Document:

Exclusive license Agreement

 Exhibit 10.12 
  
 EXCLUSIVE LICENSE AGREEMENT 
  

This EXCLUSIVE LICENSE AGREEMENT (“Agreement”) is entered into effective as of September 1, 2004, by and among Natural Alternatives
International, Inc., a Delaware corporation (“NAI”) with its principal offices at 1185 Linda Vista Drive, San Marcos, California 92078, and Reginald B. Cherry Ministries, Inc. a Texas non-profit corporation (“Ministries”), with
its principal address at 8323 Southwest Freeway, Suite 440, Houston, Texas 77074. The Parties to this Agreement are sometimes referred to collectively herein as the “Parties” or separately as a “Party”. 
  
 RECITALS 
  
 A. NAI is in the business of designing, researching, formulating, developing, manufacturing,
packaging, distributing and marketing nutritional Products and has demonstrated its capability to develop formulae and to manufacture nutritional Products derived from such formulae. 
  
 B. Ministries is exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and is organized
and operated for charitable, educational and religious purposes, and specifically operates a television ministry, a major tenet of which is the importance of physical, mental and spiritual health in the acceptance, advancement and promotion of God
and his teachings (the “Exempt Purposes”). 
  
 C. In furtherance of and
to advance its Exempt Purposes, Ministries entered into an assignment agreement (“Cherry Assignment”) with Dr. Reginald B. Cherry, an individual (“Dr. Cherry”), in which Dr. Cherry assigned to Ministries an undivided fifty-one
percent (51%) interest in his name and likeness in connection with the manufacture, use and sale of nutritional foods and supplements. 
  
 D. Ministries believes that its relationship with NAI under this Agreement will further and advance the Exempt Purposes and activities of Ministries. 
  
 E. Ministries desires to utilize the expertise of NAI to design, research, formulate,
develop, manufacture, package, sell, distribute and market nutritional Products which, in Ministries’ good faith belief, will further and advance the Exempt Purposes and activities of Ministries. 
  
 F. NAI desires to design, research, formulate, develop, manufacture, package, sell,
distribute and market nutritional Products to all markets worldwide, and through all channels or means of distribution using the names, likenesses, styles, persona, patents, trademarks, logos, domain names and copyrights developed and to be
developed by Ministries under the Cherry Assignment. 
  
 G. In order to allow NAI
to design, research, formulate, develop, manufacture, package, sell, distribute and market nutritional Products using the likeness, style, personal and other attributes of Dr. Cherry assigned to Ministries under the Cherry Assignment which
Ministries has determined will further its Exempt Purposes, Ministries intends hereby to grant to NAI an 

 exclusive license to all of its rights under the Cherry Assignment for NAI’s use in the design, research,
formulation, development, manufacture, packaging, sales, distribution and marketing of nutritional Products. 
  
 Incorporating the above recitals herein and in consideration of the covenants and obligations contained herein and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
  
 ARTICLE I 
 GRANT OF EXCLUSIVE LICENSE 
  
 1.1 Grant of License. Ministries grants to NAI the exclusive right to
use solely in connection with distribution of Products, the names, likenesses, styles, persona, patents, trademarks, logos, domain names, copyrights and all other attributes, whether currently existing or to be developed in the future, of Dr. Cherry
as assigned to Ministries under the Cherry Assignment (the “Proprietary Assets”). The rights granted herein pursuant to this Section are referred to as the “License Rights”. 
  
 1.2 Territory. The territory for which NAI is granted the License
Rights shall be worldwide. 
  
 1.3 Products.
“Product” or “Products” means all nutritional foods, nutritional and dietary supplements and related materials or products of any description, including but not limited to capsules, tablets, powders, liquids, bars and other forms
and packaged in any and all manners using the Proprietary Assets developed as part of the individual and product identity of Dr. Cherry. NAI shall have the right to have the labeling and all promotional materials for all Products include a
representation that the Product has been manufactured by NAI. 
  
 1.4 Duties of NAI. In connection with the License granted herein, NAI shall: 
  
 1.4.1 Take such actions as are commercially reasonable in an effort to design, develop, formulate, manufacture, promote, market, distribute and sell the maximum number of Products while maintaining the quality of the
Products and NAI’s service to its customers. 
  
 1.4.2 Meet,
confer and cooperate with Ministries in connection with development of any packaging and promotional materials utilizing the Proprietary Assets in order to seek to ensure that such development will advance and promote the Exempt Purposes of
Ministries. 
  
 1.4.3 Cooperate with Ministries with
respect to Ministries’ preparation of material for inclusion in or use in connection with the television program, Web site, books, mini-books, study guides, and audiotapes of Ministries all in furtherance of the Exempt Purposes of Ministries.

  

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 1.4.4 Maintain a regular schedule of contact with Ministries to discuss ideas, priorities, action steps
and issues. 
  
 1.4.5 Cooperate with all parties in the current
and future development of the Products and use best efforts to produce and distribute Products under this Agreement. 
  
 1.4.6 Submit promotional copy, artwork, and layout to Ministries for review so that promotional materials are consistent with and advance the Exempt
Purposes of Ministries. NAI may proceed with producing said promotional material only after obtaining approval of Ministries pursuant to Section 1.5.3. 
  

1.4.7 NAI will design, formulate, manufacture, and package the Products. NAI will use reasonable efforts to ensure Product formulas do not infringe
upon the existing patents or registered trademarks of any other party. 
  
