Document:

Exclusive Distribution Agreement

 EXHIBIT 10.18 
  
 EXCLUSIVE DISTRIBUTION AGREEMENT 
  
 This Exclusive Distribution Agreement is dated December 5, 2001 and is entered into by and between the following Parties:

  

	 NSP:
	  	 Nature’s Sunshine Products, Inc.

	 	  	 75 East 1700 South

	 	  	 Provo, UT 84606

	 	  	 Fax: (801) 342-4555

		
	 HET:
	  	 
	 	  	 HealtheTech, Inc.

	 	  	 523 Park Point Drive, Third Floor

	 	  	 Golden, CO 80401

	 	  	 Fax: 303-526-5186

  
 who agree as follows: 
  
 SECTION 1—INTRODUCTION AND DEFINITIONS 
  
 1.1 HET and its BodyGem System. HET is a Delaware corporation
engaged in the business of creating and/or acquiring new, innovative and safe technologies, products, and services to promote and further the health and well-being of its customers. HET has created and/or acquired proprietary technology relating to
the reading or measuring of a person’s metabolism. HET has utilized this technology to create a system, including services, devices, disposables and know-how, under the name, service mark and trademark BodyGemTM. The BodyGem system includes devices, disposables and know-how to facilitate
metabolism measurements in a safe, convenient and cost effective manner. As used in this Agreement, the “BodyGem System” will mean the devices, disposables, technology and know-how of HET relating to the measurement or reading of
metabolism, in their then-most-current commercialized form for non-medical device applications. The BodyGem System includes, without limitation, the subject matter described in Exhibit A. As HET creates or acquires improvements to the commercialized
BodyGem System or commercializes new developments and inventions relating to the measurement or reading of metabolism that are incorporated into a new commercialized version of the BodyGem System, HET shall offer to NSP these new technologies under
the terms of this Agreement as part of the BodyGem System. Prices will be reasonably increased or decreased relative to current pricing herein to reflect any increase or decrease in the cost of manufacturing of the applicable BodyGem Devices and
BodyGem Disposables having these new technologies. Each such price increase or decrease will be documented by the Parties. For the purposes of this Agreement, the following definitions also apply: 
  
 “BodyGem Services” are the services and methods of measuring or
reading a 
  

 Exclusive Distribution Agreement—Page 1 

 
person’s metabolism using the BodyGem System for non-medical applications. BodyGem Services specifically exclude any services that are subject to
Medicare/Medicaid or other health care provider reimbursement. 
  
 “BodyGem Devices” are the devices, instrumentation, and equipment of the BodyGem System used to measure or read a person’s metabolism. Exhibit A hereto lists the currently commercialized BodyGem Devices. BodyGem Devices also
include applicable packaging and user documentation for those devices. 
  
 “BodyGem Disposables” are the single-use disposables and supplies used in the BodyGem System in delivering or performing BodyGem Services. BodyGem Disposables include the HET supplied mouthpiece and/or facemask identified in
Exhibit A and also includes any accompanying packaging and user documentation for the disposable units. 
  
 “Multi-Level Direct Sales” shall mean direct marketing and/or sales of services to consumers using independent representatives and/or authorized
distributor sales force, and may for the purposes of this definition, include the direct marketing and/or sales of products necessary to perform such services to such independent representatives or sales force. 
  
 1.2 NSP, its Business and NSP Distributors. NSP is a Utah
corporation engaged in the business of creating and/or acquiring new, innovative and safe products and services which it sells through its Multi-Level Direct Sales distribution and marketing channels and organization. These channels and organization
include managers, distributors and sales representatives who purchase products and/or services from NSP for resale to their customers. These managers, distributors and sales representatives are referred to herein as “NSP Distributors.” NSP
Distributors are not employees of NSP, but participate as independent contractors in NSP’s Multi-Level Direct Sales distribution and marketing channels and organization. 
  
 1.3 Intent of Agreement. The Parties intend through this Agreement for: (a) HET to grant to NSP exclusive
BodyGem System distribution, sales, marketing and commercialization rights in the area of Multi-Level Direct Sales; and to (b) define the performance criteria needed to maintain the exclusivity of such rights, as more fully described below.

  
 SECTION 2—RIGHTS, LICENSES, EXCLUSIVITY AND PROMOTION 

 
 2.1 Grant of License. HET hereby grants to NSP the
exclusive world-wide BodyGem Services and BodyGem System distribution, sales, marketing and commercialization rights in the area of Multi-Level Direct Sales. This exclusive right is intended to allow BodyGem Services sales by NSP Distributors
directly to end-user consumers using the HET supplied BodyGem System (including devices and disposables), and is subject to the limitations provided in section 2.3.1 and section 2.3 below. To enable or facilitate these rights, HET hereby grants to
NSP the world-wide 
  

 Exclusive Distribution Agreement—Page 2 

 
right and license: (a) to use and practice the BodyGem System and to authorize and sublicense NSP Distributors to use and practice the BodyGem System for the
purpose of selling, delivering and/or performing BodyGem Services to or for their customers; (b) to buy BodyGem Devices and BodyGem Disposables from HET, and (c) to sell BodyGem Devices and BodyGem Disposables to NSP Distributors for the purpose of
facilitating NSP Distributor sales of the BodyGem Services. The rights and licenses granted under this Section 2.1 are referred to as the “License.” 
  

2.2 NSP BodyGem Service Sales Customers. NSP and NSP Distributors may sell, deliver and/or perform BodyGem Services to any end-user
customers outside of the Health Care Provider setting. The “Health Care Provider” setting consists of: hospitals; licensed health care provider clinics, offices, establishments or institutions; licensed physician’s offices; and public
health institutions; but expressly excludes any of the foregoing which may be an NSP Distributor, or have an NSP Distributor on-site, or may be owned, operated or managed by an NSP Distributor engaged in Multi-Level Direct Sales for NSP. NSP
acknowledges that the BodyGem System is not a medical device and that BodyGem Services by NSP Distributors are not intended to be reimbursable health services under Medicare, Medicaid or other health care provider reimbursement plans. 
  
 2.3 Exclusion from License. The License does not include any
right for NSP to sell any BodyGem Devices or BodyGem Disposables to any person who is not an NSP Distributor. Additionally, the License does not include any exclusive rights to make any sales of BodyGem Services in the non-exclusive territory
identified in section 2.3.1 below (i.e., such rights are non-exclusive). 
  
 2.3.1 Non-Exclusive Territory. NSP’s exclusive BodyGem Services sales rights specifically excludes any exclusive right to make BodyGem Services sales (other than from or through Multi-Level Direct
Sales) in: (i) Day-Spa or Salon establishments; (ii) third party retail stores (retail stores not wholly-owned by NSP or a NSP distributor); or (iii) any corporation or educational institution health, wellness or research facility. NSP’s and
NSP Distributors’ BodyGem Services sales rights and the License in these settings are strictly non-exclusive. 
  
