Document:

Executive Employment Agreement - Robert A. Kay

 Exhibit 10.10 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”) is made and entered into effective as of March 29, 2004 (“Effective Date”), by and between
Robert A. Kay, Ph.D., R.D. (“Employee”), and Natural Alternatives International, Inc., a Delaware corporation (“Company”). The Company and Employee may be referred to herein collectively as the “Parties.” 
  
 RECITALS 
  
 WHEREAS, the Company wishes to retain the services of Employee as its Vice President of Science & Technology, but only
on the terms and subject to the conditions hereinafter set forth; and 
  
 WHEREAS, Employee desires to enter into the employ of the Company and is willing to do so on the terms and conditions hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein and intending to be legally bound thereby, the Parties agree as
follows: 
  
 AGREEMENT 
  
 1. Employment. Employee hereby accepts the offer of the Company
for employment as the Company’s Vice President of Science & Technology beginning on March 29, 2004. Employee’s employment will be at-will and may be terminated by either Employee or the Company at any time for any reason or no reason,
with or without Cause (as hereinafter defined), upon written notice to the other, or without any notice upon the death of Employee. The at-will status of the employment relationship may not be modified except by an agreement in writing signed by the
President or Chief Executive Officer of the Company and Employee, the terms of which were approved in advance in writing by the Company’s Board of Directors. 
  
 2. Employee Handbook. Employee and the Company understand and agree that nothing in the Company’s
Employee Handbook is intended to be, and nothing in it should be construed to be, a limitation of the Company’s right to terminate, transfer, demote, suspend and administer discipline at any time for any reason. Employee and the Company
understand and agree nothing in the Company’s Employee Handbook is intended to, and nothing in such Handbook should be construed to, create an implied or express contract of employment contrary to this Agreement. 
  
 3. Position and Responsibilities. 
  
 a. During Employee’s employment with the Company hereunder, Employee
shall have such responsibilities, duties and authority as the Company, through its Board of Directors, may from time to time assign to Employee and that are normal and customary duties of a Vice President of Science & Technology of a publicly
held corporation. Employee shall perform any other duties reasonably required by the Company and, if requested by the Company, shall serve as a director and/or as an additional officer of the Company or any subsidiary or affiliate of the Company
without additional compensation. 

 b. Employee, in Employee’s capacity as Vice President of Science & Technology for the Company,
shall diligently and to the best of Employee’s ability perform all duties that such position entails. Employee shall devote such time, energy, skill and effort to the performance of Employee’s duties hereunder as may be fairly and
reasonably necessary to faithfully and diligently further the business and interests of the Company and its subsidiaries. Employee agrees not to engage in any other business activity that would materially interfere with the performance of
Employee’s duties under this Agreement. Employee represents to the Company that Employee has no other outstanding commitments inconsistent with any of the terms of this Agreement or the services to be rendered under it. 
  
 c. Employee shall render Employee’s service at the Company’s
offices in the County of San Diego, California, or such other location as is mutually agreed upon by the Company and Employee. It is understood, however, and agreed that Employee’s duties may from time to time require travel to other locations,
including other offices of the Company and its subsidiaries both within and outside the United States. 
  
 4. Compensation. 
  
 a. Salary. During the term of Employee’s employment hereunder, the Company agrees to pay Employee a base salary of One Hundred Ninety Three
Thousand Five Hundred dollars ($193,500) per year, payable no less frequently than monthly in accordance with the Company’s general payroll practices. For the first year of employment, the base salary will be prorated from the start date of
employment. The amount of Employee’s base salary as set forth in this Section 4(a) may be adjusted from time to time by an agreement in writing signed by the President or Chief Executive Officer of the Company and Employee, the terms of which
were approved in advance in writing by the Company’s Board of Directors. 
  
 b. Relocation Expenses. Employee shall be entitled to receive Fifty Thousand dollars ($50,000) for any and all costs associated with Employee’s relocation, including but not limited to, moving of household
goods, sale and/or purchase of Employee’s home, and temporary living costs. Twenty Five Thousand dollars ($25,000) shall be payable to Employee on or about the Effective Date and the remaining Twenty Five Thousand dollars ($25,000) shall be
payable after Employee has been employed with the Company for at least ninety (90) days. 
  
 c. Additional Benefits. During Employee’s employment with the Company, in addition to the other compensation and benefits set forth herein, Employee shall be entitled to receive and/or participate in such
other benefits of employment generally available to the Company’s other corporate officers when and as Employee becomes eligible for them. The Company reserves the right to modify, suspend or discontinue any and all benefit plans, policies and
practices at any time without notice to or recourse by the Employee, so long as such action is taken generally with respect to other similarly situated persons and does not single out Employee. 
  
 d. No Other Compensation. Employee acknowledges and agrees that,
except as expressly provided herein, and as set forth in the Company’s Employee Handbook or any other written compensation arrangement approved by the Company’s Board of Directors, Employee is not entitled to any other compensation or
benefits from the Company. 
  

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 e. Withholdings. All compensation under this Agreement shall be paid less withholdings required by
federal and state law and less deductions agreed to by the Company and Employee. 
  
 5. Termination. 
  
 a. Due to Death. Employee’s employment with the Company shall terminate automatically in the event of Employee’s death. The Company shall have no obligation to Employee or Employee’s estate for base salary or any other
form of compensation or benefit other than amounts accrued through the date of Employee’s death, except as otherwise required by law or pursuant to a specific written policy, agreement or benefit plan of the Company. 
  
 b. Without Cause, Severance Benefit. In the event Employee is
terminated by the Company without Cause and not as a result of death, upon Employee’s delivery to the Company of an executed general release in a form substantially similar to that set forth in Attachment #3 attached hereto
(“Release”), Employee shall be entitled to receive a severance benefit, including standard employee benefits available to the Company’s other corporate officers, in an amount equal to three (3) months’ compensation. If Employee
does not execute and deliver the Release, Employee shall only be entitled to receive a severance benefit in an amount equal to one (1) month’s compensation. One half of any severance benefit owing hereunder shall be paid within ten (10) days of
termination and the balance shall be paid on a bi-weekly basis over the applicable severance period of one (1) month or three (3) months. 
  
 c. With Cause, No Severance Benefit. The Company may terminate Employee for Cause. For purposes of this Agreement, Cause shall mean the occurrence
of one or more of the following events: (i) the Employee’s commission of any fraud against the Company; (ii) Employee’s intentional appropriation for Employee’s personal use or benefit the funds of the Company not authorized in
writing by the Board of Directors; (iii) Employee’s conviction of any crime involving moral turpitude; (iv) Employee’s conviction of a violation of any state or federal law that could result in a material adverse impact upon the business
of the Company; (v) Employee engaging in any other professional employment or consulting or directly or indirectly participating in or assisting any business that is a current or potential supplier, customer or competitor of the Company without
prior written approval from the Company’s Board of Directors; (vi) Employee’s failure to comply with the Company’s written policy on acceptance of gifts and gratuities as in effect from time to time; or (vii) when Employee has been
disabled and is unable to perform the essential functions of the position for any reason notwithstanding reasonable accommodation and has received from the Company compensation in an amount equivalent to Employee’s severance benefit payment. No
severance benefit shall be due to Employee if Employee is terminated for Cause, including if Employee is terminated for Cause upon or after a Change in Control (as hereinafter defined), except in the event of disability as set forth above.

  
 d. Resignation or Retirement, No Severance Benefit.
This Agreement shall be terminated upon Employee’s voluntary retirement or resignation. No severance benefit shall be due to Employee if Employee resigns or retires from employment for any reason or at any time, including upon or after a Change
in Control. 
  
 e. Payment Through Date of Termination.
Except as otherwise set forth herein, upon the termination of this Agreement for any reason, Employee shall be entitled to 
  

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 receive any unpaid compensation earned through the effective date of termination. If this Agreement is terminated for any
reason before year-end bonus or other compensation becoming payable to Employee, then such bonus and other compensation shall be forfeited in full by Employee. 
  

6. Termination Obligations. 
  
 a. Return of Company Property. Upon termination of this Agreement and cessation of Employee’s employment, Employee agrees to return all
Company Property (as such term is defined in Attachment #2 to this Agreement) to the Company promptly, but in no event later than two (2) business days following termination of employment. 
  
 b. Termination of Benefits. Any and all benefits to which Employee is
otherwise entitled shall cease upon Employee’s termination, unless explicitly continued either under this Agreement or under any specific written policy or benefit plan of the Company. 
  
 c. Termination of Other Positions. Upon termination of Employee’s
employment with the Company, Employee shall be deemed to have resigned from all other offices and directorships then held with the Company or its subsidiaries, unless otherwise expressly agreed in a writing signed by the Parties. 
  
 d. Employee Cooperation. Following termination of Employee’s
employment, Employee shall cooperate fully with the Company in all matters including, but not limited to, advising the Company of all pending work on behalf of the Company and the orderly transfer of work to other employees or representatives of the
Company. Employee shall also cooperate in the defense of any action brought by any third party against the Company that relates in any way to Employee’s acts or omissions while employed by the Company. 
  
 e. Survival of Obligations. Employee’s obligations under this
Section 6 shall survive the termination of employment and the termination of this Agreement. 
  
 7. Change in Control. In the event of any Change in Control, the following provisions will apply. 
  
 a. Any of the following shall constitute a “Change in Control” for the purposes of this Agreement: 
  
 (i) The consummation of a merger or consolidation of the Company with or
into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is
owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization; 
  
 (ii) The sale, transfer or other disposition of all or substantially all of the Company’s assets; 
  
 (iii) A change in the composition of the Company’s Board of Directors,
as a result of which fewer than 50% of the incumbent directors are directors who either (i) had 
  

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 been directors of the Company on the date 24 months prior to the date of the event that may constitute a Change in
Control (the “original directors”) or (ii) were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time
of the election or nomination and the directors whose election or nomination was previously so approved; or 
  
 (iv) Any transaction as a result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of
1934, as amended (“Exchange Act”)), directly or indirectly, of securities of the Company representing at least 20% of the total voting power represented by the Company’s then outstanding voting securities. For this purpose, the term
“person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or
subsidiary of the Company and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company. 
  