 1.4.8 NAI will develop all packaging and labeling with respect to the Products. 
  
 1.5 Duties of Ministries. In connection with the exclusive license granted in this Agreement, Ministries shall: 
  
 1.5.1 Continue to operate a television ministry in accordance with the
Exempt Purposes to teach about the importance of physical, mental and spiritual health in the acceptance, advancement and promotion of God and to teach about the importance and benefits of nutritional supplements and vitamins as a part thereof, and
shall not, knowingly or intentionally, take any action that would be inconsistent with the public image of either the Ministries, Dr. Cherry, NAI, the Products or Proprietary Assets, or degrade, tarnish, deprecate or disparage the Ministries, Dr.
Cherry, NAI, the Products or Proprietary Assets or in any way reflect negatively on any of them in society or standing in the community, or prejudice the Ministries, Dr. Cherry, NAI, the Products or Proprietary Assets, and that Ministries will
terminate such activities promptly upon notice. 
  
 1.5.2
Periodically review the Products in order to seek to ensure that they are consistent with and advance the Exempt Purposes of Ministries. 
  
 1.5.3 Review, comment, edit, and approve or disapprove, in its reasonable discretion the design, formulation, labeling and packaging of all Products and
all material changes thereto and all promotional material submitted by NAI prior to the expiration of fifteen (15) business days following receipt of such materials solely in order to attempt to ensure they are consistent with and advance the Exempt
Purposes of Ministries. Any failure to approve or disapprove of such materials within the time period provided, shall constitute approval. 
  
 1.5.4 Maintain a periodic schedule of contact with NAI to discuss ideas, priorities and issues to seek to ensure that the transactions contemplated hereby
advance and are consistent with the Exempt Purposes of Ministries. 
  

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 ARTICLE II 
 ROYALTIES 
  
 2.1
Royalties. NAI shall pay Ministries a royalty on the annual Net Sales revenue from the Products. “Net Sales” shall be computed as the gross invoice amount billed by NAI to purchasers of the Products, less customer shipping and
handling charges, credit card charge fees and returns actually credited. The amount of such royalty shall be the amount set forth in Section 2.1.2 herein below: 
  

2.1.1 Minimum Annual Net Sales. During the periods of the term of this Agreement set forth below, NAI shall produce minimum annual Net Sales of
the Products. The amount of the minimum annual sales shall be as set forth below for each period. 
  
 Effective Date through December 31, 2004   $5,000,000 
 January 1, 2005 through December 31, 2005 $6,000,000 
 January 1, 2006 through December 31, 2006 $6,500,000 
 January 1, 2007 through December 31, 2007 $7,000,000 
 January 1, 2008 through December 31, 2008 $7,500,000 
 January 1, 2009 through December 31, 2009 $8,000,000 
  
 In the event Minimum Annual Net Sales are not achieved, NAI shall have the option to retain all rights under this Agreement
by paying to Ministries the difference between the amount of royalties actually paid to Ministries pursuant to Section 2.1.2 for Net Sales achieved during the respective year, and the amount which would have been due if the Minimum Annual Net Sales
requirement had been achieved. If the Minimum Annual Net Sales requirement is not achieved and NAI does not pay to Ministries such difference, Ministries shall have the right in its sole discretion to: (i) waive the non-compliance; (ii) notify NAI
this Agreement has been automatically converted to a non-exclusive license on otherwise all the same terms and conditions; or (iii) terminate this Agreement at which time all rights previously licensed shall revert to Ministries. No waiver of this
requirement by Ministries (if any) shall act as a future waiver. 
  
 2.1.2 Annual Net Sale Royalty. During the entire term of this Agreement, the royalty due for the period shall be in the amount set forth in this Section 2.1.2. 
  
 5.10% of annual Net Sales not exceeding $25,000,000; 
 5.61% of annual Net Sales in excess of $25,000,000 but not exceeding $30,000,000; 
 6.12% of annual Net Sales in excess of $30,000,000 but not exceeding $35,000,000; 
 6.63% of annual Net Sales in excess of $35,000,000 but not exceeding $40,000,000; 
  

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 7.14% of annual Net Sales in excess of $40,000,000 but not exceeding $45,000,000; 
  
 7.65% of annual Net Sales in excess of $45,000,000. 
  
 2.1.3 Royalty Payments. Royalty payments shall be made monthly, on or
before the 30th day of the month succeeding the close of each calendar month. Each payment hereunder shall be accompanied by a report setting forth the information described in Section 2.2. All payments shall be made in United States currency and be
drawn on a United States bank. The amount of the monthly royalty payment due during each of the first three (3) quarters of each annual period described in Section 2.1.1, shall be calculated according to Section 2.1.2. The amount of the monthly
royalty payment due during the fourth quarter of each annual period described in Section 2.1.1, shall be the greater of: (i) the amount calculated for the quarter pursuant to Section 2.1.2; or (ii) the minimum amount due for the annual period as set
forth in Section 2.1.1 less the amount of all royalties already paid for the same annual period. 
  
 2.2 Reports. NAI shall deliver a report to Ministries within thirty (30) days after the end of each calendar month, which shall consist of an
accurate statement of Net Sales of Products, along with any royalty payments or sublicensing revenues due Ministries. Such reports shall be provided to Ministries, regardless of whether any Products were sold during the period covered by the report.
The acceptance by Ministries of any of the statements furnished or royalties paid shall not preclude Ministries questioning the correctness at any time of any payments or statements. In connection therewith, Ministries shall be entitled to examine
or audit at its own expense the documents underlying the statements described in this Section not more often than annually. In the event such audit reveals an understatement of royalties due hereunder in an amount equal to or exceeding 5% of the
actual royalties due over the period of such audit, NAI shall bear the cost of audit. Any such underpayment shall be immediately due and payable, with interest accrued from the date the payment was originally due at the lesser of 1.5% per month or
the maximum rate permitted by law. 
  
 ARTICLE III

 TERM OF AGREEMENT 
  
 3.1 Effective Date. The term “Effective Date” shall mean, and this Agreement is effective as, of the date first written above.