 2.4 Exclusivity. Because of the exclusivity granted to NSP, HET warrants that it has not and will not, grant any rights directly or
indirectly to any third party that violates the exclusivity of the distribution, sales, marketing and commercialization rights granted to NSP in section 2.1 herein. It is agreed that this exclusivity granted to NSP does not prevent HET from selling,
delivering or performing BodyGem Services to its customers through consumer retail stores or from authorizing others to do so, even if NSP Distributors sell, deliver or perform BodyGem Services in consumer retail stores. 
  
 2.5 Preservation of Exclusivity. In order for NSP to retain the
exclusivity of it’s exclusive rights provided in section 2.1, NSP must meet or exceed the following purchase “Targets” for purchasing both BodyGem Devices and BodyGem Disposables from HET: 
  

 Exclusive Distribution Agreement—Page 3 

 Purchase Targets for BodyGem Devices: 
  
  

	 Quantity Ordered
	  	 Period (all quarters are calendar quarters)

		
	 500 devices
	  	 Ordered on or before December 31, 2001

	 1,750 devices
	  	 Ordered during the first three quarters of 2002 combined

	 1,000 devices
	  	 Ordered during the last quarter of 2002

	 1,000 devices
	  	 Ordered during the first quarter of 2003

	 750 devices
	  	 Ordered during the second quarter of 2003

  
 Purchase Targets for BodyGem Disposables: 
  

	 Quantity Ordered
	  	 Period

		
	 50,000 units
	  	 Ordered on or before December 31, 2001

	 75,000 units
	  	 Ordered during the first two quarters of 2002 combined

	 100,000 units
	  	 Ordered during the third quarter of 2002

	 125,000 units
	  	 Ordered during the fourth quarter of 2002

	 125,000 units
	  	 Ordered during each subsequent quarter

  
 2.5.1
Failure to Meet Purchase Targets. If a Purchase Target specified above is not met for any Period (unless due to the fault of HET or the unavailability of BodyGem Devices or BodyGem Disposables), then the exclusivity of the License
shall end at the end of that Period and the License shall thereafter be non-exclusive for the remaining Term of the Agreement and NSP shall have no continuing right of exclusivity under this Agreement. If orders for any given Period exceed the
Target Quantity Ordered, then the excess may be applied by NSP to any subsequent Period(s) in order to satisfy any subsequent Target(s). 
  
 2.6 BodyGem Name and Mark. HET grants to NSP the right to use the HealtheTechTM and BodyGemTM names and trademarks in a manner approved by HET as consistent with any HET specified branding requirements and
guidelines, provided in advance by HET to NSP, in connection with the sales, distribution, marketing and commercialization of the BodyGem System to NSP Distributors, and further grants to NSP the right to sublicense to NSP Distributors the use of
the HealtheTechTM and BodyGemTM names and trademarks in a manner consistent with the
HET specified branding requirements and guidelines (as provided in advance by HET to NSP) in connection with sales, distribution, marketing and commercialization of the BodyGem Services BodyGem Services. HET reserves the right to deny any use of, or
demand the immediate discontinuation of any application of, the HealtheTechTM and BodyGemTM names
and trademarks that is inconsistent with such HET specified branding requirements and guidelines. The HET branding requirements and guidelines will be reasonable. 
  
 2.7 Promotion by NSP. In accordance with NSP’s normal business practices, NSP shall actively promote the
BodyGem System to NSP Distributors through appropriately trained and 
  

 Exclusive Distribution Agreement—Page 4 

 
qualified NSP personnel in appropriate NSP publications and at appropriate NSP conventions. It is HET’s responsibility to provide the appropriate
training under Section 4. The HealtheTech and BodyGem branding, artwork, logo, and corporate identity specifications in the advertising and promotion activities of NSP relating to the BodyGem System must be approved by HET, but such approval will
not be unreasonably withheld or delayed. 
  
 2.8 Promotion
by HET. HET shall promote NSP’s and NSP Distributors’ BodyGem Services offerings in appropriate advertising, public relations and other marketing communications selected by HET and shall provide on the HET website a URL link to the
NSP website to allow customers interested in BodyGem Services to find out more about receiving such services from a NSP Distributor. 
  
 2.9 Press Releases. Any press release by a party to this Agreement relating to the business relationship between with the other party shall
be subject to the review and approval of the other party, and such approval shall be made promptly and not be unreasonably withheld. Each party agrees to submit any such press release to the other party for approval at lease one business day before
any public release. 
  
 SECTION 3—SALE OF DEVICES AND DISPOSABLES TO NSP

  
 3.1 BodyGem Devices. NSP may purchase the
BodyGem Devices from HET at the following price and terms for the Term of this Agreement: 
  
 $995 per device (excluding shipping charges), F.O.B. HET’s distribution facilities in the United States. 
  
 BodyGem Devices are to be deployed into service by trained and qualified NSP personnel or NSP
Distributors for the purpose of actively making sales of BodyGem Services to customers. All BodyGem Devices purchased by NSP shall not be resold by NSP, except to NSP Distributors, without the express written consent of HET. With each BodyGem Device
purchased, NSP must order (or already have in inventory) an initial quantity of 100 disposables per BodyGem device to enable sufficient deployment of the device in the NSP Distributor field. 
  
 3.2 BodyGem Disposables. NSP may purchase the BodyGem
Disposables from HET at the following prices and terms for the Term of this Agreement: 
  

	 Quantity Ordered
	  	 Price per unit

	 0 – 25,000 units
	  	 $7.00/disposable

	 25,001 – 50,000 units
	  	 $6.00/disposable

	 50,001 – 75,000 units
	  	 $5.00/disposable

	 75,001 – 100,000 units
	  	 $4.00/disposable

  
 Pricing for BodyGem Disposables
(single-use mouthpiece or single-use face mask) shall be in accordance with the above table and quantity discount schedule. To qualify for volume discounts, 
  

 Exclusive Distribution Agreement—Page 5 

 
unit volumes must be placed in a single purchase order to qualify for the discount. Prices are F.O.B. HET’s distribution facilities in the United States
and do not include shipping charges. 
  
 3.3 Ordering by
NSP. NSP shall order BodyGem Devices and BodyGem Disposables through purchase orders submitted to and accepted by HET. Each purchase order will include the quantity of the devices or disposables ordered and the destination(s) to which they
shall be shipped by HET. NSP may designate the shipping date, method of shipment, carrier, and other relevant instructions in the purchase order. HET will use its best efforts to comply therewith. In the event that HET is unable to comply with any
of the foregoing shipping formalities, HET will promptly give NSP notice thereof and notice of the substitute shipping performance that HET will actually be able to provide. NSP may cancel any order if HET’s noncompliance with the purchase
order instructions is material. 
  
 3.4 Title and Risk of
Loss. Title and risk of loss will pass to NSP upon shipment from HET distribution facilities of the device or disposable to the destination specified in the NSP purchase order. 
  
