Document:

Exhibit 10.1

 

 

 

GNC HOLDINGS, INC.
 DIRECTORS’ NON-QUALIFIED

DEFERRED COMPENSATION PLAN

 

 

EFFECTIVE AS OF
 January 1, 2013

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ARTICLE I.
    	
INTRODUCTION
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II.
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE III.
    	
ADMINISTRATION
    	
3
    
	
 
    	
 
    	
 
    
	
ARTICLE IV.
    	
DEFERRED   COMPENSATION
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE V.
    	
RSU   ACCOUNTS
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE VI.
    	
PLAN   EARNINGS AND OTHER DISTRIBUTIONS
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE VII.
    	
VESTING   AND DISTRIBUTIONS
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII.
    	
TERMINATION
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IX.
    	
AMENDMENT   OF THE PLAN
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE X.
    	
GENERAL   PROVISIONS
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE XI.
    	
EFFECTIVE   DATE
    	
9
    

 

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ARTICLE I.  INTRODUCTION

 

Section 1.01               Purpose.  This Plan is being established by GNC Holdings, Inc. (the “Company”) to assist the Company in attracting and retaining well-qualified Directors and align the interests of the Directors with those of the Company’s stockholders by establishing a program whereby the Directors may elect to defer certain cash amounts to be paid and equity grants to be awarded to them as fees in connection with their services as Directors.  The Plan is authorized pursuant to Section 3 of the 2011 Plan.

 

ARTICLE II.  DEFINITIONS

 

As used in this Plan, the following capitalized terms shall have the following meanings:

 

Section 2.01               “2011 Plan” shall mean the GNC Holdings, Inc. 2011 Stock and Incentive Plan and any successor plan, in each case, as amended from time to time.

 

Section 2.02               “Administrator” shall mean the Committee, or any person(s) to whom the Board or the Committee has delegated the Committee’s functions in accordance with Section 3.01, as the context requires.

 

Section 2.03               “Board” shall mean the Board of Directors of the Company.

 

Section 2.04               “Cash Compensation” shall mean the cash compensation paid for services as a Director from time to time, which, as of the Effective Date, includes (a) an annual Board retainer, (b) annual committee chairperson retainers and (c) meeting fees.

 

Section 2.05               “Cash Subaccount” shall mean the account established for deferral of a Director’s Cash Compensation pursuant to Section 5.01.

 

Section 2.06               “Change in Control” shall have the meaning ascribed to such term in Section 2.8 of the 2011 Plan.

 

Section 2.07               “Code” shall mean the Internal Revenue Code of 1986, as amended, and applicable Treasury regulations promulgated thereunder.

 

Section 2.08               “Committee” shall mean the Committee described in Section 2.10 of the 2011 Plan.

 

Section 2.09               “Common Stock” means the Company’s Class A common stock, par value $0.001 per share.

 

Section 2.10               “Company” shall have the meaning ascribed to such term in Section 1.01.

 

Section 2.11               “Compensation” shall mean a Participant’s compensation for services as a Director, which, as of the Effective Date, includes Cash Compensation and awards of Restricted Stock.

 

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Section 2.12               “Deferred Compensation” shall mean Compensation deferred pursuant to the provisions of this Plan.

 

Section 2.13               “Director” shall mean a member of the Board who is not an officer or employee of the Company.

 

Section 2.14               “Earned,” as used herein with respect to a Director’s (a) cash annual Board retainer shall refer to the first day of each calendar quarter on which the individual is serving as a Director, (b) cash annual committee chairperson retainer(s) shall refer to the first day of each calendar quarter on which the individual is serving as the chairperson of a Board committee and (c) cash meeting fees shall refer to the date on which the meeting was attended by such Director.

 

Section 2.15               “Effective Date” shall mean January 1, 2013.

 

Section 2.16               “Election Deadline” shall have the meaning ascribed to such term in Section 4.01(a).

 

Section 2.17               “Fair Market Value” means, as of any date, (a) with respect to the Common Stock, the closing price reported for the Common Stock on such date on the principal national securities exchange on which it is then traded (or if such date was not a trading day, on the trading day immediately prior thereto), or, if the Common Stock is not traded, listed or otherwise reported or quoted on a national securities exchange, the fair market value of the Common Stock on such date as determined by the Administrator; and (b) with respect to any other property, the fair market value thereof on such date as determined by the Administrator.

 

Section 2.18               “New Directors” shall mean any Director who first is elected or appointed to the Board after the Effective Date.