  
 3.2 Term and Termination. 
  
 3.2.1 Initial Term. This Agreement shall remain in effect
until December 31, 2009, unless earlier terminated in accordance herewith. Upon expiration of the initial term, the term of this Agreement shall be automatically extended for successive one (1) year periods unless terminated by either party by
written notice delivered at least 120 days prior to expiration of any such period. 
  

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 3.2.2 NAI Termination. NAI may terminate this Agreement at any time upon giving Ministries ninety
(90) days notice. 
  
 3.2.3 Ministries Termination.
Ministries may terminate this Agreement after notice to NAI only if NAI materially fails to comply with any covenant in this Agreement and such failure continues for more than thirty (30) days after written notice thereof from Ministries, unless
such failure cannot reasonably be cured within 30 days then only if NAI fails to commence such cure within thirty (30) days and diligently thereafter prosecutes such cure to completion. 
  
 3.3 Termination on Specific Events. Either Party may terminate this
Agreement immediately only if: 
  
 3.3.1 The other Party suspends
or discontinues its business operations, makes any assignment for the benefit of its creditors, commences voluntary proceedings for liquidation in bankruptcy, admits in writing its inability to pay its debts generally as they become due or consents
to the appointment of a receiver, trustee or liquidator of the other Party or of all or any material part of its property, or if there is an execution of a material portion of its assets. 
  
 3.3.2 The other Party shall commence any case, proceeding or other action under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts. 
  
 3.3.3 (i) There shall be commenced against the other Party any case, proceeding or other action of a nature referred to in section 3.3.2 above which
results in the entry of an order for relief or any such adjudication or appointment or remains undismissed, undischarged, unstayed or unbonded for period of ninety (90) days; or (ii) there shall be commenced against the other Party any case,
proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets, which results in the entry of an order for any such relief which shall not have been
vacated, discharged or stayed or bonded pending appeal within ninety (90) days from the entry thereof; or (iii) the other Party shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts
set forth in clause (i) or (ii) above. 
  
 3.3.4 NAI assigns its
rights to a party who is at the time of transfer involved as an adverse party in material and adverse litigation against Ministries. 
  
 3.3.5 NAI fails to make the royalty payments as required by Article II within thirty (30) days following receipt of written notice from Ministries of the
late payment. 
  

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 3.4 Duties on Termination. Upon termination of this Agreement, copies of all records related to
Ministries shall be kept by NAI for a minimum of three (3) years following production. In addition, NAI shall complete all work in process in a timely fashion and take all acts reasonably necessary to complete all other prior obligations and
maintain the Proprietary Assets and deliver to Ministries all materials strictly related thereto. The Parties shall cooperate and utilize their best efforts to prepare such final reconciliations of accounts and amounts due Ministries. 
  
 3.4.1 After the termination or expiration of this license, all rights granted
to NAI under this Agreement shall terminate and revert to Ministries, and NAI will refrain from further copying, marketing, distribution, or use of the Proprietary Assets. Within thirty (30) days after termination, NAI shall deliver to Ministries a
statement indicating the number and description of the Products that it had on hand or is in the process of manufacturing as of the termination date. Ministries shall have the right for thirty (30) days following notice of termination to notify NAI
of its election to purchase all such Products not committed to another purchaser as of the date of termination. If Ministries elects to do so, the purchase and sale shall be on commercially reasonable terms. If Ministries does not elect to purchase
such Products NAI may dispose of the Products covered by this Agreement for a period of three (3) months after termination or expiration. At the end of the post-termination sale period, NAI shall furnish a royalty payment and statement as required
under Article II. 
  
 3.4.2 In the event of termination of this
Agreement, Ministries will immediately cease any current or future solicitation of any NAI customers who have not participated in any Ministries activities as of the termination date, and shall return to NAI any confidential or proprietary
information of NAI including, but not limited to, any existing electronic or physical documentation of the identities of any NAI customers. 
  
 ARTICLE IV 
 MAINTENANCE OF
INTELLECTUAL PROPERTY 
  
 4.1 Protection of Proprietary
Assets. Ministries shall seek in its own name or the name of any entity which is bound by the terms of this Agreement and at its own expense, all appropriate patent, trademark, copyright or other available means of intellectual property
protection for the Proprietary Assets. In the event Ministries does not seek any appropriate patent, trademarks, copyright or other available means of intellectual property protection within thirty (30) days following a written request therefor by
NAI, NAI may seek such protection on behalf of Ministries and itself and credit the cost of such action against royalties due or becoming due under the terms of Article II, except for the License Rights granted to NAI herein with respect to the
Proprietary Assets and the Products. 
  
 4.2 Protection of
Products. NAI may seek in its own name and at its own expense, and if obtained, shall maintain appropriate patent, trademark, copyright or registration protection for any element or component included in the Products or any part thereof, and NAI
shall retain ownership of such elements or components. In the event of termination of this agreement, NAI 
  

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 agrees to sell to Ministries from at then applicable commercial rates any element or component included in the Products
for which NAI in NAI’s sole discretion continues to maintain appropriate sourcing. 
  
 4.3 Ownership of Formulae. Subject to the rights of NAI, as licensee, pursuant to this Agreement, Ministries shall own an undivided 51% interest in the formula, trade name and design for each Product.

  
 4.4 Enforcement of Intellectual Property Rights.

  
 4.4.1 In the event any Party becomes aware of any claim or
unauthorized use, or infringement on the Proprietary Assets, License Rights, or Products during the term of this Agreement, that Party shall immediately notify all of the other Parties of such violation and shall consult with and cooperate in any
way requested by any Party with respect to the enforcement of all intellectual property rights. 
  
