preparation and
        issuance of the determination contemplated by Section 5(b) hereof.

       

      (d)  The
        federal tax
        returns filed by Executive (or any filing made by a consolidated tax group
        which
        includes the Company) shall be prepared and filed on a basis consistent with
        the
        determination of the Accounting Firm with respect to the Parachute Tax or
        Deferred Compensation Tax payable by Executive. Executive shall make proper
        payment of the amount of any Parachute Tax or Deferred Compensation Tax,
        and at
        the request of the Company, provide to the Company true and correct copies
        (with
        any amendments) of his federal income tax return as filed with the Internal
        Revenue Service, and such other documents reasonably requested by the Company,
        evidencing such payment. If prior to the filing of Executive’s federal income
        tax return, the Accounting Firm determines in good faith that the amount
        of the
        Gross-Up Payment should be reduced, Executive shall within five business
        days
        pay to the Company the amount of such reduction.

       

      (e)  The
        fees and
        expenses of the Accounting Firm for its services in connection with the
        determinations and calculations contemplated by Sections 5(b) and (d) hereof
        shall be borne by the Company. If such fees and expenses are initially advanced
        by Executive, the Company shall reimburse Executive the full amount of such
        fees
        and expenses within five business days after receipt from Executive of a
        statement therefor and reasonable evidence of his payment thereof.

       

      (f)  In
        the event that
        the Internal Revenue Service claims that any payment or benefit received
        under
        this Agreement constitutes an “excess parachute payment” within the meaning of
        Code Section 280G(b)(1), Executive shall notify the Company in writing of
        such
        claim. Such notification shall be given as soon as practicable but not later
        than 10 business days after Executive is informed in writing of such claim
        and
        shall apprise the Company of the nature of such claim and the date on which
        such
        claim is requested to be paid. Executive shall not pay such claim prior to
        the
        expiration of the 30 day period following the date on which Executive gives
        such
        notice to the Company (or such shorter period ending on the date that any
        payment of taxes with respect to such claim is due). If the Company notifies
        Executive in writing prior to the expiration of such period that it desires
        to
        contest such claim, Executive shall (i) give the Company any information
        reasonably requested by the Company relating to such claim; (ii) take such
        action in connection with contesting such claim as the Company shall reasonably
        request in writing from time to time, including without limitation, accepting
        legal representation with respect to such claim by an attorney reasonably
        

       

      
        
          
          

        

        
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            5 -

          
            

          

        

        
          
          

        

         

         

        selected
          by the Company and reasonably satisfactory to Executive; (iii) cooperate
          with
          the Company in good faith in order to effectively contest such claim; and
          (iv)
          permit the Company to participate in any proceedings relating to such claim;
          provided, however, that the Company shall bear and pay directly all costs
          and
          expenses (including, but not limited to, additional interest and penalties
          and
          related legal, consulting or other similar fees) incurred in connection
          with
          such contest and shall indemnify and hold Executive harmless, on an after-tax
          basis, for and against for any Parachute Tax or income tax or other tax
          (including interest and penalties with respect thereto) imposed as a result
          of
          such representation and payment of costs and expenses. 

      

       

      (g)  The
        Company shall
        direct Executive with regard to all proceedings taken in connection with
        such
        contest and, at its sole option, may pursue or forgo any and all administrative
        appeals, proceedings, hearings and conferences with the taxing authority
        in
        respect of such claim and may, at its sole option, either direct Executive
        to
        pay the tax claimed and sue for a refund or contest the claim in any permissible
        manner and Executive agrees to prosecute such contest to a determination
        before
        any administrative tribunal, in a court of initial jurisdiction and in one
        or
        more appellate courts, as the Company shall determine; provided, however,
        that
        if the Company directs Executive to pay such claim and sue for a refund,
        the
        Company shall advance the amount of such payment to Executive on an
        interest-free basis (to the extent permitted by applicable law), and shall
        indemnify and hold Executive harmless, on an after tax basis, from any Parachute
        Tax or Deferred Compensation Tax (or other tax including interest and penalties
        with respect thereto) imposed with respect to such advance or with respect
        to
        any imputed income with respect to such advance; and provided, further, that
        if
        Executive is required to extend the statue of limitations to enable the Company
        to contest such claim, Executive may limit this extension solely to such
        contested amount. The Company’s right to direct Executive with regard to the
        contest shall be limited to issues with respect to whether and the extent
        to
        which a payment or benefit is an “excess parachute payment” pursuant to Code
        Section 280G(b)(1), the imposition of the Parachute Tax under Code Section
        4999
        and the imposition of the Deferred Compensation Tax under Code Section 409A,
        and
        Executive shall be entitled to settle or contest, as the case may be, any
        other
        issue raised by the Internal Revenue Service or any other taxing authority.
        In
        addition, the Company shall not direct Executive to take a position or agree
        to
        any final resolution if such position or resolution could reasonably be expected
        to adversely affect Executive unrelated to matters covered hereto, unless
        Executive consents in writing to such position or agreement.

       

      (h)  If,
        after the
        receipt by Executive of an amount advanced by the Company in connection with
        the
        contest of the Parachute Tax or Deferred Compensation Tax claim, Executive
        receives any refund with respect to such claim, Executive shall promptly
        pay to
        the Company the amount of such refund (together with any interest paid or
        credited thereon after taxes applicable thereto); provided, however, if the
        amount of that refund exceeds the amount advanced by the Company Executive
        may
        retain such excess. If, after the receipt by Executive of an amount advanced
        by
        the Company in connection with a Parachute Tax or Deferred Compensation Tax
        claim, a determination is made that Executive shall not be entitled to any
        refund with respect to such claim and the Company does not notify Executive
        in
        writing of its intent to direct Executive to contest the denial of such refund
        prior to the expiration of 30 days after such determination such advance
        shall
        be deemed to be in consideration for services rendered after the Termination
        Date.

