Document:

Revolving Line of Credit Note

 Exhibit 10.31 
  

			
	WELLS FARGO	  	REVOLVING LINE OF CREDIT NOTE

  

			
	$8,000,000.00	  	 San Diego, California
 December 1, 2005

  
 FOR VALUE RECEIVED, the undersigned
Natural Alternatives International, Inc. (“Borrower”) promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its office at San Diego RCBO, 401 B Street, Suite #2201, San Diego, CA 92101,
or at such other place as the holder hereof may designate, in lawful money of the United States of America and in immediately available funds, the principal sum of $8,000,000.00, or so much thereof as may be advanced and be outstanding, with
interest thereon, to be computed on each advance from the date of its disbursement as set forth herein. 
  

	1.	DEFINITIONS: 

  
 As used herein, the following terms shall have the meanings set forth after each, and any other term defined in this Note shall have the meaning set forth
at the place defined: 
  
 1.1 “Business Day” means any day except a
Saturday, Sunday or any other day on which commercial banks in California are authorized or required by law to close. 
  
 1.2 “Fixed Rate Term” means a period commencing on a Business Day and continuing for 1, 2, 3, 6 or 12 months, as designated by Borrower, during which all
or a portion of the outstanding principal balance of this Note bears interest determined in relation to LIBOR; provided however, that no Fixed Rate Term may be selected for a principal amount less than $100,000.00; and provided further, that
no Fixed Rate Term shall extend beyond the scheduled maturity date hereof. If any Fixed Rate Term would end on a day which is not a Business Day, then such Fixed Rate Term shall be extended to the next succeeding Business Day. 
  
 1.3 “LIBOR” means the rate per annum (rounded upward, if necessary, to the nearest
whole 1/8 of 1%) determined by dividing Base LIBOR by a percentage equal to 100% less any LIBOR Reserve Percentage. 
  
 (a) “Base LIBOR” means the rate per annum for United States dollar deposits quoted by Bank as the Inter-Bank Market Offered Rate, with the
understanding that such rate is quoted by Bank for the purpose of calculating effective rates of interest for loans making reference thereto, on the first day of a Fixed Rate Term for delivery of funds on said date for a period of time approximately
equal to the number of days in such Fixed Rate Term and in an amount approximately equal to the principal amount to which such Fixed Rate Term applies. Borrower understands and agrees that Bank may base its quotation of the Inter-Bank Market Offered
Rate upon such offers or other market indicators of the Inter-Bank Market as Bank in its discretion deems appropriate including, but not limited to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market. 
  
 (b) “LIBOR Reserve Percentage” means the reserve percentage
prescribed by the Board of Governors of the Federal Reserve System (or any successor) for “Eurocurrency Liabilities” (as defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected changes in such
reserve percentage during the applicable Fixed Rate Term. 
  
 1.4 “Prime
Rate” means at any time the rate of interest most recently announced within Bank at its principal office as its Prime Rate, with the understanding that the Prime Rate is one of Bank’s base rates and serves as the basis upon which effective
rates of interest are calculated for those loans making reference thereto, and is evidenced by the recording thereof after its announcement in such internal publication or publications as Bank may designate. 
  

					
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	2.	INTEREST: 

  
 2.1 Interest. The outstanding principal balance of this Note shall bear interest (computed on the basis of a 360-day year, actual days elapsed) either (a) at a fluctuating rate per annum equal to
the Prime Rate in effect from time to time, or (b) at a fixed rate per annum determined by Bank to be 1.75000% above LIBOR in effect on the first day of the applicable Fixed Rate Term. When interest is determined in relation to the
Prime Rate, each change in the rate of interest hereunder shall become effective on the date each Prime Rate change is announced within Bank. With respect to each LIBOR selection option selected hereunder, Bank is hereby authorized to note the date,
principal amount, interest rate and Fixed Rate Term applicable thereto and any payments made thereon on Bank’s books and records (either manually or by electronic entry) and/or on any schedule attached to this Note, which notations shall be
prima facie evidence of the accuracy of the information noted. 
  
 2.2
Selection of Interest Rate Options. At any time any portion of this Note bears interest determined in relation to LIBOR, it may be continued by Borrower at the end of the Fixed Rate Term applicable thereto so that all or a portion thereof
bears interest determined in relation to the Prime Rate or to LIBOR for a new Fixed Rate Term designated by Borrower. At any time any portion of this Note bears interest determined in relation to the Prime Rate, Borrower may convert all or a portion
thereof so that it bears interest determined in relation to LIBOR for a Fixed Rate Term designated by Borrower. At such time as Borrower requests an advance hereunder or wishes to select a LIBOR option for all or a portion of the outstanding
principal balance hereof, and at the end of each Fixed Rate Term, Borrower shall give Bank notice specifying: (a) the interest rate option selected by Borrower; (b) the principal amount subject thereto; and (c) for each LIBOR
selection, the length of the applicable Fixed Rate Term. Any such notice may be given by telephone (or such other electronic method as Bank may permit) so long as, with respect to each LIBOR selection, (i) if requested by Bank, Borrower
provides to Bank written confirmation thereof not later than 3 Business Days after such notice is given, and (ii) such notice is given to Bank prior to 10:00 a.m. on the first day of the Fixed Rate Term, or at a later time during any Business
Day if Bank, at it’s sole option but without obligation to do so, accepts Borrower’s notice and quotes a fixed rate to Borrower. If Borrower does not immediately accept a fixed rate when quoted by Bank, the quoted rate shall expire and any
subsequent LIBOR request from Borrower shall be subject to a redetermination by Bank of the applicable fixed rate. If no specific designation of interest is made at the time any advance is requested hereunder or at the end of any Fixed Rate Term,
Borrower shall be deemed to have made a Prime Rate interest selection for such advance or the principal amount to which such Fixed Rate Term applied. 
  
 2.3 Taxes and Regulatory Costs. Borrower shall pay to Bank immediately upon demand, in addition to any other amounts due or to become due hereunder, any and all
(a) withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed by any domestic or foreign governmental authority and related in any manner to LIBOR, and (b) future, supplemental,
emergency or other changes in the LIBOR Reserve Percentage, assessment rates imposed by the Federal Deposit Insurance Corporation, or similar requirements or costs imposed by any domestic or foreign governmental authority or resulting from
compliance by Bank with any request or directive (whether or not having the force of law) from any central bank or other governmental authority and related in any manner to LIBOR to the extent they are not included in the calculation of LIBOR. In
determining which of the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among its operations shall be conclusive and binding upon Borrower. 
  