 

Section 2.19               “Participant” shall mean any Director who has elected to have all or a part of his or her Compensation deferred pursuant to the Plan.

 

Section 2.20               “Payment Date” shall mean the earliest of (a) the date the Participant has a separation from service from the Company within the meaning of Section 409A, (b) the date of the Participant’s death and (c) if elected by the Participant, a Specified Payment Date.  Notwithstanding the foregoing, a Payment Date shall occur upon a Change in Control that qualifies as “a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation” within the meaning of Section 409A if earlier than the Payment Date otherwise provided for under the preceding sentence of this Section 2.20.

 

Section 2.21               “Plan” shall mean this GNC Holdings, Inc. Directors’ Non-Qualified Deferred Compensation Plan, as it may be amended and restated from time to time.

 

Section 2.22               “Plan Earnings” shall mean amounts credited to a Participant’s RSU Account pursuant to Article VI.

 

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Section 2.23               “Restricted Stock” shall mean restricted stock awarded to a Director with respect to his or her services as a Director from time to time, which, as of the Effective Date, includes an annual grant of Restricted Stock.

 

Section 2.24               “Restricted Stock Subaccount” shall mean the account established for deferral of a Director’s awards of Restricted Stock pursuant to Section 5.01.

 

Section 2.25               “Restricted Stock Unit” shall mean a measure of value equal to one share of the Common Stock, as provided under Article X of the 2011 Plan as an “Other Stock Based Award.”

 

Section 2.26               “RSU Account” shall mean the Participant’s Restricted Stock Unit account established pursuant to Section 5.01.

 

Section 2.27               “Section 409A” shall mean Section 409A of the Code and the regulations promulgated thereunder.

 

Section 2.28               “Specified Payment Date” means a date specified by a Participant at the time he or she elects to defer Compensation, which date must be January 1 of a specified year in the future, but (a) no earlier than January 1 of the second calendar year following the year in which such Compensation would have been paid had it not been deferred, and (b) no later than January 1 of the tenth calendar year following the year in which such Compensation would have been paid had it not been deferred.

 

Section 2.29               “Vested” shall mean any Restricted Stock Units that are vested pursuant to Section 7.01.

 

ARTICLE III.  ADMINISTRATION

 

Section 3.01               Administrator.  The Committee shall serve as the Administrator and shall administer all aspects of the Plan.  Notwithstanding the foregoing, (a) the full Board shall have the authority to take any action that could be taken by the Committee, and (b) the Committee may delegate some or all of its functions hereunder to a subcommittee or to one or more officers or employees of the Company in its discretion.  The Administrator shall maintain complete and adequate records pertaining to the Plan, including but not limited to Participants’ RSU Accounts.  The Administrator shall have discretionary authority to interpret and administer, correct errors in administration of, and otherwise implement the Plan, in each case consistent with the Plan’s purposes and intent.  The Administrator also shall have authority to take all actions necessary to ensure that any transactions pursuant to the Plan do not result in liability under Section 16(b) of the Securities Exchange Act of 1934.  All actions of the Administrator with respect to the Plan shall be final and binding on all persons for such Plan purposes.

 

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ARTICLE IV.  DEFERRED COMPENSATION

 

Section 4.01               Elections by Participants.

 

(a)                               A Director may elect by December 31 (or such earlier date as the Administrator may prescribe) of each calendar year immediately preceding the calendar year in which:

 

(i)                  Cash Compensation is to be Earned, to defer 100% or 50%, as he or she may specify, of such Cash Compensation (and Plan Earnings thereon); and

 

(ii)              Restricted Stock is to be awarded to the Director, to defer 100% or 50%, as he or she may specify, of such Restricted Stock (and Plan Earnings thereon).

 

The date by which an election must be made pursuant to the preceding sentence of this Section 4.01(a) is referred to as the “Election Deadline.”

 

(b)                              Deferral elections shall be made by completing and executing an election form prescribed by the Administrator and delivering such election form to the Administrator on or before the Election Deadline.  A separate election shall be made with respect to Cash Compensation, on the one hand, and with respect to awards of Restricted Stock on the other.  Any such election shall become irrevocable as of the close of business on the date of the Election Deadline.

 

(c)                               All Compensation elected to be deferred pursuant to this Section 4.01 shall be converted into Restricted Stock Units, credited to accounts on behalf of the Participant pursuant to Article V and paid to him or her on his or her Payment Date.

 

Section 4.02               First Year of the Plan;  Elections by New Directors.