 A transaction shall not constitute a Change in Control if its sole purpose is
to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
  
 b. In the event of a Change in Control, this Agreement shall continue in
effect unless terminated by Employee or the Company. 
  
 c. If
Employee is terminated without Cause following a Change in Control by the Company and/or the surviving or resulting corporation, upon Employee’s delivery to the Company of an executed Release, Employee shall be entitled to receive as severance
pay or liquidated damages, or both, a lump sum payment (“Change in Control Severance Payment”) in an amount equal to one (1) year’s compensation or such greater amount as the Board of Directors determines from time to time pursuant to
terms which may not be revoked or reduced thereafter. If Employee does not execute and deliver the Release, Employee shall only be entitled to receive a Change in Control Severance Payment in an amount equal to one (1) month’s compensation.

  
 d. Any Change in Control Severance Payment shall be made not
later than the fifteenth (15th) day following the effective date of Employee’s termination without Cause in connection with a Change in Control; provided, however, that if the amount of such payment cannot be finally determined on or before
such date, the Company shall pay to Employee on such date a good faith estimate of the minimum amount of such payment, and shall pay the remainder of such payment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Internal
Revenue Code of 1986, as amended (“Code”)), as soon as the amount thereof can be determined, but in no event later than the thirtieth (30th) day after the applicable termination date. If the amount of the estimated payment exceeds the
amount subsequently determined to have been due, such excess shall constitute a loan by the Company to Employee payable on the fifteenth (15th) day after receipt by Employee of a written demand for payment from the Company (together with interest
calculated as set forth above). The total of any payment pursuant to this Section 7 shall be limited to the extent necessary, in the opinion of legal counsel acceptable to Employee and the Company, to avoid the payment of an “excess
parachute” payment within the meaning of Section 280G of the Code or any similar successor provision. 
  

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 e. In the event of termination of Employee’s employment under Section 7(c), and provided Employee
delivers to the Company an executed Release, the Company shall cause each then-outstanding stock option granted by the Company to the Employee as of the date of termination to become fully exercisable and to remain exercisable for the term of the
option. 
  
 8. Arbitration. Employee and the Company
hereby agree to the Mutual Agreement to Mediate and Arbitrate Claims attached hereto as Attachment #1 and made a part hereof. Employee’s obligations under this Section 8 and such agreement shall survive the termination of employment and the
termination of this Agreement. 
  
 9. Confidential
Information and Inventions. Employee and the Company hereby agree to the Confidential Information and Invention Assignment Agreement, Covenant of Exclusivity and Covenant Not to Compete attached hereto as Attachment #2 and made a part
hereof. Employee’s obligations under this Section 9 and such agreement shall survive the termination of employment and the termination of this Agreement. 
  

10. Competitive Activity. Employee covenants, warrants and represents that during the period of Employee’s employment with the
Company, Employee shall not engage anywhere, directly or indirectly (as a principal, shareholder, partner, director, manager, member, officer, agent, employee, consultant or otherwise), or be financially interested in any business that is involved
in business activities that are the same as, similar to, or in competition with the business activities carried on by the Company or any business that is a current or potential supplier, customer or competitor of the Company without prior written
approval from the Company’s Board of Directors. Notwithstanding the foregoing, Employee may invest in and hold up to one percent (1%) of the outstanding voting stock of a publicly held company that is involved in business activities that are
the same as, similar to, or in competition with the business activities carried on by the Company or any business that is a current or potential supplier, customer or competitor of the Company without the prior written approval of the Company’s
Board of Directors; provided, however, that if such publicly held company is a current or potential supplier, customer or competitor of the Company, the Employee shall advise the President of the Company in writing of Employee’s investment in
such company as soon as reasonably practicable. 
  
 11.
Employee Conduct. Employee covenants, warrants and represents that during the period of Employee’s employment with the Company, Employee shall at all times comply with the Company’s written policy as in effect from time to
time on the acceptance of gifts and gratuities from customers, vendors, suppliers, or other persons doing business with the Company. Employee represents and understands that acceptance or encouragement of any gift or gratuity not in compliance with
such policy may create a perceived financial obligation and/or conflict of interest for the Company and shall not be permitted as a means to influence business decisions, transactions or service. In this situation, as in all other areas of
employment, Employee is expected to conduct himself or herself using the highest ethical standard. 
  
 12. Miscellaneous Provisions. 
  
 a. Entire Agreement. This Agreement and any attachments and/or exhibits contains the entire agreement between the Parties. It supersedes any and
all other agreements, either oral or in writing, between the Parties with respect to Employee’s employment by the Company. Each party to this Agreement acknowledges that no representations, inducements, 
  

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 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 and acknowledges that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. To the extent the practices, policies or procedures of the Company, now or in the future, are
inconsistent with the terms of this Agreement, the provisions of this Agreement shall control. 
  
 b. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. 
  

c. Severability. Should any part or provision of this Agreement be held by a court of competent jurisdiction to be illegal, unenforceable,
invalid or void, the remaining provisions of this Agreement shall continue in full force and effect and the validity of the remaining provisions shall not be affected by such holding. 
  
 d. Attorneys’ Fees. Except as set forth in the Mutual Agreement to Mediate and Arbitrate Claims attached hereto
as Attachment #1, should any party institute any action, arbitration or proceeding to enforce, interpret or apply any provision of this Agreement, the Parties agree that the prevailing party shall be entitled to reimbursement by the non-prevailing
party of all recoverable costs and expenses, including, but not limited to, reasonable attorneys’ fees. 
  
 e. Interpretation. This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of
example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit nor against the party responsible for any particular language in this Agreement. The headings and captions contained in this Agreement are
for convenience of reference only and shall not constitute a part of this Agreement and shall not be used in the construction or interpretation of this Agreement. 
  
 f. Amendment; Waiver. This Agreement may not be modified or amended by oral agreement or course of conduct, but only
by an agreement in writing signed by the President or Chief Executive Officer of the Company and Employee, the terms of which were approved in advance in writing by the Company’s Board of Directors. The failure of either party hereto at any
time to require the performance by the other party hereto of any provision hereof shall in no way affect the full right to require such performance at any time thereafter, nor shall the waiver by either party hereto of a breach of any provision
hereof be taken or held to be a waiver of any succeeding breach of such provision or waiver of the provision itself or a waiver of any other provision of this Agreement. 
  
 g. Assignment. This Agreement is binding on and is for the benefit of the Parties and their respective successors,
heirs, executors, administrators and other legal representatives. Neither this Agreement nor any right or obligation hereunder may be assigned by the Company (except to an affiliate of the Company or to a person, as defined herein, in accordance
with a Change in Control) or by the Employee. 
  
 h. No
Restrictions; No Violation. The Employee represents and warrants that: (i) Employee is not a party to any agreement that would restrict or prohibit Employee from entering into this Agreement or performing fully Employee’s obligations
hereunder; and (ii) the execution by Employee of this Agreement and the performance by Employee of Employee’s obligations and duties pursuant to this Agreement will not result in any breach of any other agreement to which Employee is a party.

  

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 i. 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.

  
 j. Legal Representation; Independent Counsel.
The law firm of Fisher Thurber LLP has prepared this Agreement on behalf of the Company based on the Company’s instructions. Fisher Thurber LLP does not represent any other party to this Agreement. In executing this Agreement, Employee
represents that Employee has neither requested nor been given legal advice or counsel by Fisher Thurber LLP or any of its attorneys. Employee is aware of Employee’s right to obtain separate legal counsel with respect to the negotiation and
execution of this Agreement and acknowledges that Fisher Thurber LLP has recommended that Employee retain Employee’s own counsel for such purpose. Employee further acknowledges that Employee (i) has read and understands this Agreement and its
exhibits and attachments; (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. 
  
 IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the Effective Date. 
  

			
	 EMPLOYEE

	
	 /s/ Robert A. Kay

	 Robert A. Kay

	
	 COMPANY

	
	 Natural Alternatives International, Inc.,

	 a Delaware corporation

		
	 By:
	 	 /s/ Randy Weaver

	 	 	 Randell Weaver, President

  

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 ATTACHMENT #1 
  
 MUTUAL AGREEMENT TO MEDIATE AND ARBITRATE CLAIMS 
  
 This Mutual Agreement to Mediate and Arbitrate Claims (“Agreement”) is made and entered into effective as of March
29, 2004 (“Effective Date”), by and between Robert A. Kay, Ph.D., R.D. (“Employee”), and Natural Alternatives International, Inc., a Delaware corporation (“Company”). 
  