       

      
        
          
          

        

        
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      6.  Effect
        on Employment Agreement.
        Executive and the
        Company agree that: (i) Section 4 of this Agreement expressly amends the
        Employment Agreement and the timing of the severance payments to be made
        pursuant to Section 6.1 of the Employment Agreement; and (ii) the definition
        of
        Change in Control in the Employment Agreement is of no further force and
        effect.

       

      7.  Confidentiality.
        Executive agrees
        that, without the prior written consent of the Chairman of the Board of
        Directors of the Company or except as required by law, Executive will not
        disclose to any person the existence or contents of this Agreement or that
        discussions or negotiations are taking place concerning a possible merger,
        sale
        or similar transaction between the Company and a third party or any of the
        terms, conditions or other facts with respect to any such possible transaction,
        including the status thereof.

       

      8.  Successors
        and
        Binding Agreement. 

       

      (a)  The
        Company will require any successor (whether direct or indirect, by purchase,
        merger, consolidation, reorganization or otherwise, including, without
        limitation, any successor due to a Change in Control) to the business or
        assets
        of the Company, by agreement in form and substance reasonably satisfactory
        to
        the Executive, expressly assume and agree to perform this Agreement in the
        same
        manner and to the same extent the Company would be required to perform if
        no
        such succession had taken place. This Agreement will be binding upon and
        inure
        to the benefit of the Company and any successor to the Company, including,
        without limitation, any person directly or indirectly acquiring the business
        or
        assets of the Company in a transaction constituting a Change in Control (and
        such successor shall thereafter be deemed the “Company” for the purpose of this
        Agreement), but will not otherwise be assignable, transferable or delegable
        by
        the Company.

       

      (b)  This
        Agreement will inure to the benefit of and be enforceable by the Executive’s
        personal or legal representatives, executors, administrators, successors,
        heirs,
        distributees and legatees, but will not otherwise be assignable, transferable
        or
        delegable by Executive.

       

      9.  Validity.
        If any provision
        of this Agreement or the application of any provision hereof to any person
        or
        circumstances is held invalid, unenforceable or otherwise illegal, the remainder
        of this Agreement and the application of such provision to any other person
        or
        circumstances will not be affected, and the provision so held to be invalid,
        unenforceable or otherwise illegal will be reformed to the extent (and only
        to
        the extent) necessary to make it enforceable, valid or legal.

       

      10.  Governing
        Law;
        Jurisdiction.
        The laws of the
        state of Utah shall govern the interpretation, validity and performance of
        the
        terms of this Agreement, regardless of the law that might be applied under
        principles of conflicts of law. Any suit, action or proceeding against
        Executive, with respect to this Agreement, or any judgment entered by any
        court
        in respect of any of such, may be brought in any court of competent jurisdiction
        in the State of Utah, and Executive hereby submits to the jurisdiction of
        such
        courts for the purpose of any such suit, action, proceeding or
        judgment.

       

      11.  Notices.
        Any notices or
        communications given by any party hereto to the other party shall be in writing
        and personally delivered or mailed by registered or certified mail, return
        receipt requested, postage prepaid. Notices shall be addressed to the parties
        at
        the addresses set forth above. Notices shall be deemed given when received.
        Either party may designate in writing, by notice to the others, such other
        address to which notices to such party shall thereafter be sent.

       

      
        
          
          

        

        
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            7 -

          
            

          

        

        
          
          

        

      

       

       

      12.  Further
        Assurances.
        Each party agrees
        at any time, and from time-to-time, to execute, acknowledge, deliver and
        perform, and/or cause to be executed, acknowledged, delivered and performed,
        all
        such further acts, deeds assignments, transfers, conveyances, powers of attorney
        and/or assurances as may be necessary, and/or proper to carry out the provisions
        and/or intent of this Agreement.

       

      13.  Amendment;
        Waiver; Entire Agreement.
        No provision of
        this Agreement may be modified, waived or discharged unless such waiver,
        modification or discharge is agreed to in writing signed by the Executive
        and
        the Company. No waiver by either party hereto at any time of any breach by
        the
        other party hereto or compliance with any condition or provision of this
        Agreement to be performed by such other party will be deemed a waiver of
        similar
        or dissimilar provisions or conditions at the same or at any prior or subsequent
        time. This Agreement and the Employment Agreement (to the extent not modified
        hereby) constitute the entire agreement of the parties with respect to the
        subject matter hereof and supersedes any and all prior agreements of the
        parties
        with respect to such subject matter.

       

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

       

      IN
        WITNESS WHEREOF,
        the parties have caused this Agreement to be duly executed and delivered
        on the
        date set forth below.

       

       

       

                                                              
SCHIFF
        NUTRITION
        GROUP, INC.

       

       

      
         

        
          	
                   

                  By:

                	
                   

                
	 	
                
	
                  Title:

                	
                   

                
	 	
                
	
                  Date:

                	 
	 	
                

        

        
           

           

                                    
EXECUTIVE

           

           

           

          
            	 	 
	 	 
	
                    Date:

                  	 
	
                     

                     

                  	
                  

          

        

         
                             

      
        
          
          

        

        
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