 2.4 Payment of Interest. Interest accrued on this Note shall be payable on the 1st
day of each month, commencing January 1, 2006. 
  
 2.5
Default Interest. From and after the maturity date of this Note, or such earlier date as all principal owing hereunder becomes due and payable by acceleration or otherwise, the outstanding principal balance of this Note shall bear interest
until paid in full at an increased rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to 4% above the rate of interest from time to time applicable to this Note. 
  

					
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	3.	BORROWING AND REPAYMENT: 

  
 3.1 Borrowing and Repayment. Borrower may from time to time during the term of this Note borrow, partially or wholly repay its outstanding borrowings, and
reborrow, subject to all of the limitations, terms and conditions of this Note and of the Credit Agreement between Borrower and Bank defined below; provided however, that the total outstanding borrowings under this Note shall not at any time exceed
the principal amount stated above. The unpaid principal balance of this obligation at any time shall be the total amounts advanced hereunder by the holder hereof less the amount of principal payments made hereon by or for any Borrower, which balance
may be endorsed hereon from time to time by the holder. The outstanding principal balance of this Note shall be due and payable in full on November 1, 2007. 
  
 3.2 Advances. Advances hereunder, to the total amount of the principal sum available hereunder, may be made by the holder at the oral
or written request of (a) Randell Weaver, John Reaves, any one acting alone, who are authorized to request advances and direct the disposition of any advances until written notice of the revocation of such authority is received by the
holder at the office designated above, or (b) any person, with respect to advances deposited to the credit of any deposit account of any Borrower, which advances, when so deposited, shall be conclusively presumed to have been made to or for the
benefit of each Borrower regardless of the fact that persons other than those authorized to request advances may have authority to draw against such account. The holder shall have no obligation to determine whether any person requesting an advance
is or has been authorized by any Borrower. 
  
 3.3 Application of Payments.
Each payment made on this Note shall be credited first, to any interest then due and second, to the outstanding principal balance hereof. All payments credited to principal shall be applied first, to the outstanding principal balance of this Note
which bears interest determined in relation to the Prime Rate, if any, and second, to the outstanding principal balance of this Note which bears interest determined in relation to LIBOR, with such payments applied to the oldest Fixed Rate Term
first. 
  

	4.	PREPAYMENT: 

  
 4.1 Prime Rate. Borrower may prepay principal on any portion of this Note which bears interest determined in relation to the Prime Rate at any time, in any amount and without penalty. 
  
 4.2 LIBOR. Borrower may prepay principal on any portion of this Note which bears
interest determined in relation to LIBOR at any time and in the minimum amount of $100,000.00; provided however, that if the outstanding principal balance of such portion of this Note is less than said amount, the minimum prepayment amount
shall be the entire outstanding principal balance thereof. In consideration of Bank providing this prepayment option to Borrower, or if any such portion of this Note shall become due and payable at any time prior to the last day of the Fixed Rate
Term applicable thereto by acceleration or otherwise, Borrower shall pay to Bank immediately upon demand a fee which is the sum of the discounted monthly differences for each month from the month of prepayment through the month in which such Fixed
Rate Term matures, calculated as follows for each such month: 
  
 (a) Determine the amount of interest which would have accrued each month on the amount prepaid at the interest rate applicable to such amount had it remained outstanding until the last day of the Fixed Rate Term applicable thereto.

  
 (b) Subtract from the amount determined in
(a) above the amount of interest which would have accrued for the same month on the amount prepaid for the remaining term of such Fixed Rate Term at LIBOR in effect on the date of prepayment for new loans made for such term and in a principal
amount equal to the amount prepaid. 
  
 (c) If the result
obtained in (b) for any month is greater than zero, discount that difference by LIBOR used in (b) above. 
  

					
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 Each Borrower acknowledges that prepayment of such amount may result in Bank incurring additional costs, expenses and/or
liabilities, and that it is difficult to ascertain the full extent of such costs, expenses and/or liabilities. Each Borrower, therefore, agrees to pay the above-described prepayment fee and agrees that said amount represents a reasonable estimate of
the prepayment costs, expenses and/or liabilities of Bank. If Borrower fails to pay any prepayment fee when due, the amount of such prepayment fee shall thereafter bear interest until paid at a rate per annum 2.000% above the Prime Rate in
effect from time to time (computed on the basis of a 360-day year, actual days elapsed). Each change in the rate of interest on any such past due prepayment fee shall become effective on the date each Prime Rate change is announced within
Bank. 
  

	5.	EVENTS OF DEFAULT: 

  
 This Note is made pursuant to and is subject to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of
May 1, 2004, as amended from time to time (the “Credit Agreement”). Any default in the payment or performance of any obligation under this Note, or any defined event of default under the Credit Agreement, shall constitute an
“Event of Default” under this Note. 
  

	6.	MISCELLANEOUS: 

  
 6.1 Remedies. Upon the occurrence of any Event of Default, the holder of this Note, at the holder’s option, may declare all sums of principal and interest outstanding hereunder to be immediately due and
payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of dishonor, all of which are expressly waived by each Borrower, and the obligation, if any, of the holder to extend any further credit hereunder
shall immediately cease and terminate. Each Borrower shall pay to the holder immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys’ fees (to include outside counsel fees
and all allocated costs of the holder’s in-house counsel), expended or incurred by the holder in connection with the enforcement of the holder’s rights and/or the collection of any amounts which become due to the holder under this Note,
and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including
any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to any Borrower or any other person or
entity. 
  
 6.2 Obligations Joint and Several. Should more than one person
or entity sign this Note as a Borrower, the obligations of each such Borrower shall be joint and several. 
  
 6.3 Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of California. 
  

IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above. 
  

			
	 Natural Alternatives International, Inc.

		
	 By:
	 	 /s/ Randell Weaver

	 	 	 Randell Weaver, President

		
	By:	 	 /s/ John Reaves

	 	 	 John Reaves, Chief Financial Officer

  

					
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	 	Page 4Exclusive License Agreement

 Exhibit 10.32 
  
 EXECUTION COPY 
  
 EXCLUSIVE LICENSE AGREEMENT 
  
 This EXCLUSIVE LICENSING AGREEMENT (“Agreement”) is entered into effective as of August 23, 2005, between Natural Alternatives International,
Inc., a Delaware corporation (“NAI”), with its principal offices at 1185 Linda Vista Drive, San Marcos, California 92078, and Richard Linchitz, M.D. (“Linchitz”) an individual with a principal business address at 66
Highland Road, Glen Cove, New York 11542. The parties to this Agreement are sometimes referred to as “Party” or “Parties.” 
  