 3.5 Payment Terms. Upon or after delivery of an order of BodyGem Devices or BodyGem Disposables to NSP, HET
shall invoice NSP for the order. Payment in full shall be due no later than thirty (30) days after NSP’s receipt of the invoice, provided that the invoice is properly stated and subject to NSP’s right to return—see Section 3.6 below.
There shall be no fees or charges other than the purchase price specified in this Agreement and any applicable shipping (including shipping insurance specified by NSP) charges. NSP is responsible for the payment of shipping charges and any
applicable sales taxes, customs fees, and tariffs necessary to facilitate the shipment to the destination specified by NSP. Purchase orders may be canceled at any time by NSP in writing prior to five business days before the specified or scheduled
shipping date. 
  
 3.6 Returns. Any BodyGem Devices
or BodyGem Disposables that are defective or damaged or not in conformance with their Specifications when received by NSP may be rejected and returned by NSP to HET at HET’s expense. The “Specifications” for a device or disposable are
the descriptions and specifications published or otherwise stated by HET in the applicable written user instructions or product documentation. A BodyGem Device or BodyGem Disposable will be considered “defective” if in its operation or use
it malfunctions, produces or causes erroneous results outside the product specification, is unsafe, fails to conform to its Specifications, or is otherwise materially defective. If during the Warranty Period (see Subsection 7.2 (g) below) it is
discovered that a BodyGem Device or BodyGem Disposable is not in compliance with a warranty under Section 7.2, then it may be returned by NSP at HET’s expense for either a refund of the purchase price or for replacement with a device or
disposable that is in compliance with the warranties of Section 7.2, as elected by HET. NSP must contact the HET Customer Support Department to report the intent to make a warranty return and request instructions for completing such a warranty
return. HET will pay all shipping costs of providing such warranty replacements to NSP. 
  
 3.7 Price Increases. The prices set forth in Sections 3.1 and 3.2 are subject to increase by HET after the 18 month Initial Term of this Agreement. Such increases shall require at least 90 days 

  

 Exclusive Distribution Agreement—Page 6 

 
advance notice to NSP and shall not occur more than once per year. No increase shall be more than once per year. 
  
 3.8 NSP Tracking. NSP shall keep accurate and current records
of the sale or disposition of each BodyGem Device and BodyGem Disposable purchased under this Agreement by NSP to NSP Distributors or any third party. If HET desires, at its sole expense, to replace, upgrade or audit the internally recorded use of
such devices upon reasonable notice to NSP, NSP shall facilitate prompt communication with the NSP Distributors to enable access to such devices. 
  

SECTION 4—TRAINING, SUPPORT AND CONSULTATION 
  
 4.1 Initial Training. HET will provide the following initial training to NSP personnel and NSP Distributors designated by NSP: 

 

	 	(a)	 	Five (5) full days (eight hours/day) of initial product training by a HET designated trainer at HET directed to the theory and use of the BodyGem System. This initial training will
be provided in five consecutive business days or in separate business days as designated by NSP, at dates specified by NSP and as agreed to by HET, and shall be allocated in no less than half-day (4 hour) increments. HET shall provide up to five (5)
BodyGem Systems for use in this initial training and up to 25 sets of training hand-out materials per half day session. The providing of additional BodyGem Systems or handouts shall be subject to the fees provided in section 4.5 below.

  

	 	(b)	 	All initial training shall be provided at HET facilities in Golden, Colorado unless requested otherwise by NSP and is subject to the fee schedule of section 4.5.

  

	 	(c)	 	HET shall provide one HET trainer per half day session. If NSP requests more than one (1) HET trainer at any given session, fees for additional trainers shall be paid by NSP in
accordance with the fee schedule of section 4.5 below. 

  
 4.2 On-going Training. If and as requested by NSP, HET will provide on-going BodyGem System theory and use training to NSP personnel and NSP Distributors designated by NSP on the following basis: 
  

	 	(a)	 	All on-going training shall be charged at a rate of six-hundred dollars ($600.00) per day per HET trainer and shall be charged in full day (8 hours) increments. Each $600 fee
includes up to twenty-five (25) training hand-out packages and the use of up to five (5) BodyGem Systems. Any additional hand-out packages or BodyGem Systems shall be provided in accordance with the fee schedule of section 4.5.

  

	 	(b)	 	All on-going training shall be provided at HET facilities in Golden, Colorado unless requested otherwise by NSP, and if conducted outside of HET’s Golden, Colorado facilities
shall be subject to the fee schedule in section 4.5. 

  

 Exclusive Distribution Agreement—Page 7 

	 	(c)	 	HET shall use all reasonable efforts to accommodate the time and place for NSP requested on-going training, but any on-going training shall be schedule by mutual agreement of the
parties. 

  
 4.3 Customer Support. At
no charge, HET shall provide on-going customer support to NSP and NSP Distributors designated by NSP relating to the BodyGem System. This customer support shall be provided at regular HET customer support hours ( currently 8:30 a.m. to 5:30 p.m.
MST). 
  
 4.4 Training Forecasts. In order to
provide reasonable notice to HET of known NSP or NSP Distributor training requirements, NSP agrees to give non-binding good faith training demand forecasts at the beginning of each month for the following 60 day period during the Term of this
Agreement. All forecasts shall be in writing and shall specify the number of attendees and the desired location and duration (in half-day increments). 
  
 4.5 Training Fee Schedule. Additional training services that are not otherwise specified as no-charge to NSP under this section 4 shall be
provided by HET and reimbursed by NSP in accordance with the following fee schedule: 
  

	 	(a)	 	Trainers: Six-hundred dollars ($600.00) per day (8 hours/day) billed in half-day increments. 

  

	 	(b)	 	Hand-out Packages: Reimbursed at actual HET cost. Estimated $0.05 per page for copies, actual acquisition cost for re-prints, etc., plus any applicable shipping charges for transfer
to training location. 

  

	 	(c)	 	BodyGem Systems: Seven-dollars ($7.00) per BodyGem Disposable used, no charge for use of other BodyGem Devices 

  

	 	(d)	 	Travel and Expenses: Actual travel time will not be subject to reimbursement. All reasonable travel expenses, including lodging, meals, transportation, and economy class airfare,
and reasonable ancillary travel expenses such as phone, fax or shipping charges related to the training, shall be reimbursed to HET by NSP. Travel must be approved or otherwise requested in advance in writing by NSP. 

  

	 	(e)	 	All fees and expenses shall be invoiced by HET and reimbursed by NSP within 30 days of date of invoice. 

  
 4.6 Written Instructions. HET shall provide to NSP written instructions with the BodyGem Devices and BodyGem
Disposables for the correct, proper and safe operation and use of the BodyGem Device. 
  
