BOWFLEX INC.
RETAIL INSTALLMENT CREDIT AGREEMENT (REVOLVING CREDIT PLAN / CONSUMER PAPER)
Keep For Your Records

How We Will Calculate Your Balance: We use a method called "daily balance" unless your state of residence is a Free Ride State. If your state of residence is a Free Ride State, we will calculate your balance by taking the beginning balance each day and subtracting any payments and credits, but will not add new purchases until the close of the current billing cycle. See Section 7 below for more details.

Billing Rights: Information on your rights to dispute transactions and how to exercise those rights is provided below.

The information about the costs of the account described herein is accurate as of December 14, 2010. This information may have changed after that date. To find out what may have changed, write us at 16400 SE BowFlex Drive, Vancouver, Washington 98683, or, if you have been notified that your account has been assigned to Hy Cite Corporation, write to Hy Cite Corporation at 333 Holtzman Road, Madison, Wisconsin 53713.

BOWFLEX INC.
RETAIL INSTALLMENT CREDIT AGREEMENT (REVOLVING CREDIT PLAN / CONSUMER PAPER)

1. CONTRACT. This Agreement ("Agreement") is a contract for the extension of open-end retail line of credit. It controls your account. This Agreement includes this document and the following documents:

• The application or any other document you submitted to us in connection with the account; and
• The privacy policy that is enclosed with or attached to this document.

2. PARTIES; STATE OF RESIDENCE. The parties to this Agreement are you and BowFlex Inc., a Washington corporation ("BowFlex"). BowFlex is located at 16400 SE BowFlex Drive, Vancouver, Washington 98683. In this Agreement, the words "we", "us" and "our" refer to Nautilus and any other person or entity to whom this Agreement and/or the related accounts may be assigned. Your "state of residence" means the state of your billing address as listed in the Application.

3. PURCHASES UNDER THIS AGREEMENT. If you are approved for credit, you may purchase goods under this Agreement from BowFlex Inc. online (on the BowFlex Inc. family of Web Sites (Nautilus.com, BowFlex.com, BowFlex.ca BowFlexHomeGyms.com, BowFlexHomeGyms.ca, BowFlexCatalog.com, SchwinnFitness.com, TreadClimber.com, TreadClimber.ca, BowFlexSelectTech.com, BowFlexSelecttech.ca, UniversalHomeFitness.com and Mobia.com)), by mail or telephone up to your approved credit limit. These purchases will be debited against an open-end retail line of credit that we may establish based, in part, on the information you have provided on the front side of this Agreement. You will be able to make subsequent purchases from time to time of authorized products in amounts up to your approved credit limit.

4. BILLING STATEMENTS. We will send you a monthly billing statement if you have an undisputed debit or credit balance of $1.00 or more at the end of the billing cycle unless we have started collection proceedings against you.

5. MONTHLY PAYMENTS. (a) Payment Due Date, Minimum Payment and Application of Payments. You agree to pay us at least the Minimum Payment shown on your billing statement not later than the Payment Due Date shown on your billing statement. We will credit payments when received and apply them first to Interest Charges. YOU HAVE THE RIGHT TO PAY IN ADVANCE YOUR ENTIRE BALANCE. (b) Determining the Amount of the Minimum Payment. You will pay 4% of the initial unpaid balance as your monthly Minimum Payment. The dollar amount of the monthly Minimum Payment will remain the same until your next purchase. If you make an additional purchase, we will recalculate your Minimum Payment for subsequent billing statements by multiplying the same percentage by the sum of the existing balance on your account plus the amount of the new purchase. Each Minimum Payment shall be rounded up to the next whole dollar (for example, $49.05 will be rounded up to $50.00).

6. ANNUAL PERCENTAGE RATE. If Interest Charges are assessed during a billing cycle, we will use the following applicable Annual Percentage Rate (APR) and corresponding daily periodic rate at all times when the introductory APR is not in effect:

However, when the introductory APR is in effect, we will use an Annual Percentage Rate (APR) of 0.00% and a daily periodic rate of 0.0000%.

