Document:

Separation Agreement and General Release of Claims

 Exhibit 10.43 
 SEPARATION AGREEMENT AND GENERAL RELEASE OF CLAIMS 
 This Separation Agreement and General Release of
Claims (“Agreement”) is entered into by and between Randell Weaver (“Former Employee”) and Natural Alternatives International, Inc., a Delaware corporation (“Company”). 
 RECITALS 
 A. Former Employee’s
employment with the Company terminated effective on December 31, 2008 (“Date of Termination”). 
 B. Former Employee and
Company desire to settle and compromise any and all possible claims between them arising out of their relationship to date, including Former Employee’s employment with the Company, and the termination of Former Employee’s employment with
the Company, and to provide for a general release of all claims relating to Former Employee’s employment and its termination. In particular, and without limiting the generality of the foregoing, Former Employee and Company are each parties to
an Employment Agreement dated January 30, 2004, as amended June 28, 2008 (the “Employment Agreement”), and desire to settle and compromise claims made by Former Employee pursuant to the Employment Agreement. 
 NOW, THEREFORE, incorporating the above recitals, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows: 
 AGREEMENT 
 1. Separation Payment by Company. In consideration of Former Employee’s promises and covenants contained in this Agreement: 
 (a) The Company agrees to pay Former Employee the gross sum of Three Hundred Twenty Five Thousand and 00/100 dollars ($325,000.00), less
all applicable withholdings and deductions, which amount represents a severance benefit in the amount of one (1) year’s base salary. Except as set forth below, Two Hundred Sixteen Thousand Six Hundred Sixty Six and 67/100 dollars
($216,666.67) of such severance benefit will be paid by the Company to Former Employee within ten (10) business days after the Effective Date (as hereinafter defined) and the balance of the severance benefit will be paid by the Company to
Former Employee on a bi-weekly basis over the period from the Effective Date until December 31, 2009 with the first such payment to be processed with the next regularly scheduled Company payroll after the Effective Date. Notwithstanding the
foregoing, no amount of the severance benefit shall be due to Former Employee unless and until Former Employee has complied with Section 4(b) hereof. Former Employee acknowledges and agrees he has received payment for all unused, accrued
vacation pay, as well as all salary to which he was entitled through the Date of Termination, less all applicable withholdings and deductions. 
  

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 (b) Former Employee acknowledges and agrees that (i) the amounts set forth above
represent additional payments to Former Employee, over and above all compensation (including salary, wages, bonuses, or benefits) to which Former Employee would otherwise be entitled due to Former Employee’s employment with the Company and but
for Former Employee’s execution of this Agreement, Former Employee would not otherwise be entitled to such payments; and (ii) the payments set forth in Section 1(a) represent the total consideration due to Former Employee from the
Company under this Agreement. 
 2. Release. 
 (a) Former Employee does hereby unconditionally, irrevocably and absolutely release and forever discharge the Company, and its
subsidiaries and affiliates, and its and their respective past and present directors, officers, employees, representatives, agents, attorneys, stockholders, insurers, successors and/or assigns (hereinafter individually a “Released Party”
and collectively, the “Released Parties”), from any and all losses, liabilities, claims, demands, causes of action, or suits of any type, whether in law and/or in equity, related directly or indirectly or in any way in connection with any
transaction, affairs or occurrences between them to date, including, but not limited to, Former Employee’s employment with the Company and the termination of said employment. Former Employee agrees and understands the release given by Former
Employee to the Released Parties in this Agreement applies, without limitation, to all wage claims, tort and/or contract claims, common law claims, claims for wrongful termination and/or retaliatory discharge, and claims arising under the Age
Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, the Civil Rights Act of 1964 (Title VII), the Civil Rights Act of 1991, Section 1981, the Americans with Disabilities Act, the Rehabilitation Act of 1973, the
Equal Pay Act, the California Fair Employment and Housing Act, the Unruh and Ralph Civil Rights Act, the Fair Labor Standards Act, the Worker Adjustment and Retraining Notification Act, the Family and Medical Leave Act, the Employee Retirement and
Income Security Act, the California Labor Code, the California Worker Adjustment and Retraining Notification Act, all as amended, any and all federal, state or local laws, regulations, statutes or ordinances governing discrimination and/or
harassment in employment, and the California Business and Professions Code. This release does not extend to any matters that may not be released in this manner as a matter of law. 
 (b) Former Employee warrants, represents, acknowledges and agrees that Former Employee has not filed or otherwise cooperated in the
authorization of the filing of any complaints, charges, or lawsuits against any Released Party with any governmental agency or court. If such a complaint, charge or lawsuit has been filed on Former Employee’s behalf or is filed in the future,
Former Employee hereby waives, releases and discharges any right to recover thereunder from any Released Party. 
 3. Confidentiality.