 SECTION 5—SOFTWARE 
  
 5.1 Development
of BLP Software. HET will develop for NSP within a reasonable time a NSP branded professional software application (a re-badged version of HET’s current BalanceLog PROTM software product) that would allow each NSP Distributor to track the metabolic 

  

 Exclusive Distribution Agreement—Page 8 

 
measurements, nutrition, fitness, and weight loss data of each of his or her enrolled customers. This application is referred to as the “BLP
Software”. The parties agree to negotiate in good faith a mutually agreeable license/subscription fee agreement that would apply to NSP’s and NSP Distributors’ copying, use of, and rights to, the BLP Software or, an applicable
per-copy purchase price of the BLP Software, upon presentation of the Beta version of the BLP Software to NSP. At NSP’s option, NSP and NSP Distributors shall have similar access and rights to the non-re-badged version of HET’s current
BalanceLog PROTM software product subject to a
negotiated, mutually agreeable license or subscription fee agreement for such software. Until such time, the non-re-badged version will be available to NSP and NSP Distributors at HET’s then-current generally available distributor pricing and
terms. Whenever the context reasonably permits, the parties shall agree to include all warranties and indemnifications in this Agreement to any software license anticipated under this Section 5.1 in the same manner that they apply to the BodyGem
Devices or BodyGem Disposables. 
  
 5.2 Maintenance of
Software. If the parties agree to pricing and deployment of the BLP Software to NSP Distributors, HET shall maintain the BLP Software for NSP. Maintenance shall include the following: (a) correcting programming errors and other defects and
problems in the Software reported by NSP to HET, and (b) keeping the Software in conformance with its applicable documentation and specifications. HET shall make corrections and provide fixes and work-around solutions to NSP as soon as possible and
in a competent and professional manner. 
  
 5.3 New
Versions. HET shall keep the BLP Software, if subject to a license or subscription agreement between the parties, current with the offering of future versions and releases of the BalanceLog PROTM software product and the same shall be made available by HET to NSP as “BLP
Software.” 
  
 SECTION 6—INTELLECTUAL PROPERTY 
  
 6.1 Ownership. HET has represented and warranted to NSP that
the BodyGem System is protected by the HET portfolio of pending and issued patents directed to HET technologies and is proprietary to HET. Based on this representation and warranty, NSP acknowledges HET’s rights of ownership in the patents and
other intellectual property in the BodyGem System. This ownership by HET does not extend to or include anything independently developed or created by NSP or NSP Distributors. 
  
 6.2 Restrictions. Nothing in this Agreement assigns or conveys to any Party any rights of ownership of any of
the trademarks, product names, symbols, slogans, marketing materials, customer lists, know-how or goodwill of the other Party. The BodyGem and HealtheTech trademarks, service marks, and names and the goodwill associated therewith shall belong to
HET. 
  
 6.3 Indemnification. 
  
 (a) HET shall indemnify NSP (and its employees, officers and directors) and
NSP 

  

 Exclusive Distribution Agreement—Page 9 

 
Distributors against, and hold them harmless from, any and all litigation, arbitration, mediation, judgments, awards, settlements, attorneys’ fees,
expenses, costs, damages and losses arising from any claim by any other person or entity that any of the BodyGem System (including any service, device or disposable), as provided, delivered or disclosed by HET to NSP, or NSP’s or NSP
Distributor’s use, practice, sale, delivery, performance, marketing, distribution or commercialization thereof: (a) constitutes an infringement, misappropriation or violation of any patent, copyright, trade secret, trademark, service mark or
other intellectual property or other right, or (b) as result of a defect in design or manufacture, or as the result of HET’s negligence, has injured or damaged a person, or caused his or her death, or is unsafe or harmful. A products liability
claim shall be deemed within the scope of (b) above. However, HET’s indemnification obligations shall not apply to any claim caused by or arising from NSP’s or an NSP Distributor’s negligence or failure to follow the written
instructions provided by HET to NSP under Section 4.6. 
  
 (b) NSP
shall indemnify HET and HET’s suppliers, employees, officers and directors against, and hold them harmless from, any and all litigation, arbitration, mediation, judgments, awards, settlements, attorneys’ fees, expenses, costs, damages and
losses arising from any claim by any other person or entity that is harmed in any way from NSP’s use of any BodyGem System that is not in conformance with HET’s written instructions under Section 4.6 for use of the BodyGem System or that
is in any way the result of NSP’s negligence in providing BodyGem Services, including put not limited to any unauthorized re-use of the BodyGem Disposables. NSP’s obligation to indemnify and hold harmless does not apply to NSP Distributors
or their use of any BodyGem System that is not in conformation with HET’s written instructions or any negligence of NSP Distributors. However, see (c) below. 
  
 (c) NSP will include with BodyGem Devices and BodyGem Disposables distributed by NSP to NSP Distributors, such written
disclaimers and notices as are included by HET with the devices and disposables when delivered to NSP. Such disclaimers and notices must be the same as those that are generally included by HET in or with BodyGem Devices and BodyGem Disposables sold
to customers other than NSP. 
  
 6.4 Intellectual Property
Notices. NSP will not remove, alter or obscure any patent, copyright or trademark notices included on any BodyGem Devices or BodyGem Disposables delivered to NSP when the same are sold by NSP to NSP Distributors. 
  
 SECTION 7—WARRANTIES, DISCLAIMERS AND LIMITATIONS 
  
 7.1 Warranty by NSP. NSP represents and warrants that:

  

	 	(a)	 	NSP has the right and power to enter into this Agreement. 

  

	 	(b)	 	This Agreement is not contrary to or in violation of any other agreement to which NSP is a party or any obligation of NSP to another person or entity. 

  

	 	(c)	 	NSP understands that for safety reasons, the BodyGem Disposables are single- 

  

 Exclusive Distribution Agreement—Page 10 

 
use only, that re-use of a BodyGem Disposable is in violation of the written instructions for use of the BodyGem System and that re-use of a BodyGem
Disposable could result in transmission of communicable diseases. NSP warrants that it shall comply with Section 6.3 (c) and shall not provide any training or communication to NSP Distributors that is contrary to the written instructions provided
under section 4.6 herein. 
  
 7.2 Warranty by HET.
HET represents and warrants that: 
  

	 	(a)	 	HET has the right and power to enter into this Agreement and to grant the licenses and rights granted to NSP under this Agreement. 

  

	 	(b)	 	This Agreement is not contrary to or in violation of any other agreement to which HET is a party or any obligation of HET to another person or entity. 

  

	 	(c)	 	HET owns or has acquired rights to the proprietary BodyGem System technologies and owns or has secured rights to all known applicable patents, copyrights and other intellectual
property thereto. 

  

	 	(d)	 	With respect to all BodyGem Devices and BodyGem Disposables sold or delivered to NSP under the terms of this Agreement, marketable title to such devices and disposables will pass to
NSP upon delivery, free and clear of any liens, encumbrances, or defects in title and of any claims by third parties that may interfere with NSP’s rights under this Agreement. 

  

	 	(e)	 	The BodyGem System, BodyGem Services, and the BodyGem Devices and BodyGem Disposables sold or delivered to NSP, as provided, delivered or disclosed by HET to NSP, and NSP’s and
each NSP Distributor’s use, practice, sale, delivery, performance, marketing, distribution or commercialization thereof (without violating the applicable written instructions of Section 4.6), do not and will not constitute an infringement,
misappropriation or violation of any patent, copyright, trade secret, trademark, service mark or other intellectual property or other right of any other person or entity. 