 4.4.2 Ministries shall, at its own cost and expense, take all action necessary to enforce its rights and cause any violation with respect to Proprietary
Assets to cease and be remedied. In the event Ministries fails to take all action necessary to remedy any such violation, NAI, upon ten (10) business days prior written notice, may take such action and may offset one half the costs incurred in
connection with such actions against any amounts coming due to Ministries under the terms of Article II. Ministries shall approve or disapprove such action within ten (10) business days following receipt of notice as provided above and approval may
not be unreasonably withheld. In connection with such action, the Parties shall execute all papers necessary or appropriate in the discretion of the Party taking such action in response to a violation or infringement of the Proprietary Assets, and
shall testify in any legal action whenever requested to do so by the prosecuting Party. 
  
 4.5 Assistance in Protection. In addition to their respective undertakings set forth in the preceding Sections, the Parties agree to render to each other all assistance reasonably requested of them in
connection with the protection of the Proprietary Assets and to make promptly available to one another information they possess or to which they have access that may be of use to the other in such protection. 
  
 4.6 Notice of Infringement. In the event any Party becomes aware of
any claim or unauthorized use with respect to the Proprietary Assets, it will notify the other Parties of such claim or unauthorized use immediately, but in no event, more than two (2) business days following the date on which it became aware of the
claim or unauthorized use. 
  
 4.7 Preservation of Proprietary
Assets. In no event will Ministries knowingly or intentionally take any action which would be inconsistent with the public image of itself, Dr. Cherry, NAI, the Products or Proprietary Assets or denigrate itself, Dr. Cherry, NAI, the Products or
Proprietary Assets or in any way reflect negatively on itself, Dr. Cherry, NAI, the Products or Proprietary Assets. 
  

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 4.8 Regulatory Action. If the Food and Drug Administration or any other federal, state or local
government agency gives notice of or makes an inspection at any Party’s premises, seizes any Product or requests a recall, the other Parties shall be notified immediately but in no event later than the next business day. Duplicates of any
samples of Product taken by such agency shall be sent to the other Parties promptly. In the event of any action described in this Section, the Parties shall cooperate in determining the response, if any, to be made to such action and each party
agrees NAI shall be the Parties’ representative in responding to such action, and each agrees to cooperate with and assist NAI in attempting to resolve any such action and to refrain from any activity with respect to such action which is not
previously approved by NAI, except such activities as may be required by law. 
  
 4.9 NAI Customer List. NAI may maintain a list of its customers purchasing from NAI. This information is NAI’s exclusive property. NAI may allow its customer list to be used by any third party only after
given seven (7) business days prior written notice to Ministries, which shall approve or disapprove of each use in its reasonable discretion prior to the expiration of seven (7) business days following such notice. Any failure to approve or
disapprove of such use within the time period provided, shall constitute approval for purposes of this Section. 
  
 4.10 NAI Distribution for Ministries to NAI Customer List. Upon Ministries’ reasonable request, NAI agrees to distribute to its customers
Ministries materials at Ministries’ expense up to six (6) times annually provided such distribution is for no purpose other than enlisting participants in Ministries activities in order to assist Ministries in advancing and promoting its Exempt
Purposes. Ministries shall provide NAI five (5) business days prior written notice of such requests NAI shall retain the right in its reasonable discretion to approve or disapprove of the content of each distribution, and shall approve or disapprove
such distribution prior to the expiration of five (5) business days following such notice. NAI shall cooperate in processing such distribution by or through any agent or vendor of Ministries’ designation. 
  
 4.11 Fulfillment Vendor. The Parties understand and approve of
NAI’s use of fulfillment vendors to assist in distribution of the Products, and acknowledge and approve of such arrangements. NAI agrees any additional or different fulfillment vendor must be capable of providing telephone customer service
which appropriately reflects the public image of Ministries. 
  
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES 
  
 5.1 Representations and Warranties of Ministries. Ministries owns and/or controls the nonexclusive rights to the
Proprietary Assets, and has the authority to grant this license to use the Proprietary Assets in the manner and form provided in this Agreement. Ministries has received no notice of any claim with respect to any of the Proprietary Assets which is
inconsistent with its rights in the Proprietary Assets, nor has it received any notice of any unauthorized use thereof. The Proprietary Assets do not infringe upon or violate any rights of any third party. Neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereunder will violate or constitute a default under any agreement or instrument to which Ministries is a party or by which it is bound. 
  

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 5.2 Representations and Warranties of NAI. NAI has the authority to enter into this Agreement.
Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereunder will violate or constitute a default under any agreement or instrument to which NAI is a party or by which it is bound. 

 
 ARTICLE VI 
 CONFIDENTIALITY 
  
 6.1 Duty to Protect Confidential Information. Any confidential information disclosed or conveyed by either Party to the other in connection with its business by written communication and marked as confidential,
or by oral communication and confirmed in writing within thirty (30) working days of oral disclosure, shall be treated by the receiving Party as secret and confidential and shall be held in trust for the disclosing Party. The receiving Party shall
treat such information and take such steps to assure its continued confidentiality in like manner as it would use to protect its own trade secrets or confidential information and will not, except as required by law, disclose any such confidential
information received from the other Party to any third Party who is not bound under a confidentiality and non-disclosure agreement. 
  
 6.2 Means of Protecting Confidential Information. NAI and Ministries agree to take reasonable steps to ensure the proprietary and confidential
nature of the other’s confidential information and of Proprietary Assets, License Rights, and Products in which confidential information is embodied or included and to protect the same from loss or theft and agree to clearly mark such
confidential information and properly indicate its proprietary nature. 
  
 6.3 Terms of Agreement. Except as otherwise required by law, including, but not limited to, NAI’s disclosure obligations in connection with the U.S. Securities Act of 1934, the Parties agree that the terms of this Agreement are
proprietary and confidential, as is the existence of this Agreement. Each Party agrees to maintain the existence of this Agreement and the terms and information contained herein strictly confidential and will not disclose any such information to any
person who is not a Party hereto without the prior written consent of all Parties, which consent may be granted or withheld in the absolute discretion of each Party. 
  