 (a) Former Employee agrees that all matters relative to this Agreement shall remain confidential. Accordingly, Former
Employee hereby agrees that Former Employee shall not discuss, disclose or reveal to any other persons, entities or organizations, whether within or outside of the Company, with the exception of Former Employee’s legal counsel, financial, tax

  

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and business advisors, and such other persons as may be reasonably necessary for the management of the Former Employee’s affairs, the terms, amounts and
conditions of settlement and of this Agreement. Notwithstanding the above, Former Employee acknowledges that Company and/or its parent may be required to disclose certain terms, aspects or conditions of this Agreement and/or Former Employee’s
termination of employment in NAI’s public filings made with the United States Securities and Exchange Commission and Former Employee hereby expressly consents to any such required disclosures. 
 (b) Former Employee shall not make, issue, disseminate, publish, print or announce any news release, public statement or announcement with
respect to these matters, or any aspect thereof, the reasons therefore and the terms or amounts of this Agreement. 
 4. Return of
Documents and Equipment. 
 (a) Subject to Section 4(b) below, Former Employee represents that Former Employee has
returned to the Company all Company Property (as such term is defined in that certain Confidential Information and Invention Assignment Agreement, Covenant of Exclusivity and Covenant Not To Compete by and between Former Employee and Company). In
the event Former Employee has not returned all Company Property, Former Employee agrees to reimburse the Company for any reasonable expenses it incurs in an effort to have such property returned. These reasonable expenses include attorneys’
fees and costs. 
 (b) Notwithstanding Section 4(a) above, Former Employee shall be entitled to keep and retain his
Company issued laptop, cell phone and cell phone number provided Former Employee first delivers his laptop to the Company for the removal of all Company data, which as of the date hereof the Company acknowledges and agrees Former Employee has done,
and transfers the cell phone service contract for such cell phone and cell phone number from the Company to Former Employee such that Former Employee shall be solely responsible for the payment of all cell phone charges under such service contract.
No later than five (5) business days after the Effective Date, the Company agrees to complete, execute and deliver to the cell phone service provider such documents as may be reasonably necessary or required by the cell phone service provider
to effect the transfer of the cell phone service contract, the cell phone and cell phone number in accordance with the foregoing. Former Employee shall otherwise provide to the Company such documentation as the Company may reasonably request to
confirm the transfer of the cell phone service contract. 
 5. Consulting Agreement. On the Effective Date, the Company agrees to
enter into, execute and deliver the Consulting Agreement in the form attached hereto as Exhibit A. 
 6. Civil Code Section 1542
Waiver. 
 (a) Former Employee expressly accepts and assumes the risk that if facts with respect to matters covered by
this Agreement are found hereafter to be other than or different from the facts now believed or assumed to be true, this Agreement shall nevertheless remain effective. It is understood and agreed that this Agreement shall constitute a general
release and shall be effective as a full and final accord and satisfaction and as a bar to all actions, causes of action, costs, expenses, attorneys’ fees, 

  

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damages, claims and liabilities whatsoever, whether or not now known, suspected, claimed or concealed pertaining to the released claims. Former Employee
acknowledges that Former Employee is familiar with California Civil Code §1542, which provides and reads as follows: 
 “A
general release does not extend to claims which the creditor does not know of or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.”

 (b) Former Employee expressly waives and relinquishes any and all rights or benefits which Former Employee may have
under, or which may be conferred upon Former Employee by the provisions of California Civil Code §1542, as well as any other similar state or federal statute or common law principle, to the fullest extent that Former Employee may lawfully waive
such rights or benefits pertaining to the released claims. 
 7. Right to Consult Legal Counsel; Review Period. 
 (a) Former Employee is aware of and acknowledges the following: (i) Former Employee has the right, at Former Employee’s expense,
to consult with an attorney before signing this Agreement, has been advised in writing to do so, and has done so to the extent desired; (ii) Former Employee has twenty-one (21) days from the date of Former Employee’s receipt of this
Agreement to review and consider this Agreement, and Former Employee may use as much of this twenty-one (21) day period as Former Employee wishes before signing; (iii) for a period of seven (7) days following the execution of this
Agreement, Former Employee may revoke this Agreement by delivering a written notice specifically stating Former Employee’s desire to revoke this Agreement to the Company c/o Ken Wolf, Natural Alternatives International, Inc., 1185 Linda Vista
Drive, San Marcos, California 92078, which notice must be received by the Company not later than midnight on the seventh day following execution of this Agreement by Former Employee, and this Agreement shall not become effective or enforceable until
the revocation period has expired; and (iv) this Agreement shall become effective eight (8) days after it is signed by Former Employee and the Company (provided it is not revoked), and in the event the parties do not sign on the same date,
this Agreement shall become effective at 12:01 a.m. on the eighth day after the date it is signed by Former Employee (“Effective Date”). Former Employee shall, promptly upon signing this Agreement, deliver the executed original of the
Agreement to the Company to the attention of Ken Wolf. 
 (b) In the event Former Employee elects to execute this Agreement
before the end of the twenty-one (21) day review period provided to Former Employee and thereby waive the remainder of the twenty-one (21) day review period, Former Employee does so knowingly and voluntarily, and Former Employee
acknowledges and represents that the Company has not in any way coerced Former Employee to do so or otherwise threatened to withdraw or alter the Company’s offer of severance pay set forth in this Agreement before the expiration of such
twenty-one (21) day period. 
  

