Document:

Exhibit 10.2

 Exhibit 10.2 
 MASTER EQUIPMENT LEASE AGREEMENT 
  

							
	 	  	LESSOR:	  	Relational, LLC	  	 
		  	ADDRESS:	  	3701 Algonquin Road, Suite 600	  	
		  		  	Rolling Meadows, IL 60008	  	Tel: (847) 818-1700
			
		  	LESSEE:	  	ITC^DeltaCom, Inc., a Delaware Corporation and DeltaCom, Inc., an Alabama Corporation, as Co-Lessees, Jointly and Severally
				
	DATE: October 23, 2006	  	ADDRESS:	  	7037 Old Madison Pike	  	
		  		  	Huntsville, AL 35806	  	

 Lessee agrees to lease from Lessor the Equipment described in each related Schedule which is executed pursuant
hereto. Each Schedule together with this Master Equipment Lease Agreement (“Master Lease”) will constitute a separate lease for the Equipment subject thereto. In the event of any conflict between the Master Lease and any Schedule,
the terms of the Schedule will control. 
 SECTION 1. DEFINITIONS. 
 “Affiliate” means Lessee’s parent, or an entity in which Lessee or its parent own a controlling interest including, without limitation, all present affiliates of Lessee listed in Exhibit A
hereto, if applicable. 
 “Base Rent” means the periodic basic rent due as set forth on a Schedule, or, where lease rate factors are
shown on a Schedule, the periodic basic rent due will be the product of the Equipment cost and the applicable lease rate factor. 
 “Base
Term” means the full number of consecutive calendar months set forth on the Schedule commencing on the Base Term Date (except that all references herein to month(s) or monthly will be deemed to mean quarter(s) or quarterly if the
Schedule specifies that Base Rent is paid quarterly). 
 “Base Term Date” means the first day of the first full calendar month
following the Date of Acceptance for all Units of Equipment to be leased under a Schedule. 
 “Casualty Value” will be determined for
each Unit of Equipment by multiplying the percentage stated opposite the month of the Base Term by the Equipment cost as stated in the applicable Certificate of Acceptance, interpolating values if necessary, as set forth in the Casualty Value table
included with each Schedule. 
 “Certificate of Acceptance” means an executed certificate signed by an authorized signatory of Lessee
confirming the Date of Acceptance. 
 “Date of Acceptance” means the date of acceptance of a Unit of Equipment by Lessee or such
other date if specified on the Schedule. 
 “Equipment” means the property and other Soft Costs described on a Schedule, including
without limitation, replacements, additions, attachments, wiring, software, and accessories incorporated therein. 
 “Event of
Default” means the occurrence of an event described in Section 10 hereof. 
 “Event of Loss” means the irreparable
loss, damage, destruction, or theft to a Unit of Equipment or other event which renders a Unit of Equipment unfit or unavailable for use for any reason. 
 “Guarantor” means a parent company, affiliate or other entity or person who has furnished a guaranty of Lessee’s obligations under the Master Lease. 
 “Impositions” means all taxes, fees, expenses and similar charges, including fees associated with the recycling of the Equipment, or other environmental or similar provisions issued by a
governmental entity, which are assessed, imposed, incurred, or payable from the sale, staging, delivery, return, or disposal of the Equipment, excepting only taxes measured solely by the net income of Lessor or any franchise tax upon Lessor measured
by Lessor’s capital, capital stock or net worth. 
 “Lessor’s Assignee” means an entity to whom Lessor has assigned or sold
its right, title or interest in the Equipment, the Master Lease or a Schedule. 
 “Manufacturer” means the original equipment
manufacturer or other vendor of the Equipment. 
 “Overdue Rate” means the lesser of one and one-half percent (1.5%) per month
or the maximum rate permitted by law. 
 “Schedule” means an equipment schedule which incorporates all of the terms and conditions of
this Master Lease. 
 “Soft Costs” means non-tangible equipment costs, including without limitation, finance costs, freight,
Impositions, in-transit insurance, installation, deinstallation, maintenance, and software license fees. 
 “UCC” means the Uniform
Commercial Code as adopted in the state referred to in Section 15(D). 
 “Unit” means an individual item of Equipment.

 SECTION 2. QUIET ENJOYMENT; ASSIGNMENT OF WARRANTIES; AFFILIATE USE. Provided that no Event of Default has occurred and is continuing, Lessee will
enjoy quiet possession and use of the Equipment without interference by Lessor or Lessor’s Assignee. To the extent assignable, Lessor hereby assigns to Lessee all warranty rights which Lessor may have received from the Manufacturer of the
Equipment, and Lessor will reasonably cooperate with Lessee in the enforcement of such warranties by Lessee. Any Affiliate may enter into a Schedule hereto, and the above-named Lessee will be jointly and severally responsible with the Affiliate for
the obligations thereunder. Such Affiliate will be considered an additional Lessee for the purposes of such Schedule. 
 SECTION 3. TERM. On the Date
of Acceptance, Lessee will be bound to its obligations for each Unit of Equipment. Each Schedule will continue through the Base Term and thereafter until terminated by either party upon at least ninety (90) days prior written notice to the
other party, which notice may not be withdrawn without the consent of the other party. Lessor may from time to time order Equipment directly from the Manufacturer on behalf of Lessee. In such event, if the Manufacturer requires payment earlier than
Lessee’s execution and delivery of the required lease documentation, including, without limitation, the Schedule and Certificate of Acceptance, Lessor will submit such payment to the Manufacturer provided that Lessee agrees to pay interest on
such payment at the Overdue Rate prorated on a per diem basis from the date Lessor is required to advance payment until the Date of Acceptance or other applicable date upon which Base Rent will first become due. If all required lease documentation
is not executed by Lessee and delivered to Lessor within twenty-one (21) days after the earlier of the delivery of the Equipment or the advancement of funds by Lessor or such later date as the parties may agree in writing, Lessee will promptly
upon request repay Lessor any amounts advanced by Lessor to the Manufacturer, together with the accrued per diem interest from the date of payment by Lessor until the date of Lessee’s repayment, and the Schedule will be canceled. 
 SECTION 4. RENT; TAXES. The Base Rent for the Equipment will commence on the Base Term Date and will be due and payable without notice or demand at Lessor’s
address set forth above, or such other 