 6.4 Ministries Use. The Parties acknowledge Ministries has an interest in utilizing confidential information
developed by NAI in connection with its distribution of Products for the purpose of enlisting participants in Ministries activities. The Parties agree that upon the request of Ministries they will meet, confer and negotiate in good faith the terms
under which Ministries may use such information to enlist additional participants while providing adequate protections for the reasonable interest of NAI in connection therewith. 
  
 6.5 Provisions Divisible. It is agreed by all Parties that the foregoing covenants are appropriate and reasonable in
light of the nature and extent of the business conducted by the 
  

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 Parties and their respective relationships. It is further agreed that the covenants set forth herein are divisible in the
event they are held to be invalid, unreasonable, arbitrary or against public policy. Further, it is agreed by the Parties that if any court of competent jurisdiction or authorized arbitrator makes such a determination, they may determine what time
period and geographical area are reasonably necessary to protect the Parties’ legitimate business interests and which are enforceable. 
  
 6.6 Irreparable Injury. Each Party acknowledges that damages at law will be an insufficient remedy for violation of the terms of this Article and
that the other Party would suffer irreparable injury as a result of such violation. Accordingly, it is agreed upon application to a court of competent jurisdiction, the Parties may obtain injunctive relief to enforce the provisions of this Article
of this Agreement, which injunctive relief shall be in addition to any other rights or remedies available to it or them. 
  
 6.7 Extended Term of Confidentiality. It is recognized by all Parties that due to their respective positions of confidence giving rise to access to
confidential, proprietary information during the term of this Agreement, that the provisions of this Article VI apply during the term of this Agreement and for a period of three (3) years thereafter. 
  
 ARTICLE VII 
 CLAIMS AND INDEMNIFICATION 
  
 7.1 Indemnification by NAI Against Third-Party Claims. Except as otherwise set forth above in Article VI, NAI shall indemnify, defend, and hold harmless Ministries, its subsidiaries, affiliated and/or
controlled companies and all sublicensees, as well as their respective officers, directors, agents, and employees, harmless from and against any and all damage, loss, expense (including reasonable attorneys’ fees and costs), award, settlement,
or other obligation arising out of any claims, demands, actions, suits, or prosecutions that may be made or instituted against them or any of them, (i) arising from any alleged breach of NAI’s warranties contained herein, (ii) arising from any
injury or death from any defect in the Proprietary Assets; and (iii) any claims arising out of NAI marketing, distribution, promotion, sale, or use of Products or Proprietary Assets. 
  
 7.2 Indemnification by Ministries Against Third-Party Claims. Except as otherwise set forth above in Article VI,
Ministries shall indemnify, defend, and hold harmless NAI, its subsidiaries, affiliated and/or controlled companies and all sublicensees, as well as their respective officers, directors, agents, and employees, harmless from and against any and all
damage, loss, expense (including reasonable attorneys’ fees and costs), award, settlement, or other obligation arising out of any claims, demands, actions, suits, or prosecutions that may be made or instituted against them or any of them, (i)
arising from any alleged breach of Ministries’ warranties contained herein, and (ii) arising from any injury or death from any defect in the Proprietary Assets specifically excluding any claim relating to the Products manufactured by NAI
exclusive of the Proprietary Assets 
  

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 7.3 Insurance. NAI shall carry with companies reasonably satisfactory to Ministries:
(i)Workers’ Compensation and Employees’ Liability Insurance; (ii) Standard Form Fire and Extended Coverage Insurance for the full replacement value of any of the Products or any premiums or packaging materials, and (iii) Public Liability
Insurance including Contractual Liability and Products Liability Coverage (with Broad Form Vendor’s Endorsement naming Ministries and its authorized distributors and customers as insured) with a combined single limit of not less than Ten
Million Dollars ($10,000,000). NAI shall submit policies and/or certificates of insurance evidencing the above coverage (which shall include an agreement by the insurer not to cancel or materially alter its coverage except upon thirty (30) days
prior written notice to Ministries) to Ministries upon Ministries’ written request therefore. Products Liability Insurance shall continue in effect for Ministries’ benefit for a period of ten (10) years from the date of the last sale of
Products by NAI. In case of NAI’s failure to carry said policies and/or furnish certificates of insurance or upon cancellation of any required insurance, Ministries may, at its option, immediately terminate this Agreement unless (in the case of
cancellation) NAI has obtained substitute insurance coverage before such insurance becomes canceled and provides Ministries with satisfactory evidence thereof. 
  

7.4 Liability for Claims of Parties. Except as otherwise provided in this Agreement, no Party shall be liable for injury to any other
Party’s business or any loss of income therefrom or for damage to the other Party’s property, employees, invitees, customers or any other person or thing, nor shall any Party be liable for injury to the persons of the other or their
respective employees, agents or contractors, whether or not such damage or injury arises or results from the performance or conduct imposed by this Agreement either directly or indirectly. 
  
 ARTICLE VIII 
 MISCELLANEOUS PROVISIONS 
  
 8.1 Sublicense. NAI may sublicense the rights granted pursuant to this Agreement, provided NAI obtains Ministries’ prior written consent to such sublicense. Ministries’ consent to any sublicense shall
not be unreasonably withheld and in any such sublicense agreement, provision shall be made so that Ministries receives such revenue or royalty payment as provided for herein. Any sublicense granted in violation of this provision shall be
void. 
  
 8.2 Entire Agreement; Amendment. This
Agreement contains the entire understanding between the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous written or oral negotiations and agreements between them regarding the subject matter hereof. This
Agreement may be amended only by a writing signed by both of the Parties and clearly designated as an amendment to this Agreement by an appropriate heading. 
  