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 8. Entire Agreement. The parties declare and represent that, with the exception of the Mutual
Agreement to Mediate and Arbitrate Claims and the Confidential Information and Invention Assignment Agreement, Covenant of Exclusivity and Covenant Not to Compete each entered into by and between the Company and Former Employee effective as of
January 30, 2004 (collectively, the “Prior Agreements”), no promise, inducement or agreement not herein expressed has been made to them and that this Agreement, together with the Prior Agreements, contain the entire agreement between
and among the parties with respect to the subject matter hereof, and that the terms of this Agreement are contractual and not a mere recital. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties with
respect to the subject matter hereof with the exception of the Prior Agreements. 
 9. Applicable Law. This Agreement is entered into
in the State of California. The validity, interpretation, and performance of this Agreement shall be construed and interpreted according to the laws of the State of California. 
 10. Agreement as Defense. This Agreement may be pleaded as a full and complete defense and may be used as the basis for an injunction against any
action, suit or proceeding which may be prosecuted, instituted or attempted by either party in breach thereof. 
 11. Severability. If
any provision of this Agreement, or part thereof, is held invalid, void or voidable as against public policy or otherwise, the invalidity shall not affect other provisions, or parts thereof, which may be given effect without the invalid provision or
part. To this extent, the provisions, and parts thereof, of this Agreement are declared to be severable. 
 12. No Admission of
Liability. It is understood that this Agreement is not an admission of any liability by any person, firm, association or corporation. 
 13. Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The
exchange of copies of this Agreement and of signature pages by facsimile transmission shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes.
Signatures of the parties transmitted by facsimile shall be deemed to be their original signatures for all purposes. 
 14. Representation
of No Assignment. The parties represent and warrant that they have not heretofore assigned, transferred, subrogated or purported to assign, transfer or subrogate any claim released herein to any person or entity. 
 15. Cooperation. The parties hereto agree that, for their respective selves, heirs, executors and assigns, they will abide by this Agreement, the
terms of which are meant to be contractual, and further agree that they will do such acts and prepare, execute and deliver such documents as may reasonably be required in order to carry out the objectives of this Agreement. 
 16. Arbitration. Any dispute arising out of or relating to this Agreement shall be resolved pursuant to that certain Mutual Agreement to Mediate
and Arbitrate Claims made and entered into effective as of January 30, 2004, by and between the Company and Former Employee. 
  

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 18. Legal Representation; Independent Counsel. The law firm of K&L Gates LLP has
prepared this Agreement on behalf of the Company based on the Company’s instructions. K&L Gates LLP does not represent any other party to this Agreement. In executing this Agreement, Former Employee represents that Former Employee has
neither requested nor been given legal advice or counsel by K&L Gates LLP or any of its attorneys. Former Employee is aware of Former Employee’s right to obtain separate legal counsel with respect to the negotiation and execution of this
Agreement and acknowledges that K&L Gates LLP has recommended that Former Employee retain Former Employee’s own counsel for such purpose. Former Employee further acknowledges that Former Employee (i) has read and understands this
Agreement; (ii) has had the opportunity to retain separate counsel in connection with the negotiation and execution of this Agreement; and (iii) has relied on the advice of separate counsel with respect to this Agreement or made the
conscious decision not to retain counsel in connection with the negotiation and execution of this Agreement. 
 19. Further
Acknowledgements. Each party represents and acknowledges that it is not being influenced by any statement made by or on behalf of the other party to this Agreement. Former Employee and the Company have relied and are relying solely upon his, her
or its own judgment, belief and knowledge of the nature, extent, effect and consequences relating to this Agreement and/or upon the advice of their own legal counsel concerning the consequences of this Agreement. 
 [Signatures on following page.] 
  

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 THIS AGREEMENT AFFECTS YOUR RIGHTS. BEFORE SIGNING THIS AGREEMENT, PLEASE MAKE SURE THAT YOU HAVE READ IT CAREFULLY.
YOU ARE INVITED AND ADVISED TO CONSULT WITH AN ATTORNEY BEFORE YOU SIGN IT. IN EXCHANGE FOR THE SEVERANCE PAY OFFERED BY THE COMPANY, YOU ARE AGREEING TO WAIVE CERTAIN IMPORTANT RIGHTS. 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date(s) shown below. 
  