 RECITALS 
  
 A. NAI desires to research, formulate, manufacture, package and market nutritional supplements and related goods using the name, image, signature, voice, likeness, style and persona of Linchitz (“Linchitz
Name”) in all channels of distribution worldwide. 
  
 B. Linchitz desires
that NAI have an exclusive license to use the Linchitz Name to market nutritional supplements, dietary supplements and related materials, products and goods of any description in all channels of distribution worldwide and that NAI have the right to
file applications for registrations and obtain registrations for, without limitation, patents, trademarks, logos, domain names and copyrights (“NAI Registrations” and as further defined in Section 2.2 below) in connection with
NAI’s use of the Linchitz Name. 
  
 C. The success of NAI’s investment
in the Linchitz Name, Linchitz Registrations and the NAI Registrations relies heavily on the enthusiasm of Linchitz in promoting the products as spokesperson in a variety of media, including NAI developed communications, and through active article
and book writing and speaking engagements. 
  
 AGREEMENT

  
 Incorporating the above recitals 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: 
  

	1.	DEFINITIONS 

  
 1.1 “Channels of Distribution” shall mean all channels of distribution including without limitation retail, Direct Response TV, Series TV,
Direct Mail, Direct Response Radio, Direct Response Print and the Internet or World Wide Web. For purposes of this Agreement, “Internet” or “World Wide Web” or “Web” shall mean a system for accessing and viewing text,
graphics, sound and other media via the collection of computer networks known as the Internet. 
  
 1.2 “Direct Competitor” shall refer to any person or business entity that develops items and/or sells products or provides services relating to the research, formulation, manufacture, packaging and marketing
of nutritional products or other Products or services contemplated by this Agreement, excluding medical services and management provided by Linchitz (collectively, starting with the phrase “or services”, “Services”). 

 1.3 “Net Sales” shall mean 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. 
  
 1.4 “Product” or “Products” means all nutritional foods, nutritional and dietary supplements and related materials or products of any
description, including without limitation capsules, tablets, powders, liquids, bars, creams, lotions, gels and other forms, using the Linchitz Name, Linchitz Registrations and NAI Registrations, packaged in any manner and promoted in any manner,
both in accordance with the terms of this Agreement, including without limitation in newsletters, on the Internet, in workshops and at seminars, and all other attributes of such products whether currently existing or to be developed during the term
as part of the Linchitz Name, Linchitz Registrations and NAI Registrations. The definition of Product includes any modification, derivative, alteration, improvement, enhancement or successor thereof (collectively “Enhanced Product(s)”)
developed or contemplated by the Parties during the term of this Agreement; provided that, NAI demonstrates a bona fide good faith intent to market and sell any such contemplated Enhanced Product(s) within a commercially reasonable time of such
contemplation. 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. 
  
 1.5 “Territory” shall mean worldwide.  
  

	2.	GRANT OF LICENSE 

  
 2.1 Subject to the terms and conditions of this Agreement, Linchitz grants to NAI an exclusive, worldwide license to use the Linchitz Name and Linchitz
Registrations on or in connection with the development, marketing and sale of any Products or services of NAI in all Channels of Distribution in the Territory during the term of this Agreement. 
  
 2.2 Linchitz grants to NAI the worldwide right to develop, use and register
derivatives of the Linchitz Name for new NAI Registrations. NAI may combine any designation with the Linchitz Name so as to form without limitation a new trademark, service mark, trade name, patent, logo, domain name or copyright. Such NAI
Registrations shall include any names or marks used by NAI prior to the Effective Date of this Agreement. Subject to the terms of this Agreement, NAI shall be the owner of the NAI Registrations (but not of the Linchitz Name incorporated therein or
any registrations, applications, names or marks related thereto, collectively starting with “the Linchitz Name . . ”, the “Linchitz Registrations”). After Linchitz’s death or disability, NAI may use the Linchitz Name and NAI
Registrations for any additional use contemplated by this Agreement provided that any such use is substantially consistent with the image, look and goodwill of the Linchitz Name. Notwithstanding the foregoing, Linchitz shall not have the right to
use any mark or name which is identical to or likely to be confused with any mark or name owned by NAI. 
  
 2.3 NAI acknowledges that it is not and will not become by virtue of this Agreement the owner of any right, title or interest in and to the Linchitz Name
or Linchitz Registrations in any form or embodiment. NAI shall promptly take all necessary actions to protect the Linchitz Name, Linchitz Registrations and the goodwill related thereto consistent with the provisions of 

  

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this Section. All goodwill generated under this Agreement in the Linchitz Name and Linchitz Registrations shall inure to the benefit of Linchitz. 

 

	3.	DUTIES, WARRANTS AND REPRESENTATIONS OF LINCHITZ 

  
 3.1 Duties of Linchitz. In connection with this License Agreement and the rights granted hereunder, Linchitz warrants and represents to:

  
 3.1.1 Use commercially reasonable best
efforts to promote and develop the Linchitz Name and Linchitz Registrations and educate the general public about the benefits of using the Products through active writing of books, through active writing of articles in magazines, journals and other
publications, through speaking engagements designed to teach about the benefits of the Products and through a variety of media including without limitation personal appearances on selected national and/or local network televisions and/or radio shows
such as the Oprah Winfrey Show, Dateline, Larry King Live and Regis. In connection with such educational and promotional efforts, Linchitz shall maintain his medical license in all currently active jurisdictions and use commercially reasonable best
efforts to maintain or expand the scope of distribution and public awareness of the existing programs, workshops, seminars, Web site, books and articles featuring the Linchitz Name and Linchitz Registrations (hereafter, all of the above,
collectively, the “Linchitz Educational and Promotional Efforts”). 
  
 3.1.2 Devote such time, effort, attention and energies as commercially reasonably required to create print, videotape and audiotape materials connected to the development of custom produced Direct Response TV, Series
TV, Direct Mail, Direct Response Radio and Direct Response Print programs and the Internet or World Wide Web and be responsible for participating in ongoing advertising and marketing efforts relating to the Products (hereafter, all of the above,
collectively, the, “Linchitz’s Direct Marketing Efforts”). 
  