 In consideration of and as a condition of Employee’s prospective
employment relationship with the Company, Employee’s employment rights under Employee’s Employment Agreement, Employee’s participation in the Company’s benefit programs (when and if eligible), Employee’s access to and
receipt of confidential information of the Company, and other good and valuable consideration, all of which Employee considers to have been negotiated at arm’s length, Employee and Company agree to the following: 
  
 1. Claims Covered by this Agreement. 
  
 a. To the fullest extent permitted by law, all claims and disputes between
Employee (and Employee’s successors and assigns) and the Company relating in any manner whatsoever to the employment or termination of Employee, including without limitation all claims and disputes arising under this Agreement or that certain
Employment Agreement entered into by and between the Company and Employee on equal date hereof, as may be amended from time to time (“Employment Agreement”), shall be resolved by mediation and arbitration as set forth herein. All persons
and entities specified in the preceding sentence (other than the Company and Employee) shall be considered third-party beneficiaries of the rights and obligations created by this Agreement. Claims and disputes covered by this Agreement include
without limitation those arising under: 
  
 (i) Any federal,
state or local laws, regulations or statutes prohibiting employment discrimination (including, without limitation, discrimination relating to race, sex, national origin, age, disability, religion, or sexual orientation) and harassment; 

 
 (ii) Any alleged or actual agreement or covenant (oral, written or
implied) between Employee and the Company; 
  
 (iii) Any Company
policy, compensation, wage or related claim or benefit plan, unless the decision in question was made by an entity other than the Company; 
  
 (iv) Any public policy; and 
  
 (v) Any other claim for personal, emotional, physical or economic injury. 
  
 b. The only disputes between Employee and the Company that are not included within this Agreement are: 
  
 (i) Any claim by Employee for workers’ compensation or unemployment
compensation benefits; and 
  

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 (ii) Any claim by Employee for benefits under a Company plan that provides for its own arbitration
procedure. 
  
 2. Mandatory Mediation of Claims and
Disputes. 
  
 a. If any claim or dispute covered
under this Agreement cannot be resolved by negotiation between the parties, the following mediation and arbitration procedures shall be invoked. Before invoking the binding arbitration procedure set forth below, the Company and Employee shall first
participate in mandatory mediation of any dispute or claim covered under this Agreement. 
  
 b. The claim or dispute shall be submitted to mediation before a mediator of the Judicial Arbitration and Mediation Service (“JAMS”), a mutually agreed to alternative dispute resolution (“ADR”)
organization. The mediation shall be conducted at a mutually agreeable location, or if a location cannot be agreed to by the parties, at a location chosen by the mediator. The administrator of the ADR organization shall select three (3) mediators.
From the three (3) chosen, each party shall strike one and the remaining mediator shall preside over the mediation. The cost of the mediation shall be borne by the Company. 
  
 c. At least ten (10) business days before the date of the mediation, each side shall provide the mediator with a statement
of its position and copies of all supporting documents. Each party shall send to the mediation a person who has authority to bind the party. If a subsequent dispute will involve third parties, such as insurers, they shall also be asked to
participate in the mediation. 
  
 d. If a party has participated
in the mediation and is dissatisfied with the outcome, that party may invoke the arbitration procedure set forth below. 
  
 3. Binding Arbitration of Claims and Disputes. 
  
 a. If the Company and Employee are unable to resolve a dispute or claim covered under this Agreement through mediation, they shall submit any such dispute
or claim to binding arbitration, in accordance with California Code of Civil Procedure §§1280 through 1294.2. Either party may enforce the award of the arbitrator under Code of Civil Procedure §1285 by any competent court of law.
Employee and the Company understand that they are waiving their rights to a jury trial. 
  
 b. The party demanding arbitration shall submit a written claim to the other party, setting out the basis of the claim and proposing the name of an arbitrator from JAMS, the mutually agreed to ADR organization. The
responding party shall have ten (10) business days in which to respond to this demand in a written answer. If this response is not timely made, or if the responding party agrees with the person proposed as the arbitrator, then the person named by
the demanding party shall serve as the arbitrator. If the responding party submits a written answer rejecting the proposed arbitrator then, on the request of either party, JAMS shall appoint an arbitrator other than the mediator. The Employee and
the Company agree to apply American Arbitration Association (“AAA”) rules for the resolution of employment disputes to the arbitration even though the ADR is one other than AAA. No one who has ever had any business, financial, family, or
social relationship with any party to this Agreement shall serve as an arbitrator unless the related party informs the other party of the relationship and the other party consents in writing to the use of that arbitrator. 
  

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 c. The arbitration shall take place in the greater San Diego, California area, at a time and place
selected by the arbitrator. A pre-arbitration hearing shall be held within ten (10) business days after the arbitrator’s selection. The arbitration shall be held within sixty (60) calendar days after the pre-arbitration hearing. The arbitrator
shall establish all discovery and other deadlines necessary to accomplish this goal. 
  
 d. Each party shall be entitled to discovery of essential documents and witnesses, as determined by the arbitrator in accordance with the then-applicable rules of discovery for the resolution of employment disputes
and the time frame set forth in this Agreement. The arbitrator may resolve any disputes over any discovery matters as they would be resolved in civil litigation. 
  
 e. The arbitrator shall have the following powers: 
  
 (i) to issue subpoenas for the attendance of witnesses and subpoenas duces tecum for the production of books, records,
documents, and other evidence; 
  
 (ii) to order depositions to
be used as evidence; 
  
 (iii) subject to the limitations on
discovery enumerated above, to enforce the rights, remedies, procedures, duties, liabilities, and obligations of discovery as if the arbitration were a civil action before a California superior court; 
  
 (iv) to conduct a hearing on the arbitrable issues; and 
  
 (v) to administer oaths to parties and witnesses. 
  
 f. Within fifteen (15 days) after completion of the arbitration, the
arbitrator shall submit a tentative decision in writing, specifying the reasoning for the decision and any calculations necessary to explain the award. Each party shall have fifteen (15) days in which to submit written comments to the tentative
decision. Within ten (10) days after the deadline for written comments, the arbitrator shall announce the final award. 
  
 g. The Company shall pay the arbitrator’s expenses and fees, all meeting room charges, and any other expenses that would not have been incurred if
the case were litigated in the judicial forum having jurisdiction over it. Unless otherwise ordered by the arbitrator, each party shall pay its own attorneys’ fees and witness fees, and other expenses incurred by the party for such party’s
own benefit and not required to be paid by the Company pursuant to the terms hereof. Regardless of any statute, procedure, rule or law, the prevailing party in arbitration shall be entitled to recover from the non-prevailing party reasonable
attorneys’ fees incurred as a result of arbitration. 
  

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 4. Miscellaneous Provisions. 
  
 a. For purposes hereof, the term “Company” shall also include all
related entities, affiliates and subsidiaries, all officers, employees, directors, agents, stockholders, partners, managers, members, benefit plan sponsors, fiduciaries, administrators or affiliates of any of the above, and all successors and
assigns of any of the above. 
  
 b. If either party pursues a
covered claim against the other by any action, method or legal proceeding other than mediation or arbitration as provided herein, the responding party shall be entitled to dismissal or injunctive relief regarding such action and recovery of all
costs, losses and attorneys’ fees related to such other action or proceeding. 
  
 c. This is the complete agreement of the parties on the subject of mediation and the arbitration of disputes and claims covered hereunder. This Agreement supersedes any prior or contemporaneous oral, written or
implied understanding on the subject, shall survive the termination of Employee’s employment and can only be revoked or modified by a written agreement signed by Employee and the President or Chief Executive Officer of the Company, the terms of
which were approved in advance in writing by the Company’s Board of Directors and which specifically state an intent to revoke or modify this Agreement. If any provision of this Agreement is adjudicated to be void or otherwise unenforceable in
whole or in part, such adjudication shall not affect the validity of the remainder of the Agreement, which shall remain in full force and effect. 
  
 d. This Agreement shall be construed and enforced in accordance with the laws of the State of California. 
  
 e. This Agreement shall be construed as a whole, according to its fair
meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the party receiving a benefit nor against the party responsible for any particular language in this
Agreement. The headings and captions contained in this Agreement are for convenience of reference only and shall not constitute a part of this Agreement and shall not be used in the construction or interpretation of this Agreement. 
  
 f. The failure of either party hereto at any time to require the performance
by the other party hereto of any provision hereof shall in no way affect the full right to require such performance at any time thereafter, nor shall the waiver by either party hereto of a breach of any provision hereof be taken or held to be a
waiver of any succeeding breach of such provision or waiver of the provision itself or a waiver of any other provision of this Agreement. 
  
 g. 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. 
  
 h. Employee’s and Company’s obligations under this Agreement shall survive the termination of Employee’s
employment and the termination of the Employment Agreement. 
  

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 i. The law firm of Fisher Thurber LLP has prepared this Agreement on behalf of the Company based on the
Company’s instructions. Fisher Thurber LLP does not represent any other party to this Agreement. In executing this Agreement, Employee represents that Employee has neither requested nor been given legal advice or counsel by Fisher Thurber LLP
or any of its attorneys. Employee is aware of Employee’s right to obtain separate legal counsel with respect to the negotiation and execution of this Agreement and acknowledges that Fisher Thurber LLP has recommended that Employee retain
Employee’s own counsel for such purpose. Employee further acknowledges that 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. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date. 
  

			
	 EMPLOYEE

	
	 /s/ Robert A. Kay

	 Robert A. Kay, Ph.D., R.D.

	
	 COMPANY

	
	 Natural Alternatives International, Inc.,

	 a Delaware corporation

		
	 By:
	 	 /s/ Randy Weaver

	 	 	 Randell Weaver, President

  

 5 

 ATTACHMENT #2 
  
 CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT, 
 COVENANT OF EXCLUSIVITY AND COVENANT NOT TO COMPETE 
  
 This Confidential Information and Invention Assignment Agreement, Covenant of Exclusivity and Covenant Not to Compete (“Agreement”) is made by
Robert A. Kay, Ph.D., R.D. (“Employee” or “I,” “me” or “my”), and accepted and agreed to by Natural Alternatives International, Inc., a Delaware corporation (“Company”), as of March 29, 2004
(“Effective Date”). 
  