			
	FORMER EMPLOYEE
	
	/s/ Randell Weaver
	Randell Weaver
	Dated: March 5, 2009

			
	Executed in:	 	Encinitas, California
		 	(City)

			
	
	COMPANY
	
	Natural Alternatives International, Inc.,
	a Delaware corporation
		
	By:	 	/s/ Mark LeDoux
		 	Mark LeDoux, Chief Executive Officer
	Dated: March 4, 2009

			
	Executed in:	 	San Marcos, California
		 	(City)

  

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 EXHIBIT A 
 FORM OF CONSULTING AGREEMENT 
  

 Exhibit–AAgreement to Sublicense

 Exhibit 10.44 
 AGREEMENT TO SUBLICENSE 
 This Agreement to Sublicense (“Agreement”) is made and
entered into effective as of March 3, 2009 (“Effective Date”), by and between Natural Alternatives International, Inc., a Delaware corporation (“NAI”), and Compound Solutions, Inc., a California corporation
(“CSI”). 
 RECITALS 
 A. NAI is a party to that certain License Agreement effective as of April 28, 1997, by and among Roger Harris and Mark Dunnett (collectively, the “Licensors”) and NAI, as amended by that certain
Amendment to License Agreement dated March 17, 2001, as further amended by that certain Second Amendment to License Agreement dated March 26, 2007, and as may be further amended from time to time (the “License Agreement”).

 B. The License Agreement grants NAI a sublicenseable, exclusive, worldwide license to manufacture, use, sell, offer for sale and otherwise
commercially dispose of certain Licensed Products (as hereinafter defined) made in accordance with or incorporating the Licensed Rights (as hereinafter defined). 
 C. NAI is also the owner of certain registered trademarks related to the mark “Carnosyn” (as further described herein below and collectively, the “Trademark Rights”). 
 D. CSI is in the business of raw material sourcing and sales, including the sourcing and sale to third parties of certain raw materials set forth on
Exhibit A attached hereto that are necessary for the design, research, development and formulation of Licensed Products (the “Raw Materials”). 
 E. CSI desires NAI grant to third parties who purchase the Raw Materials from CSI a sublicense of certain of its Licensed Rights under the License Agreement and a license to use its Trademark Rights, and NAI desires
to grant such sublicenses and licenses in accordance with the terms and conditions of this Agreement. 
 Incorporating the foregoing recitals
and in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 AGREEMENT 
  

	1.	DEFINITIONS. 

 1.1 “Field of Use”
means dietary supplements and other foods for human performance nutrition. For avoidance of doubt, the Field of Use does not include the use of the Raw Materials and/or Licensed Rights to treat dogs, horses and/or camels or for any human medical
related use. 
 1.2 “Licensed Products” means those products made from or in accordance with, produced or manufactured using, or
otherwise incorporating in whole or in part any of the Licensed Rights, including, without limitation, any products incorporating or made from the Raw Materials or any material, substance, organism, component or product derived or developed from or
based upon the Raw Materials and covered in whole or in part by any of the claims of the Licensed Rights. 

 1.3 “Licensed Rights” means NAI’s rights in information, discoveries, concepts,
techniques, designs, processes and technology claimed in the following United States patents, and any reissues, reexaminations, or extensions, continuations, continuations-in-part, or divisionals of any of the following and any international
counterparts, and in the inventions and discoveries described, covered and claimed therein: 
 (a) US 5,965,596 filed
August 12, 1997, entitled “Methods and Compositions for Increasing the Anaerobic Working Capacity in Tissues;” 
 (b) US 6,172,098 filed May 25, 1999, entitled “Methods and Compositions for Increasing the Anaerobic Working Capacity in Tissues;” 
 (c) US 6,426,361 filed January 9, 2001, entitled “Methods and Compositions for Increasing the Anaerobic Working Capacity in Tissues;” 
 (d) US 6,680,294 filed July 30, 2002, entitled “Methods and Compositions for Increasing the Anaerobic Working Capacity in
Tissues;” and 
 (e) Allowed US application serial no. 10/717,217 filed November 18, 2003, entitled “Methods
and Compositions for Increasing the Anaerobic Working Capacity in Tissues.” 
 1.4 “Trademark Rights” means NAI’s rights
as the owner of the following registered trademarks: 
 (a) CARNOSYN (standard character mark), Registration
No. 3,146,289; 
 (b) CARNOSYN CARNOSINE SYNTHESIZER (standard character mark), Registration No. 3,121,544; and

 (c) CARNOSYN CARNOSINE SYNTHESIZER & Design, Registration No. 3,091,092. 
  