 3.1.2.1. Linchitz acknowledges the success of the Products and investment being made in the Linchitz Name and Linchitz Registrations by NAI depends heavily on Linchitz’s personality, persona, image and leadership
and, that as the spokesperson for the brand, Linchitz’s dedicated good faith pronouncements are crucial to the successful marketing of all Products. Linchitz acknowledges and accepts that NAI will develop and that Linchitz will promote Linchitz
approved communications that are highly personal, passionate and persuasive and that such communications must be delivered by Linchitz’s good faith credible voice. 
  
 3.1.2.2. Linchitz acknowledges familiarity with the types of acquisition marketing to be utilized by NAI
under this Agreement and understands that successful acquisition marketing of those types is educational, aggressive, promises to solve a health problem, is outspoken and opinionated and showcases the passion and personality of the spokesperson
doctor, provided that, any such marketing does not constitute a violation of any applicable law, rule or regulation of any government or regulatory body. 
  
 3.1.3 Remain knowledgeable and up to date with new research regarding nutrition and health and develop opinions based on new research and
findings in the nutritional 

  

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supplements industry. Remain knowledgeable and up to date regarding new ingredients, raw materials, studies and discoveries. 
  
 3.1.4 Regularly meet, confer and cooperate with NAI in
connection with the development of Products and marketing plans, the prioritizing of Product development and marketing, the review of business ideas and issues facing Products and other action items related to the marketing of Products. 

 
 3.1.5 Make available to NAI a monthly business schedule
and public and media appearance schedule and vacation schedule for use in scheduling meetings and conferences with NAI and for coordinating review of NAI’s promotional copy materials. 
  
 3.1.6 Subject to any known conflict with Linchitz’s
vacation schedule, review, edit and approve within six (6) business days of receipt all new promotional copy with a focus on the technical accuracy of the information. Any failure to approve or disapprove of such materials in writing within the
time period provided shall constitute approval. It is understood only new promotional copy will be reviewed by Linchitz and that minor modifications of current packages already tested do not require the further approval of Linchitz. For purposes of
this subsection only and without amending or modifying any other section of this Agreement, the Parties agree notice or consent may be given via facsimile or email. All notices under this subsection delivered either by facsimile or email will be
deemed to have been duly given one day after confirmation of receipt provided that in either case a confirmation copy of the facsimile notice or email notice shall also be subsequently delivered within one day either (i) by hand (prepaid, with
written confirmation of receipt by such receiving Party) or (ii) via overnight delivery by a nationally recognized overnight delivery service (prepaid, receipt requested along with such receiving Party’s manual signature). 
  
 3.1.7 Cooperate to be available to NAI for up to ten
(10) full business days each calendar year for exclusive business meetings or product development meetings with NAI. Linchitz shall be entitled to a per diem expense budget of One Hundred Fifty Dollars ($150) per day, adjusted from time to time
through the term, plus reimbursement for reasonable travel related expenses and other approved costs incurred exclusively on behalf of NAI. Travel related expenses eligible for reimbursement include without limitation first class airfare, car and
driver and hotel and meals accommodations. NAI shall approve and promptly reimburse Linchitz for travel related expenses incurred in connection with promotion of Products on a non-exclusive basis in amounts mutually agreed upon by the Parties.

  
 3.1.8 Not knowingly permit, do or commit any
act or thing that would degrade, tarnish, deprecate or disparage Linchitz, the Products or NAI or the public image of NAI in society or standing in the community and that Linchitz will terminate such activities promptly upon notice. 
  
 3.2 Additional Representations of Linchitz. 
  
 3.2.1 Linchitz represents he is the exclusive owner of all
right, title and interest in and to (i) his image, signature, voice and likeness and goodwill appurtenant thereto, (ii) all 

  

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rights of publicity in and to his name, image, likeness, voice, signature and other elements of his persona and identity, (iii) all rights in and to his
name, (iv) all common law and statutory rights in the foregoing and has complete authority to grant this license to use the Linchitz Name in the manner and form provided in this Agreement. 
  
 3.2.2 Linchitz further represents (i) he has not
received notice of any claim with respect to the Linchitz Name inconsistent with his exclusive ownership of the Linchitz Name and has not received notice at any time of any unauthorized use thereof; (ii) to the best of Linchitz’s knowledge
and belief, the Linchitz Name does not infringe upon or violate any rights of any third party, and (iii) 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 Linchitz is a party or by which he is bound. 
  
 3.2.3 Linchitz grants permission to NAI to conduct any reasonable physical examination, background test or drug test during the term of
this Agreement. NAI shall bear all costs of such testing. 
  
 3.3
Competitive Protection. Effective as of the date of this Agreement and continuing throughout the term, Linchitz agrees: 
  
 3.3.1 to not render services in the form of advertising, publicizing, promoting, sponsoring or endorsing any items, products or services
that compete in the marketplace with any Products or Services contemplated by this Agreement; 
  
 3.3.2 to neither permit nor authorize the use of the Linchitz Name or Linchitz Registrations, including without limitation the name and/or
likeness (photograph and/or drawing), voice, signature and/or endorsement of Linchitz, by any Direct Competitor or by any third party whose items, products or services compete in the marketplace with any Products or services contemplated by this
Agreement or that are manufactured by NAI;

  
 3.3.3 to not allow Bio Quest medical
centers (to the extent Linchitz has such restricted authority), an entity in which Linchitz has no formal relationship but one with which Linchitz is in negotiations to potentially do business with as an operator and manager of medical practices, or
Metropolitan Medical Health Care and Wellness, a New York based medical facility owned by Linchitz, to use the Linchitz Name and Linchitz Registrations to promote items, products or services of any Direct Competitor or any third party whose items,
products or services compete in the marketplace with any Products or services contemplated by this Agreement. 
  
 3.3.4 notwithstanding the foregoing, Linchitz is entitled to (i) use the Linchitz Name and Linchitz Registrations solely in
connection with marketing, selling and distribution of Products in the Medical Health Care and Wellness channel of distribution or any other channel of distribution mutually agreed to by the Parties in writing, and (ii) operate, service and
manage the Medical Health Care and Wellness medical practice in his sole discretion, provided all such activities under (i) and (ii) are not related in any way to the promotion of items, products or services of any Direct Competitor or any
third party whose items, products or services directly 

  

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compete in the marketplace with any NAI Products or Services contemplated by this Agreement; provided further that any such promotions, Products or Services
or any restrictions placed upon Linchitz related thereto shall not conflict with Linchitz abiding by his sworn medical oath or professional ethical standards. 
  