 In consideration of and as a
condition of my prospective employment relationship with the Company (which for purposes of this Agreement shall be deemed to include any subsidiaries or affiliates of the Company, where “affiliate” shall mean any person or entity that
directly or indirectly controls, is controlled by, or is under common control with the Company), my employment rights under my Employment Agreement with the Company, my access to and receipt of confidential information of the Company, and other good
and valuable consideration, I agree to the following, and I agree the following shall be in addition to the terms and conditions of any Confidential Information and Invention Assignment Agreement executed by employees of the Company generally, and
which I may execute in addition hereto: 
  
 1.
Inventions. 
  
 a. Disclosure. I will
disclose promptly in writing to the appropriate officer or other representative of the Company, any idea, invention, work of authorship, design, formula, pattern, compilation, program, device, method, technique, process, improvement, development or
discovery, whether or not patentable or copyrightable or entitled to legal protection as a trade secret, trademark service mark, trade name or otherwise (“Invention”), that I may conceive, make, develop, reduce to practice or work on, in
whole or in part, solely or jointly with others (“Invent”), during the period of my employment with the Company. 
  
 i. The disclosure required by this Section 1(a) applies to each and every Invention that I Invent (1) whether during my regular hours of employment or
during my time away from work, (2) whether or not the Invention was made at the suggestion of the Company, and (3) whether or not the Invention was reduced to or embodied in writing, electronic media or tangible form. 
  
 ii. The disclosure required by this Section 1(a) also applies to any
Invention which may relate at the time of conception or reduction to practice of the Invention to the Company’s business or actual or demonstrably anticipated research or development of the Company, and to any Invention which results from any
work performed by me for the Company. 
  
 iii. The disclosure
required by this Section 1(a) shall be received in confidence by the Company within the meaning of and to the extent required by California Labor Code §2871, the provisions of which are set forth on Exhibit A attached hereto. 
  
 iv. To facilitate the complete and accurate disclosures described above, I
shall maintain complete written records of all Inventions and all work, study and investigation done by me during my employment, which records shall be the Company’s property. 
  

 1 

 v. I agree that during my employment I shall have a continuing obligation to supplement the disclosure
required by this Section 1(a) on a monthly basis if I Invent an Invention during the period of employment. In order to facilitate the same, the Company and I shall periodically review every six months the written records of all Inventions as
outlined in this Section 1(a) to determine whether any particular Invention is in fact related to Company business. 
  
 b. Assignment. I hereby assign to the Company without royalty or any other further consideration my entire right, title and interest in and to each
and every Invention I am required to disclose under Section 1(a) other than an Invention that (i) I have or shall have developed entirely on my own time without using the Company’s equipment, supplies, facilities or trade secret information,
(ii) does not relate at the time of conception or reduction to practice of the Invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company, and (iii) does not result from any work performed
by me for the Company. I acknowledge that the Company has notified me that the assignment provided for in this Section l(b) does not apply to any Invention to which the assignment may not lawfully apply under the provisions of Section §2870 of
the California Labor Code, a copy of which is attached hereto as Exhibit A. I shall bear the full burden of proving to the Company that an Invention qualifies fully under Section §2870. 
  
 c. Additional Assistance and Documents. I will assist the Company in
obtaining, maintaining and enforcing patents, copyrights, trade secrets, trademarks, service marks, trade names and other proprietary rights in connection with any Invention I have assigned to the Company under Section l(b), and I further agree that
my obligations under this Section l(c) shall continue beyond the termination of my employment with the Company. Among other things, for the foregoing purposes I will (i) testify at the request of the Company in any interference, litigation or other
legal proceeding that may arise during or after my employment, and (ii) execute, verify, acknowledge and deliver any proper document and, if, because of my mental or physical incapacity or for any other reason whatsoever, the Company is unable to
obtain my signature to apply for or to pursue any application for any United States or foreign patent or copyright covering Inventions assigned to the Company by me, I hereby irrevocably designate and appoint each of the Company and its duly
authorized officers and agents as my agent and attorney in fact to act for me and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of any United
States or foreign patent or copyright thereon with the same legal force and effect as if executed by me. I shall be entitled to reimbursement of any out-of-pocket expenses incurred by me in rendering such assistance and, if I am required to render
such assistance after the termination of my employment, the Company shall pay me a reasonable rate of compensation for time spent by me in rendering such assistance to the extent permitted by law (provided, I understand that no compensation shall be
paid for my time in connection with preparing for or rendering any testimony or statement under oath in any judicial proceeding, arbitration or similar proceeding). 
  
 d. Prior Contracts and Inventions; Rights of Third Parties. I represent to the Company that, except as set forth on
Exhibit B attached hereto, there are no other contracts to assign Inventions now in existence between me and any other person or entity (and if no Exhibit 
  

 2 

 B is attached hereto or there is no such contract(s) described thereon, then it means that by signing this Agreement, I
represent to the Company that there is no such other contract(s)). In addition, I represent to the Company that I have no other employments or undertaking which do or would restrict or impair my performance of this Agreement. I further represent to
the Company that Exhibit C attached hereto sets forth a brief description of all Inventions made or conceived by me prior to my employment with the Company which I desire to be excluded from this Agreement (and if no Exhibit C is attached hereto or
there is no such description set forth thereon, then it means that by signing this Agreement I represent to the Company that there is no such Invention made or conceived by me prior to my employment with the Company). In connection with my
employment with the Company, I promise not to use or disclose to the Company any patent, copyright, confidential trade secret or other proprietary information of any previous employer or other person that I am not lawfully entitled so to use or
disclose. If in the course of my employment with the Company I incorporate into an Invention or any product process or service of the Company any Invention made or conceived by me prior to my employment with the Company, I hereby grant to the
Company a royalty-free, irrevocable, worldwide nonexclusive license to make, have made, use and sell that Invention without restriction as to the extent of my ownership or interest. 
  
 2. Confidential Information. 
  
 a. Company Confidential Information. I will not use or disclose, produce, publish, permit access to, or reveal
Confidential Information, whether before, during or after the period of my employment with the Company except to perform my duties as an employee of the Company based on my reasonable judgment as an officer of the Company, or in accordance with
instruction or authorization of the Company, without prior written consent of the Company or pursuant to process or requirements of law after I have disclosed such process or requirements to the Company so as to afford the Company the opportunity to
seek appropriate relief therefrom. “Confidential Information” means any Invention of any person in which the Company has an interest and in addition means all information and material that is proprietary to the Company, whether or not
marked as “confidential” or “proprietary,” and which is disclosed to or obtained by me, which relates to the Company’s past, present or future business activities. Confidential Information includes all information or
materials prepared by or for the Company and includes, without limitation, all of the following: designs, drawings, specifications, techniques, models, data, source code, object code, documentation, diagrams, flow charts, research, development,
processes, procedures, “know-how,” new product or new technology information, product copies, development or marketing techniques and materials, development or marketing timetables, strategies and development plans, including trade names,
trademarks, customer, supplier or personnel names and other information related to customers, suppliers or personnel, pricing policies and financial information, and other information of a similar nature, whether or not reduced to writing or other
tangible form, and any other trade secrets or nonpublic business information. Confidential Information is to be broadly defined, and includes all information that has or could have commercial value or other utility in the business in which the
Company is engaged or contemplates engaging, and all information of which the unauthorized disclosure could be detrimental to the interests of the Company, whether or not such information is identified as Confidential Information by the Company.

  
 b. Third Party Information. I acknowledge that during
my employment with the Company I may have access to patent, copyright, confidential, trade secret or other 
  

 3 

 proprietary information of third parties, some of which may be subject to restrictions on the use or disclosure thereof
by the Company. During the period of my employment and thereafter, I agree not to use or disclose, produce, publish, permit access to, or reveal any such information other than consistent with the restrictions and my duties as an employee of the
Company. 
  
 3. Property of the Company. All
equipment and all tangible and intangible information relating to the Company, its employees, its customers and its vendors and business furnished to, obtained by, or prepared by me or any other person during the course of or incident to employment
by the Company are and shall remain the sole property of the Company (“Company Property”). For purposes of this Agreement, Company Property shall include, but not be limited to, computer equipment, books, manuals, records, reports, notes,
correspondence, contracts, customer lists, business cards, advertising, sales, financial, personnel, operations, and manufacturing materials and information, data processing reports, computer programs, software, customer information and records,
business records, price lists or information, and samples, and in each case shall include all copies thereof in any medium, including paper, electronic and magnetic media and all other forms of information storage. Upon termination of my employment
with the Company, I agree to return all tangible Company Property to the Company promptly, but in no event later than two (2) business days following termination of employment. 
  
 4. No Solicitation of Company Employees. While employed by the Company and for a period of one year after
termination of my employment with the Company, I agree not to induce or attempt to influence directly or indirectly any employee of the Company to terminate employment with the Company or to work for me or any other person or entity. 
  
 5. Covenant of Exclusivity and Not to Compete. During the
period of my employment with the Company, I will not engage in any other professional employment or consulting or directly or indirectly participate in or assist any business which is a current or potential supplier, customer or competitor of the
Company without prior written approval from the Company’s Board of Directors. 
  
 6. Miscellaneous Provisions. 
  
 a. Successors and Assignees; Assignment. All representations, warranties, covenants and agreements of the parties shall bind their respective heirs, executors, personal representatives, successors and assignees
(“transferees”) and shall inure to the benefit of their respective permitted transferees. The Company shall have the right to assign any or all of its rights and to delegate any or all of its obligations hereunder. Employee shall not have
the right to assign any rights or delegate any obligations hereunder without the prior written consent of the Company or its transferee. 
  
 b. Number and Gender; Headings. Each number and gender shall be deemed to include each other number and gender as the context may require. The
headings and captions contained in this Agreement shall not constitute a part thereof and shall not be used in its construction or interpretation. 
  
 c. Severability. If any provision of this Agreement is found by any court or arbitral tribunal of competent jurisdiction to be invalid or
unenforceable, the invalidity of such provision shall not affect the other provisions of this Agreement and all provisions not affected by the invalidity shall remain in full force and effect. 
  