	2.	SUBLICENSE. 

 2.1 Subject to the terms and
conditions of this Agreement, NAI hereby agrees to grant to the customers of CSI who purchase the Raw Materials from CSI a worldwide, non-exclusive, non-transferable, non-assignable, non-sublicenseable, royalty-free (i) sublicense of NAI’s
rights under the Licensed Rights to manufacture, offer for sale, and/or sell Licensed Products within the Field of Use (the “Sublicense”), and (ii) license to use and reproduce the trademarks comprising the Trademark Rights
solely to advertise, market, and promote the Licensed Products within the Field of Use (the “Trademark License”). The term of such Sublicense and Trademark License shall automatically expire upon the expiration of NAI’s Licensed
Rights under the License Agreement and/or expiration of NAI’s Trademark Rights. 

 2.2 CSI agrees to provide to each of its customers that purchases Raw Materials from CSI a copy of the
Sublicense Agreement, in the form set forth in Exhibit B attached hereto (the “Sublicense Agreement”), which Sublicense Agreement may not be altered, amended, or modified except with the express written consent of an authorized
officer of NAI. No Sublicense or Trademark License shall be granted or deemed to have been granted to any customer of CSI that does not receive and accept the Sublicense Agreement and, except as expressly provided in this Section 2, nothing
contained in this Agreement is intended to confer by implication, estoppel, or otherwise, upon CSI or any customer of CSI a license or rights in any intellectual property or other rights of NAI. 
  

	3.	RESERVATION OF RIGHTS. 

 3.1 CSI acknowledges
and agrees that during the term of this Agreement, NAI and its affiliates will continue to design, develop, manufacture, sell, and distribute Licensed Products using the Licensed Rights and Trademark Rights and NAI may grant sublicenses and/or
licenses of its rights under the Licensed Rights and Trademark Rights to manufacture, offer for sale and/or sell Licensed Products to third parties who are not customers of CSI and/or who did not purchase Raw Materials from CSI. Nothing in this
Agreement shall be interpreted to limit in any manner or to any extent NAI’s rights and ability to act in accordance with the foregoing and NAI hereby expressly reserves such rights. 
 3.2 CSI acknowledges and agrees the Licensed Rights and the Trademark Rights are and will remain the sole and exclusive property of NAI, subject to the
rights of the Licensors, and that NAI is the owner of all proprietary rights and intellectual property rights associated therewith including without limitation all trademarks, trade dress, trade names, logos, domain names and service marks, together
with all translations, adaptations, derivations and combinations, including all associated goodwill, and all applications, registrations, reservations and renewals in connection therewith, whether or not registered for the Licensed Rights or the
Trademark Rights. Except as otherwise permitted herein, CSI will not take any action inconsistent with NAI’s ownership of and rights under the Licensed Rights and Trademark Rights. CSI will not contest or aid others in contesting the validity,
enforceability or NAI’s ownership of and/or rights in the Licensed Rights and Trademark Rights. 
  

	4.	FEES. 

 4.1 In consideration of NAI’s
agreement to grant Sublicenses and licenses to use the Trademark Rights pursuant to the terms of this Agreement, CSI agrees to pay to NAI, in United States dollars, the fees and amounts set forth on Schedule 1 attached hereto (the
“Sublicense Fees”). 
 4.2 The Sublicense Fees must be paid to NAI within thirty (30) days after the end of the
calendar quarter in which such Sublicense Fees are earned. CSI shall submit to NAI with its payment of the Sublicense Fees a quarterly report summarizing total sales of Raw Materials to third parties during the immediately preceding calendar
quarter. The report shall be in form and content as agreed to by the parties. 

 4.3 If any Sublicense Fees to be paid by CSI to NAI under this Agreement become delinquent, the
delinquent amount shall bear interest until paid in full with such interest. The interest will be compounded annually and will accrue at the lesser of (i) the highest annual rate allowed under applicable law at the time the outstanding amount
becomes delinquent, or (ii) 0.0005 multiplied by the outstanding amount per day of delinquency. 
 4.4 CSI agrees to keep and maintain
accurate and adequately detailed accounting records, including copies of all purchase orders, for all sales of Raw Materials sold to third parties. Such accounting records shall be kept for a minimum of three (3) years following the end of the
calendar quarter in which such sales were made. During the term of this Agreement and for one year thereafter, copies of all purchase orders for the sale of Raw Materials to third parties shall be made available to NAI upon request and NAI or its
agents shall otherwise have the right, upon reasonable prior notice and during ordinary business hours, to inspect the relevant accounting records of CSI to verify the accuracy of the Sublicense Fees paid or payable to NAI. Any such inspection shall
be conducted so as to not unreasonably interfere with CSI’s normal business activities. 
 4.5 CSI agrees to take commercially
reasonable actions to promote, market and sell the Raw Materials. 
  