	4.	DUTIES, WARRANTS AND REPRESENTATIONS OF NAI 

  
 4.1 Exclusive Duties of NAI. In connection with this License Agreement and the rights granted hereunder, NAI shall: 
  
 4.1.1 Have all responsibility for the funding and management
of Product development, Product research, Product formulations and specifications, brand strategy, marketing, securing and maintaining registration of the Linchitz Name and Linchitz Registrations in the Territory and all related business operations
including profit and loss management. 
  
 4.1.2
Have all responsibility for the funding and management of Linchitz Educational and Promotional Efforts and Linchitz’s Direct Marketing Efforts when such efforts are at the request of and managed by, through or on behalf of NAI. When such
efforts are at the request of Linchitz, Linchitz shall present to NAI a budget and schedule for Linchitz Educational and Promotional Efforts and Linchitz Direct Marketing Efforts and obtain NAI’s written approval in advance, which approval
shall be at NAI’s discretion, and NAI will then have all responsibility for the funding and management of such agreed to efforts. 
  
 4.1.3 Develop, fund, produce, distribute and/or maintain all marketing materials including all communications, Web site design and
content, collateral, special reports, e-letters, public relations support and Product marketing. 
  
 4.1.4 Manage and fund cross functional teams consisting of without limitation research and development, packaging, legal, call center and
fulfillment. 
  
 4.1.5 Take such actions as are
commercially reasonable in an effort to successfully develop, promote, advertise and market the Products. 
  
 4.2 Additional Duties of NAI. 
  
 4.2.1 Take such actions, in accordance with the terms of this Agreement, as are commercially reasonable in an effort to design, develop,
manufacture, promote, advertise, market and sell the maximum number of Products while maintaining quality and service to all customers. 
  
 4.2.2 Maintain a mutually agreed upon regular schedule of contact with Linchitz to discuss ideas, priorities, action steps and issues.

  
 4.2.3 Review and/or provide material, in
accordance with the terms of this Agreement, for inclusion in or use in connection with programs, workshops, seminars, Web site, books, CDs and audiotapes featuring the Linchitz Name and Linchitz Registrations. 
  

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 4.2.4 Use reasonable best efforts to commence production, promotion, marketing and
distribution of Products as soon as reasonably practical following the date of this Agreement. 
  
 4.2.5 Not knowingly permit, do or commit any act or thing that would degrade, tarnish or deprecate or disparage itself, the Products or
Linchitz or the public image of Linchitz in society or standing in the community and that it will terminate such activities promptly upon notice. 
  
 4.3 Additional Representations of NAI. 
  
 4.3.1 NAI represents, warrants and covenants that: (i) it has the authority to enter into this Agreement; (ii) 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, order, judgment, decree or instrument to which NAI is a party or by which it is bound
nor require NAI to obtain any-permit, consent or approval of any government or regulatory body, person, firm, corporation or other entity; (iii) it is the owner or valid licensee of all Product formulations, specifications and technical
information about the Products, all packaging, designs and other intellectual property associated with the Products, and any element or component proprietary to NAI included in the Products or any part thereof, (iv) such Product formulations,
specifications and technical information about the Products, all packaging, designs, materials and other intellectual property associated with the NAI Registrations, Products and any element or component proprietary to NAI included in the Products
or any part thereof do not (a) infringe upon or violate any rights of any third party, or (b) constitute a violation of any applicable law, rule or regulation of any government or regulatory body, and (v) none of the actions
contemplated by this Agreement will violate or constitute a default under any agreement, order, judgment, decree or instrument to which NAI is a party or by which it is bound and (vi) agrees to obtain and maintain and keep in full force and
effect, at NAI’s expense, Commercial General Liability insurance on an occurrence basis as mutually agreed between the Parties. 
  
 4.3.2 NAI acknowledges that (i) Linchitz exclusively owns all right, title and interest in and to the Linchitz Name, which Linchitz
Name has intrinsic value, and (ii) Linchitz otherwise reserves all rights and licenses to the Linchitz Name except those specifically granted to NAI herein. 
  

	5.	ROYALTIES 

  
 5.1 Royalties. NAI shall pay Linchitz a royalty on annual Net Sales revenue from Products. 
  
 5.1.1 Annual Net Sale Royalty. During the term of
this Agreement and any renewals, the royalty due on annual Net Sales shall be: 
  
 5% of annual Net Sales not exceeding $5,000,000; 
  
 6% of annual Net Sales in excess of $5,000,000 but not exceeding $10,000,000; 
  
 7% of annual Net Sales in excess of $10,000,000 but not exceeding $25,000,000; 
  

 7 

 8% of annual Net Sales in excess of $25,000,000 but not exceeding $45,000,000; 
  
 9% of annual Net Sales in excess of $45,000,000 but not exceeding
$75,000,000; 
  
 10% of annual Net Sales in excess of
$75,000,000. 
  
 5.1.2 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 royalty payment shall be supplemented by a report setting forth the information described in Section 5.2. All
payments shall be made in United States currency and be drawn on a United States bank. NAI is not required to pay a royalty for any Product purchased by or fulfilled for Linchitz pursuant to this Agreement. There shall be applied to any amounts not
subject to good faith dispute not paid when due a delinquency charge, computed at the lesser of 1.5% per month or the maximum rate permitted by law, with interest accrued from the date the payment was originally due. 
  
 5.2 Reports and Inspection. NAI shall deliver a report to Linchitz
within thirty (30) days after the end of each calendar month, which shall consist of an accurate statement of Net Sales of Products for such calendar month, along with any royalty payments due. Such reports shall be provided regardless of
whether any Products were sold during the period covered by the report. The acceptance by Linchitz of any of the statements furnished or royalties paid shall not preclude Linchitz’s questioning the correctness at any time of any payments or
statements. In connection therewith, Linchitz shall be entitled to examine or audit at his own expense the documents underlying the royalty statements described in this Section not more often than annually. The audit shall be conducted by an
independent certified public accounting firm of Linchitz’s choosing and reasonably acceptable to NAI. The independent certified public accounting firm must enter into a confidentiality agreement reasonably acceptable to NAI and may not disclose
any information learned in the course of such audit other than the existence and amount of underpayment, if any. Such audit must be conducted during NAI’s normal business hours in a manner that does not unduly interfere with NAI’s normal
business activities. If any audit discloses underpayment of royalties, NAI shall promptly pay Linchitz the royalties, which in no event shall exceed thirty days from notification of any such underpayment. Linchitz is responsible for all expenses it
incurs in connection with any audit unless the audit discloses an underpayment of royalties in excess of ten percent (10%), in which case, NAI shall promptly reimburse Linchitz for the reasonable and necessary cost of the 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. 
  