 8.3 Severability. If any provision or portion thereof of this Agreement is determined to be invalid or unenforceable, the provision or portion
shall be deemed to be severable from the remainder of this Agreement and shall not cause the invalidity or unenforceability of the remainder of this Agreement. 
  

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 8.4 No Implied Waivers. The failure of either Party at any time to require performance by the
other Party of any provision hereof shall not affect in any way the right to require such performance at any later time, nor shall the waiver by either Party of a breach of any provision hereof be taken or held to be a waiver of such provision.

  
 8.5 Attorneys Fees. If any arbitration or legal
proceeding is brought for the enforcement of this Agreement, or because of an alleged breach, default or misrepresentation in connection with any provision of this Agreement or other dispute concerning this Agreement, the successful or prevailing
Party shall be entitled to recover reasonable attorneys fees incurred in connection with such arbitration or legal proceeding. The term “Prevailing Party” shall mean the Party which is entitled to recover its costs in the proceeding under
applicable law, or the Party designated as such by the court or the arbitrators. 
  
 8.6 Arbitration. Any dispute, controversy or claim arising from, out of or in connection with, or relating to, this Agreement or any breach or alleged breach of this Agreement, except allegations of violations
of Federal or State securities laws, will upon the request of any Party involved be submitted to any private arbitration service utilizing former judges as mediators and approved by the Parties. The dispute once submitted shall be settled by
arbitration in Houston (or at any other place or under any other form of arbitration mutually acceptable to Parties involved). The arbitrator shall follow and apply the federal rules of evidence and the applicable local federal rules of governing
discovery in the arbitration. Any award rendered shall be final, binding and conclusive upon the Parties and shall be non-appealable, and a judgment thereon may be entered in the highest State or Federal court of the forum, having jurisdiction. The
expenses of the arbitration shall be borne equally by the Parties to the arbitration, provided that each Party shall pay for and bear the cost of its own experts, evidence and attorneys’ fees, except that in the discretion of the arbitrator,
any award may include the costs, fees and expenses of a Party’s attorneys. 
  
 8.7 Governing Law. This Agreement shall be construed and interpreted under the laws of the State of Texas. All disputes or controversies or questions arising under or relating to this Agreement between the
Parties hereto in relation to this Agreement shall be construed and resolved under the laws of the State of Texas. Each Party acknowledges and waives any objection to venue for such disputes in state or federal courts sitting in Houston, Texas. Any
judgments upon the award entered by the arbitrators may be entered in the State or Federal Courts situated in the State of Texas. 
  
 8.8 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 
  
 8.9
Captions. The captions of the sections and subsections of this Agreement are included for reference purposes only and are not intended to be a part of the Agreement or in any way to define, limited or describe the scope or intent of the
particular provision to which they refer. 
  

 13 

 8.10 Relationship of the Parties. The terms and provisions of this agreement are intended to be a
license agreement and it shall not in any respect be construed to constitute NAI or Ministries as the agent, employee, partner or joint venturer of the other. 
  
 8.11 Notice; Designation. All notices, consents, waivers and other communications under this Agreement must be in
writing and will be deemed to have been given by a party (a) when delivered by hand (with delivery receipt required, costs prepaid by sender); (b) one day after deposit with a nationally recognized overnight courier service (all costs prepaid by
sender); (c) five days after deposit in the United States mail by certified delivery, return receipt requested (postage prepaid); (d) when sent by facsimile with confirmation of transmission by the transmitting equipment (a confirming copy of the
notice shall also be delivered by the method specified in (b) in this Section). Notices shall be sent in each case to the address indicated for each party below. The notice provision for any party may be changed by sending notice in accordance with
this Section. 
  

			
	If to NAI:	 	with a copy to:
	  
 Natural Alternatives International, Inc.
 1185 Linda Vista Drive
 San Marcos, California 92078
 Attn: President or Chief Operating Officer
 Telephone: (760)
744-7340
 Facsimile: (760) 591-9637
	 	 Fisher Thurber LLP
 4225 Executive Square, Suite
1600
 La Jolla, California 92037
 Attention: David A.
Fisher
 Telephone: (858) 535-9400
 Facsimile: (858)
535-1616

  

	
	If to Ministries:
	  
 Reginald B. Cherry Ministries,
Inc.
 8323 Southwest Freeway, Suite 440
 Houston, Texas 77074
 Attention: Reginald B. Cherry, M.D.

	  
 Telephone: (713)
961-2789
 Facsimile: (713) 961-0899

  
 8.11.1 If a specific
contact person is designated in a provision, notice concerning the subject matter of such provision shall be directed to such person. The address or the name of any Party or contact person may be changed by sending notice in the manner set forth
above. 
  

 14 

 release or discharge them from any liability or obligation hereunder. The rights and obligations of Ministries and NAI
may only be assigned to other than Affiliate after first obtaining the other Party’s written consent, which consent may not be unreasonably withheld. As used herein, Affiliate shall refer to any person or entity that is under direct or indirect
control of the applicable Party. The term “control” includes without limitation, ownership of interest representing a majority of the total voting power in an entity or the ability to manage or direct such entity. 
  
 8.13 Further Assurances. The Parties agree (i) to furnish upon request
to each other such further information, (ii) to execute and deliver to each other such other documents, and (iii) to do such other acts and things, all as the other Party may reasonably request for the purpose of carrying out the intent of this
Agreement and the documents referred to in this Agreement. 
  
 Rest of page intentionally left blank 
 Signature page follows 
  

 15 

 Intending to be legally bound, the Parties have executed this Exclusive License Agreement effective as of
the Effective Date. 
  

			
	 NATURAL ALTERNATIVES INTERNATIONAL, INC.
 A Delaware corporation

		
	By:	 	 /s/ Randell Weaver

	 	 	Randell Weaver, President
	
	 REGINALD B. CHERRY MINISTRIES, INC.
 A Texas
non-profit corporation

		
	By:	 	 /s/ Reginald B. Cherry, M.D.