 4 

 d. Amendment and Modification. This Agreement may be amended or modified only by a writing
executed by the President or Chief Executive Officer of the Company and Employee. 
  
 e. Government Law. The laws of California shall govern the construction, interpretation and performance of this Agreement and all transactions under it. 
  
 f. Remedies. I acknowledge that my failure to carry out any obligation
under this Agreement, or a breach by me of any provision herein, will constitute immediate and irreparable damage to the Company, which cannot be fully and adequately compensated in money damages and which will warrant preliminary and other
injunctive relief, an order for specific performance, and other equitable relief. I further agree that no bond or other security shall be required in obtaining such equitable relief and I hereby consent to the issuance of such injunction and to the
ordering of specific performance. I also understand that other action may be taken and remedies enforced against me. 
  
 g. Mediation and Arbitration. This Agreement is subject to the Mutual Agreement to Mediate and Arbitrate Claims attached to the Employment
Agreement between me and the Company, incorporated into this Agreement by this reference. 
  
 h. Attorneys’ Fees. Unless otherwise set forth in the Mutual Agreement to Mediate and Arbitrate Claims between Employee and the Company, should either I or the Company, or any heir, personal
representative, successor or permitted assign of either party, resort to arbitration or legal proceedings to enforce this Agreement, the prevailing party (as defined in California statutory law) in such proceeding shall be awarded, in addition to
such other relief as may be granted, reasonable attorneys’ fees and costs incurred in connection with such proceeding. 
  
 i. No Effect on Other Terms or Conditions of Employment. I acknowledge that this Agreement does not affect any term or condition of my employment
except as expressly provided in this Agreement, and that this Agreement does not give rise to any right or entitlement on my part to employment or continued employment with the Company. I further acknowledge that this Agreement does not affect in
any way the right of the Company to terminate my employment. 
  
 j. Legal Representation; Advice of Counsel. The law firm of Fisher Thurber LLP has prepared this Agreement on behalf of the Company based on its instructions. Fisher Thurber LLP does not represent any other party to this Agreement.
In executing this Agreement, I represent that I have neither requested nor been given legal advice or counsel by Fisher Thurber LLP or any of its attorneys. I am aware of my right to obtain separate legal counsel with respect to the negotiation and
execution of this Agreement and acknowledge that Fisher Thurber LLP has recommended that I retain my own counsel for such purpose. I further acknowledge that I (i) have read and understand this Agreement and its exhibits; (ii) have had the
opportunity to retain separate counsel in connection with the negotiation and execution of this Agreement; and (iii) have 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. 
  
 [Signatures on following page.] 
  

 5 

 My signature below signifies that I have read, understand and agree to this Agreement. 
  

	
	 /s/ Robert A. Kay

	 Robert A. Kay, Ph.D., R.D.

  

			
	 ACCEPTED AND AGREED TO:

	
	 Natural Alternatives International, Inc.,

	 a Delaware corporation

		
	 By:
	 	 /s/ Randy Weaver

	 	 	 Randell Weaver, President

  

 6 

 EXHIBIT A 
  

California Labor Code 
  
 § 2870. Invention on Own Time-Exemption from Agreement. 
  
 (a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the
employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information expect for those inventions that either: 
  
 (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or
demonstrably anticipated research or development of the employer; or 
  
 (2) Result from any work performed by the employee for the employer. 
  
 (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable. 
  
 § 2871. Restrictions on
Employer for Condition of Employment. 
  
 No employer shall
require a provision made void or unenforceable by Section 2870 as a condition of employment or continued employment. Nothing in this article shall be construed to forbid or restrict the right of an employer to provide in contracts of employment for
disclosure, provided that any such disclosures be received in confidence, of all of the employee’s inventions made solely or jointly with others during the period of his or her employment, a review process by the employer to determine such
issues as may arise, and for full title to certain patents and inventions to be in the United States, as required by contracts between the employer and the United States or any of its agencies. 
  

 1 

 EXHIBIT B 
  

Except as set forth below, Employee represents to the Company that there are no other contracts to assign Inventions now in existence between Employee
and any other person or entity (see Section l(d) of the Agreement): 
  

 1 

 EXHIBIT C 
  

Set forth below is a brief description of all Inventions made or conceived by Employee prior to Employee’s employment with the Company, which
Employee desires to be excluded from this Agreement (see Section l(d) of the Agreement): 
  

 1 

 ATTACHMENT #3 
  
 FORM OF 
 SEPARATION AGREEMENT AND GENERAL RELEASE OF CLAIMS 
  
 This Separation Agreement and General Release of Claims (“Agreement”) is entered into by and between Robert A. Kay, Ph.D., R.D. (“Former Employee”) and Natural Alternatives International, Inc., a Delaware corporation
(“Company”). 
  
 RECITALS 
  
 A. Former Employee’s employment with the Company terminated effective on
            . 
  
 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 any and all claims relating to Former Employee’s employment and its termination. 
  
 NOW, THEREFORE, incorporating the above recitals, and for good and valuable
consideration, the receipt and sufficiency of which is 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, the Company agrees to pay Former Employee the gross sum of
                     and     /100 dollars
($                    ), which amount represents a severance benefit in the amount of
                     and
                    , less all applicable withholdings and deductions. 
  
 2. Release. 
  
 (a) Former Employee does hereby unconditionally, irrevocably and absolutely release and discharge the Company, its directors, officers, employees,
volunteers, agents, attorneys, stockholders, insurers, successors and/or assigns and any related, parent or subsidiary entity, 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 that this Agreement applies, without limitation, to all wage claims, tort and/or contract claims, claims for wrongful termination, and claims arising under Title VII of the Civil Rights Act of 1991,
the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Equal Pay Act, the California Fair Employment and Housing Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the California Labor Code, any and all
federal or state statutes or provisions governing discrimination in employment, and the California Business and Professions Code. 
  

 1 

 (b) Former Employee irrevocably and absolutely agrees that Former Employee will not prosecute nor allow
to be prosecuted on Former Employee’s behalf in any administrative agency, whether federal or state, or in any court, whether federal or state, any claim or demand of any type related to the matters released above, it being an intention of the
parties that with the execution by Former Employee of this Agreement, the Company, its officers, directors, employees, volunteers, agents, attorneys, stockholders, successors and/or assigns and all related, parent or subsidiary entities will be
absolutely, unconditionally and forever discharged of and from all obligations to or on behalf of Former Employee related in any way to the matters discharged herein. 
  
 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 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 may be
required to disclose certain terms, aspects or conditions of this Agreement and/or Former Employee’s termination of employment in the Company’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.
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. 
  
 5. 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

  

 2 

 action, costs, expenses, attorneys’ fees, 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. 
  
 6. OWBPA Provisions. In the event Former Employee is forty (40) years old or older, in accordance with the Older
Workers’ Benefit Protection Act of 1990, Former Employee is aware of and acknowledges the following: (i) Former Employee has the right to consult with an attorney before signing this Agreement and has done so to the extent desired; (ii) Former
Employee has twenty-one (21) days 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, and this Agreement shall not become effective or enforceable until the revocation period has expired; (iv) this Agreement shall become effective eight (8) days after it is signed by Former
Employee and the Company, and in the event the parties do not sign on the same date, this Agreement shall become effective eight (8) days after the date it is signed by Former Employee. 
  
 7. Entire Agreement. The parties declare and represent that no promise, inducement or agreement not herein expressed
has been made to them and that this Agreement contains 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. 
  
 8. 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. 
  
 9. 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. 
  
 10.
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. 
  

 3 

 11. No Admission of Liability. It is understood that this Agreement is not an admission of any
liability by any person, firm, association or corporation. 
  
 12.
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. 
  
 13. 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. 
  
 14. 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. 
  
 15. 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 March 29, 2004, by and between the Company and Former Employee. 
  
 17. Legal Representation; Independent Counsel. The law firm of Fisher Thurber LLP has prepared this Agreement on behalf of the Company based
on the Company’s instructions. Fisher Thurber 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
Fisher Thurber 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 Fisher Thurber 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. 
  
 18. 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. 
  

 4 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date(s) shown below. 

 

					
	 FORMER EMPLOYEE
  

	

	 Robert A. Kay, Ph.D., R.D.

		
	 Dated:
	 	  

			
	 Executed in :
	 	  

	 	 ,California

	 	 	(City)	 	 
		
	 COMPANY
	 	 
	
	 Natural Alternatives International, Inc.,

	 a Delaware corporation

		
	 By:
	 	  

	 	 	 (Signature)
	 	 
		
	 Printed Name:
	 	  

		
	 Title:
	 	  

		
	 Dated:
	 	  

			
	 Executed in :
	 	  

	 	  
 ,California

	 	 	(City)	 	 

  

 5Amended and Restated Exclusive License Agreement

 Exhibit 10.11 
  
 AMENDED AND RESTATED 
 EXCLUSIVE LICENSE AGREEMENT 
  
 This AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT (“Agreement”) is entered into effective as of September 1, 2004, by and among Natural Alternatives International, Inc., a Delaware corporation (“NAI”) with its
principal offices at 1185 Linda Vista Drive, San Marcos, California 92078, and Dr. Reginald B. Cherry, an individual (“Dr. Cherry”), with his principal address at 8323 Southwest Freeway, Suite 440, Houston, Texas 77074. The Parties to this
Agreement are sometimes referred to collectively herein as the “Parties” or separately as a “Party”. 
  
 RECITALS 
  
 A.    NAI is in the business of designing, researching, formulating, developing, manufacturing, packaging, distributing and marketing nutritional
Products and has demonstrated its capability to develop formulae and to manufacture nutritional Products derived from such formulae. 
  