	6.	TERM OF AGREEMENT 

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

  
 6.2 Term and Termination. 
  
 6.2.1 Initial Term. This Agreement shall remain in
effect for a period of ten (10) years from the date hereof unless earlier terminated in accordance herewith. Upon expiration of the initial term, the term of this Agreement shall be automatically extended for 

  

 8 

 
successive one (1) year periods unless terminated by either Party by written notice delivered at least 90 days prior to expiration of any such period.

  
 6.2.2 Right to Terminate by NAI. NAI
may terminate this Agreement at any time for any reason upon giving Linchitz ninety (90) days notice. 
  
 6.3 Right to Terminate by Linchitz. Linchitz shall have the right to terminate this Agreement if: 
  
 6.3.1 After notice from Linchitz, NAI materially fails to
comply with any covenant in this Agreement and such failure continues for more than thirty (30) days following receipt of written notice 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 within 90 days or other commercially reasonable time period; 
  
 6.3.2 Except as provided in Section 10.13, NAI assigns its rights to a party without first receiving the prior written consent of
Linchitz; 
  
 6.3.3 NAI fails to make the royalty
payments as required by Section 5 or any other payment within thirty (30) days following receipt of written notice from Linchitz of the late payment; 
  

6.3.4 Commencing on January 1, 2009, if annual Net Sales have not reached $5,000,000 for the immediately preceding calendar year,
NAI shall have the option to retain all rights and an exclusive license under this Agreement by paying to Linchitz the difference between the royalties actually paid to Linchitz pursuant to Section 5.1.1 and the royalties that would have been
due if annual Net Sales reached $5,000,000 in the immediately preceding year. If annual Net Sales have not reached $5,000,000 for the immediately proceeding calendar year and NAI does not pay to Linchitz such difference, the Parties shall decide,
within sixty (60) days of such calendar year, (i.e., on or before March 1st of such calendar year), through good faith negotiations, whether or not to continue their relationship, amend the terms of this Agreement or terminate this
Agreement. 
  
 6.4 Termination on Specific Events. Either
Party may terminate this Agreement immediately only if: 
  
 6.4.1 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. 
  
 6.4.2 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, 

  

 9 

 
arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts. 
  
 6.4.3 (A) There shall be commenced against the other Party
any case, proceeding or other action of a nature referred to in Section 6.4.2 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 (B) 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 (C) 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 (A) or (B) above. 
  
 6.4.4 A Party acts in a manner deemed by the other Party to be in breach of either Section 3.1.8 or Section 4.2.5 of this
Agreement whereupon the other Party shall have the right to give written notice of termination of this Agreement, providing complete information regarding the claimed breach and providing a period of ten (10) calendar days in which to
either completely correct the conduct deemed in violation of either Section 3.1.8 or Section 4.2.5 to the reasonable satisfaction of the Party giving notice, or prove to the reasonable satisfaction of the Party giving notice that no
violation occurred. 
  
 6.5 Duties on Termination. Upon
termination of this Agreement, copies of all records related to Linchitz shall be kept by NAI for a minimum of three (3) years. The Parties shall cooperate and utilize their good faith reasonable best efforts to prepare such final
reconciliations of accounts and amounts to be provided as between them in connection with such termination. Notwithstanding any of the foregoing, the termination or expiration of this Agreement shall not release any Party of any obligation to pay
any monies that became due or owing or arose out of any transaction prior to the date of termination or expiration, and all fees, charges and any balances owed to Linchitz shall become due and payable in accordance with the terms of this Agreement.

  

	7.	INTELLECTUAL PROPERTY; QUALITY CONTROL 

  
 7.1 Protection of Proprietary Components. NAI may seek in its own name and at its own expense, and if obtained, shall maintain appropriate patent,
trademark, copyright or registration protection and ownership for any element or component proprietary to NAI that is included in the Products or any part thereof. 
  
 7.2 Ownership of Formulas, Specifications and Technical Information. All non-public formulas, specifications and
technical information related to the Products, all NAI Confidential Information and all Products (collectively, “NAI Intellectual Property”) shall remain the exclusive property of NAI during and following the term of this Agreement and
Linchitz disclaims all interest in such NAI Intellectual Property including without limitation any modifications or improvements made by Linchitz to NAI’s Intellectual Property during the term of this Agreement. During the term of this
Agreement and at anytime thereafter, Linchitz shall 

  

 10 

 
not directly or indirectly develop, manufacture or market an “equivalent product” for any form of distribution using NAI’s Intellectual
Property. For the purpose of this Agreement, “equivalent product” means any product formulated by Linchitz that substantially replicates the Products as to the combination of specific ingredients, nutrients, and functional features with
Linchitz’s own ingredients and/or formulations. 
  
 7.3
Assignment Upon Termination. Upon termination or expiration of this Agreement and expiration of the Product Sell Off Period (if any), NAI shall (i) cease and desist from all use of the Linchitz Name and any Linchitz Registrations, and
(ii) certify it has destroyed any remaining Products. For purposes of this Agreement, “Product Sell Off Period” means that one hundred eighty (180) day period following termination of the Agreement or expiration of the term or
any extensions of this Agreement granted by Linchitz in this subsection to NAI to sell off finished Products on a non exclusive basis through all Channels of Distribution in the Territory. 
  
 7.4 Quality Control, Inspection Rights, Samples. Linchitz is familiar
with and will rely upon NAI’s quality control measures for the production of Products. NAI’s manufacturing facilities shall meet all requirements established by state, local or federal regulations including without limitation Good
Manufacturing Practices. Linchitz and his agents shall have access to inspect NAI’s facilities at all reasonable times while Products are in process for the purpose of conducting and performing quality control audits and shall have access to
the results of any such test performed by NAI or at NAI’s direction. NAI shall be notified in advance of the names of all visiting personnel or agents and their intended dates of arrival. All such inspections must be conducted during NAI’s
normal business hours in a manner that does not unduly interfere with NAI’s normal business activities. NAI grants Linchitz the right to request samples of finished product in reasonable quantities from time to time. NAI is not required to pay
a royalty for any Product fulfilled to Linchitz in this manner. Breach of this section shall settle in accordance with Section 6.3.1 above. 
  