 
address as Lessor may designate in writing, and on the same day of each month until the Equipment is returned or purchased by Lessee as provided herein. In
addition to Base Rent, Lessee will pay one-thirtieth (1/30) of the Base Rent (or one-ninetieth (1/90) of the Base Rent if paid quarterly) as additional pro rata rent from the Date of Acceptance until the Base Term Date payable on the Base
Term Date. Lessor will report and remit to the appropriate taxing authority, and Lessee agrees to reimburse Lessor for, all Impositions. If Lessor pays any Impositions, Lessee will reimburse Lessor upon receipt of Lessor’s invoice for any such
payment and any expenses incurred in the preparation and filing of any tax returns relating to such Impositions. Lessee’s obligation to pay all amounts due and to become due under any Schedule will be absolute and unconditional and will not be
subject to any abatement, reduction, defense, counterclaim, set-off, or recoupment, including without limitation, any present or future claim against Lessor, Manufacturer, or any other person or entity for any cause whatsoever. In furtherance of the
foregoing, Lessee agrees that each Schedule constitutes a “finance lease” solely for the purposes of Article 2A of the UCC, and waives any other law, present or future, which permits Lessee to suspend or reduce payment. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, LESSEE HEREBY WAIVES ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE BY SECTIONS 2A-401 AND 2A-402, AND SECTIONS 2A-508 THROUGH 2A-522 OF THE UCC, PROVIDED HOWEVER, THAT THE FOREGOING WAIVER WILL IN NO EVENT
IMPAIR OR DIMINISH ANY RIGHT OR REMEDY OTHERWISE CONFERRED UPON LESSEE HEREUNDER. Lessee hereby reserves, and Lessor will remain fully responsible for, all available money damages consistent herewith arising from a default of Lessor’s
obligations hereunder, which Lessee will pursue in an independent action brought within two (2) years after the cause of action first accrued. Any payment of Base Rent or other amount due under a Schedule which is not paid when due will accrue
interest at the Overdue Rate. 
 SECTION 5. USE. Lessee will not, without the prior written consent of Lessor: (i) use the Equipment contrary to
applicable law or regulation; (ii) remove a Unit from the location designated on the Schedule except if such Unit primarily functions as portable, provided such Unit will not be removed from the continental United States; or (iii) permit
any alteration, addition to, or lien or claim upon the Equipment other than the Manufacturer’s approved engineering changes, which Lessee will permit the prompt installation thereof. Lessee will, at its expense, maintain the Equipment under a
standard maintenance contract with the Manufacturer (or other entity authorized by Lessor) and in good working order and appearance in accordance with the Manufacturer’s specifications and anticipated use of the Equipment. Upon request, Lessee
will grant Lessor, Lessor’s Assignee or their agents, access to the Equipment and all records relating to the use and maintenance thereof, during normal business hours and subject to Lessee’s reasonable security requirements. In the event
Lessee purchases any Unit, Lessor will assign to Lessee any rights it may have in the software contained therein, except that such transaction will not be construed as a sale of such software; conversely, if Units are returned to Lessor, Lessee will
so assign to, or replace for Lessor, any rights in any unexpired warranty, maintenance or software. Lessee will pay all costs related to delivery of the Equipment to and from Lessee. Soft Costs will be included in the Base Rent at the request of
Lessee if such Soft Costs are included in the purchase price from the Manufacturer. 
 SECTION 6. LOSS; INSURANCE. Effective upon delivery and
continuing until the Equipment is returned or purchased, Lessee assumes the risk and will be responsible for any Event of Loss with respect to any Unit of the Equipment. Lessee will provide Lessor with written notice of the occurrence of an Event of
Loss within fifteen (15) days following such occurrence. The Schedule will continue in full force and effect without abatement of Base Rent and Lessee will ascertain from the Manufacturer whether such Unit can be repaired, and if so, cause such
Unit to be promptly repaired. If the Event of Loss involves loss beyond repair or confiscation by governmental activity, Lessee will promptly pay to Lessor the Casualty Value attributable to such Unit, including all other amounts then due and
payable by Lessee to Lessor pertaining to such Unit (including, without limitation, unbilled property taxes, if any) whereupon Lessee’s obligation to pay further Base Rent for such Unit will cease. Lessee will, at its sole expense, cause the
Equipment to be insured against all risks of loss or damage for not less than the Casualty Value, and will carry comprehensive general liability insurance in amounts of not less than $1,000,000.00 per occurrence, covering the Lessee, the Equipment
and its use. After the date of shipment of the Equipment, Lessee will cause Lessor to be promptly provided with a certificate of insurance, in a form reasonably acceptable to Lessor. All policies for such insurance will name Lessor and Lessor’s
Assignee as loss payees and additional insureds as their interest may appear, and will provide Lessor with not less than thirty (30) days prior written notice of cancellation or material alteration. The proceeds of such insurance will be
applied to the replacement or repair of the Equipment, or to payment of the Casualty Value, as the case may be. Lessee hereby appoints Lessor as Lessee’s attorney-in-fact to make claims for, receive payments of, and execute and endorse all
documents, checks or drafts for, loss or damage under any such insurance coverage. 
 SECTION 7. RETURN. The Equipment will be deemed to have been
returned when Lessee will have (i) given the advance written notice specified in Section 3 hereof, (ii) deinstalled, inspected and properly packed each Unit in accordance with the Manufacturer’s recommendations and any return
instructions generally furnished by Lessor, and (iii) delivered all Units to Lessor together with all documentation, accessories and peripherals, in the same good operating condition, repair and appearance as when accepted, ordinary wear and
tear excepted, and certified eligible for the Manufacturer’s maintenance. Lessee will return each Unit at such location as Lessor will designate within the continental U.S. or Ontario, Canada. In the case of Equipment returned to Ontario,
Canada, Lessor will be responsible for all cross-border charges. 
 SECTION 8. TITLE. Title to the Equipment will remain in, and a security interest
therein is hereby granted to, Lessor or Lessor’s Assignee exclusively. All accessions, substitutions, replacement parts and additions (including, without limitation, all feature additions or model changes, as those terms are defined by the
Manufacturer) which are incorporated in or affixed to the Equipment will be the personal property of Lessor. Title to any software attached to the Equipment will remain with the applicable licensor(s). Lessee will not acquire any rights to any such
software except to the extent Lessee acquires the right to use the software as an end-user. It is Lessee’s responsibility to obtain any required license from the licensor. Lessee will immediately notify Lessor of any pending or threatened claim
of, and at Lessee’s expense protect and defend Lessor’s good and marketable title to the Equipment against all persons or entities claiming against or through Lessee, and will keep the Equipment free from any claim, legal process or
encumbrance whatsoever, except those placed thereon by or through Lessor or Lessor’s Assignee, or the inchoate claims of repairmen for payment not yet due. Lessee hereby (i) authorizes the filing of UCC financing statements specific to the
Equipment, (ii) warrants that the Equipment at all times remains personal property and not a fixture, (iii) agrees to permit Lessor or Lessor’s Assignee to affix ownership labels and/or identification marks to the Equipment,
(iv) agrees to furnish audited annual and certified interim financial statements, and other material financial information as Lessor deems reasonably necessary, and (v) agrees to furnish such further documents and information as Lessor may
require to protect or perfect its interests, or that of the Lessor’s Assignee, including certificates of incumbency and authority. 
 SECTION 9.
DISCLAIMER. LESSOR MAKES NO WARRANTIES, GUARANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, OF ANY KIND WITH RESPECT TO THE EQUIPMENT INCLUDING, WITHOUT LIMITATION, THE MERCHANTABILITY, VALUE, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, COMPLIANCE
WITH ANY APPLICABLE LAW, RULE, PATENT OR TRADEMARK, OR TREATMENT OF ANY SCHEDULE FOR TAX OR ACCOUNTING PURPOSES, AND LESSEE WAIVES ANY REQUIRED NOTICE OF MONTH-TO-MONTH RENEWAL RENTS. Lessee has selected the Equipment, including its size and
design, and disclaims any reliance upon statements made by Lessor. Lessor will in no event be responsible or liable for any damages, including without limitation, indirect, special, incidental or consequential damages or lost profits, resulting from
or relating to any Schedule or the Equipment. 
 SECTION 10. DEFAULT. The occurrence of any one of the following will constitute an Event of Default
under a Schedule: (A) Lessee fails to pay Base Rent or other amounts due within five (5) days after the date upon 