 B.    Dr. Cherry entered into an assignment agreement (“Cherry Assignment”) with Reginald 
 B. Cherry Ministries, Inc., a Texas nonprofit corporation (“Ministries”), in which Dr. Cherry assigned to Ministries an undivided fifty-one percent (51%)
interest in and to his name and likeness for the promotion of nutritional foods and supplements, retaining an undivided forty-nine percent (49%) interest in and to his name and likeness for the promotion of nutritional foods and supplements (the
“Retained Interest”). 
  
 C.    Dr. Cherry desires
to utilize the expertise of NAI to design, research, formulate, develop, manufacture, package, sell, distribute and market nutritional Products. 
  
 D.    NAI desires to work with Dr. Cherry to design, research, formulate, develop, manufacture, package, sell, distribute and market nutritional
Products using the names, likenesses, styles, persona, patents, trademarks, logos, domain names and copyrights of Dr. Cherry. 
  
 E.    NAI desires to design, research, formulate, develop, manufacture, package, sell, distribute and market all nutritional Products developed under
this Agreement to all markets worldwide, and through all channels or means of distribution. 
  
 F.    In order to allow NAI to design, research, formulate, develop, manufacture, package, sell, distribute and market nutritional Products using the likeness, style, persona and other attributes
of Dr. Cherry, Dr. Cherry intends hereby to grant to NAI an exclusive license to all of his rights in the Retained Interest for NAI’s use in the design, research, formulation, development, manufacture, packaging, sales, distribution and
marketing of nutritional Products, subject to Dr. Cherry retaining the non-exclusive right to assist in the promotion and marketing of the nutritional Products. 

 Incorporating the above recitals herein and in consideration of the covenants and obligations contained
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
  
 Incorporating the above recitals herein and in consideration of the covenants and obligations contained herein and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
  
 ARTICLE I 
 GRANT OF EXCLUSIVE LICENSE 
  
 1.1 Grant of License. Dr. Cherry grants to NAI the exclusive right to
use solely in connection with distribution of Products, the names, likenesses, styles, persona, patents, trademarks, logos, domain names, copyrights and all other attributes, whether currently existing or to be developed in the future, of Dr. Cherry
with respect to the Retained Interest (the “Proprietary Assets”). The rights granted herein pursuant to this Section are referred to as the “License Rights”. 
  
 1.2 Territory. The territory for which NAI is granted the License Rights shall be worldwide. 
  
 1.3 Products. “Product” or “Products” means all
nutritional foods, nutritional and dietary supplements and related materials or products of any description, including but not limited to capsules, tablets, powders, liquids, bars and other forms and packaged in any and all manners using the
Proprietary Assets developed as part of the individual and product identity of Dr. Cherry. NAI shall have the right to have the labeling and all promotional materials for all Products include a representation that the Product has been manufactured
by NAI. 
  
 1.4 Duties of NAI. In connection with the
License granted herein, NAI shall: 
  
 1.4.1 Take such
actions as are commercially reasonable in an effort to design, develop, formulate, manufacture, promote, market, distribute and sell the maximum number of Products while maintaining the quality of the Products and NAI’s service to its
customers. 
  
 1.4.2 Meet, confer and cooperate with Dr. Cherry in
connection with development of any packaging and promotional materials utilizing the Proprietary Assets. 
  
 1.4.3 Cooperate with Dr. Cherry with respect to Dr. Cherry’s preparation of material for inclusion in or use in connection with medical clinics,
television programs, Web sites, books, mini-books, study guides, and audiotapes of Dr. Cherry. 
  
 1.4.4 Maintain a regular schedule of contact with Dr. Cherry to discuss ideas, priorities, action steps and issues. 
  
 1.4.5 Cooperate with all parties in the current and future development of the Products and use best efforts to produce and distribute Products under this
Agreement. 
  
 1.4.6 Submit promotional copy, artwork, and layout
to Dr. Cherry for review, comment, and editing, so that promotional materials reflect the public image of Dr. Cherry and 
  

 2 

 his activities associated with maintaining and restoring health. NAI may proceed with producing said promotional material
only after obtaining approval of Dr. Cherry pursuant to Section 1.5.3. 
  
 1.4.7 Develop the Products with the collaboration and assistance of Dr. Cherry. NAI will design, formulate, manufacture, and package the Products. NAI will use reasonable efforts to ensure Product formulas do not infringe upon the existing
patents or registered trademarks of any other party. 
  
 1.4.8 NAI
will develop all packaging and labeling with respect to the Products. 
  
 1.5 Duties of Dr. Cherry. In connection with the exclusive license granted in this Agreement, Dr. Cherry shall: 
  
 1.5.1 Devote such time, effort, attention and energies as is commercially reasonable to promote, expand, improve, safeguard and develop the Proprietary
Assets, and to promote, market and sell the Products and teach about the importance and benefits of the Products as a part thereof, and in connection with such efforts and the promotion and maintenance of the Proprietary Assets and Products, to
maintain or expand the scope of distribution and public awareness of Dr. Cherry, and shall not take any action that would be inconsistent with the public image of either Dr. Cherry, NAI, the Products or Proprietary Assets, or degrade, tarnish,
deprecate or disparage Dr. Cherry, NAI, the Products or Proprietary Assets or in any way reflect negatively on any of them in society or standing in the community, or prejudice Dr. Cherry, NAI, the Products or Proprietary Assets, and that Dr. Cherry
will terminate such activities promptly upon notice. 
  
 1.5.2
Regularly recommend and review the Products for use and meet, confer, and cooperate with NAI in connection with the development of Products. 
  
 1.5.3 Review, comment, edit, and approve or disapprove, in its reasonable discretion the design, formulation, labeling and packaging of all Products and
all material changes thereto and all promotional material submitted by NAI prior to the expiration of fifteen (15) business days following receipt of such materials. Any failure to approve or disapprove of such materials within the time period
provided, shall constitute approval. 
  
 1.5.4 Collaborate and
cooperate with NAI and otherwise assist NAI with Product design, development and formulation, and the design and development of the packaging and labeling of the Products. 
  
 1.5.5 Maintain a regular schedule of contact with NAI to discuss ideas, priorities, action steps and issues. 
  
 1.5.6 Advise NAI on a regular basis as to the schedule and content of Dr.
Cherry’s activities, corrected as changes occur for a forward looking calendar of at least six (6) months. 
  

 3 

 1.5.7 Cooperate with all parties in the current and future development of Products and use best efforts
to promote, market and sell the Products. 
  
 1.5.8 With the
exception of Promensol, Dr. Cherry shall refrain from promoting, marketing or selling any Product distributed by anyone other than NAI. 
  
 ARTICLE II 
 ROYALTIES 

 
 2.1 Royalties. NAI shall pay Dr. Cherry a royalty on the annual Net
Sales revenue from the Products. “Net Sales” shall be computed as the gross invoice amount billed by NAI to purchasers of the Products, less customer shipping and handling charges, credit card charge fees and returns actually credited. The
amount of such royalty shall be the amount set forth in Section 2.1.2 herein below: 
  
 2.1.1 Minimum Annual Net Sales. During the periods of the term of this Agreement set forth below, NAI shall produce minimum annual Net Sales of the Products. The amount of the minimum annual sales shall be as
set forth below for each period. 
  

	
	 Effective Date through December 31, 2004   $5,000,000
 January 1, 2005 through December 31, 2005 $6,000,000
 January 1, 2006 through December 31, 2006 $6,500,000
 January 1, 2007 through December 31, 2007 $7,000,000
 January 1, 2008 through
December 31, 2008 $7,500,000
 January 1, 2009 through December 31, 2009 $8,000,000

  
 In the event Minimum
Annual Net Sales are not achieved, NAI shall have the option to retain all rights under this Agreement by paying to Dr. Cherry the difference between the amount of royalties actually paid to Dr. Cherry pursuant to Section 2.1.2 for Net Sales
achieved during the respective year, and the amount which would have been due if the Minimum Annual Net Sales requirement had been achieved. If the Minimum Annual Net Sales requirement is not achieved and NAI does not pay to Dr. Cherry such
difference, Dr. Cherry shall have the right in his sole discretion to: (i) waive the non-compliance; (ii) notify NAI this Agreement has been automatically converted to a non-exclusive license on otherwise all the same terms and conditions; or (iii)
terminate this Agreement at which time all rights previously licensed shall revert to Dr. Cherry. No waiver of this requirement by Dr. Cherry (if any) shall act as a future waiver. 
  
 2.1.2 Annual Net Sale Royalty. During the entire term of this Agreement, the royalty due for the period
shall be in the amount set forth in this Section 2.1.2. 
  
 4.90%
of annual Net Sales not exceeding $25,000,000; 
  
 5.39% of
annual Net Sales in excess of $25,000,000 but not exceeding $30,000,000; 
  

 4 

 5.88% of annual Net Sales in excess of $30,000,000 but not exceeding $35,000,000; 
 6.37% of annual Net Sales in excess of $35,000,000 but not exceeding $40,000,000; 
 6.86% of annual Net Sales in excess of $40,000,000 but not exceeding $45,000,000; 
 7.35% of annual Net Sales in excess of $45,000,000 
  
 2.1.3 Royalty Payments. Royalty payments shall be made monthly, on or before the 30th day of the month succeeding the close of each calendar month.
Each payment hereunder shall be accompanied by a report setting forth the information described in Section 2.3. All payments shall be made in United States currency and be drawn on a United States bank. The amount of the monthly royalty payment due
during each of the first three (3) quarters of each annual period described in Section 2.1.1, shall be calculated according to Section 2.1.2. The amount of the monthly royalty payment due during the fourth quarter of each annual period described in
Section 2.1.1, shall be the greater of: (i) the amount calculated for the quarter pursuant to Section 2.1.2; or (ii) the minimum amount due for the annual period as set forth in Section 2.1.1 less the amount of all royalties already paid for the
same annual period. 
  