	5.	PROSECUTION AND ENFORCEMENT OF LICENSED RIGHTS. 

 5.1 NAI will have sole control over, but, subject to Section 5.2, no obligations to CSI with respect to, the filing, prosecution, and maintenance (collectively, the “Prosecution”) of the Licensed Rights and the
Trademark Rights. CSI will not have any right to participate in the Prosecution of any Licensed Rights and/or Trademark Rights. 
 5.2 During
the term of this Agreement, NAI agrees to use commercially reasonable efforts to maintain and protect the Licensed Rights and Trademark Rights, to make any necessary filings, and to pay any necessary fees or other amounts due with respect thereto.

 5.3 During the term of this Agreement, CSI agrees to promptly notify NAI in writing upon becoming aware of any known or suspected
infringement or other improper use of any Licensed Rights or Trademark Rights. Such notice will include the identity of the third party or parties known or suspect to have infringed the Licensed Rights and/or Trademark Rights and any available
information that is relevant to such infringement. NAI shall have sole control over enforcement and defense of all Licensed Rights and Trademark Rights. CSI shall not take any action to notify a known or suspected infringing party but shall use best
efforts and cooperate with NAI, at NAI’s request, in litigating, settling or otherwise terminating any such infringement of the Licensed Rights and/or Trademark Rights. NAI shall be entitled to any and all damages awarded as a result of or
agreed to in a monetary settlement of any such claim of infringement. 
  

	6.	REPRESENTATIONS AND WARRANTIES OF CSI. 

 6.1
CSI represents and warrants that all Raw Materials provided to customers of CSI that receive a Sublicense shall be of the best quality and pure and free from adulteration within the guidelines of the Food, Drug and Cosmetic Act of the United States
as amended. 

 6.2 CSI further represents, warrants and guarantees that at the time of delivery of the Raw Materials to
its customers the Raw Materials will, when delivered, conform to the description on the face of the purchase order relating to such Raw Materials, and be free of defects in materials and workmanship and further, that the Raw Materials and the
import, sale, marketing and distribution of such Raw Materials by CSI will comply with all applicable international, federal and state laws governing and/or related thereto as in effect from time to time. 
 6.3 CSI represents and warrants that it has the full right, power and authority to enter into this Agreement, to perform its obligations and duties under
this Agreement, and that the performance of such obligations and duties does not and will not conflict with or result in a breach of any other agreements of CSI or any judgment, order or decree by which CSI is bound. 
  

	7.	REPRESENTATIONS AND WARRANTIES OF NAI. 

 7.1
NAI represents and warrants to CSI that is has full right, power and authority to sublicense the Licensed Rights and to license the Trademark Rights as provided in this Agreement. NAI further represents and warrants to CSI that it has the full
right, power and authority to enter into this Agreement, to perform its obligations and duties under this Agreement, and that the performance of such obligations and duties does not and will not conflict with or result in a breach of any judgment,
order or decree by which NAI is bound. 
 7.2 THE EXPRESS WARRANTIES SET FORTH IN SECTION 7.1 ARE THE ONLY WARRANTIES MADE BY NAI IN
CONNECTION WITH THIS AGREEMENT AND ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS, IMPLIED OR STATUTORY. 
 7.3 Without limiting the generality
of Section 7.2, nothing in this Agreement shall be construed as giving rise to: 
 (a) a warranty or representation by
NAI as to the validity, enforceability, or scope of any right included in the Licensed Rights or Trademark Rights; 
 (b) a
warranty or representation by NAI that any Licensed Products made or sold under any license or sublicense granted in accordance with this Agreement will not infringe, directly or indirectly, any patent or other intellectual property rights of any
third party under the laws of the United States or any other jurisdiction; or 
 (c) an obligation to furnish any know-how not
provided in the Licensed Rights or Trademark Rights or any services other than those expressly specified in this Agreement. 
  

	8.	INDEMNITY; LIMITATION ON LIABILITY. 

 8.1 CSI
will defend, indemnify and hold NAI, its subsidiaries and affiliates and their respective officers, directors, agents and employees harmless from and against any and all claims, losses, liabilities, damages, costs and expenses (including reasonable
attorneys’ fees) directly or indirectly arising from or relating to (i) any breach of this Agreement by CSI, including any breach of the representations and warranties made by CSI, (ii) any intentional or negligent acts or omissions
by CSI, its employees or agents, 