7. INTEREST CHARGES. (a) Calculation of Interest Charges. You will pay us Interest Charges calculated by applying the applicable Daily Periodic Rate shown in Section 4 above to your Daily Balance. (b) Determining the Daily Balance. To get the Daily Balance, we take the beginning balance of your account each day, add any new purchases (unless your state of residence is a Free Ride State in which case we do not add any new purchases until the closing of the current billing cycle), and subtract any unpaid Interest Charge and any payments or credits. (c) Period For Which Interest Charges Are Assessed in a Free Ride State. Interest Charges will begin to accrue on each purchase on the 26th day of the next billing cycle. However, if you pay the full amount of the New Balance shown on your billing statement within 25 days after the Statement Closing Date shown on the billing statement, we will not charge you any Interest Charges for the period between the Statement Closing Date and the date you make your payment. (d) Period For Which Interest Charges Are Assessed in a Non-Free Ride State. Interest Charges will begin to accrue on each purchase on the date we post such purchase to your account. However, if you pay the full amount of the New Balance shown on your billing statement within 25 days after the Statement Closing Date shown on the billing statement, we will not charge you any Interest Charges for the period between the Statement Closing Date and the date you make your payment. (e) Effect of Failure to Make Minimum Payment. If you fail to make a Minimum Payment for a billing cycle, your Minimum Payment for the next billing cycle will be the Minimum Payment ordinarily due plus any unpaid previous Minimum Payments. (f) Minimum Interest Charge. We may charge you a Minimum Interest Charge of $1.00 per month, except as follows: $0.75 if your state if residence is TX; $0.50 if your state of residence is AL, AZ, CA, CO, IN, IA, LA, ME, MA, MI, MN, MS, MT, NV, NJ, NY, OK, PA, SC, SD, TN, VT, WV or WY; and no Minimum Interest Charge shall be charged if your state of residence is AR, DC, HI, IL, MD, NE, NC, NM, PR or RI.

8. RETURNED PAYMENT FEE. If you make, issue or draw a check, instrument, or electronic authorization used to pay your account has been dishonored upon the first presentment (or, if your state of residence is MD, upon the second presentment), you agree to pay us a reasonable Returned Payment Fee of $25.00 for processing the returned payment, subject to the following exceptions: the Returned Payment Fee shall be $20.00 if your state of residence is ID, IA, NJ or UT; $15.00 if your state of residence is CA, MD, MO or TX; $10.00 if your state of residence is KS; and no Returned Payment Fee shall be charged if your state of residence is CT, DC, MA, NE, NM, PA, RI, VT, WA or WY.

9. LATE PAYMENT FEE. If any required Minimum Payment is not received by us within fifteen (15) days (or twenty-one (21) days if your state of residence is TX; thirty (30) days if your state of residence is NC; or forty (40) days if your state of residence is RI) after its due date, you agree to pay a Late Payment Fee of $22.00, except that the Late Payment Fee shall be: $18.00 if your state of residence is IN; $15.00 if your state of residence is CO, DC, ID, IA or TX; $12.00 if your state of residence is RI; $10.00 if your state of residence is AL, FL, KY, LA, ME, MS, MT, NJ or WY; $5.00 if your state of residence is NE; 5% of the delinquent Minimum Payment not to exceed $22.00 if your state of residence is HI; 5% of the delinquent Minimum Payment not to exceed $10.00 if your state of residence is CT, MD, VA or WV; 5% of the delinquent Minimum Payment not to exceed $17.50 if your state of residence is SC; 10% of the outstanding balance not to exceed $10.00 if your state of residence is MA; $10.00 if the delinquent Minimum Payment is greater than $25.00 or $5.00 if the delinquent Minimum Payment is not greater than $25.00 if your state of residence is KS or MO; $10.00 if the outstanding balance is $100.00 or more or $5.00 if the outstanding balance is less than $100.00 if your state of residence is NC; 5% of any delinquent Minimum Payment exceeding $200.00 or $10.00 in the case of any delinquent Minimum Payment not exceeding $200.00 if your state of residence is IL; $10.00 if the average Daily Balance during the billing cycle is more than $100.00 or $2.00 if the average Daily Balance during the billing cycle is not more than $100.00 if your state of residence is WA; and no Late Payment Fee if your state of residence is CA, DE, NM, PR, TN or VT.

10. DEFAULT. Unless otherwise provided by law, you will be in default if you fail to pay the Minimum Payment by the Payment Due Date (or, if your state of residence is WI, if you fail to pay the Minimum Payment by the Payment Due Date twice or more in any twelve (12) month period). If you are in default, we can declare the entire balance of your account (including unpaid Interest Charges) due and payable immediately without demand or notice of any kind whatsoever, unless we are required by law to give you notice of your default and an opportunity to cure it. In that case, if we give you notice and/or you do not cure your default, at that time we can declare your entire account balance due and payable immediately without demand or notice of any kind whatsoever. We may limit or cancel your right to make further purchases under this Agreement at any time if you are in default.

11. DEFENSES AGAINST HOLDER. NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

12. CHANGES IN TERMS. We may change the terms of this Agreement, including the Annual Percentage Rate (APR), and other terms of payment, after letting you know that we will be making a change, in accordance with applicable state and federal law. We will reduce your credit limit to zero (0) one (1) year after your balance is paid in full if you fail to make additional purchases under this account after payment in full.