 

(a)                               Notwithstanding anything to the contrary in Section 4.01, with respect to any Compensation to be Earned in calendar year 2013, a Director may make an election to defer such Compensation during the first 30 days of calendar year 2013 (or such earlier date as the Administrator may prescribe), provided that with respect to any Compensation, such election is made before such Compensation actually is paid.

 

(b)                              Notwithstanding anything to the contrary in Section 4.01, any New Director may make an initial election within 30 days after the commencement of such New Director’s service on the Board (or such earlier date as the Administrator may prescribe), to defer 100% or 50%, as he or she may specify, of the Compensation (and Plan Earnings thereon) to be Earned by him or her in the calendar year of such New Director’s election or appointment to the Board, provided that, with respect to any Compensation, such election is made before such Compensation actually is paid.

 

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(c)                             The deferral elections described in the preceding paragraphs shall be made by completing and executing an election form prescribed by the Administrator and delivering such election form to the Administrator within the timeframes described in Sections 4.02(a) and (b), respectively.  Separate elections shall be made with respect to Cash Compensation, on the one hand, and with respect to Restricted Stock on the other.  Such elections shall become irrevocable as of the close of business on the last day of the applicable timeframes.

 

(d)                            A Participant’s deferral election, whether with respect to Cash Compensation or Restricted Stock, shall apply only to compensation paid for services performed after the effective date of the election.

 

(e)                             All Compensation elected to be deferred pursuant to this Section 4.02 shall be converted into Restricted Stock Units, credited to accounts on behalf of the Participant pursuant to Article V and paid to him or her on his or her Payment Date.

 

ARTICLE V.  RSU ACCOUNTS

 

Section 5.01               Establishment of RSU Accounts.  There shall be established for each Participant an account to be designated as such Participant’s RSU Account.  The RSU Account of each Participant shall consist, to the extent applicable to the Participant, of a Cash Subaccount and a Restricted Stock Subaccount.

 

Section 5.02               Allocations to Accounts.

 

(a)                             Any Deferred Compensation that is attributable to deferrals of Cash Compensation shall be credited to the Cash Subaccount of a Participant on the date such amount otherwise would have been paid to the Participant, and any Plan Earnings shall be credited in accordance with the provisions of Article VI, as applicable.

 

(b)                             Any Deferred Compensation that is attributable to deferrals of Restricted Stock shall be credited to the Restricted Stock Subaccount of such Participant on the date the award of Restricted Stock otherwise would have been made to such Participant, and any Plan Earnings shall be credited in accordance with the provisions of Article VI, as applicable.

 

(c)                               Separate records shall be kept with respect to each Participant of the Cash Compensation, on the one hand, and Restricted Stock awards, on the other, deferred under Sections 4.01 and 4.02, as such deferrals may be payable at different times from one another, and, in the case of awards of Restricted Stock, each year’s award will be subject to a separate vesting schedule under Section 7.01.

 

Section 5.03               RSU Account.  The number of Restricted Stock Units, or fractions thereof, to be credited to a Participant’s RSU Account in accordance with this Article V (with respect to both Cash Compensation and awards of Restricted Stock) shall equal (a) with respect to Cash

 

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Compensation, the amount of such Cash Compensation divided by the Fair Market Value per share of the Common Stock on the date such Cash Compensation is credited to such Director’s Cash Subaccount, and (b) with respect to awards of Restricted Stock, the number of shares comprising such award.  Any Cash Compensation that cannot be deferred into a whole number of Restricted Stock Units will be rounded down to the next lowest whole number of Restricted Stock Units, and any remainder shall be paid in cash to the Participant and not deferred under the Plan.  Any partial deferral election that would produce a fractional number of Restricted Stock Units shall be rounded down to next lowest whole number of Restricted Stock Units.

 

ARTICLE VI.  PLAN EARNINGS AND OTHER DISTRIBUTIONS

 

Section 6.01               Cash and Property Dividend Credits.  Additional Restricted Stock Units shall be credited to a Participant’s RSU Account throughout the period of such Participant’s participation in the Plan until all distributions to which the Participant is entitled under Section 7.02 or Article VIII have been made, in amounts equal in number to the number of shares (including fractional shares) of Common Stock with a Fair Market Value equal to (i) the amount of any cash dividends or distributions and (ii) the Fair Market Value of any distributions of property (other than the Common Stock but including any such securities convertible into the Common Stock), in each case to which the Participant would have been entitled from time to time had he or she been the owner on the record dates for the payment of such dividends or distributions of the number of shares of the Common Stock equal to the number of Restricted Stock Units in his or her RSU Account on such dates.  Each such credit shall be effective as of the payment date for such dividend or distribution.