 
which such amounts are due; (B) any information, representation, warranty or financial statement is false or misleading in any material manner as
of the date it was given to Lessor; (C) Lessee fails to perform in any material manner any term, condition, covenant or obligation set forth in the Master Lease or any Schedule and such failure continues for a period of ten
(10) days after written notice thereof is given to Lessee; (D) Lessee ceases doing business as a going concern or merges with, or a substantial portion of Lessee’s assets are acquired by any other entity whose financial
condition is less than that of Lessee, as determined by Lessor, or which entity, if acceptable to Lessor, fails to fully assume Lessee’s obligations in a form acceptable to Lessor; (E) Lessee or one of its partners takes any act of
dissolution or liquidation; (F) Lessee fails to timely replace, at least thirty (30) days prior to its expiration, any applicable letter of credit or other collateral furnished in connection with any Schedule; (G) Lessee
(i) admits in writing its inability or unwillingness or fails to pay its debts as they become due, (ii) makes an assignment for the benefit of creditors, or (iii) applies for or acquiesces in the appointment of any receiver, trustee
or other custodian for it or any substantial part of its property, and such appointment continues undischarged for a period of sixty (60) days; (H) any bankruptcy, reorganization, or other proceeding under any bankruptcy or similar
law, dissolution or liquidation proceeding is commenced in respect of Lessee and remains undismissed for more than sixty (60) days; (I) the occurrence of a material adverse change in the financial condition or general
creditworthiness of Lessee or Guarantor or withdrawal of any Guarantor; (J) an Event of Default by Lessee under any other Schedule; or (K) if Lessee or Guarantor is a natural person, the death of such person. If there is a
Guarantor, Subsections (D) through (K) will apply to the Guarantor and a default thereunder by Guarantor will additionally constitute an Event of Default of Lessee. 
 SECTION 11. REMEDIES. Upon the occurrence of an Event of Default, Lessor may at its option, do any or all of the following: (A) declare immediately due and payable, as liquidated damages for loss of
the bargain and not as a penalty, an amount equal to the Casualty Value set forth in the related Schedule, which amount together with all accrued and unpaid payments of Base Rent and any other sums due and payable up to and including the date on
which Lessor receives the total of such amount, will be immediately payable by Lessee; (B) terminate the Schedule in default and take possession of any or all Units without any liability to any party for any damage, loss, cause of action
or claim and, for this purpose, enter upon any premises where any Unit is located; (C) require Lessee to deliver any or all Units to Lessor in accordance with the return provisions hereof; (D) sell, dispose of, hold, use or
re-lease any Unit as Lessor, in its sole discretion may determine by public or private disposition; or (E) proceed by appropriate court action at law or in equity to enforce performance or to recover damages from Lessee for any breach
hereof. Upon any sale, re-lease or other disposition of any Unit, Lessor will apply to Lessee’s obligations under the defaulted Schedule the amounts received. Lessor will only be obligated to apply the proceeds of any letter of credit furnished
hereunder to the amount set forth in Subsection (A) above. The foregoing remedies in this Section and in Sections 6 and 7 are not intended to be exclusive, but each will be cumulative and in addition to any other remedy referred to above or
otherwise available to Lessor at law or in equity. If Lessor is required to enforce its remedies, Lessee will be liable for the deficiency balance payable under a defaulted Schedule, together with all costs, expenses, losses, and damages, including
without limitation, all actual court costs, attorneys’ fees and expenses incurred by Lessor, Lessor’s Assignee or any other party in enforcing the terms and conditions of any Schedule or Lessor’s interests, or the priority thereof, in
any Schedule or the Equipment. 
 SECTION 12. ASSIGNMENT. Without consent of Lessee, Lessor may assign or sell its interests in the Master Lease, a
Schedule or the Equipment to Lessor’s Assignee. Upon Lessor’s request, Lessee will acknowledge such assignment in a form customarily received by Lessor’s Assignee and thereafter pay all Base Rent and other amounts due to Lessor’s
Assignee unconditionally as provided in this Master Lease. Lessee will not permit the Schedule so assigned to be amended or any of the terms or conditions thereof waived without the prior written consent of Lessor’s Assignee, and Lessee will
not require Lessor’s Assignee to perform any obligation of Lessor under such Schedule. Any Lessor’s Assignee may reassign its rights and interests. Lessor will not be relieved of any of its obligations hereunder by any assignment unless
expressly assumed by Lessor’s Assignee and consented to by Lessee. Lessee will not assign its interests without Lessor’s prior written consent, which will not be unreasonably withheld, and in no event will Lessee be relieved of its
obligations hereunder or under a Schedule. 
 SECTION 13. INDEMNITY. Lessee will indemnify and defend Lessor, and Lessor’s Assignee, against any
and all claims, liabilities, losses or damages (whether direct, indirect, special, incidental or consequential) including all court costs and reasonable attorneys’ fees, arising in connection with any Unit or any Schedule, including without
limitation, the ownership, selection, purchase, delivery, possession, use, operation, maintenance, leasing and return of the Equipment, or acts of Lessee in failing to maintain the Equipment in good repair, or any patent, trademark or copyright
infringement. 
 SECTION 14. LESSEE’S REPRESENTATIONS. Lessee represents and warrants to Lessor that (A) the execution and
performance of this Master Lease and each Schedule hereto have been and will be duly authorized by Lessee and constitute an enforceable obligation against Lessee in accordance with its terms, subject to applicable bankruptcy or similar laws;
(B) the Master Lease and each Schedule constitute legal, valid and binding agreements of the Lessee enforceable in accordance with their terms; (C) Lessee is duly organized and in good standing under the laws of its
jurisdiction of organization and is and will continue to be duly qualified to do business and in good standing in any jurisdiction where any of the Equipment will be located; and (D) to the best of Lessee’s knowledge, there are no
suits, actions or proceedings pending before any court, agency, or other tribunal, which, if determined adversely to Lessee, would materially affect Lessee’s ability to perform its obligations hereunder. 
 SECTION 15. MISCELLANEOUS. (A) Lessee will promptly deliver to Lessor any such additional instruments, information or assurances as Lessor or Lessor’s
Assignee may reasonably request concerning Lessee in order to enable Lessor to determine whether the covenants, terms and provisions of any Schedule have been complied with by Lessee, and to confirm and perfect this Master Lease and Lessor’s
rights hereunder. (B) Any notice or other communication relating to a Schedule will be in writing and delivered by any mode which requires the recipient to acknowledge receipt thereof by signature, and will be deemed to have been given
upon receipt at the party’s address above. (C) All representations, warranties, indemnities and covenants contained in this Master Lease will survive in full force and effect notwithstanding termination of Lessee’s right of
possession. (D) This Master Lease and each Schedule will be governed by, and construed in accordance with, the internal laws of the State of Illinois without regard to its conflict of laws principles and regardless of the location of the
Equipment. Any action or proceeding arising out of or relating to any Schedule will be commenced exclusively in any state or federal court of competent jurisdiction located in Illinois and the parties consent to personal jurisdiction therein and to
service by certified mail. THE PARTIES HERETO WAIVE THE RIGHT TO TRIAL BY JURY TO THE EXTENT SUCH RIGHT MAY BE WAIVED. (E) Where multiple Lessees have executed a Schedule or this Master Lease, their liability thereunder will be joint and
several. (F) No negotiation or other process of the parties toward the purchase of the Equipment by Lessee on or after the expiration of the Base Term will have the effect of terminating any Schedule in any manner. (G) This
Master Lease will be binding upon and inure to the benefit of the parties hereto and their respective successors, representatives and assigns. (H) This Master Lease and each Schedule may be executed in numbered counterparts, each
counterpart constituting an original but all together one and the same instrument and contract. Only Counterpart No. 1 of each Schedule, together with a photocopy of this Master Lease, will constitute “chattel paper” under the UCC and
no security interest in any Schedule may be created through the transfer of possession of any counterpart other than Counterpart No. 1. (I) Any provision of this Master Lease or any Schedule prohibited by, or unlawful or
unenforceable under, any applicable law of any jurisdiction will be ineffective as to such jurisdiction to the extent of such prohibition, without invalidating the remaining provisions hereof or thereof. (J) This Master Lease and
applicable Schedule constitute the entire agreement between Lessor and Lessee with respect to the subject Equipment, supersede any other oral or written agreement, and may be amended only by a writing signed by the parties. (K) Lessor
may insert into a Schedule at any time serial numbers for the Equipment if and when available from the 

 
Manufacturer. (L) Time is of the essence and Lessor’s failure or delay at any time to require strict performance by Lessee will not diminish
or waive Lessor’s right to demand strict compliance therewith or with any other provision. (M) The waiver of any default will not waive any other contemporaneous or subsequent default. 
 IN WITNESS WHEREOF, the parties hereto have executed this Master Lease on or as of the day and year first written above. 
  

									
	LESSOR:	 	 	 	CO-LESSEE:
	RELATIONAL, LLC	 		 	ITC^DeltaCom, Inc.
					
	BY:	 	 /s/ Michael J. Ross
	 		 	BY:	 	 /s/ Richard E. Fish, Jr.

	NAME:	 	Michael J. Ross	 		 	NAME:	 	Richard E. Fish, Jr.
	TITLE:	 	Senior Vice President	 		 	TITLE:	 	Chief Financial Officer
				
		 		 		 	CO-LESSEE:
		 		 		 	DeltaCom, Inc.
					
		 		 		 	BY:	 	 /s/ Richard E. Fish, Jr.

		 		 		 	NAME:	 	Richard E. Fish, Jr.
		 		 		 	TITLE:	 	Chief Financial Officer

 Amendment No. 001 
 dated as of October 23, 2006 
 to the Master Equipment Lease Agreement 
 dated as of October 23, 2006 (the “Agreement”) 
 between 
 ITC^DeltaCom, Inc. and DeltaCom, Inc., as Co-Lessees (“Lessee”) 

and Relational, LLC (“Lessor”) 
 The terms
and conditions of this Amendment shall be incorporated into the Agreement and supersedes the Agreement to the extent expressly provided herein. Each capitalized term used herein and not otherwise defined shall have the same meaning attributed to it
in the Agreement. 
 The terms and conditions of the following sections of the Agreement are hereby modified: 
 Section 1. Definitions: 
  

	 	1.	Add the following Definition under Section 1: 

 “Co-Lessees”: For purposes of the Master Equipment Lease Agreement, any related Schedules and associated documents, ITC^DeltaCom, Inc. and DeltaCom, Inc. as Co-Lessees agree that each will be jointly and severally
liable for the performance of all obligations and bound to all terms and conditions as Lessee which will include but not be limited to the payment of Base Rent, Additional Rent, and any other amounts which are now due or will become due and payable
pursuant to the terms hereof. For purposes hereof, the term “Lessee” wherever it appears will refer to a Co-Lessee individually or collectively as the case may be. The Co-Lessees further agree that any authorized signature of any Co-Lessee
is authorized to bind all Co-Lessees with respect to the Master Equipment Lease Agreement, any Schedule and any associated documents. Any notice required under the Master Equipment Lease Agreement or a Schedule which is received by Lessor from any
Lessee as a Co-Lessee will be deemed to have been received by all Co-Lessees.” 
  