13. ASSIGNMENT. BowFlex may assign this Agreement and/or the related accounts to Hy Cite Corporation, whose principal mailing address is 333 Holtzman Road, Madison, Wisconsin 53713, 1-877-494-2289, info@hycite.com, or any other sales finance company, which, if it accepts assignment of the Agreement, will become the owner of the Agreement and your creditor, and you will make any subsequent payments directly to the assignee. Hy Cite or any other assignee of the Agreement may grant a security interest, lien, pledge or collateral assignment in this Agreement and/or any related accounts to any person or entity. After you receive notice of assignment of this Agreement and/or any related accounts, all questions concerning either the terms of this Agreement or payments should be directed to the assignee of this Agreement and/or related accounts.

14. YOUR CREDIT REPORTS. You consent to BowFlex and/or Hy Cite ordering a credit report on you in connection with this Agreement. If you ask, we will advise whether we ordered a credit report on you and the name and address of any company that provided it. Subsequent credit reports may be requested or used in connection with an update, renewal or extension of your account without further notice to you, unless prohibited by applicable law.

15. ENTIRE AGREEMENT. This written Agreement is the entire agreement between us and may not be contradicted by evidence of any prior oral agreement or of a contemporaneous oral agreement between us.

16. NOTICE TO ARIZONA RESIDENTS. Pursuant to Ariz. Rev. Stat. § 44-1205(D), the parties elect that this Agreement shall be governed by Ariz. Rev. Stat. § 44-1205(C).

17. NOTICE TO DELAWARE RESIDENTS. Service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month.

18. NOTICE TO OHIO RESIDENTS. The Ohio laws against discrimination require that all creditors make credit equally available to all creditworthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The Ohio Civil Rights Commission administers compliance with this law.

19. NOTICE TO DISTRICT OF COLUMBIA RESIDENTS. BowFlex certifies that the information contained in the contract complies with the District of Columbia Municipal Regulations, Title 16, Chapter 1.

20. NOTICE TO MARRIED WISCONSIN RESIDENTS. No provisions of any marital property agreement, unilateral statement, or court decree under Wisconsin's marital property act will adversely affect our interest unless, prior to the time credit is granted, we are furnished a copy of the agreement, statement or decree or have actual knowledge of the adverse provision. If approved, you agree to advise us if you have a spouse who needs to receive notification of this extension of credit.

21. NOTICE TO CALIFORNIA RESIDENTS. ANNUAL PERCENTAGE RATE: 19.99% AT ALL TIMES WHEN THE INTRODUCTORY APR IS NOT IN EFFECT.

BILLING RIGHTS STATEMENT

Your Billing Rights: Keep This Document For Future Use

This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act.

What To Do If You Find A Mistake On Your Statement

If you think there is an error on your statement, write to us at the following address if BowFlex owns your account:

BowFlex Inc.
16400 SE Nautilus Drive
Vancouver, Washington 98683

or if your account has been assigned to Hy Cite Corporation, write to it at:

Hy Cite Corporation
Attn: Credit Manager
333 Holtzman Road
Madison, WI 53713

In your letter, give us the following information:

• Account information: Your name and account number.
• Dollar amount: The dollar amount of the suspected error.
• Description of problem: If you think there is an error on your bill, describe what you believe is wrong and why you believe it is a mistake.

You must contact us:

• Within 60 days after the error appeared on your statement.
• At least 3 business days before an automated payment is scheduled, if you want to stop payment on the amount you think is wrong.

You must notify us of any potential errors in writing. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question.

What Will Happen After We Receive Your Letter

When we receive your letter, we must do two things:

1. Within 30 days of receiving your letter, we must tell you that we received your letter. We will also tell you if we have already corrected the error.
2. Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct.

While we investigate whether or not there has been an error:

• We cannot try to collect the amount in question or report you as delinquent on that amount.
• The charge in question may remain on your statement, and we may continue to charge you interest on that amount.
• While you do not have to pay the amount in question, you are responsible for the remainder of your balance.
• We can apply any unpaid amount against your credit limit.

After we finish our investigation, one of two things will happen:

• If we made a mistake: You will not have to pay the amount in question or any interest or other fees related to that amount.
• If we do not believe there was a mistake: You will have to pay the amount in question, along with applicable interest and fees. We will send you a statement of the amount you owe and the date payment is due. We may then report you as delinquent if you do not pay the amount we think you owe.

If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling us that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting that you are questioning your bill. We must tell you the name of anyone to whom we reported you as delinquent, and we must let those organizations know when the matter has been settled between us.

If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question even if your bill is correct.

Rev. 1/6/2011
HCC-Standard
MADI_2497523.3