 2.2 Dr. Cherry Promotional Expense
Sharing. NAI and Dr. Cherry shall mutually develop and approve a budget for any direct costs incurred by Dr. Cherry in connection with the promotion of the Products. NAI shall contribute or reimburse such parties for a percentage of such costs,
which percentage shall be an amount mutually agreed upon by NAI and Dr. Cherry. 
  
 2.3 Reports. NAI shall deliver a report to Dr. Cherry within thirty (30) days after the end of each calendar month, which shall consist of an accurate statement of Net Sales of Products, along with any royalty
payments or sublicensing revenues due Dr. Cherry. Such reports shall be provided to Dr. Cherry, regardless of whether any Products were sold during the period covered by the report. The acceptance by Dr. Cherry of any of the statements furnished or
royalties paid shall not preclude Dr. Cherry questioning the correctness at any time of any payments or statements. In connection therewith, Dr. Cherry shall be entitled to examine or audit at his own expense the documents underlying the statements
described in this Section not more often than annually. In the event such audit reveals an understatement of royalties due hereunder in an amount equal to or exceeding 5% of the actual royalties due over the period of such audit, NAI shall bear the
cost of audit. Any such underpayment shall be immediately due and payable, with interest accrued from the date the payment was originally due at the lesser of 1.5% per month or the maximum rate permitted by law. 
  
 ARTICLE III 
 TERM OF AGREEMENT 
  
 3.1 Effective Date. The term “Effective Date” shall mean, and this Agreement is effective as, of the date first written above. 
  

 5 

	 	3.2	Term and Termination. 

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

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

 6 

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

 7 

 4.2 Protection of Products. NAI may seek in its own name and at its own expense, and if obtained,
shall maintain appropriate patent, trademark, copyright or registration protection for any element or component included in the Products or any part thereof, and NAI shall retain ownership of such elements or components. In the event of termination
of this agreement, NAI agrees to sell to Dr. Cherry from at then applicable commercial rates any element or component included in the Products for which NAI in NAI’s sole discretion continues to maintain appropriate sourcing. 
  
 4.3 Ownership of Formulae. Subject to the rights of NAI, as licensee,
pursuant to this Agreement, Dr. Cherry shall own an undivided forty-nine percent (49%) interest in the formula, trade name and design for each Product. 
  
 4.4 Enforcement of Intellectual Property Rights. 
  
 4.4.1 In the event any Party becomes aware of any claim or unauthorized use, or infringement on the Proprietary Assets, License Rights, or Products during
the term of this Agreement, that Party shall immediately notify all of the other Parties of such violation and shall consult with and cooperate in any way requested by any Party with respect to the enforcement of all intellectual property rights.

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

 8 

 4.7 Preservation of Proprietary Assets. Dr. Cherry undertakes and agrees he will maintain
the existing image and public persona of himself, and will use best efforts to further develop, improve and otherwise enhance the image and public persona of Dr. Cherry. In no event will Dr. Cherry take any action which would be inconsistent with
the public image of himself, NAI, the Products or Proprietary Assets or denigrate himself, NAI, the Products or Proprietary Assets or in any way reflect negatively on himself, NAI, the Products or Proprietary Assets. 
  
 4.8 Regulatory Action. If the Food and Drug Administration or any
other federal, state or local government agency gives notice of or makes an inspection at any Party’s premises, seizes any Product or requests a recall, the other Parties shall be notified immediately but in no event later than the next
business day. Duplicates of any samples of Product taken by such agency shall be sent to the other Parties promptly. In the event of any action described in this Section, the Parties shall cooperate in determining the response, if any, to be made to
such action and each party agrees NAI shall be the Parties’ representative in responding to such action, and each agrees to cooperate with and assist NAI in attempting to resolve any such action and to refrain from any activity with respect to
such action which is not previously approved by NAI, except such activities as may be required by law. 
  
 4.9 NAI Customer List. NAI may maintain a list of its customers purchasing from NAI. This information is NAI’s exclusive property. NAI may
allow its customer list to be used by any third party only after given seven (7) business days prior written notice to Dr. Cherry, which shall approve or disapprove of each use in its reasonable discretion prior to the expiration of seven (7)
business days following such notice. Any failure to approve or disapprove of such use within the time period provided, shall constitute approval for purposes of this Section. 
  
 4.10 NAI Distribution for Dr. Cherry to NAI Customer List. Upon Dr. Cherry’s reasonable request, NAI agrees to
distribute to its customers Dr. Cherry material at Dr. Cherry’s expense up to six (6) times annually provided such distribution is for no purpose other than enlisting participants in Dr. Cherry activities. Dr. Cherry shall provide NAI five (5)
business days prior written notice of such requests NAI shall retain the right in its reasonable discretion to approve or disapprove of the content of each distribution, and shall approve or disapprove such distribution prior to the expiration of
five (5) business days following such notice. NAI shall cooperate in processing such distribution by or through any agent or vendor of Dr. Cherry’s designation. 
  
 4.11 Fulfillment Vendor. The Parties understand and approve of NAI’s use of fulfillment vendors to assist in
distribution of the Products, and acknowledge and approve of such arrangements. NAI agrees any additional or different fulfillment vendor must be capable of providing telephone customer service which appropriately reflects the public image of Dr.
Cherry. 
  

 9 

 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES 
  
 5.1 Representations and Warranties of Dr. Cherry. Dr. Cherry owns and/or controls the nonexclusive rights to the Proprietary Assets, and has the authority to grant this license to use the Proprietary Assets in the manner and form
provided in this Agreement. Dr. Cherry has received no notice of any claim with respect to any of the Proprietary Assets which is inconsistent with his rights in the Proprietary Assets, nor has he received any notice of any unauthorized use thereof.
The Proprietary Assets do not infringe upon or violate any rights of any third party. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereunder will violate or constitute a default under any
agreement or instrument to which Dr. Cherry is a party or by which he is bound. 
  
 5.2 Representations and Warranties of NAI. NAI has the authority to enter into this Agreement. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
hereunder will violate or constitute a default under any agreement or instrument to which NAI is a party or by which it is bound. 
  
 ARTICLE VI 
 CONFIDENTIALITY

  
 6.1 Duty to Protect Confidential Information. Any
confidential information disclosed or conveyed by either Party to the other in connection with its business by written communication and marked as confidential, or by oral communication and confirmed in writing within thirty (30) working days of
oral disclosure, shall be treated by the receiving Party as secret and confidential and shall be held in trust for the disclosing Party. The receiving Party shall treat such information and take such steps to assure its continued confidentiality in
like manner as it would use to protect its own trade secrets or confidential information and will not, except as required by law, disclose any such confidential information received from the other Party to any third Party who is not bound under a
confidentiality and non-disclosure agreement. 
  
 6.2 Means of
Protecting Confidential Information. NAI and Dr. Cherry agree to take reasonable steps to ensure the proprietary and confidential nature of the other’s confidential information and of Proprietary Assets, License Rights, and Products in
which confidential information is embodied or included and to protect the same from loss or theft and agree to clearly mark such confidential information and properly indicate its proprietary nature. 
  
 6.3 Terms of Agreement. Except as otherwise required by law,
including, but not limited to, NAI’s disclosure obligations in connection with the U.S. Securities Act of 1934, the Parties agree that the terms of this Agreement are proprietary and confidential, as is the existence of this Agreement. Each
Party agrees to maintain the existence of this Agreement and the terms and information contained herein strictly confidential and will not disclose any such information to any person who is not a Party hereto without the prior written consent of all
Parties, which consent may be granted or withheld in the absolute discretion of each Party. 
  

 10 

 6.4 Dr. Cherry Use. The Parties acknowledge Dr. Cherry has an interest in utilizing confidential
information developed by NAI in connection with his distribution of Products, if any, for the purpose of enlisting participants in Dr. Cherry activities. The Parties agree that upon the request of Dr. Cherry they will meet, confer and negotiate in
good faith the terms under which Dr. Cherry may use such information to enlist additional participants while providing adequate protections for the reasonable interest of NAI in connection therewith. 
  
 6.5 Provisions Divisible. It is agreed by all Parties that the
foregoing covenants are appropriate and reasonable in light of the nature and extent of the business conducted by the Parties and their respective relationships. It is further agreed that the covenants set forth herein are divisible in the event
they are held to be invalid, unreasonable, arbitrary or against public policy. Further, it is agreed by the Parties that if any court of competent jurisdiction or authorized arbitrator makes such a determination, they may determine what time period
and geographical area are reasonably necessary to protect the Parties’ legitimate business interests and which are enforceable. 
  
 6.6 Irreparable Injury. Each Party acknowledges that damages at law will be an insufficient remedy for violation of the terms of this Article and
that the other Party would suffer irreparable injury as a result of such violation. Accordingly, it is agreed upon application to a court of competent jurisdiction, the Parties may obtain injunctive relief to enforce the provisions of this Article
of this Agreement, which injunctive relief shall be in addition to any other rights or remedies available to it or them. 
  
 6.7 Extended Term of Confidentiality. It is recognized by all Parties that due to their respective positions of confidence giving rise to access to
confidential, proprietary information during the term of this Agreement, that the provisions of this Article VI apply during the term of this Agreement and for a period of three (3) years thereafter. 
  