	 	2.	In the definition of Schedule, after the word “Schedule”, insert the following: 

 “, which may also be known as “Leaseline Schedule”,” 
 Section 3. Term: 
  

	 	1.	In line six, after the word “Lessee”, insert “, subject to Lessee’s written directive which may be provided via e-mail to Lessor.” 

Section 4. Rent; Taxes: 
  

	 	1.	Delete the third and fourth sentence and replace with the following: 

 “Lessee will report and remit to the appropriate taxing authority, and agrees to provide Lessor yearly property tax filings and proof of tax payments reasonably acceptable to Lessor. Lessee agrees to indemnify
Lessor for all Impositions. If Lessor pays any Impositions, Lessee will reimburse Lessor upon receipt of Lessor’s invoice for any such payment and any expenses incurred relating to such Impositions.” 

 Section 5. Use: 
  

	 	1.	In line eight, after the word “thereof”, insert the following: 

 “, it being understood and agreed that if such installation is at no cost to Lessee, Lessee must install the engineering changes. Should the engineering changes require an installation cost, Lessor have shall
have the option to pay for the installation of such engineering changes.” 
  

	 	2.	In line eight, before the word “Lessee”, delete the following: 

 “Lessee will, at its expense, maintain the Equipment under a standard maintenance contract with the Manufacturer (or other entity authorized by Lessor) and in good working order and appearance in accordance with
the Manufacturer’s specifications and anticipated use of the Equipment.” and replace with; 
 “Notwithstanding anything
contained in Section 7., Lessee at its option and at its expense, will maintain the Equipment in good working order and appearance in accordance with the Manufacturer’s specifications and anticipated use of the Equipment.” 

Section 6. Insurance: 
  

	 	1.	In line fifteen, after the word “insured”, insert the following: 

 “,with a deductible of no more than $500,000.00,” 
 Section 7. Return:

  

	 	1.	In line nine, after the word “maintenance”, insert the following: 

 “, it being understood and agreed that the requirement for such certification shall not imply an obligation by Lessee to go to unreasonable cost to insure the availability thereof or to require Lessee necessarily
to procure the most recent additions to or upgrades of the Equipment.” 
  

	 	2.	Insert the following at the end of this Section: 

 “Notwithstanding the foregoing and pursuant to the terms of this Section 7., Lessee will have the right, upon ninety (90) days prior notice to Lessor, to return substitute equipment in lieu of the Equipment provided that the
substituted Equipment was installed and operating in Lessee’s facility at the time of substitution. “Substitute Equipment” will mean any Unit from the same manufacturer with an age, value, function and capacity equivalent or better
than the Equipment for which the substitution is made. In the event Lessee exercises this right, (i) Lessee agrees to cause good title to the Substitute Equipment to be transferred to Lessor free and clear of any liens or encumbrances, and
(ii) Lessor agrees to cause good title to the original Equipment to be transferred to Lessee free and clear of any liens or encumbrances. Each party agrees to execute any document reasonably requested to evidence the foregoing. Lessee will not
be responsible for the return of any original equipment boxes, manuals or CDs.” 

 Section 8. Title:  
  

	 	1.	Delete subsection (iv) and replace with the following: 

 “(iv) agrees to furnish audited annual and interim financial statements in the form filed with the US Securities and Exchange Commission, and” 
  

	 	2.	In subsection (v), after the word “may”, insert the word “reasonably”. 

 Section 10. Default: 
  

	 	1.	In line four, after the word “due”, insert the following: 

 “and such failure continues for a period of ten (10) days after written notice thereof is given to Lessee” 
  

	 	2.	In line nine, delete subsection (D) in its entirety and replace with the following: 

 “(D) Lessee ceases doing business as a going concern or merges with (unless such merger results in a surviving company of equal or better credit than Lessee), or a substantial portion of Lessee’s assets are
acquired by any other entity whose financial condition is less than that of Lessee, as reasonably determined by Lessor in consultation with Lessee, or which entity, if acceptable to Lessor, fails to fully assume Lessee’s obligations in a form
reasonably acceptable to Lessor;” 
  

	 	3.	Delete subsection (I) in its entirety. 

 Section 11. Remedies: 
  

	 	1.	In line twenty-four, after the word “the” delete “deficiency balance” and insert “amount”. 

 Section 12. Assignment: 
  

	 	1.	Delete the first sentence and replace with the following: 

 “With the consent of Lessee, which will not be unreasonably withheld, Lessor may assign or sell its interests in the Master Lease, a Schedule or the Equipment to Lessor’s Assignee.” 
 Section 13. Indemnity: 
  

	 	1.	In line one, before the word “Lessee”, insert the following: 

 “Save and except for the negligence or malfeasance of Lessor” 
  

	 	2.	In line two, after the word “damages”, delete the following: 

 “(Whether direct, indirect, special, incidental or consequential)” 
  

	 	3.	In line nine, after the word “infringement”, insert the following: 

 “Lessee, however will in no event be responsible or liable for any indirect, special or consequential damages or lost profits relating to any Schedule or the Equipment subject to the terms of this Section.”

 Section 15. Miscellaneous: 
  

	 	1.	In line four of subsection (D) after the word “Equipment”, delete the following: 

 “Any action or proceeding arising out of or relating to any Schedule will be commenced exclusively in any state or federal court of competent
jurisdiction located in Illinois and the parties consent to personal jurisdiction therein and to service by certified mail.” 
 Except as amended
hereby, the terms and conditions of the Agreement shall remain in full force and effect. 
 IN WITNESS WHEREOF, the parties have caused this Amendment
to be executed by their authorized representatives as of the date and year set forth below. 
 ACCEPTED AND AGREED TO: 
  

									
	Relational, LLC	 		  	ITC^DeltaCom, Inc.
	Lessor	 		  	Co-Lessee
					
	By:	 	 /s/ Michael J. Ross
	 		  	By:	 	 /s/ Richard E. Fish, Jr.

	Printed Name:	 	Michael J. Ross	 		  	Printed Name:	 	Richard E. Fish, Jr.
	Title:	 	Senior Vice President	 		  	Title:	 	Chief Financial Officer
	Date:	 	February 1, 2007	 		  	Date:	 	February 1, 2007
				
		 		 		  	DeltaCom, Inc.
		 		 		  	Co-Lessee
					
		 		 		  	By:	 	 /s/ Richard E. Fish, Jr.

		 		 		  	Printed Name:	 	Richard E. Fish, Jr.
		 		 		  	Title:	 	Chief Financial Officer
		 		 		  	Date:	 	February 1, 2007Supply Agreement between Mannatech and Marinova (Int'l) Limited

 Exhibit 10.3 
  

	***	Indicates omitted material that is the subject to a confidential treatment request filed separately with the United States Securities and Exchange Commission.

 PURCHASE AGREEMENT 
 THIS PURCHASE AGREEMENT (this “Agreement”) is made and entered into this 27th day of April, 2007 by and between Mannatech (International) Limited (“Buyer”), a Gibraltar corporation having its
principle place of business located at 10/8 International Commercial Centre, Casemates Square, Gibraltar, and Marinova Pty. Limited (“Seller”) with its principle place of business located at Level 7, 39 Murray Street, Hobart, TAS 7000
Australia. Hereinafter, Buyer and Seller shall collectively be referred to as the “Parties.” 
 RECITALS 
 WHEREAS, Buyer develops and sells proprietary nutritional supplements and topical products through a network marketing system of independent
distributors (“Associates”) throughout the United States, Canada, Australia, New Zealand, the United Kingdom, South Korea, Japan, Denmark, Taiwan, Germany, and other countries as it expands its business internationally; 
 WHEREAS, Seller is a leading supplier of the bioactive fractions of galacto fucan sulphate (“GFS”) glyconutrient harvested, purified,
and packaged from Undaria pinnatifida, which is suitable for use in Buyer’s proprietary nutritional supplements and topical products; and 
 WHEREAS, Buyer desires to purchase agreed amounts of Undaria pinnatifida fucoidan (“GFS 75% powder” or the “Product”) from Seller for use in its proprietary nutritional supplements and topical products and
Seller desires to supply the Product to Buyer. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants
and agreements hereinafter contained, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows. 
  

	1.	Term. 

  

	 	1.1	Term. The term of this Agreement will commence on 15 August 2007 and, unless sooner terminated in accordance with this Agreement, continue through 14 August 2009
(the Term). This Agreement may only be renewed upon agreement of the parties; provided, however, that any agreement to renew this Agreement must, unless otherwise agreed, be in place no later than ninety (90) days prior to the end of the Term.
The Parties agree that until such renewal agreement is in place, neither party has any obligation to renew this Agreement. 