 

Section 6.02               Dividend Credits.  Additional Restricted Stock Units shall be credited to a Participant’s RSU Account throughout the period of his or her participation in the Plan until all distributions to which the Participant is entitled under Section 7.02 or Article VIII have been made, equal in number to the number of shares (including fractional shares) of Common Stock to which the Participant would have been entitled from time to time as Common Stock dividends had such Participant been the owner on the record dates for the payments of such stock dividends of a number of shares of Common Stock equal to the number of Restricted Stock Units credited to his or her RSU Account on such dates.  Each such credit shall be effective as of the payment date for such dividend.

 

ARTICLE VII.  VESTING AND DISTRIBUTIONS

 

Section 7.01               Vesting.  A Participant shall be one hundred percent vested at all times in his or her Cash Subaccount (including Plan Earnings thereon).  A Participant’s Restricted Stock Subaccount (including Plan Earnings thereon) shall vest separately with respect to each award of Restricted Stock deferred by the Participant, at the same rate, and subject to the same conditions, pursuant to which the award of Restricted Stock would have vested according to the terms of such award.

 

Section 7.02               Distributions from RSU Account.  When a Payment Date in respect of a Participant occurs, each Restricted Stock Unit that is Vested shall be converted into one share of Common Stock and such shares shall be distributed to such Participant at the times and in the

 

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manner prescribed in paragraphs (a) through (d) below.  Any Restricted Stock Unit that is not Vested as of such Payment Date shall be forfeited.

 

(a)                               Except as otherwise provided in paragraphs (b), (c) and (d) below, distribution shall be made in a lump sum within 30 days following such Payment Date.  All Plan Earnings accrued to the date of any distribution shall be paid in conjunction with such payment.

 

(b)                              In the case of a Participant who is a specified employee, within the meaning of Section 409A, unless the distribution is due to death or payable on a Specified Payment Date prior to such Participant’s “separation from service” within the meaning of Section 409A, distribution shall be made within 30 days following the first day of the seventh month following the month in which such Participant’s separation from service occurs.

 

(c)                               If such Payment Date shall occur by reason of the Participant’s death, or if the Participant dies after such Payment Date but prior to receipt of all distributions provided for in this Section 7.02, all remaining Restricted Stock Units shall be converted into shares of Common Stock and distributed in the following order:  (i) to such Participant’s beneficiary selected by the Participant on a form provided by the Administrator; (ii) if there is no such beneficiary designation effective at the Participant’s death, to the Participant’s surviving spouse; or (iii) if there is no such beneficiary designation effective or surviving spouse at the Participant’s death, to the Participant’s estate or personal representative, in each case as soon as administratively feasible following such Participant’s death, but in no event later than 90 days following the Participant’s death, provided the recipient shall not have a right to designate the taxable year of the payment.

 

(d)                             Any fraction of a Restricted Stock Unit to be distributed shall be converted into an amount in cash equal to the Fair Market Value of one share of the Common Stock on the trading day immediately preceding the date of distribution, multiplied by such fraction, and such cash shall be distributed.

 

ARTICLE VIII.  TERMINATION

 

The Committee may terminate the Plan at any time.  Upon termination of the Plan, no further amounts shall be deferred hereunder, and distributions in respect of credits to Participants’ RSU Accounts as of the date of termination shall be made in the manner and at the time prescribed under Section 7.02 or otherwise as required or permitted under Section 409A.

 

ARTICLE IX.  AMENDMENT OF THE PLAN

 

The Committee may, without the consent of Participants or their beneficiaries, amend the Plan at any time and from time to time; provided, that no amendment may reduce the number of Restricted Stock Units allocated to a Participant’s RSU Account as of the date of such amendment without such Participant’s consent.

 

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ARTICLE X.  GENERAL PROVISIONS

 

Section 10.01       Funding.  Benefits payable under the Plan shall be paid from the general funds of the Company, and nothing contained herein shall give any Participant any rights that are greater than those of a general unsecured creditor of the Company.  The Company shall not be required to fund or otherwise segregate assets to be used for payment of benefits under the Plan.  While the Company may cause investments in shares of Common Stock to be made through open market purchases in amounts equal or unequal to amounts payable hereunder, the Company shall not be under any obligation to make such investments and any such investment and all obligations of the Company under the Plan shall remain subject to the claims of its general creditors.  The amounts payable to any Participants under the Plan shall not be affected by any such investment.  Notwithstanding the foregoing, the Company, in its discretion, may maintain one or more trusts to hold assets to be used for payment of benefits under the Plan; provided, that the assets of such trust shall be subject to the creditors of the Company in the event that the Company becomes insolvent or is subject to bankruptcy or insolvency proceedings.  Any payments by such a trust of benefits provided hereunder shall be considered payment by the Company and shall discharge the Company of any further liability for the payments made by such trust.