  

	 	(f)	 	When shipped to NSP, the BodyGem Devices and BodyGem Disposables shall be in an undamaged and merchantable condition. 

  

	 	(g)	 	For the Warranty Period, the BodyGem Devices and BodyGem Disposables shall not be “defective” (as defined in Section 3.6) and shall conform to their applicable written
Specifications. The “Warranty Period” shall be one year beginning on the date that the BodyGem Device or BodyGem Disposable is delivered to NSP. However, for BodyGem Devices and BodyGem Disposables sold by NSP to NSP Distributors, the one
year Warranty Period 

  

 Exclusive Distribution Agreement—Page 11 

	 	    	 	shall begin on the date that the device or disposable is delivered to the NSP Distributor, but shall in no event be longer than fifteen (15) months from the date that device or
disposable is delivered to NSP. 

  

	 	(h)	 	The BodyGem System, including the BodyGem services, BodyGem devices and BodyGem disposables, and their practice and use as disclosed or taught by HET in its written instructions
under Section 4.6, shall be in conformance with all applicable laws and regulations, including, without limitation, any applicable FDA regulations. 

  

	 	(i)	 	The BodyGem System is not considered a medical device, and has not been submitted to the FDA for clearance to market as a medical device. Additionally BodyGem Services are not
intended to be reimbursable health care services under Medicare / Medicaid. HET warrants that FDA clearance is not required for the BodyGem System and BodyGem Services and that they are non-medical. 

  
 7.3 Disclaimers. NO PARTY MAKES
ANY WARRANTY NOT EXPRESSLY SET FORTH IN THIS AGREEMENT. IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED AND EXCLUDED. 
  
 7.4 Limitation on Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR
ANY CONSEQUENTIAL, SPECIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  
 SECTION 8—TERM AND TERMINATION 
  
 8.1 Initial Term and Renewals. The initial term of this Agreement shall be 18 months beginning on the date of this Agreement (the
“Initial Term”). Unless and until NSP fails to meet a Period Target under Section 2.5 of this Agreement, NSP shall have the right to renew this Agreement on a year to year basis after the 18 month Initial Term, up to a maximum of two
twelve-month renewal periods. By mutual written agreement between the Parties, the Parties may further renew this Agreement beyond the two twelve month renewal periods. 
  
 8.2 Breach. In the event of a breach by either Party of any of the provisions of this Agreement, the other
Party shall have the right to terminate this Agreement at any time if the breaching Party fails to cure said breach within 30 days of receiving written notice of said breach. The notice must describe the breach in reasonable detail to the best of
the nonbreaching Party’s knowledge and must indicate how the breach can be cured by the breaching Party if it is curable. If the breaching Party reasonably requires more than 30 days to cure said breach, the 30 day period shall be extended as
reasonably necessary to allow completion of the cure, provided that the breaching Party begins the cure within the 30 day period and diligently pursues the cure to 
  

 Exclusive Distribution Agreement—Page 12 

 
completion. If the breach is incurable, then the breach shall be deemed cured if the breaching Party pays to the nonbreaching Party the damages suffered by
the nonbreaching Party because of the breach and if the breaching Party takes reasonable action to mitigate the damages and to prevent the breach from occurring again. If the existence of the breach is disputed, then this dispute shall first be
resolved by arbitration in accordance with Section 9.7. If the arbitrator concludes that a breach has occurred, then the provisions of this Section 8.2 shall apply and the breaching Party shall then have an opportunity to cure. The right of
termination shall be in addition to any and all other remedies to which the nonbreaching Party may be entitled. 
  
 8.3 Early Termination. Notwithstanding anything herein to the contrary, NSP may terminate this Agreement without cause at any time during
the initial Term of this Agreement by giving at least ninety (90) days advance written notice to HET of it’s intent to terminate 
  
 8.4 Effect of Termination. Termination of this Agreement shall not release NSP from any obligation to make payments to HET for BodyGem
Devices or BodyGem Disposables sales to NSP, or for training provided to NSP and subject to fees under section 4 herein, prior to such termination. Purchase orders placed by NSP and accepted by HET prior to termination shall be filled and delivered
by HET in accordance with the terms of the purchase order and applicable terms of this Agreement. Termination of this Agreement shall not apply to or affect any BodyGem Devices or BodyGem Disposables sold or delivered to NSP prior to termination
(i.e., this Agreement will continue to govern such devices and disposables), and the License shall continue to apply thereto, including, without limitation, the right for NSP and NSP Distributors to continue to use such BodyGem Devices and BodyGem
Disposables to offer and perform BodyGem Services in conformance with the obligations and restrictions of this Agreement. 
  
 SECTION 9—GENERAL PROVISIONS 
  
 9.1 Governing Law and Forum. This Agreement shall be governed by and enforced in accordance with the laws of the state of Colorado and of
the United States of America. Nothing in this Section 9.1 shall determine the jurisdiction or venue of any litigation between the Parties. 
  
 9.2 Entire Agreement. This Agreement: (i) represents the entire agreement between the Parties relating to the License and the BodyGem
System, (ii) supersedes all prior agreements, understandings, representations and warranties relating to the subject matter of this Agreement, and (iii) may only be amended by a writing signed by both Parties. 
  
 9.3 Assignment. In the absence of the other Party’s
advance written consent, neither Party shall have the right nor the power to assign or transfer this Agreement or any rights (including the Licenses) under this Agreement or to delegate any duties or responsibilities under this Agreement to any
third party. However, such consent is not necessary for an assignment or transfer of this Agreement: (a) by NSP to any person or entity who acquires substantially all of the business assets of NSP, or (b) by HET to any person or entity who acquires
substantially all of the business assets of HET. Any assignee or transferee to whom this Agreement is assigned or transferred must agree, in a 
  

 Exclusive Distribution Agreement—Page 13 

 
writing delivered to the nonassigning or nontransferring Party, to be bound by this Agreement in the same manner that the assigning or transferring Party is
bound by this Agreement. 
  
 9.4 Notices. All
notices and consents permitted or required under this Agreement must be in writing and shall be delivered to the other Party at the address set forth at the beginning of this Agreement or such substitute address as either Party may specify by
written notice to the other party. Notice to HET shall be addressed to the attention of Chief Operating Officer, and notice to NSP shall be addressed to the attention of Chief Executive Officer. 
  
 9.5 Headings. Section headings used herein are for convenience
only and shall not be used to broaden or limit this Agreement. 
  
 9.6 Severability. If any provision in this Agreement is invalid or unenforceable, such provision shall be construed, limited, or if necessary, severed to the extent necessary to eliminate such invalidity or unenforceability,
and all other provisions of this Agreement shall remain in effect. 
  