 
(iii) any activities of CSI relating to, concerning, or based on the import, distribution, sale or marketing of the Raw Materials, or (iv) any
claims or causes of action relating to product liability or for injury to property or person arising from any defects in the Raw Materials. 
 8.2 NAI will use reasonable efforts to notify CSI promptly of any claim for which NAI believes it is entitled to indemnification under this Section 8 and which NAI desires CSI to defend. However, NAI’s failure to provide such
notice or delay in providing such notice will relieve CSI of its obligations under this Section 8 only if and to the extent such delay or failure materially prejudices CSI’s ability to defend such claim. NAI will have the right to
participate in the defense of such claim with its own counsel. No settlement of a claim will be binding on NAI without NAI’s prior written consent. 
 8.3 In no event shall NAI be liable for any indirect, special, incidental or consequential damages (including, without limitation, damages for loss of profits or expected savings or other economic losses, or for
injury to persons or property) arising out of or in connection with this Agreement or its subject matter regardless of whether NAI knows or should know of the possibility of such damages. NAI’s aggregate liability for all damages of any kind
relating to this Agreement or its subject matter shall not exceed the amount of Sublicense Fees paid by CSI to NAI under this Agreement. The foregoing exclusions and limitations shall apply to all claims and actions of any kind, whether based on
contract, tort (including but not limited to negligence), or any other grounds. 
  

	9.	INSURANCE. 

 9.1 CSI shall, at its sole cost
and expense, procure and maintain comprehensive or commercial general liability insurance in amounts not less than $2,000,000 per incident and $3,000,000 annual aggregate naming NAI as an additional insured. Such general liability insurance shall
provide product liability coverage and broad form contractual liability coverage with a minimum of $3,000,000 of product liability insurance. Copies of insurance certificates evidencing such insurance shall be provided to NAI upon request.

  

	10.	TERM AND TERMINATION. 

 10.1 The term of this
Agreement shall begin on the Effective Date and, unless sooner terminated as provided herein, shall continue until March 2, 2011 unless ninety (90) days prior to such expiration the parties mutually agree to a written extension of this
Agreement. 
 10.2 NAI and CSI acknowledge and agree that prior to the Effective Date and from on or about March 2007 they had an
understanding covering the subject matter of this Agreement. NAI and CSI expressly agree that any sales by CSI of Raw Materials to third parties that were informed, directly or by implication, that they would have the right to use the Licensed
Rights and/or the Trademark Rights or other rights similar thereto shall be considered to have been made under this Agreement and subject to the terms and conditions hereof. Without limiting the generality of the foregoing, within thirty
(30) days after the Effective Date, CSI shall pay to NAI the Sublicense Fees on any such sales by CSI of Raw Materials from March 2007 until the Effective Date as if such sales had occurred during the term of this Agreement. 

 10.3 Either party may terminate this Agreement prior to the end of the term stated in Section 10.1
after notice to the other party but only if such other party materially fails to comply with any term or covenant in this Agreement and such failure continues for more than thirty (30) days after written notice of such breach from the
non-breaching party; provided, however that if such failure cannot be reasonably cured within thirty (30) days the non-breaching party may terminate this Agreement if the breaching party fails to commence such cure within thirty (30) days
and fails to thereafter diligently prosecute such cure to completion. 
 10.4 Upon termination of this Agreement, Sections 1, 3.2, 4.4, 6, 7,
8, 11 and 12 will survive. 
  

	11.	CONFIDENTIAL INFORMATION AND NON-DISCLOSURE. 

 11.1 Each party shall be prohibited from disclosing or appropriating to its own use, or to the use of any third party, any proprietary, secret, or confidential information of the other party. Examples of confidential information that may be
disclosed by one party to the other party include but are not limited to: information pertaining to products, product development, research, marketing information, promotional or advertising strategies, processes, future projects, intellectual
property, and any information that is not in the public domain or is not readily available to the public. This confidentiality obligation shall not apply to: (i) information which at the time of the disclosure is in the public domain;
(ii) information which, after disclosure, becomes part of the public knowledge by publication, or otherwise, except by breach of this Agreement; (iii) information that was in the possession of either party at the time of disclosure by the
other party; (iv) information that was received by either party from third parties, provided such information was not obtained by said third parties, directly or indirectly, from either party on a confidential basis, or (v) information
that is required to be disclosed by law, provided that the disclosing party promptly notifies the other party and cooperates reasonably with the other party’s efforts to contest or limit the scope of such order. This confidentiality obligation
shall exist at all times this Agreement is in force and for a period of three (3) years following termination or expiration of this Agreement. 
 11.2 CSI acknowledges that NAI may be required to disclose this Agreement in its filings made with the United States Securities and Exchange Commission and consents to such disclosure. 
  