  

	2.	Product. 

  

	 	2.1	Product. Seller shall sell Product to Buyer that shall meet or exceed the Product specifications (the “Specifications”) set forth in Exhibit A along with
Buyer’s Quality Assurance Plan (“QAP”), which is attached hereto and incorporated by reference herein. Such Specifications may be amended by Buyer and Seller only by mutual written consent, from time to time, subject to variance
within ranges of contents and other factors. From time to time, Buyer and Seller may agree on updated Specifications including but not limited to particle size and packaging preferences. 

  

 1 

	 	2.2	Validation of Claims. Seller shall provide to Buyer all scientific data reasonably required to substantiate product claims (if any) made by Seller. Seller and Buyer shall
cooperate in all aspects as contemplated hereunder to ensure that the Product(s) comport with any and all regulatory guidelines in place by governmental authorities during the term of this Agreement but solely those regulatory guidelines relating to
the supply of the Product as an ingredient and to be incorporated by Buyer for Buyer’s intended end product. 

  

	 	2.3	The Buyer acknowledges and agrees that it is solely responsible for the process and cost of obtaining all government and other regulatory approvals existing anywhere in the world
for the development, marketing, and sale of its proprietary nutritional supplements and topical products. 

  

	 	2.4	Specification Documentation. Seller shall provide documents, as reasonably requested by Buyer, that describe the component and/or starting material specification and
processing parameters, which include but are not limited to, solvents used, concentrations, extraction ratios, temperatures, and process flow diagrams. 

  

	3.	Quality Control; Inspection; Nonconforming Goods. 

  

	 	3.1	Quality Control Costs. Seller shall bear all responsibility for Product quality control, including, without limitation, costs, testing, written and electronic documentation
and compliance with Product Specifications, the QAP, and applicable regulations and standards established by governmental agencies having jurisdiction over the manufacturing, processing, and packaging of the Product. 

  

	 	3.2	Buyer Right to Inspect. 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. Representatives of Buyer may enter and inspect, as it pertains to the production of the Product, the Factory and any warehouse at which Seller has stored the Product, during the time of
production or storage. The inspection may include all aspects of Seller’s manufacturing techniques, quality control, sanitation procedures, and records. Seller may restrict access by Buyer’s representatives to only those areas where the
Product and ingredients and materials for the Product are processed, tested, or stored. Any such inspection or testing by Buyer shall be gratuitous and shall not (a) relieve Seller of its obligations under this Agreement; or (b) constitute
acceptance by Buyer of any portion of the Product. 

  

	 	3.3	 Replacement of Nonconforming Product. Buyer shall receive the Product subject to inspection and approval of the lot or lots, or submitted samples from the
lots, by Buyer’s quality control personnel within a reasonable time after receipt. If Buyer finds that a shipment of Product fails to conform to the Specifications, quality control standards as provided by Buyer to Seller, government standards
or regulations, the purchase order, or the shipment sheet attached to the shipments of Product, Buyer shall, within thirty (30) days of receipt of such shipment, notify the Seller in writing detailing such non-conformity, or in case of a latent
defect, Buyer shall notify Seller in writing detailing such latent defect within six (6) months of receipt of such non-conforming shipment. Payments by Buyer for any quantity of the Product shall not constitute approval or acceptance of such
Product. If any quantity of the Product is defective or does not conform to the samples, Specifications, government standards or regulations, the purchase order, or the shipment sheet attached to the shipments of Product Buyer may, at its option,
reject all of such quantity, accept all of such quantity, or accept any 

  

 2 

	 	 
commercial unit or units of such quantity and reject the rest. If Seller rejects all or a portion of any shipment, Seller shall, at Buyer’s sole
discretion, either (a) replace the non-conforming Product at no additional cost to Buyer within ten (10) days of Buyer’s notice of non-conforming goods; or (b) refund the portion of the sales price pertaining to the
non-conforming shipment applicable thereto with ten (10) days of Buyer’s notice of non-conforming goods. Seller shall assume all costs of transportation and handling both ways and/or reimburse Buyer for any such costs paid by Buyer related
to any such rejected Product. 

  

	 	3.4	Records and Audit. Appropriate records maintained by Seller with respect to the supply of 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. 

  

	4.	Orders, Price and Payment. 

  

	 	4.1	Minimums. The Seller has agreed to sell to Buyer and Buyer has agreed to purchase from Seller the minimums at the price (the “Purchase Price”) set forth in
Exhibit B during each year of the Term (Exhibit B is attached hereto and incorporated by reference herein). The Seller agrees to produce and sell such minimums to the Buyer. Unless otherwise provided herein, the Purchase Price does
not include any foreign, federal, state or local sales, value added, use or other taxes, all of which shall be borne by Buyer. 

  

	 	4.2	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. The terms of payment
shall be net forty-five (45) days from the date Buyer receives such invoice. 

  

	 	4.3	Credit. Pursuant to the terms of that certain Termination and Mutual Release Agreement dated April 27, 2007, Seller issued a credit note (the “Credit”) to
Buyer. Seller shall apply the Credit by reducing the amount payable by Buyer under each Seller invoice for the Product delivered during the first twelve (12) months of this Agreement by a minimum amount of fifty percent (50%) per invoice
until the Credit has been exhausted by Buyer. In the event that the Credit is not exhausted by Buyer within the first twelve (12) months of this Agreement, the Parties agree that Seller must continue to reduce the amount payable by Buyer on
future invoices until the Credit is exhausted. The Parties agree that the Credit may not be redeemed by Buyer for monetary payment from Seller; provided, however, if for any reason a balance remains on the Credit at the end of the term of this
Agreement, the Parties will enter into negotiations to determine how the remaining Credit balance will be disbursed to Buyer. 

  

	5.	Delivery & Shipment. 

  

	 	5.1	Delivery. Delivery dates and quantities of the Products shall be as set forth in Buyer’s form of purchase order(s). Seller shall provide Buyer with sufficient quantity
for Seller’s batch processing, as acknowledged and approved by Seller. All quantities of the Product purchased by Buyer hereunder shall be shipped to the “Point of Delivery” as set forth in Exhibit B. 

  

	 	5.2	 Seller Responsibilities. Seller shall be responsible for all shipping, delivery, transportation, insurance, brokerage, handling, import duty, export fees,
any taxes, any governmental charges, regulatory fees, demurrage, and other costs that 

  

 3 

	 	 
Seller may incur in delivering the Products to Buyer’s Dock from Seller’s place of manufacture or distribution center. Seller shall be responsible
for all customs costs and proceedings at Seller’s sole expense. 

  

	 	5.3	Seller Supplies. Seller shall hold back sufficient stock of Product to ensure continuous supply to meet Buyer’s requirements. 

  

	 	5.4	Transfer of Title; Risk of Loss. Title and risk of loss to Product shall not transfer to Buyer until the following conditions have been met: (1) the Product has cleared
all customs, including without limitation, Australian and United States customs; (2) the Product is delivered to Buyer at the Point of Delivery; (3) the Product has been inspected by Buyer; (4) the entire lot of the Product meets or
exceeds the agreed upon specifications; and (5) the entire lot of the Product has been approved by Buyer. Upon acceptance, Buyer shall be able to use or sell the Product without limitation in accordance with the terms of this Agreement.

  

	 	5.5	Cancellation by Buyer. 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.	Exclusivity. 

  

	 	6.1	Buyer Exclusivity. Buyer shall have a worldwide exclusive for the Product and all GFS product ranges (all concentrations) throughout the Term of this Agreement (or any
renewal thereof) in the nutritional sector provided that Buyer satisfies its obligation to purchase the minimum volume commitments set forth in Exhibit B and otherwise complies with its obligations under this Agreement. Seller shall not
directly or indirectly develop, manufacture or market an “equivalent or derivative product” for any other multi-level marketing, direct-sales or similar company, or any other form of retail distributor or intermediary using the Product or
other GFS product ranges during the Term of this Agreement or any renewal thereof. For the purpose of this Agreement, “equivalent or derivative product” means any product formulated by Seller that substantially replicates the Product or
other GFS product ranges as to the combination of specific ingredients, nutrients, and functional features. 

  

	 	6.2	Seller’s Representation. Seller warrants and represents that at the time of execution of this Agreement it is in compliance with paragraph 6.1 above and further
represents that it is presently under no obligation to a third party that would violate paragraph 6.1 above. Further, Buyer, subject to the terms of this Agreement, shall have an exclusive worldwide right to market the Product in the nutritional
sector. 