 9.7 Dispute Resolution and Arbitration. In the event of any dispute between the Parties relating to this Agreement or its subject matter, they shall first seek to amicably resolve or settle the dispute in good faith by mutual
agreement. If they have not reached a resolution or settlement within 30 business days, then either party may thereafter submit the dispute to arbitration, and if so submitted, shall be finally settled by arbitration conducted in accordance with the
commercial arbitration rules of the American Arbitration Association or its successor. The Parties shall attempt to mutually agree upon a neutral arbitrator within 30 days of submission to arbitration. If the Parties cannot reach such agreement,
they shall request the American Arbitration Association or its successor to promptly designate a neutral arbitrator. The arbitration shall be conducted in Denver, Colorado if the arbitration is demanded by NSP. The arbitration shall be conducted in
Salt Lake City, Utah if the arbitration is demanded by HET. The decision by the arbitrator shall be binding and conclusive upon the Parties, their successors, assigns and trustees and they shall comply with such decision in good faith, and each
Party hereby submits itself to the jurisdiction of the courts of the place where the arbitration is held, but only for the entry of judgment or for the enforcement of the decision of the arbitrator hereunder. Judgment upon the award may be entered
in any court having jurisdiction. 
  
 9.8
Relationship. Neither Party is the partner, joint venturer, agent or representative of the other Party. NSP and HET are independent contractors. There is no employment or agency relationship between the Parties. Neither Party has the
authority to make any representations or warranties or incur any obligations or liabilities on behalf of the other Party. Neither Party shall make any representation to a third party inconsistent with this Section 9.8. 
  
 9.9 Construction. This Agreement represents the wording
selected by the Parties to define their agreement and no rule of strict construction shall apply against or in favor of either Party. 
  
 9.10 Waiver. Any waiver of, or promise not to enforce, any right under this Agreement shall not be enforceable unless evidenced by a writing
signed by the Party making said waiver or 
  

 Exclusive Distribution Agreement—Page 14 

 
promise. 
  
 9.11 Remedies. Any remedies set forth in this Agreement are not exclusive, and either Party will be entitled alternatively or cumulatively
to damages for breach of this Agreement and to any other available legal or equitable remedies. 
  
 9.12 Successors. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and
assigns. 
  
 9.13 Execution. This Agreement may be
executed in any number of duplicate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. The persons signing below represent that they are duly authorized to execute
this Agreement for and on behalf of the Party for whom they are signing. 
  
 AGREED TO AND ACCEPTED BY: 
  
 HealtheTech, Inc. (“HET”) 

		
	 By (Signature):
	 	 /s/ James R. Mault

	 Name:
	 	 James R. Mault, MD

	 Title:
	 	 CEO

  
 Nature’s Sunshine Products, Inc.
(“NSP”) 
  

		
	 By (Signature):
	 	 /s/ Craig D. Huff

	 Name (print):
	 	 Craig D. Huff

	 Title:
	 	 Chief Financial Officer

  

 Exclusive Distribution Agreement—Page 15 

 EXHIBIT A 
  

Description of the BodyGem System 
 (including services, devices and disposables) 
  

	I.	 	BodyGem Devices: 

  

	 	a.	 	BodyGem System Kit—PN 100-001-01. Includes BodyGem Metabolic Meter, power adapter, 1 single use disposable mouthpiece, 1 single use disposable facemask, User Guide instructions
for use and BodyGem case. 

  

	II.	 	BodyGem Disposables: 

  

	 	a.	 	Single Use Disposable Mouthpiece 

	 	 i.	 	3 pack—PN 100-0020-01 

	 	ii.	 	25 pack—PN 100-0006-01 

  

	 	b.	 	Single Use Disposable Facemask (available in small, medium and large sizes) 

	 	 i.	 	3 pack 

	 	ii.	 	25 pack 

  

 Exclusive Distribution Agreement—Page 16Severance Agreement and Release

 EXHIBIT 10.51 
  
 SEVERANCE AGREEMENT AND RELEASE 
  
 RECITALS 
  
 This Severance Agreement and Release (“Agreement”) is made by and between James Mault (“Employee”) and HealtheTech, Inc. (the
“Company”) (collectively referred to as the “Parties”): 
  
 WHEREAS, Employee was employed by the Company; 
  
 WHEREAS, the Company and Employee entered into an employment agreement dated September 13, 2002 (the “Employment Agreement”); 
  
 WHEREAS, the Company and Employee entered into a Employment, Confidential Information and Inventions Assignment Agreement
(the “Confidentiality Agreement”); 
  
 WHEREAS,
the Company and Employee have entered into Stock Option Agreements (the “Option Agreements”) granting Employee options (the “Options”) to purchase shares of the Company’s common stock subject to the terms and conditions of
the Company’s 1998 and 2002 Stock Option Plans (the “Plans”); 
  
 WHEREAS, Employee’s employment with Company in all capacities, including but not limited to his position as Chief Executive Officer, Chief Medical Officer, and Chairman of the Board of Directors was concluded
effective April 29, 2003 (the “Termination Date”); 
  
 WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions and demands that Employee may have against the Company and the Company may have against the Employee as defined herein,
including, but not limited to, any and all claims arising or in any way related to Employee’s employment with, or separation from, the Company; 
  
 NOW THEREFORE, in consideration of the promises made herein, the Parties hereby agree as follows: 
  
 COVENANTS 
  
 1. Consideration. Should Employee sign and not revoke this Agreement, upon the Effective Date of this Agreement,
Employee shall be entitled to the following: 
  
 (a) The Company agrees to pay Employee continuing payments of severance pay at a rate equal to his current “Base Salary” of $275,000 less applicable taxes and 

 
withholding, for a period of twelve (12) months from the Termination Date, to be paid periodically in accordance with the Company’s normal payroll
policies. 
  
 (b) Options. One hundred
percent (100%) of the shares subject to the Options shall immediately vest and become exercisable and the period for exercise of such Options shall be extended so that they shall remain exercisable through the applicable Term/Expiration Date set
forth in the Notice of Stock Option Grant for each Option. Except as expressly stated herein, the Options shall be exercisable in accordance with the terms of the Plans and the Option Agreements. 
  
 (c) Continued Employee Benefits. The Company will
provide Employee with health, dental and vision benefits coverage at the same level Employee currently has as of the Termination Date during the twelve (12) month period beginning on the Termination Date, but only if Employee elects continuation
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the time period prescribed pursuant to COBRA. For the duration of the twelve (12) month period, the Company will pay the COBRA premiums
otherwise payable by Employee (and Employee’s eligible dependents). After the twelve (12) month period, Employee will be responsible for the payment of any COBRA premiums. Nothing in this Agreement shall affect Employee’s ex-wife’s
current COBRA benefits, which the company confirms and agrees will remain in effect in accordance with their terms. 
  
 (d) Other Expenses. For the duration of twelve (12) month period beginning on the Termination Date, the Company will reimburse
Employee for Employee’s malpractice insurance in an amount at least sufficient to satisfy any coverage requirements under the laws of the State of Colorado, any medical license fees, and any academic and professional dues. The total amount of
such expenses not to exceed a total of $12,000 for the twelve (12) month period. 
  