	12.	GENERAL. 

 12.1 Assignment. This
Agreement may not be assigned by either party to any other entity or person without the prior written consent of the other party. Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon all of the parties to this
Agreement and their respective successors and permitted assigns. 
 12.2 Entire Agreement. This Agreement and any attachments,
schedules and/or exhibits hereto constitute the entire agreement between the parties hereto with respect to the subject matter hereof. This Agreement supersedes and replaces all prior or contemporaneous understandings, negotiations, commitments,
writings and agreements between the parties hereto, whether written or oral, express or implied, with respect to its subject matter. Each party to this Agreement acknowledges that no representations, warranties, inducements, promises or agreements,
oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 

 12.3 Severability. If any provision of this Agreement is held invalid, illegal or unenforceable
for any reason by any court of competent jurisdiction (or, if applicable, an arbitrator), the remaining provisions of this Agreement shall not be affected and shall remain in full force and effect, and this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had not been contained in this Agreement. Any provision of this Agreement held invalid, illegal or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid,
illegal or unenforceable. 
 12.4 No Implied Waivers; Amendment. No waiver of any term, provision or condition of this Agreement in
any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement. No amendment or modification of
the terms or conditions of this Agreement shall be valid unless in writing and signed by the both parties. 
 12.5 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 that is entitled
to recover its costs in the proceeding under applicable law, or the party designated as such by the court or the arbitrators. 
 12.6
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, 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 binding arbitration conducted in San Diego, California (or at any other place or under any other form of arbitration
mutually acceptable to parties involved). The single arbitrator shall follow and apply the federal rules of evidence and the applicable local federal rules 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. Subject to Section 12.5, 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 attorney. 
 12.7 Governing Law. The laws of the state of California (without giving effect to its
conflicts of laws principles) govern all matters arising out of or relating to this Agreement and all of the transactions it contemplates, including without limitation, its validity, interpretation, construction, performance, and enforcement. Any
action or proceeding arising out of or relating to this Agreement or arising out of or in any manner relating to the relationship between the parties shall only be brought in the state or federal courts in the County of San Diego, California, and
each of the parties hereto submits to the personal jurisdiction of such court (and of the appropriate appellate courts wherever located) in any such action or proceeding, and selects the courts in the County of San Diego, California for proper venue
in any such action or proceeding. 

 12.8 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
an original and all of which, when taken together, shall be deemed to constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile transmission or other electronic means shall constitute
effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by facsimile or other electronic means shall be deemed to be their
original signatures for all purposes. 
 12.9 Construction. The captions and headings contained in this Agreement are for convenience
of reference only, and shall not be deemed to define or limit the provisions hereof. Each party acknowledges that such party, after negotiation, has reviewed and revised this Agreement. The terms of this Agreement shall be fairly construed and the
usual rule of construction, to the effect that any ambiguities herein should be resolved against the drafting party, shall not be employed in the interpretation of this Agreement or any amendments, modifications or exhibits hereto or thereto.

 12.10 Relationship of the Parties. The terms and provisions of this Agreement shall not in any respect be construed to constitute
NAI or CSI as the agent, employee, partner or joint venturer of the other. All persons employed by any party in connection with this Agreement shall be the employees or agents of that party and under no circumstances shall a party’s employees
or agents be deemed to be employees or agents of any other party. In the event any parties utilize common vendors or contractors, each party utilizing such common vendor or contractor will maintain such a relationship and any obligations, agreements
and accounts with such common vendor or contractor separate and distinct from any other party’s. Nothing contained in this Agreement shall be deemed to confer any right or benefit on any person who is not a party to this Agreement. 

12.11 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. 
 12.12 Publicity. Subject to Section 11.2, the parties agree that no press release, or public announcement of this Agreement or concerning the
activities and transactions contemplated herein shall be issued without the prior written consent of both parties to the content of such release or public announcement, except as may be required by law. 
 12.13 Notice. All notices, consents, waivers and other communications required or permitted under this Agreement must be in writing and will be
deemed to have been given by a party (a) when delivered by hand; (b) one day after deposit with a nationally recognized overnight courier service; or (c) five days after deposit in the United States mail, if sent by certified mail,
return receipt requested; in each case costs prepaid and to the following addresses and marked to the attention of the person (by name or title) designated below (or to such other address or person as a party may designate by notice to the other
parties). 
  

			
	 If to NAI:
	  	If to CSI:
		
	 Natural Alternatives International Inc.
	  	Compound Solutions, Inc.
	 1185 Linda Vista Drive
	  	2215 Auto Park Way
	 San Marcos, CA 92078
	  	Escondido, CA 92029
	 Attn: Chief Executive Officer
	  	Attn: Chief Executive Officer
	 Telephone: (760) 736-7742
	  	Telephone: (760) 739-9881

 [Signatures on following page.] 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. 

 

	
	NAI
	
	Natural Alternatives International, Inc., a Delaware corporation
	
	/s/ Mark A. LeDoux
	Mark A. LeDoux, Chief Executive Officer
	
	CSI
	
	Compound Solutions, Inc., a California corporation
	
	/s/ Barry Titlow
	Barry Titlow, Chief Executive Officer

 EXHIBIT A 
 Raw Materials 
  

	1.	Beta-alanine 

 EXHIBIT B 
 Form of Sublicense Agreement 
 (attached) 

 SCHEDULE 1 
 Sublicense Fees 
 (attached)

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