  

	7.	Intellectual Property. 

  

	 	7.1	Marks. The Parties recognize that the name and/or respective marks of the other are valuable, valid and that all goodwill associated with use of such names and marks shall
inure to the benefit of the respective mark owner, whether the mark is registered, pending or protected under common law or any equivalent thereof. Each party has the right to terminate this Agreement immediately in the event that the other party
acts in a manner which would negatively impact the reputation or goodwill of the first mentioned party and/or of its name or marks and/or would infringe or dilute the value of that first party’s marks or which is not in compliance with
applicable law in the United States or any other country in which that first party conducts business as the case may be. 

  

 4 

	 	7.2	Seller Representations. Seller represents and warrants that, to the best of its knowledge, the Product does not infringe the intellectual property of any third-party.

  

	 	7.3	Seller Acquisition of Additional Rights. In the event that any third-party intellectual property is needed for Seller to sell the Product, Seller shall use best efforts to
identify and secure any additional approvals or permissions required in connection with the production, manufacture, use or sale of the Product, at Seller’s sole expense. 

  

	 	7.4	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. 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. Seller 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. 

  

	8.	Confidential Information. 

  

	 	8.1	Each party may find it beneficial to disclose to the other party certain information which may include, but is not limited to, (i) patents and patent applications,
(ii) trade secrets, (iii) copyrighted information, and/or (iv) proprietary information, which may include but is not limited to discoveries, ideas, techniques, concepts, know-how, techniques, designs, specifications, drawings, maps,
blueprints, diagrams, flow charts, information concerning research and development, and/or other technical, financial or business information. Such information, which may be provided in written, encoded, graphic, or other tangible form shall be
deemed to be confidential and proprietary if it is clearly marked “confidential.” If the information is provided orally, it shall be deemed to be confidential and proprietary if it is so identified by the disclosing party at the time of
such disclosure. Either party may confirm, within five (5) days of making oral confidential statements, that such information was confidential and proprietary. The information disclosed as set forth above shall be deemed “Confidential
Information.” 

  

	 	8.1.1	 Seller recognizes and acknowledges that Buyer’s trade name(s), trademarks, copyrights, patents, marketing plans, identity of and related information regarding
its Associates, product formulations and other proprietary product information and any information relating to the management and/or operations of Buyer are valuable, proprietary assets belonging to Buyer and as such are the sole property and may
constitute trade secrets of Buyer. Seller specifically agrees that it will 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 Buyer. For the avoidance of doubt, in addition to the description in paragraph 8.1 above, Buyer’s
Confidential Information includes but is not limited to: genealogies (being the information held by Buyer or by any current or former Associate of Buyer related to its 

  

 5 

	 	 
Associates including without limitation its relationship with each of its Associates, the Associate’s name, upline and downline, charts, and data
reports), proprietary product information which may from time-to-time be made known to Seller, the names or practices of any of Buyer’s customers or Associates; Buyer’s marketing methods and related data; the names of Buyer’s vendors
or suppliers; costs of materials; costs of its products generally, the prices Buyer 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 Buyer’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 Buyer; its manner of operation or other confidential data of any kind, nature or description. 

  

	 	8.2	Buyer recognizes, acknowledges, and agrees that Seller’s trade name(s), trademarks, copyrights, patents, marketing plans, product formulations, know-how, compounds, products,
processes, designs, production methods and techniques and other proprietary product information and any information relating to the management and/or operations of Seller are valuable, proprietary assets and Confidential Information belonging to
Seller and as such are the sole property of Seller and may constitute trade secrets of Seller. Buyer specifically agrees it will not at any time, during or after the performance of the 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 Seller. For the avoidance of doubt, in addition to
the description in paragraph 8.1 above, Seller’s Confidential Information includes but is not limited to: the names or practices of any of Seller’s customers; Seller’s marketing methods and related data; the names of Seller’s
vendors or suppliers; costs of materials; costs of its products generally; the prices Seller 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
Seller’s business; 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 Seller, its manner of operation, or other confidential data of any kind, nature or description. 

  

	 	8.3	Prior to the execution of this Agreement, the Parties may have provided each other with information considered “Confidential Information.” Such information supplied prior
to the execution of this Agreement shall be considered in the same manner and be subject to the same treatment as the Confidential Information made available after the execution of this Agreement. 

  

	 	8.4	 Information shall not be considered “Confidential Information” to the extent, but only to the extent, that the receiving party can establish that such
information (i) is or becomes generally known or available to the public through no fault of the receiving party; (ii) was in the receiving party’s possession before receipt from the disclosing party; (iii) is lawfully obtained
from a third party who has the right to make such disclosure; (iv) has been independently developed by the receiving party without use of or reference to any Confidential Information of the disclosing party; or (v) is required to be
disclosed in order to comply with 

  

 6 

	 	 
applicable law or regulation or with any requirement imposed by judicial or administrative process or any governmental or court order but only to the extent
required and, provided that, the recipient in each instance before making such disclosure first: (a) immediately upon receipt of such order notifies the other party of such order; and (b) cooperates with the other party in making, if
available under applicable law, a good faith effort to obtain a protective order or other appropriate determination against or limiting disclosure or use of the Confidential Information, at no cost to the recipient party.

  

	 	8.5	All Confidential Information shall remain the exclusive property of the disclosing party. The disclosure of Confidential Information by the disclosing party shall not constitute an
express or implied grant to the recipient party, of any rights to or under the disclosing party’s patents, copyrights, trade secrets, trademarks or any other intellectual property rights. Each party shall protect the other’s Confidential
Information from unauthorized dissemination and use with the same degree of care that each such party uses to protect its own non-public and confidential information, but in no event less than a commercially reasonable degree of care.

  

	 	8.6	Neither party will use the other’s Confidential Information for purposes other than those necessary to directly further the purposes of this Agreement. Neither party will
disclose to third parties the other’s Confidential Information without prior written consent of such other party. Upon termination of this Agreement or upon written demand of the disclosing party, the recipient party shall return (or destroy
upon the direction of the disclosing party) any and all copies of the Confidential Information in its possession. 

  

	9.	Indemnification. 

  

	 	9.1	SELLER HEREBY AGREES TO INDEMNIFY, SAVE AND HOLD BUYER HARMLESS IN RESPECT OF ALL CAUSES OF ACTION, LIABILITIES, COSTS, CHARGES AND EXPENSES, LOSS, OR DAMAGE (INCLUDING
CONSEQUENTIAL LOSS) SUFFERED OR INCURRED BY BUYER (INCLUDING REASONABLE LEGAL FEES) ARISING FROM ANY WILLFUL OR NEGLIGENT ACT OR OMISSION OF SELLER OR ITS EMPLOYEES, SERVANTS AND AGENTS ARISING FROM CONTRAVENTION BY SELLER OR ANY OF ITS EMPLOYEES,
SERVANTS, AND AGENTS OF ANY OF THE TERMS AND CONDITIONS IMPOSED ON SELLER PURSUANT TO THIS AGREEMENT. 

  

	 	9.2	SELLER HEREBY AGREES TO INDEMNIFY, SAVE AND HOLD BUYER HARMLESS IN RESPECT OF ALL CAUSES OF ACTION, LIABILITIES, COSTS, CHARGES AND EXPENSES, LOSS, OR DAMAGE (INCLUDING
CONSEQUENTIAL LOSS) SUFFERED OR INCURRED BY BUYER (INCLUDING LEGAL FEES) ARISING FROM THE INFRINGEMENT OF ANY AND ALL THIRD PARTY INTELLECTUAL PROPERTY. 

  

	 	9.3	 BUYER SHALL DEFEND, INDEMNIFY AND HOLD HARMLESS SELLER AND ITS AFFILIATES, AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, FROM AND AGAINST ALL
CLAIMS, LIABILITIES, DEMANDS, DAMAGES, EXPENSES AND LOSSES (INCLUDING REASONABLE ATTORNEYS’ FEES AND EXPENSES) ARISING OUT OF OR CONNECTED WITH (I)

  

 7 

	 	 
THE MANUFACTURE, USE, SALE OR OTHER DISPOSITION OF BUYER’S GOODS THAT INCLUDE THE PRODUCT; (II) ANY BREACH BY BUYER OR ITS EMPLOYEES OF ANY OF
ITS RESPECTIVE OBLIGATIONS UNDER THIS AGREEMENT. THIS SECTION WILL NOT BE CONSTRUED TO LIMIT OR EXCLUDE ANY OTHER CLAIMS OR REMEDIES THAT BUYER OR SELLER MAY ASSERT UNDER THIS AGREEMENT OR BY LAW. 