 ARTICLE VII 
 CLAIMS AND INDEMNIFICATION 
  
 7.1 Indemnification by NAI Against Third-Party Claims. Except as otherwise set forth above in Article VI, NAI shall indemnify, defend, and hold harmless Dr. Cherry, and his heirs, administrators, successors and
assigns harmless from and against any and all damage, loss, expense (including reasonable attorneys’ fees and costs), award, settlement, or other obligation arising out of any claims, demands, actions, suits, or prosecutions that may be made or
instituted against them or any of them, (i) arising from any alleged breach of NAI’s warranties contained herein, (ii) arising from any injury or death from any defect in the Proprietary Assets; and (iii) any claims arising out of NAI
marketing, distribution, promotion, sale, or use of Products or Proprietary Assets. 
  
 7.2 Indemnification by Dr. Cherry Against Third-Party Claims. Except as otherwise set forth above in Article VI, Dr. Cherry shall indemnify, defend, and hold harmless NAI, its subsidiaries, affiliated and/or
controlled companies and all sublicensees, as well as their respective officers, directors, agents, and employees, harmless from and against any and all 
  

 11 

 damage, loss, expense (including reasonable attorneys’ fees and costs), award, settlement, or other obligation
arising out of any claims, demands, actions, suits, or prosecutions that may be made or instituted against them or any of them, (i) arising from any alleged breach of Dr. Cherry’s warranties contained herein, (ii) arising from any injury or
death from any defect in the Proprietary Assets specifically excluding any claim relating to the Products manufactured by NAI exclusive of the Proprietary Assets; and (iii) any claims arising out of the content or manner of Dr. Cherry’s
marketing, distribution, promotion, sale, or recommended use of Licensed Products or Proprietary Assets, and specifically excluding NAI’s marketing, distribution, promotion, sale, or recommended use of the Products of the Proprietary Assets.

  
 7.3 Insurance. NAI shall carry with companies
reasonably satisfactory to Dr. Cherry: (i) Workers’ Compensation and Employees’ Liability Insurance; (ii) Standard Form Fire and Extended Coverage Insurance for the full replacement value of any of the Products or any premiums or packaging
materials, and (iii) Public Liability Insurance including Contractual Liability and Products Liability Coverage (with Broad Form Vendor’s Endorsement naming Dr. Cherry and his authorized distributors and customers as insured) with a combined
single limit of not less than Ten Million Dollars ($10,000,000). NAI shall submit policies and/or certificates of insurance evidencing the above coverage (which shall include an agreement by the insurer not to cancel or materially alter its coverage
except upon thirty (30) days prior written notice to Dr. Cherry) to Dr. Cherry upon Dr. Cherry’s written request therefore. Products Liability Insurance shall continue in effect for Dr. Cherry’s benefit for a period often (10) years from
the date of the last sale of Products by NAI. In case of NAI’s failure to carry said policies and/or furnish certificates of insurance or upon cancellation of any required insurance, Dr. Cherry may, at his option, immediately terminate this
Agreement unless (in the case of cancellation) NAI has obtained substitute insurance coverage before such insurance becomes canceled and provides Dr. Cherry with satisfactory evidence thereof. 
  
 7.4 Liability for Claims of Parties. Except as otherwise provided in
this Agreement, no Party shall be liable for injury to any other Party’s business or any loss of income therefrom or for damage to the other Party’s property, employees, invitees, customers or any other person or thing, nor shall any Party
be liable for injury to the persons of the other or their respective employees, agents or contractors, whether or not such damage or injury arises or results from the performance or conduct imposed by this Agreement either directly or indirectly.

  
 ARTICLE VIII 
 MISCELLANEOUS PROVISIONS 
  
 8.1 Sublicense. NAI may sublicense the rights granted pursuant to this Agreement, provided NAI obtains Dr. Cherry’s prior written consent to
such sublicense. Dr. Cherry’s consent to any sublicense shall not be unreasonably withheld and in any such sublicense agreement, provision shall be made so that Dr. Cherry receives such revenue or royalty payment as provided for herein. Any
sublicense granted in violation of this provision shall be void. 
  
 8.2 Entire Agreement; Amendment. This Agreement contains the entire understanding between the Parties with respect to the subject matter hereof and supersedes all 
  

 12 

 prior or contemporaneous written or oral negotiations and agreements between them regarding the subject matter hereof.
This Agreement may be amended only by a writing signed by both of the Parties and clearly designated as an amendment to this Agreement by an appropriate heading. 
  
 8.3 Severability. If any provision or portion thereof of this Agreement is determined to be invalid or unenforceable,
the provision or portion shall be deemed to be severable from the remainder of this Agreement and shall not cause the invalidity or unenforceability of the remainder of this Agreement. 
  
 8.4 No Implied Waivers. The failure of either Party at any time to require performance by the other Party of any
provision hereof shall not affect in any way the right to require such performance at any later time, nor shall the waiver by either Party of a breach of any provision hereof be taken or held to be a waiver of such provision. 
  
 8.5 Attorneys Fees. If any arbitration or legal proceeding is brought
for the enforcement of this Agreement, or because of an alleged breach, default or misrepresentation in connection with any provision of this Agreement or other dispute concerning this Agreement, the successful or prevailing Party shall be entitled
to recover reasonable attorneys fees incurred in connection with such arbitration or legal proceeding. The term “Prevailing Party” shall mean the Party which is entitled to recover its costs in the proceeding under applicable law, or the
Party designated as such by the court or the arbitrators. 
  
 8.6 Arbitration. Any dispute, controversy or claim arising from, out of or in connection with, or relating to, this Agreement or any breach or alleged breach of this Agreement, except allegations of violations of Federal or State
securities laws, will upon the request of any Party involved be submitted to any private arbitration service utilizing former judges as mediators and approved by the Parties. The dispute once submitted shall be settled by arbitration in Houston (or
at any other place or under any other form of arbitration mutually acceptable to Parties involved). The arbitrator shall follow and apply the federal rules of evidence and the applicable local federal rules of governing discovery in the arbitration.
Any award rendered shall be final, binding and conclusive upon the Parties and shall be non-appealable, and a judgment thereon may be entered in the highest State or Federal court of the forum, having jurisdiction. The expenses of the arbitration
shall be borne equally by the Parties to the arbitration, provided that each Party shall pay for and bear the cost of its own experts, evidence and attorneys’ fees, except that in the discretion of the arbitrator, any award may include the
costs, fees and expenses of a Party’s attorneys. 
  
 8.7 Governing Law. This Agreement shall be construed and interpreted under the laws of the State of Texas. All disputes or controversies or questions arising under or relating to this Agreement between the Parties hereto in relation
to this Agreement shall be construed and resolved under the laws of the State of Texas. Each Party acknowledges and waives any objection to venue for such disputes in state or federal courts sitting in Houston, Texas. Any judgments upon the award
entered by the arbitrators may be entered in the State or Federal Courts situated in the State of Texas. 
  

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 8.8 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 8.9 Captions. The captions of the sections and subsections of this Agreement are included for reference purposes only and are not intended to be a part of the Agreement or in any way to define, limited or
describe the scope or intent of the particular provision to which they refer. 
  
 8.10 Relationship of the Parties. The terms and provisions of this agreement are intended to be a license agreement and it shall not in any respect be construed to constitute NAI or Dr. Cherry 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. Each Party will bear the cost of its distribution, marketing, promotion and sale of Products through its own channels. In the event any
Parties utilize common vendors or contractors, each Party utilizing such common vendor or contractor will maintain such relationship and any obligations, agreements and accounts with such common vendor or contractor separate and distinct from any
other Party’s. 
  
 8.11 Notice; Designation. All
notices, consents, waivers and other communications under this Agreement must be in writing and will be deemed to have been given by a party (a) when delivered by hand (with delivery receipt required, costs prepaid by sender); (b) one day after
deposit with a nationally recognized overnight courier service (all costs prepaid by sender); (c) five days after deposit in the United States mail by certified delivery, return receipt requested (postage prepaid); (d) when sent by facsimile with
confirmation of transmission by the transmitting equipment (a confirming copy of the notice shall also be delivered by the method specified in (b) in this Section). Notices shall be sent in each case to the address indicated for each party below.
The notice provision for any party may be changed by sending notice in accordance with this Section. 
  

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

  

 14 

 If to Dr. Cherry: 
  
 Reginald B. Cherry, M.D. 
 8323 Southwest Freeway, Suite 440 
 Houston, Texas 77074 
 Telephone: (713) 961-2789 
 Facsimile: (713) 961-0899 
  
 8.11.1 If a specific contact person is designated in a provision, notice concerning the subject matter of such provision shall be directed to such person.
The address or the name of any Party or contact person may be changed by sending notice in the manner set forth above. 
  
 8.12 Successors, Assignment. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the Parties.
NAI and Dr. Cherry may assign their rights and obligations under this Agreement to their Affiliate. Any such assignment will not release or discharge them from any liability or obligation hereunder. The rights and obligations of Dr. Cherry and NAI
may only be assigned to other than Affiliate after first obtaining the other Party’s written consent, which consent may not be unreasonably withheld. As used herein, Affiliate shall refer to any person or entity that is under direct or indirect
control of the applicable Party. The term “control” includes without limitation, ownership of interest representing a majority of the total voting power in an entity or the ability to manage or direct such entity. 
  
 8.13 Further Assurances. The Parties agree (i) to furnish upon request
to each other such further information, (ii) to execute and deliver to each other such other documents, and (iii) to do such other acts and things, all as the other Party may reasonably request for the purpose of carrying out the intent of this
Agreement and the documents referred to in this Agreement. 
  
 Rest of page intentionally left blank 
 Signature page follows 
  

 15 

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

			
	 NATURAL ALTERNATIVES INTERNATIONAL, INC.
 A Delaware corporation

		
	 By:
	 	 /s/ Randell Weaver

	 	 	Randell Weaver, President
		
	 	 	 /s/ Reginald B. Cherry, M.D.

	 	 	Reginald B. Cherry, M.D.

  

 16

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