	Name:	 	Reginald B. Cherry, M.D.
	Title:	 	President

  

 16Form Idemnification Agreement

 Exhibit 10.15 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (the “Agreement”) is made and entered into effective as of
                     by and between Natural Alternatives International, Inc., a Delaware corporation (the “Company”) and
                     (“Indemnitee”). 
  
 RECITALS 
  
 WHEREAS, the Board of Directors of the Company has adopted Bylaws (the “Bylaws”) providing for the indemnification of the officers and directors
of the Company to the maximum extent authorized by Section 145 of the Delaware General Corporation Law, as amended (“Law”); 
  
 WHEREAS, the Bylaws and the Law, by their nonexclusive nature, permit contracts between the Company and the officers or directors of the Company with
respect to indemnification of such officers or directors; 
  
 WHEREAS, in accordance with the authorization as provided by the Law, the Company may purchase and maintain a policy or policies of directors’ and officers’ liability insurance (“D & O Insurance”), covering certain
liabilities which may be incurred by its officers or directors in the performance of their obligations to the Company; and 
  
 WHEREAS, in order to induce Indemnitee to serve as a director of the Company, the Company has determined and agreed to enter into this Agreement with
Indemnitee. 
  
 NOW, THEREFORE, in consideration of
Indemnitee’s service as a director from and after the date hereof, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 AGREEMENT 
  
 1. Indemnity of Indemnitee. The Company hereby agrees to hold harmless and indemnify Indemnitee to the full extent
authorized or permitted by the provisions of the Law, as such may be amended from time to time, and the Bylaws, as such may be amended. In furtherance of the foregoing indemnification, and without limiting the generality thereof: 
  
 (a) Proceedings Other Than Proceedings by or in the Right
of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 1(a) if, by reason of his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to or participant in any
Proceeding (as hereinafter defined) other than a Proceeding by or in the right of the Company. Pursuant to this Section 1(a), Indemnitee shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid
in settlement actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably 

  

 1 

 
believed to be in or not opposed to the best interests of the Company and, with respect to any criminal Proceeding, had no reasonable cause to believe his
conduct was unlawful. 
  
 (b) Proceedings by
or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 1(b) if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in any Proceeding
brought by or in the right of the Company. Pursuant to this Section 1(b), Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding if he acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best interests of the Company; provided, however, that, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter
in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware shall determine that such indemnification may be made. 
  
 (c) Indemnification for Expenses of a Party Who is Wholly
or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be
indemnified to the maximum extent permitted by law against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully
resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such
claim, issue or matter. 
  
 2. Additional Indemnity. In
addition to, and without regard to any limitations on, the indemnification provided for in Section 1, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in
settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company),
including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of Indemnitee. The only limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that the Company
shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 6 and 7 hereof) to be unlawful under Delaware law. 
  
 3. Contribution in the Event of Joint Liability. 
  
 (a) Whether or not the indemnification provided in Sections 1
and 2 hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the
first instance, the entire amount of any judgment or 

  

 2 

 
settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any
right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding)
unless such settlement provides for a full and final release of all claims asserted against Indemnitee. 
  
 (b) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason,
Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such
action, suit or proceeding), the Company shall contribute to the amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to
the relative benefits received by the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and
Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further
adjusted by reference to the relative fault of Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand,
and Indemnitee, on the other hand, in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which the law may require to be considered. The relative fault of
the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be
determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary, and the degree to which their conduct is
active or passive. 
  
 (c) The Company hereby
agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Company other than Indemnitee who may be jointly liable with Indemnitee. 
  
 4. Indemnification for Expenses of a Witness. Notwithstanding any
other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by
him or on his behalf in connection therewith. 
  
 5.
Advancement of Expenses. Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status
within ten (10) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements
shall reasonably evidence the Expenses incurred by 

  

 3 

 
Indemnitee and shall include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall
ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Any advances and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free. Notwithstanding the foregoing, the obligation
of the Company to advance Expenses pursuant to this Section 5 shall be subject to the condition that, if, when and to the extent that the Company determines that Indemnitee would not be permitted to be indemnified under applicable law, the Company
shall be entitled to be reimbursed, within thirty (30) days of such determination, by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts theretofore paid; provided, however, that if Indemnitee has commenced or thereafter
commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, any determination made by the Company that Indemnitee would not be permitted to be indemnified
under applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company for any advance of Expenses until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have
been exhausted or lapsed). 
  
 6. Procedures and Presumptions
for Determination of Entitlement to Indemnification. It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the law and public policy of the State of Delaware. Accordingly,
the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement: 
  
 (a) To obtain indemnification (including, but not limited to, the advancement of Expenses and contribution
by the Company) under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested
indemnification. 
  
 (b) Upon written request by
Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following
three methods, which shall be at the election of Indemnitee: (1) by a majority vote of the disinterested directors, even though less than a quorum, or (2) by independent legal counsel in a written opinion, or (3) by the stockholders. 
  
 (c) If the determination of entitlement to indemnification
is to be made by Independent Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be selected as provided in this Section 6(c). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board of Directors). Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written
objection to such selection; provided, however, that such objection may be asserted only 

  

 4 

 
on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 13 of this
Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is made and substantiated, the
Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a written request for
indemnification pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware or other court of competent
jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such
other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 6(b) hereof. The Company shall pay any and all reasonable fees
and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 6(c),
regardless of the manner in which such Independent Counsel was selected or appointed. 
  
 (d) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such
determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 6(a) of this Agreement. Anyone seeking to overcome this presumption
shall have the burden of proof and the burden of persuasion, by clear and convincing evidence. 
  