  

	10.	Representations and Warranties; Insurance. 

  

	 	10.1	Seller warrants and represents to Buyer that it has established procedures for the manufacture and supply of the Product and that all Product sold by Seller pursuant to this
Agreement will conform to the quality Specifications set forth in Exhibit A and/or the QAP. 

  

	 	10.2	Organization. Each of Buyer and 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 or as to the region in which it does business and has full power and authority to carry on its business as now being conducted. 

  

	 	10.3	Seller Authorization and Agreement. The execution, delivery and performance of this Agreement by Seller and Buyer have been authorized by all necessary corporate action. 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 or Buyer is a party or to which
the properties or rights of the Seller or Buyer are subject and will not be in violation of the rights of any other party 

  

	 	10.4	General. Each of the Parties hereby represents and warrants: (i) the Agreement is a legal and valid obligation binding upon such party and enforceable in accordance with
its terms; (ii) the execution, delivery, and performance of the Agreement by such party does not conflict with any agreement, instrument, or understanding (oral or written), to which it is a party or by which it is bound; and (iii) the
Agreement does not violate any law or regulation of any court, governmental body, or administrative or other agency having jurisdiction over it. 

  

	 	10.5	Insurance. The Seller represents and warrants that it has in place the following insurance coverage and that if requested by the Buyer, satisfactory and acceptable evidence
of such policies will be provided. The Seller agrees to nominate the Buyer and its subsidiaries as interested parties on each of the relevant policies within thirty (30) days if such request is made. All coverage is in Australian Dollars.

  

	 	10.5.1	General and Public Liability. AUD$5,000,000 Combined Single Limit for Bodily Injury and Property Damage, including Product Liability applicable to Australia and New Zealand.

  

	 	10.5.2	Auto Liability. AUD$30,000,000 Combined Single Limit for Bodily Injury and Property Damage. Policy shall include owned and blanket non-owned vehicles and hired coverage.

  

	 	10.5.3	Worker’s Compensation. Seller shall have and keep at all times a full statutory policy. 

  

	 	10.5.4	Commercial Umbrella Liability. If requested, the Buyer will assist the Seller in obtaining other insurances as considered necessary, including Public and Product Liability
coverage in countries other than Australia and New Zealand. 

  

 8 

	 	10.6	Validity and Enforceability. This Agreement is valid and enforceable against Seller and Buyer 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 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. 

  

	 	10.7	No Breach. Neither the execution and 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 either the Buyer or 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
substitution, novation or otherwise) under the terms of any mortgage, lease, bond, indenture, agreement, franchise or other instrument or obligation to which either Seller or Buyer is a party or by which it may be bound or by which any of the
property or assets of either Seller or Buyer may be bound or materially affected; (iii) result in the creation of any lien, charge or encumbrance upon the assets or properties of either the Seller or Buyer as it relates to its business or the
pending businesses of either Party; (iv) violate any judgment, order, injunction, decree or award of any court, arbitrator, administrative agency or governmental body against, or binding upon either Seller or Buyer or upon the property, assets
or business of Seller or Buyer; or (v) constitute a violation by either Seller or Buyer of any law or regulation of any jurisdiction as such law or regulation relates to it or to the property or business of Seller or Buyer, as applicable.

  

	 	10.8	Compliance with Laws. The business and operations of each party and any of their affiliates or subsidiaries, if any, have not been, and are not, conducted in violation of any
applicable judgment, order, injunction, award, tariff or decree. Neither Seller nor Buyer has received notice of, nor has any knowledge of or any reasonable grounds to know after due inquiry that its business and operations have not been and are not
conducted in violation of any federal, state or local law, ordinance, regulation, or any other requirement of any governmental body, court, or arbitrator applicable to either party or pursuant to which either the Seller or Buyer conducts its
business and operations. Both Parties have all permits, licenses, orders, authorizations, and/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. Neither Party has received notice of nor has any knowledge of or any reasonable grounds to know after due inquiry that its business and operations
have not and are not conducted in material violation of any such licenses, authorizations, and/or permits, and no proceeding is pending or threatened to revoke or limit any such licenses, authorizations and/or permits. 

  

	 	10.9	Suppliers and Customers. Each Party hereby represents and warrants that its relationship with its suppliers and customers is generally good. No material customer or supplier
has cancelled or otherwise terminated, or threatened to cancel or otherwise terminate its relationship with either Party or has actually notified that it will decrease its services or supplies to either Party. 

  

 9 

	11.	Termination. 

  

	 	11.1	Termination by Seller. 

  

	 	11.1.1	Termination with Cure Period. Upon the occurrence of any of the events specified below, Buyer shall be in default of this Agreement and Seller shall have the right to
terminate this Agreement upon ninety (90) days’ prior written notice (the “Cure Period”) to Buyer specifying the default. Termination shall be effective upon the expiration of the applicable Cure Period if Buyer fails to cure the
default. It shall be a breach of this Agreement and constitute good cause for termination of the Agreement if Buyer: 

  

	 	(i)	fails to purchase the quantities of Product specified in this Agreement; 

  

	 	(ii)	refuses or otherwise fails to promptly pay when due any monetary obligation to Seller under this Agreement; or 

  

	 	(iii)	fails to comply with any other provision of this Agreement. 

  

	 	11.1.1.1	Notwithstanding anything contained herein to the contrary, Seller shall not have the right to terminate this Agreement if the corrective action necessary to cure such default cannot
be completed within the Cure Period; provided, however, that Buyer (i) has, within the Cure Period, initiated the necessary action required to cure such default; and (ii) shall thereafter earnestly and continuously proceed to complete the
corrective action necessary to cure the default. 

  

	 	11.1.2	Immediate Termination. Seller may immediately terminate this Agreement effective upon receipt of written notice to Buyer upon the occurrence of any one of the following
events: 

  

	 	(i)	Buyer voluntarily seeks protection under any federal or state bankruptcy laws; 

  

	 	(ii)	a petition for bankruptcy or the appointment of a receiver is filed against Buyer and is not dismissed within thirty (30) days thereafter; 

  

	 	(iii)	Buyer makes any assignment for the benefit of its creditors; or 

  

	 	(iv)	Buyer ceases doing business. 

  

	 	11.2	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. 

  

	 	11.2.1	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. 

  

	 	11.2.2	 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 

  

 10 

	 	 
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. 

  

	 	11.2.3	Failure to Meet Specifications. The Product fails to meet the Specifications set forth in Exhibit A or the quality control standards as Buyer may provide to Seller from time
to time. Seller shall have fifteen (15) days to cure such breach upon written notice from Buyer to Seller specifying the breach and affording Seller the opportunity to cure. 

  

	 	11.2.4	Illegality. If, in the Buyer’s sole discretion, continued use of the Product would result in harm to its consumers, give rise to a regulatory investigation or is
otherwise determined to be illegal or unsafe for human consumption in any country, region, or territory in which Buyer distributes its proprietary supplements and topical products that utilize the Product. 

  

	 	11.2.5	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 representative in the event that Seller, its officers, executives, partners, directors, principals, employees, attorneys or agents, does any of the following: (i) engages in illegal,
immoral, or criminal conduct resulting in a criminal indictment with a substantial likelihood of conviction; (ii) misrepresents or conceals anything in its background that could be detrimental to the value of Buyer’s goodwill, name,
reputation or stock; (iii) engages in conduct contrary to the best interests of Buyer; (iv) engages in conduct that offends the sensitivities of a 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 (v) engages in any conduct, whether intentional or not, that may bring Buyer or its Associates into
public disrepute. 

  

	 	11.2.6	Termination Due to Regulatory Requirements. Buyer may terminate this Agreement in the event that government regulatory requirements, state or federal, or Buyer’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 its sole discretion. 

  

	 	11.2.7	Termination for Failure to Meet Buyer’s Production Requirements. Buyer may terminate this Agreement if Seller is unable to meet the Buyer’s minimum production
requirements or if Seller is unable to meet the Buyer’s reasonable future requirements. 

  

	12.	Consequences of Termination. 

  

	 	12.1	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 return or at disclosing party’s request promptly destroy all Confidential Information in accordance with the terms of this Agreement; (ii) cease any and all
use of the other party’s trademarks, trade names, or other designations as may have been permitted under this Agreement; and (iii) otherwise cooperate with the other party to terminate relations in an orderly manner.

  

 11 

	 	12.2	Payments. Buyer shall pay Seller all due and outstanding amounts owed up to the date of termination. There shall be no liquidated, consequential or incidental damages or
payments due of any kind. 