 (e) Key Man Life Insurance. The Company agrees to use its best efforts to transfer Employee’s current Key Man Life Insurance
policy to Employee, proved that Employee will be solely responsible for payment of any and all premiums in connection with said life insurance policy. If the Company cannot transfer the Key Man Life Insurance policy, the Company shall notify
Employee and Employee shall have the right within seven days of such notice to elect to have the Company name Employee as the sole beneficiary of that policy and the Company, on behalf of Employee, will pay, and deduct from the payments otherwise
due hereunder, all premiums under such policy for a twelve-month period; provided that Employee may at any time elect to reduce or terminate such policy and concurrently reduce or terminate the payment of further premiums. 
  
 2. Confidential Information and Invention Assignment. Employee shall
continue to maintain the confidentiality of all confidential and proprietary information of the Company and shall continue to comply with the terms and conditions of the Confidentiality Agreement between Employee and the Company. Additionally,
Employee hereby acknowledges his obligations set forth in Section 9 of the Employment Agreement regarding inventions, original 
  

 2 

 
works of authorship, developments, concepts, improvements or trade secrets, whether or not patentable or registrable under copyright or similar laws that
relate to the Company’s business as of the Termination Date. Employee shall return all of the Company’s files and documents and any confidential and proprietary information in his possession to the Company by the Effective Date of this
Agreement, and Employee shall be allowed to retain all electronics (PDA’s, cellphones, computers, etc.) and all other personal property currently in Employee’s possession. 
  
 3. Payment of Salary. Employee acknowledges that, except as expressly provided in this Agreement, he will not receive
nor is he entitled to any additional compensation, severance or benefits (other than benefit amounts due or vested or reimbursable under the Company’s benefits plans, such as the Company’s 401K plan) after the Termination Date. 

 
 4. Release of Claims. Employee agrees that the foregoing
consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its officers, managers, supervisors, agents and employees. Employee, on his own behalf, and on behalf of his respective heirs, family
members, executors, agents, and assigns, hereby fully and forever releases the Company and its officers, directors, employees, agents, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, from, and agree not to sue concerning, any claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess arising
from any omissions, acts or facts that have occurred up until and including the Effective Date of this Agreement including, without limitation: 
  
 (a) any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that
relationship; 
  
 (b) any and all claims relating
to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state
corporate law, and securities fraud under any state or federal law; 
  
 (c) any and all claims under the law of any jurisdiction including, but not limited to, wrongful discharge of employment; constructive discharge from employment; termination in violation of public policy;
discrimination; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; negligent or intentional
misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment;
and conversion; 
  
 (d) any and all claims for
violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Americans with 
  

 3 

 
Disabilities Act of 1990, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, the Worker Adjustment and Retraining
Notification Act, Older Workers Benefit Protection Act; the California Fair Employment and Housing Act, and the California Labor Code, the Colorado Anti-Discrimination Act, the Colorado Wage Claim Act, the Colorado Equal Pay Law, the Adoptive
Parents Leave Act, Colorado common law and any and all other state, county or local ordinances, statutes or regulations; 
  
 (e) any and all claims for violation of the federal, or any state, constitution; 
  
 (f) any and all claims arising out of any other laws and
regulations relating to employment or employment discrimination; 
  
 (g) any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and

  
 (h) any and all claims for attorneys’
fees and costs. 
  
 The Company and Employee agree that the release set forth in
this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. 
  
 5. Indemnification. Notwithstanding the preceding paragraph 4 or any
other provision of this Agreement, nothing in this Agreement or any other agreement or policy shall impair, limit, modify, or otherwise affect in any way Employee’s right to indemnification or defense pursuant to applicable law, the
Company’s certificate of incorporation or bylaws, nor shall this agreement release any claim by Employee relating to such indemnification. 
  
 6. Company Release. The Company, for itself, its successors and assigns, hereby generally and completely releases Employee and his successors and
assigns from any and all claims, liabilities and obligations related to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that the Company may possess arising from any omissions, acts or facts that have occurred
up until and including the Effective Date of this Agreement including, without limitation: 
  
 (a) any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that
relationship; and 
  
 (b) any and all claims
relating to, or arising from, Employee’s ownership of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities
fraud under any state or federal law. 
  
 This release shall not be effective to
release Employee from any claim arising out of fraud or willful misconduct that is materially injurious to the Company and was not known to the 
  

 4 

 
Company as of the Termination Date. This release does not extend to any obligations incurred under this Agreement. 
  
 7. Breaches by Employee. Employee acknowledges and agrees that any
breach of any provision of this Agreement or Sections 9 of the Employment Agreement shall constitute a material breach of this Agreement or the Employment Agreement, as applicable, and shall entitle the Company immediately to recover and cease the
severance benefits provided to Employee under this Agreement. 
  
 8. Non-Compete. The Parties agree to amend Section 10 of the Employment Agreement as followed: 
  
 (a) Noncompete. Executive acknowledges that the nature of the Company’s Business, medical devices performing indirect
calorimetry, is such that if Executive were to become employed by, or substantially involved, in the business of a competitor of the Company during the twelve (12) months following the termination of Executive’s employment with the Company, it
would be very difficult for Executive not to rely on or use the Company’s trade secrets and confidential information. Thus, to avoid the inevitable disclosure of the Company’s trade secrets and confidential information, Executive agrees
for a period of twelve (12) months following his termination for any reason not to directly or indirectly engage in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer, director or otherwise),
nor have any ownership interest in or participate in the financing, operation, management or control of, any person, firm, corporation or business that competes with Company. 
  
 (b) Understanding of Covenants. Executive represents that he (i) is familiar with the foregoing
covenants not to compete or solicit, and (ii) is fully aware of his obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of these covenants. 
  
 All other provisions of Section 10 of the Employment Agreement are null and void upon the
Effective Date of this Agreement. 
  
 9. Acknowledgement of
Waiver of Claims Under ADEA. Employee acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary.
Employee and the Company agree that this waiver and release does not apply to any rights or claims that may arise under ADEA after the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release
Agreement is in addition to anything of value to which Employee was already entitled. Employee further acknowledges that he has been advised by this writing that: 
  
 (a) he should consult with an attorney prior to executing this Agreement; 
  
 (b) he has up to twenty-one (21) days within which to
consider this Agreement; 
  

 5 

 (c) he has seven (7) days following his/her execution of this Agreement to revoke this
Agreement; 
  
 (d) this Agreement shall not be
effective until the revocation period has expired; and 
  
 (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing
so, unless specifically authorized by federal law. 
  
 10.
Civil Code Section 1542. The Parties represent that they are not aware of any claim by either of them other than the claims that are released by this Agreement. Employee acknowledges that he has had the opportunity to seek the advice of legal
counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: 
  

	A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

  
 Employee, being aware of said code
section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or common law principles of similar effect. 
  