 (e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the
Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports
made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or
employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this Section 6(e) are satisfied, it shall in any event be
presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the
burden of persuasion, by clear and convincing evidence. 
  
 (f) If the person, persons or entity empowered or selected under Section 6 to determine whether Indemnitee is entitled to indemnification shall not have made a determination within thirty (30) days after receipt by
the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of 

  

 5 

 
a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request
for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 30 day period may be extended for a reasonable time, not to exceed an additional fifteen (15) days, if the person, persons or
entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating documentation and/or information relating thereto; and provided, further, that the foregoing
provisions of this Section 6(f) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 6(b) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of
the request for such determination the Board of Directors or the Disinterested Directors, if appropriate, resolve to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy five
(75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose
within sixty (60) days after having been so called and such determination is made thereat. 
  
 (g) Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement
to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any Independent Counsel, member of the Board of Directors, or stockholder of the Company shall act reasonably and in good faith in making a determination under the Agreement of the Indemnitee’s
entitlement to indemnification. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 
  
 (h) The Company acknowledges that a settlement or other disposition short of final judgment may be
successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against
Indemnitee (including, without limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action,
suit or proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence. 
  

7. Remedies of Indemnitee. 
  
 (a) In the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 6(b) of 

  

 6 

 
this Agreement within 90 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this
Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such
determination is deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Delaware, or in any other court of competent jurisdiction, of his entitlement
to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 7(a). The Company shall not
oppose Indemnitee’s right to seek any such adjudication. 
  
 (b) In the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this Section 7
shall be conducted in all respects as a de novo trial, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination under Section 6(b). 
  
 (c) If a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is
entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 7, absent a prohibition of such indemnification under applicable law. 
  
 (d) In the event that Indemnitee, pursuant to this Section
7, seeks a judicial adjudication of his rights under, or to recover damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance policies maintained by the Company the Company shall pay on his
behalf, in advance, any and all expenses (of the types described in the definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by him in such judicial adjudication, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, advancement of expenses or insurance recovery. 
  
 (e) The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement. 
  
 8. Non-Exclusivity; Survival of Rights; Insurance; Subrogation. 
  
 (a) The rights of indemnification as provided by this
Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the certificate of incorporation of the Company, the Bylaws, any agreement, a vote of stockholders or a resolution of
directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his
Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in the Law, whether by statute or judicial decision, permits greater indemnification than would be 

  

 7 

 
afforded currently under the Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater
benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder
or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 
  
 (b) To the extent that the Company maintains an insurance
policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person
serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or
policies. 
  
 (c) In the event of any payment
under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of
such documents as are necessary to enable the Company to bring suit to enforce such rights. 
  
 (d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 
  
 9. Exception to Right of Indemnification. Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to
indemnification under this Agreement with respect to any Proceeding brought by Indemnitee, or any claim therein, unless (a) the bringing of such Proceeding or making of such claim shall have been approved by the Board of Directors of the Company or
(b) such Proceeding is being brought by the Indemnitee to assert, interpret or enforce his rights under this Agreement. 
  
 10. Duration of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer
or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as
Indemnitee shall be subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his Corporate Status, whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for
which indemnification can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives. This Agreement shall continue in effect 

  

 8 

 
regardless of whether Indemnitee continues to serve as an officer or director of the Company or any other Enterprise at the Company’s request.

  
 11. Security. To the extent requested by the Indemnitee
and approved by the Board of Directors of the Company, the Company may at any time and from time to time provide security to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or
other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee. 
  
 12. Enforcement. 
  
 (a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in
order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an officer or director of the Company. 
  
 (b) This Agreement constitutes the entire agreement between
the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof. 
  
 13. Definitions. For purposes of this Agreement: 
  
 (a) “Corporate Status” describes the status of a
person who is or was a director, officer, employee or agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the express
written request of the Company. 
  
 (b)
“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 
  
 (c) “Enterprise” shall mean the Company and any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary. 
  
 (d) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in
connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding. 
  

(e) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and
neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either 

  

 9 

 
such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification
agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees of the
Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 
  
 (f) “Proceeding” includes any threatened, pending
or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise
and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of the fact that Indemnitee is or was a director of the Company, by reason of any action taken by him or
of any inaction on his part while acting as an officer or director of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other Enterprise; in each case whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement; including one pending on or
before the date of this Agreement; and excluding one initiated by an Indemnitee pursuant to Section 7 of this Agreement to enforce his rights under this Agreement. 
  
 14. Severability. If any provision or provisions of this Agreement shall be held by a court of competent jurisdiction
to be invalid, void, illegal or otherwise unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any section of this
Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent
permitted by law; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that
is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 
  
 15. Modification and Waiver. No supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing by
both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 

 
 16. Notice By Indemnitee. Indemnitee agrees promptly to notify the
Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder. The failure to so notify
the Company shall not relieve the 

  

 10 

 
Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay
materially prejudices the Company. 
  
 17. Notices. All
notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been
directed, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed: 
  
 (a) If to Indemnitee, to the address set forth below Indemnitee’s signature hereto; 
  
 (b) If to the Company, to: 1185 Linda Vista Drive, San
Marcos, California 92078, Attention: President; 
  
 or to such other address as
may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 
  
 18. Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement. 
  
 19. Headings. The headings of the paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 
  
 20. Governing Law. The parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State
of Delaware without application of the conflict of laws principles thereof. 
  
 [Signatures on following page.] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the date first set forth
above. 
  

			
	 NATURAL ALTERNATIVES INTERNATIONAL, INC.,
 a Delaware corporation

		
	By:	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 President

  

	
	INDEMNITEE:
	
	  

  

			
		
	Address:	 	 
		
	 	 	 
		
	 	 	 

  

 12

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