  

	13.	Notice. 

 Any notice or other communications
between the Parties hereto shall be sufficiently given if sent by international delivery, if to Buyer addressed to it at 600 South Royal Lane, Suite 200 Coppell, Texas 75019, Attention: Director of Purchasing (with a copy to Mannatech, Incorporated,
Attn: General Counsel at same address); or if to Seller addressed to it at Level 7, 39 Murray Street, Hobart, TAS 7000 Australia, Attention: The Managing Director, or to other such addresses hereafter designated in writing by one party to the other.
Notices sent by international delivery 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. 
  

	14.	Attorney’s Fees. 

 In the event any
party hereto shall institute an action, including arbitration pursuant to Section 18 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. 
  

	15.	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. 
  

	16.	Modification. 

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

	17.	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.

  

	18.	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 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. 
  

 12 

 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. 
  

	19.	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. 
  

	20.	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 or third-parties. 
  

	21.	No Agency. 

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

	22.	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. 
  

	23.	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. 
  

	24.	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. Notwithstanding anything contained herein to the contrary, either party may assign its interest in this Agreement to a parent, subsidiary, or other affiliate without the prior consent of
the other party. 
  

 13 

	25.	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. 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, including without limitations regulatory interventions, regulatory approvals and the like. 
  

	26.	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. 
  

	27.	Incorporation of Recitals. 

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

	28.	Schedules and Attachments. 

 The schedules
and attachments attached to or to be attached to this Agreement shall form an integral part of the same. 
  

	29.	Non-Competition. 

 During the term of this
Agreement, neither Seller, nor a “Related Entity” of Seller, shall serve as manufacturer, distributor, marketing or sales representative of any end-product that is directly competitive with Buyer’s proprietary nutritional supplements
and topical products without first obtaining Buyer’s written consent. For the purpose of this clause a “Related Entity” means either a holding company or a subsidiary company of Seller. 
  

	30.	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. 
  

	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.

  

 14 

	32.	Entire Agreement. 

 Subject to the Buyer
agreeing to product and quality control standards, this Agreement and its exhibits constitute 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. In the event of any inconsistency between the terms of any purchase order and this Agreement, the terms of this Agreement will prevail. 

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

			
	Buyer:
	
	Mannatech, Incorporated
		
	By:	 	/s/ Terry Persinger
	
	Name: Terry Persinger
	
	Its: President and Chief Operating Officer

			
		
	Signed:	 	May 7, 2007

  
  
  

			
	Seller:
	
	Marinova Pty Limited
		
	By:	 	/s/ Paul Earrott
		
	Name:	 	Paul Earrott
		
	Its:	 	Managing Director

  

 15 

 EXHIBIT A 
 SPECIFICATIONS AND 
 QUALITY ASSURANCE PLAN 
 Quality Assurance Plan (QAP) 
 For

 Undaria 75% Galactofucan Sulphate (GFS) Powder 
 Description of Product 
 Undaria pinnatifida (undaria), is an algae harvested in the waters of Tasmania, Australia
and Argentina. The algae are oven dried, GFS is extracted using water, filtered, concentrated and freeze dried. Marinova Pty Ltd, the supplier of the ingredient, is located in Hobart, Tasmania. They harvest and dry the algae. The extraction and
concentration may be performed at their own facility or contracted out to New Zealand Pharmaceuticals, a GMP processing plant in New Zealand. 
 Quality
Assurance Requirements 
 An effective QAP must be maintained by Marinova to manage, perform and verify all work affecting quality of the product. This
plan describes the minimum quality assurance requirements that the company must implement in the manufacture, packaging and testing of the product. The QAP consist of the quality assurance controls necessary to produce a product that consistently
meets the predetermined specifications as described in appendix A of this document. The plan should at a minimum describe how the company implements the following requirements. 
  

	 	•	 	 Personnel – roles and responsibilities of personnel involved in production and quality control of the product are clearly defined and there is adequate
number of staff with the education and experience to perform assigned tasks. 

  

	 	•	 	 Facilities – must be of adequate size and be maintained in a clean and orderly manner to avoid mix-ups and cross contamination.

  

	 	•	 	 Equipment – must be properly maintained and cleaned and sanitized to avoid contamination with lubricants, metals, other foreign substances and
microbiological organisms. 

  

	 	•	 	 Procedures – Established procedures for the manufacture and testing of the product. Lot history records (batch records) must be prepared for each lot of
product manufactured. Any changes in the manufacturing and testing of the product that affects product specification will be reported to Mannatech for their approval. 

  

	 	•	 	 Raw materials and components – only approved raw materials and components that have met established quality specifications may be used in the
manufacture of the product. Specifications for these materials must be pre-established. 

  

	 	•	 	 Calibration – a program must be established that ensure that gauges temperature devices, scales and testing equipment are properly functioning.

  

	 	•	 	 Audits and inspections – The company policy on audits and inspections allows for Mannatech to audit the processing steps as it impacts product quality.

  

	 	•	 	 The company must maintain a lot numbering system that allows for traceability of the product in case of recall. 

  

	 	•	 	 Shelf life – data supporting the products shelf life must be available and periodically verified. 

  

	 	•	 	 A lot specific certificate of analysis must be provided detailing the individual lot results as listed in the product specification appendix must be provided
with each shipment. 

  

 A-1 

 Appendix A 
 Undaria 75% Powder Raw Material (Galactofucan Sulphate) PS# 1001) 
 Marinova Code Number :
                                       
 Lot Number:                          
 General Requirements: 
 Marinova is responsible for assuring that the Undaria is produced using approved
manufacturing procedures and applicable GMPs and must meet the specifications as stated below. 
  

							
	 TEST
	  	 SPECIFICATION
	  	TEST METHOD	  	RESULTS
	 Physical
	  		  		  	
				
	 Appearance
	  	Light brown to pinkish brown powder substantially free of foreign matter	  	Visual	  	
				
	 Moisture (LOD)
	  	Less than 10% (w/w)	  	USP LOD	  	
				
	 Identification
	  	Conforms to reference standard IR spectrum	  	IR Analysis	  	
				
	 Bulk density
	  	0.4 – 0.6 g/ml (tentative)	  	USP untapped method	  	
				
	 Particle size
	  	Not less than 90% pass through a 50 mesh (300 um)	  	USP	  	
				
	 Chemical
	  		  		  	
				
	 Galactofucan Sulphate
	  	Not less than 75% (tentative)	  	Manufacturer’s procedure	  	
				
	 Iodine
	  	Not more than 30ppm	  	AOAC	  	
				
	 Total Ash
	  	Not more than 30%	  	AOAC	  	
				
	 Total Free Sugar
	  	Less than 0.3%	  	AOAC	  	
				
	 Mineral Profile
	  		  		  	
				
	 Calcium
 Magnesium
 Phosphorus
 Potassium
 Sodium
	  	Information only	  	ICP	  	
				
	 Inorganic arsenic
	  	Less than 3 ppm	  	EPA	  	
	 Total arsenic
	  	Less than 10 ppm	  	  	
				
	 Heavy Metals as Lead
	  	Less than 10 ppm	  	EPA	  	
				
	 Pesticides
	  	Less than 10 ppm	  	FDA	  	
				
	 Microbiology
	  		  		  	
				
	 Aerobic Plate Count
	  	Less than 5000 cfu/g	  	Current Version of USP	  	
				
	 Coliforms
	  	Less than 3 mpn/g	  	Current Version of USP	  	
				
	 Yeast & Mold
	  	Less than 100 cfu/g	  	Current Version of USP	  	
				
	 E. coli
	  	Negative	  	Current Version of USP	  	
				
	 Salmonella
	  	Negative	  	Current Version of USP	  	
				
	 Staphylococcus aureus
	  	Negative	  	Current Version of USP	  	
				
	 Pseudomonas aeruginosa
	  	Negative	  	Current Version of USP	  	

 Packaging- The raw material must be double bagged in polyethylene bags and shipped in fiber drums
appropriately labeled with product name, lot number and expiration date. 
  

 A-2 

 EXHIBIT “B” 
 PRODUCT AMOUNT AND PRICE 
  

							
	 	  	 Minimum
 Purchase
	  	 USD Price per Kilogram
 Sea Freight
 (Point of Delivery: Los Angeles)
	  	 USD Price per
 Kilogram
 Air Freight
 (Point of Delivery:
 Dallas)

	 Year of the
 Agreement*
	  	Kilograms	  	(GFS 75%)	  	(GFS 75%)
	 Year 1
	  	 ***
	  	***	  	 ***

	 Year 2
	  	 ***
	  	***	  	 ***

  

	*	Year 1 means 15 August 2007 through 14 August 2008 

	 	Year 2 means 15 August 2008 through 14 August 2009 

  

 B-1

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