 7.5 Enforcement of Intellectual Property Rights. 
  
 7.5.1 In the event any Party becomes aware of any claim or unauthorized use, or infringement on the Linchitz Name, Linchitz Registrations
or Products during the term of this Agreement, that Party shall immediately notify the other Party of such violation and shall consult with and cooperate in any way reasonably requested by the other Party with respect to the enforcement of all
intellectual property rights. 
  
 7.5.2 NAI
shall, at its own cost and expense, take all action necessary to enforce its rights and license and cause any violation with respect to the Linchitz Name and Linchitz Registrations to cease and be remedied. In the event NAI fails to take all action
necessary to remedy any such violation, Linchitz shall have the right to promptly take such action at his own expense. In connection with such action, the Parties shall execute all papers reasonably necessary or appropriate in the discretion of the
Party taking such action in response to a violation or infringement of the Linchitz Name and Linchitz Registrations, and shall testify in any legal action whenever reasonably requested to do so by the prosecuting Party. 
  

 11 

 7.5.3 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 Linchitz Name and Linchitz Registrations 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. 
  
 7.5.4 Linchitz undertakes and agrees to maintain his existing image and public persona and will use commercially reasonable best efforts to further develop, improve and otherwise enhance his image and public persona.
In no event will Linchitz knowingly take any action inconsistent with his public image or denigrate any of the Products or the Linchitz Name and Linchitz Registrations or in any way reflect negatively on the Products or the Linchitz Name and
Linchitz Registrations. 
  

	8.	CONFIDENTIALITY 

  
 8.1 Duty to Protect Confidential Information. “Confidential Information” includes, but shall not be limited to, the Products, trade
secrets, policies, procedures, techniques, designs, drawings, know-how, technical information, specifications, computer software, intellectual property, information and data relating to the development, research, testing, manufacturing, costs,
marketing and uses of the Products and Services developed, manufactured or sold by NAI, its budgets and strategic plans, the identity and special needs of the disclosing Party’s customers for the Products and the disclosing Party’s
databases and data, and all technology relating to disclosing Party’s business, systems, methods of operation, customer lists, customer information, business and financial information, solicitation leads, marketing and advertising materials,
methods and manuals and forms, all of which that are non-public and pertain to the activities or operations of the disclosing Party. Confidential Information may only be used if necessary in the fulfillment of obligations of the recipient Party
under this Agreement. Confidential Information shall not be used in any way which is directly or indirectly detrimental to the disclosing Party or its business. 
  
 8.1.1 Confidential Information shall be kept confidential by the receiving Party except that such Party may
disclose the Confidential Information or portions thereof to those of his attorneys and agents (collectively, “Representatives”) who (i) absolutely need to know such Confidential Information and (ii) have previously agreed in
writing to be bound by the terms and conditions as protective of the Confidential Information as those in this Agreement. The receiving Party agrees to be responsible for any breach of this Agreement by its Representatives. 
  
 8.1.2 All Confidential Information 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 disclosing Party to any third party who is not bound under a confidentiality and non-disclosure
agreement. 
  

 12 

 8.2 Means of Protecting Confidential Information. NAI and Linchitz agree to take reasonable steps
to ensure the proprietary and confidential nature of the other’s confidential information and the Linchitz Name, NAI Registrations, Linchitz Registrations 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. 
  
 8.3 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. 
  
 8.4 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 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. 
  
 8.5 Irreparable Injury. Each Party acknowledges that damages at law will be an insufficient remedy for violation of the terms of this Section 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 Section
of this Agreement, which injunctive relief shall be in addition to any other rights or remedies available to it or them. 
  
 8.6 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 Section 8 apply during the term of this Agreement and for a period of three (3) years thereafter. 
  

	9.	CLAIMS AND INDEMNIFICATION 

  
 9.1 Indemnification by NAI Against Third-Party Claims. NAI shall indemnify, defend, and hold harmless Linchitz from and against any damage, loss,
expense (including reasonable attorneys’ fees and costs), award, settlement, or other obligation or liability arising out of any claims, demands, actions, suits, investigations or prosecutions that may be made or instituted against Linchitz,
(i) arising from any alleged or actual breach of NAI’s representations and warranties contained herein, and (ii) any claims arising out of NAI’s, its subsidiaries, affiliated and/or controlled companies and all sublicensees,
manufacturing, development, advertising, marketing, distribution, promotion, sale or use of Products. 
  

 13 

 9.2 Indemnification by Linchitz Against Third-Party Claims. Linchitz shall indemnify, defend and
hold harmless NAI, its subsidiaries, affiliated and/or controlled companies as well as their respective officers, directors, agents, and employees, from and against all damage, loss, expense (including reasonable attorneys’ fees and costs),
award, settlement, other obligation or liability, demands, actions, suits, investigations or prosecutions that may be made or instituted against them or any of them, arising out of (i) any alleged or actual breach of Linchitz’s
representations and warranties contained in Section 3.2 above. 
  
 9.3 No Consequential Damages. In no event shall either Party or any person or entity that has been involved in the creation or production of the Products be liable to the other Party for any indirect, incidental, special or
consequential damages, including without limitation loss of profits, loss of data or loss of goodwill, regardless of the form of action, arising out of or in connection with this Agreement, the furnishing of, performance or use of any Products, or
any portion of the Products, and any other material and/or services provided for, or performed in connection with, this Agreement or either Party’s failure to perform their respective obligations to third parties, even if such party has been
advised of the possibility of such damages. 
  
 9.4
Notwithstanding anything set forth in this Agreement, no limitation of liability or exculpation or hold harmless provision apply to any liability arising out of or in connection with acts or omissions that constitute bad faith, willful misconduct,
gross negligence, or intentional breach of this Agreement. 
  