 11. No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions pending in his name, or on behalf of any other
person or entity, against the Company or any other person or entity referred to herein. Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or any
other person or entity referred to herein. 
  
 12. Application
for Employment. Employee understands and agrees that, as a condition of this Agreement, he shall not be entitled to any employment with the Company, its subsidiaries, or any successor, and he hereby waives any right, or alleged right, of
employment or re-employment with the Company, its subsidiaries or related companies, or any successor. 
  
 13. No Action on Company’s Behalf. Employee understands and agrees that as of the Termination Date, other than his attendance at meetings of
the Board of Directors as a member of the Company’s Board of Directors, Employee shall have no authority to act on behalf of, represent or purport to represent the Company in any manner whatsoever to any third party without the express written
approval of the CEO or other designated executive of the Company. The Company shall pay Employee’s reasonable out-of-pocket expenses incurred in connection with his services as a Director or otherwise in accordance with this paragraph.

  
 14. Non-Interference. Employee agrees that he will not
discuss any confidential aspect of Company’s business or affairs with any employee, stockholder, customer, vendor, 
  

 6 

 
strategic partner of Company or other third party, except as may be specifically requested by Company from time to time, or as he is legally entitled to as a
director or shareholder of the Company; provided that this provision shall not prohibit casual or social communication by Employee with any such person. Employee further agrees that he will not alone or in combination with any other person or entity
take any action to influence the management or strategic direction of the Company other than as a director or shareholder of the Company. 
  
 15. Co-operation. Employee agrees to fully cooperate with the Company in all matters relating to the winding up of pending work on behalf of the
Company and the orderly transfer of work to other employees of the Company. To the extent reasonably requested by the Company, Employee shall also cooperate in the resolution of any dispute, including litigation of any action, involving the Company
that relates in any way to Employee’s activities while employed by the Company. The Company shall pay Employee’s reasonable out-of-pocket expenses incurred in connection with his services in this regard. 
  
 16. Confidentiality. The Parties acknowledge that Employee’s
agreement to keep the terms and conditions of this Agreement confidential was a material factor on which all parties relied in entering into this Agreement. Employee hereto agrees to use his best efforts to maintain in confidence: (i) the existence
of this Agreement and (ii) the contents and terms of this Agreement, (iii) and the consideration for this Agreement, (hereinafter collectively referred to as “Settlement Information”). Employee agrees to take every reasonable precaution to
prevent disclosure of any Settlement Information to third parties, and agrees that there will be no publicity, directly or indirectly, concerning any Settlement Information. Employee agrees to take every precaution to disclose Settlement Information
only to those attorneys, accountants, governmental entities, and family members who have a reasonable need to know of such Settlement Information. 
  
 17. No Admission of Liability. The Parties understand and acknowledge that this Agreement constitutes a compromise and settlement of disputed
claims. No action taken by the Parties hereto, or either of them, either previously or in connection with this Agreement shall be deemed or construed to be: (a) an admission of the truth or falsity of any claims heretofore made or (b) an
acknowledgment or admission by either party of any fault or liability whatsoever to the other party or to any third party. 
  
 18. No Knowledge of Wrongdoing. Employee represents that he has no knowledge of any wrongdoing involving improper or false claims against a federal
or state governmental agency, or of any material fraudulent or illegal act by Employee that has not been previously disclosed to the Company. 
  
 19. Costs. The Parties shall each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection with this
Agreement. 
  
 20. Arbitration. The Parties agree that any
and all disputes arising out of, or relating to, the terms of this Agreement, their interpretation, and any of the matters herein released, shall be subject to binding arbitration in Jefferson County, Colorado before the American Arbitration
Association under its National Rules for the Resolution of Employment Disputes. The Parties 
  

 7 

 
agree that the prevailing party in any arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration
award. The Parties agree that the prevailing party in any arbitration shall be awarded its reasonable attorneys’ fees and costs. The Parties hereby agree to waive their right to have any dispute between them resolved in a court of law by a
judge or jury. This section will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Employee’s
obligations under this Agreement and the agreements incorporated herein by reference. 
  
 21. Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of
this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to bind them to the terms and conditions of this Agreement. Each party warrants and represents that
there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein. 
  
 22. No Representations. Each Party represents that it has had the opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Neither Party has relied upon any representations or statements made by the other Party hereto which are not specifically set forth in this Agreement. 
  
 23. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision so long as the remaining provisions remain intelligible and continue to reflect the
original intent of the Parties. 
  
 24. Entire Agreement.
This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee’s relationship with the Company, and supersedes and replaces any and all prior
agreements and understandings between the Parties concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the Confidentiality Agreement, the Plans, the Option Agreements, and Sections
9 and 10 of the Employment Agreement. 
  
 25. No Waiver.
The failure of any party to insist upon the performance of any of the terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms and conditions of this Agreement, shall not be construed thereafter as a waiver
of any such terms or conditions. This entire Agreement shall remain in full force and effect as if no such forbearance or failure of performance had occurred. 
  

26. No Oral Modification. Any modification or amendment of this Agreement, or additional obligation assumed by either party in connection with
this Agreement, shall be effective only if placed in writing and signed by both Parties or by authorized representatives of each Party. 
  

 8 

 27. Governing Law. This Agreement shall be deemed to have been executed and delivered within the
State of Colorado, and it shall be construed, interpreted, governed, and enforced in accordance with the laws of the State of Colorado, without regard to conflict of law principles. To the extent that either party seeks injunctive relief in any
court having jurisdiction for any claim relating to the alleged misuse or misappropriation of trade secrets or confidential or proprietary information, each party hereby consents to personal and exclusive jurisdiction and venue in the state and
federal courts of the State of Colorado. 
  
 28.
Attorneys’ Fees. In the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including the costs of mediation,
arbitration, litigation, court fees, plus reasonable attorneys’ fees, incurred in connection with such an action. 
  
 29. Effective Date. This Agreement is effective after it has been signed by both Parties and after eight (8) days have passed since Employee has
signed the Agreement (the “Effective Date”). 
  
 30.
Counterparts. This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
  
 31. Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of the Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that: 
  
 (a) They have read this Agreement; 
  
 (b) They have been represented in the preparation, negotiation, and execution of this Agreement by legal
counsel of their own choice or that they have voluntarily declined to seek such counsel; 
  
 (c) They understand the terms and consequences of this Agreement and of the releases it contains; and 
  
 (d) They are fully aware of the legal and binding effect of
this Agreement. 
  
 [Remainder of Page Intentionally Left
Blank] 
  

 9 

 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

  

	 	 	 HealtheTech, Inc.

				
	 	 	 Dated:  April 30, 2003
	 	By	 	 /s/ DeWayne Youngberg

	 	 	 	 	 	 	 DeWayne Youngberg
 Vice President, General Counsel and Secretary

		
	 	 	 James Mault, an individual

			
	 	 	 Dated:  April 30, 2003
	 	 /s/ James Mault

	 	 	 	 	James Mault

  

 10

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