NATURAL ALTERNATIVES INTERNATIONAL, INC. (NASDAQ:NAII) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
ITEM 5.02
Adoption of Non-Qualified Incentive Plan
Effective July 16, 2020, the Board of Directors of Natural Alternatives International, Inc. (the “Company”) adopted the Company’s Non-Qualified Incentive Plan (the \”Plan\”). The purpose of the Plan is to enhance the long-term stockholder value of the Company by offering opportunities to directors, officers, employees and eligible consultants of the Company (“Participants”) to receive a cash award that may be subject to conditions precedent or subsequent that must be met before the Company is obligated to make the payment. The purpose of the Plan is to provide to the Human Resources Committee and the Board of Directors the ability to make deferred cash payments or other cash awards in order to encourage Participants to serve the Company or to remain in the service of the Company, or to assist the Company to achieve results determined by the Human Resources Committee or the Board of Directors to be in the Company\’s best interest.
The Plan provides for the Human Resources Committee or the Board of Directors to award and administer unsecured and deferred cash awards subject to whatever conditions are determined by the Human Resources Committee or the Board of Directors with each award. The terms, of each award, including the amount and any conditions that must be met to be entitled to payment of the award, are set forth in an Award Agreement. The Plan provides the Board of Directors with the discretion to set aside assets to fund the Plan although that has not been done to date.
The above description of the Non-Qualified Incentive Plan does not purport to be complete, and is qualified in its entirety by reference to the full text of the Non-Qualified Incentive Plan, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Initial Awards Granted under the Non-Qualified Incentive Plan
On July 16, 2020, the Company issued deferred cash awards to various officers, directors and employees of the Company to the Plan, each providing for a cash payment to the Participant one third of which shall be paid on the one year, and two year, and three year anniversary of the date of the award, provided on the date of payment the Participant has been since the date of the award, and continues to be a member of the Board of Directors, or an employee of the Company. In the event a Participant ceases to be an employee of the Company or a member of the Board of Directors of the Company prior to any remaining date of payment no further payments shall be made in connection with the award.
The July 16, 2020 Awards and the Participants are shown below:
(d) Exhibits.
NATURAL ALTERNATIVES INTERNATIONAL INC Exhibit
EX-10.1 2 ex_194649.htm EXHIBIT 10.1 ex_194649.htm Exhibit 10.1 NATURAL ALTERNATIVES INTERNATIONAL,…
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About NATURAL ALTERNATIVES INTERNATIONAL, INC. (NASDAQ:NAII)
Natural Alternatives International, Inc. is a formulator, manufacturer and marketer of nutritional supplements. The Company operates through three segments: private-label contract manufacturing, patent and trademark licensing, and branded products. The private-label contract manufacturing segment primarily relates to the provision of private-label contract manufacturing services to companies that market and distribute nutritional supplements and other healthcare products. The patent and trademark licensing segment primarily includes direct raw material sales and royalty income from its license and supply agreements associated with the sale and use of beta-alanine under its CarnosSyn trade name. The branded products segment relates to the marketing and distribution of branded nutritional supplements and consists primarily of the products sold under its Pathway to Healing product line.