 9.5
Insurance. NAI shall carry products liability insurance with a combined single limit of at least Ten Million Dollars ($10,000,000). All insurance coverage required herein will provide primary coverage for all losses and damages caused by the
perils or causes of loss covered thereby and any valid and collectible insurance available to Linchitz will be excess and non-contributory. NAI shall submit policies and/or certificates of insurance evidencing the above coverage upon Linchitz’s
written request. NAI shall name Linchitz as an additional insured under such policies. In case of NAI’s failure to carry said coverage and/or furnish certificates of insurance or upon cancellation of any required insurance, Linchitz may, at his
option, terminate this Agreement on 10 days notice unless NAI has obtained substitute insurance coverage before such insurance becomes canceled and provides Linchitz with satisfactory evidence thereof. 
  
 MISCELLANEOUS PROVISIONS 
  
 10.1 Sublicense. NAI may sublicense the rights and licenses granted
pursuant to this Agreement and in any such sublicense agreement a provision shall be made so that Linchitz receives such revenue or royalty payment as provided for herein. Any sublicense granted in violation of this provision shall be void. Any
sublicense granted hereunder will not release or discharge NAI from any liability or obligation hereunder and NAI is fully liable for any and all sublicensees. 
  

10.2 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. Only a writing manually signed by all Parties or by duly authorized 

  

 14 

 
corporate officers of a Party and clearly designated as an amendment to this Agreement by an appropriate heading may amend this Agreement. 
  
 10.3 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.

  
 10.4 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. 
  
 10.5 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, or where a party may
suffer irreparable harm, 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 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. 
  
 10.6 Governing Law. This Agreement shall be construed and interpreted under the laws of the State of California. 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 California. Each Party acknowledges and waives any objection to venue for
such disputes in state or federal courts sitting in San Diego, California. Any judgments upon the award entered by the arbitrator may be entered in the State or Federal Courts situated in the State of California. 
  
 10.7 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. 
  
 10.8 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. 
  

 15 

 10.9 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 Linchitz as the agent, employee, partner or joint venturer of the other. All persons employed by any Party in connection with the manufacture, distribution,
marketing, promotion and sale of the Products 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. 
  
 10.10 Notices. All notices, consents, waivers and other communications
under this Agreement must be in writing and will be deemed to have been duly given upon (i) delivery by hand (prepaid, with written confirmation of receipt), (ii) one day after deposit with a nationally recognized overnight delivery
service (prepaid, receipt requested), or (iii) five days after deposit in the United States mail by certified delivery, postage prepaid, return receipt requested. Notices shall be sent in each case to the appropriate addresses indicated for
each Party below, or to such other addresses as a Party may designate in writing by notice to the other Party: 
  

			
	If to NAI:	  	with a copy to:
		
	 Natural Alternatives International, Inc.
 1185 Linda
Vista Drive
 San Marcos, California 92078
 Attn:
President
	  	 Fisher Thurber LLP
 4225 Executive Square, Suite
1600
 La Jolla, California 92037
 Attention: David A.
Fisher

		
	If to Linchitz:	  	with a copy to:
		
	 Richard Linchitz, M.D.
 66 Highland Road
 Glen Cove, New York 11542
	  	 Collen IP
 80 South Highland Avenue
 Ossining, New York 10562
 Attn: Douglas Pulitzer

  
 10.10.1 Designated Contact. 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, facsimile number or the name of any Party or
contact person or other number may be changed by sending notice in the manner set forth above. 
  
 10.11 Key Man Insurance. NAI shall have the right but no obligation to apply for and purchase policies of life, health and accident insurance or disability insurance upon Linchitz in such amounts as NAI deems
appropriate which life insurance as key man insurance shall designate NAI as the exclusive beneficiary. Linchitz agrees to aid NAI in procuring such insurance, including submitting to a physical examination, background test and drug test, and
completing all forms required for application for any insurance policy and any other reasonable action requested by NAI in order to facilitate the issuance of such policies. NAI shall bear all costs of premiums associated with such policies.

  
 10.12 Incapacity or Death of Richard Linchitz. Unless
otherwise provided herein, the rights granted to NAI in this Agreement are intended to survive the incapacity or death of 

  

 16 

 
Richard Linchitz. Upon the occurrence of any such event, all actions with respect to Richard Linchitz hereunder shall be exercisable on behalf of Richard
Linchitz by another person (the “Linchitz Representative”) who, at the execution date of this agreement, is hereby designated by Richard Linchitz to be his wife Rita A. Linchitz. 
  
 10.12.1 If prior to the death of Linchitz, he is pronounced
to be incapacitated (i.e., as being incapable of managing or conducting his own business affairs due to physical or mental infirmity) by the Linchitz Representative, then the Linchitz Representative shall thereafter and for so long as Richard
Linchitz is incapacitated have full right to take all acts on behalf of Richard Linchitz under this Agreement. Any Linchitz Representative appointed in accordance with this Section shall have full right to take all acts on behalf of Richard Linchitz
under this Agreement and NAI may rely on such acts as the lawful and duly authorized acts of Richard Linchitz. 
  
 10.13 Successors, Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Parties.
NAI may only assign its rights and obligations under this Agreement to its Affiliate or in connection with a merger, reorganization or sale of all or substantially all of its assets. Any assignment in violation of this clause is void ab initio. Any
such assignment will not release or discharge NAI from any liability or obligation hereunder. The rights and obligations of Linchitz are personal and may not be assigned. As used herein, Affiliate shall refer to any person or entity that is under
direct or indirect control of NAI. 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. 
  
 10.14 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. 
  
 10.15 Relief. Each Party acknowledges that damages at law will be an insufficient remedy for violation of certain terms of this Agreement and that the other Party would suffer irreparable injury as a result of
such violation. Accordingly, it is agreed the Parties may obtain injunctive relief to enforce the provisions of this Agreement when a party may suffer irreparable harm, which injunctive relief shall be in addition to any other rights or remedies
available to it or them. 
  
 10.16 Remedies. All remedies
set forth in this Agreement are cumulative and in addition to and not in lieu of any other remedy of the Parties at law or in equity 
  
 [signature page follows] 
  

 17 

 The Parties have executed this Exclusive License Agreement as of the Effective Date. 
  

			
	 NATURAL ALTERNATIVES INTERNATIONAL, INC.
 a Delaware corporation

		
	 By:
	 	 /s/ Randell Weaver

	 	 	 Randell Weaver, President

	
	RICHARD LINCHITZ, M.D.
		
	By:	 	 /s/ Richard Linchitz, M.D.

	 	 	 Richard Linchitz, M.D.

  

 18

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