 

Section 10.02       No Right to Directorship.  The Plan shall not give any Participant any right with respect to continuance of directorship of the Company or limit in any way the right of the Company to terminate his or her directorship at any time.

 

Section 10.03       Authorized Payments.  If the Committee receives evidence satisfactory to it that any person entitled to receive a payment hereunder is, at the time the benefit is payable, physically, mentally or legally incompetent to receive such payment and to give a valid receipt therefor, and that an individual or institution is then maintaining or has custody of such person and that no guardian, committee or other representative of the estate of such person has been duly appointed, the Committee may direct that such payment be paid to such individual or institution maintaining or having custody of such person, and the receipt of such individual or institution shall be valid and a complete discharge for the payment of such benefit.

 

Section 10.04       Section 409A.  Although the Company makes no guarantee with respect to the tax treatment of payments and benefits hereunder, the Plan is intended to comply with the applicable requirements of Section 409A and shall be limited, construed and interpreted in accordance with such intent.  Accordingly, and notwithstanding Article IX, the Company reserves the right to amend the provisions of the Plan at any time in order to avoid the imposition of an excise tax under Section 409A on any payments deferred, accrued or to be made hereunder.  In no event shall the Company or any of its affiliates be liable for any additional tax, interest or penalty that may be imposed on a Participant by Section 409A or for damages for failing to comply with Section 409A, other than for withholding or other obligations applicable to employers, if any, under Section 409A.

 

Section 10.05       Construction.  Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so apply, and whenever any words are used herein in the singular or plural form, they shall be construed as though they were also used in the other form

 

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in all cases where they would so apply.  As used herein, (a) “or” shall mean “and/or” and (b) “including” or “include” shall mean “including, without limitation.”

 

Section 10.06       Assignment of Benefits.  Benefits provided under the Plan may not be transferred, assigned or alienated by the Participant, either voluntarily or involuntarily, other than by will or the laws of descent and distribution.

 

Section 10.07       Governing Law.  The Plan and the actions taken in connection herewith shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving effect to its principles of conflict of laws.

 

Section 10.08       2011 Plan.  Restricted Stock Units under the Plan shall be subject to the provisions of the 2011 Plan, including Article X thereof, which are incorporated herein by reference.

 

Section 10.09       Not a Qualified Plan; Not Subject to ERISA.  The Plan is not intended to qualify under Section 401(a) of the Code or to be subject to the Employee Retirement Income Security Act of 1974, as amended.

 

ARTICLE XI.  EFFECTIVE DATE

 

This Plan shall be effective as of the Effective Date, and shall continue in force during subsequent years unless amended or revoked by action of the Committee.

 

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IN WITNESS WHEREOF, this Plan has been duly executed by the Company as of the Effective Date.

 

	
 
    	
GNC HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gerald J. Stubenhofer,   Jr
    	
 
    
	
 
    	
Name:
    	
Gerald J. Stubenhofer,   Jr
    	
 
    
	
 
    	
Title:
    	
Senior Vice President,   Chief Legal Officer and SecretaryExhibit 10.2

FORM OF

RESTRICTED STOCK UNIT AGREEMENT

PURSUANT TO THE

GNC HOLDINGS, INC. 2011 STOCK AND INCENTIVE PLAN

 

AGREEMENT (the “Agreement”), effective as of ___________ (the “Grant Date”), between GNC Holdings, Inc., a Delaware corporation (the “Company”), and __________ (the “Participant”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the GNC Holdings, Inc. 2011 Stock and Incentive Plan (the “Stock Plan”).

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, pursuant to a deferral election filed with the Company under the GNC Holdings, Inc. Directors’ Non-Qualified Deferred Compensation Plan (the “Deferral Plan”), the Participant has elected to defer ____% of his/her restricted stock awards into restricted stock units vesting on the same date or dates as the restricted stock awards and distributable to the Participant as provided in the Deferral Plan;

 

NOW, THEREFORE, for and in consideration of the mutual promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.                                    Grant of Restricted Stock Units.  The Company hereby awards to the Participant ____ restricted stock units (the “RSUs”) as of the Grant Date. Each RSU represents the right to receive one share of Common Stock on the Payment Date in Section 2(a), subject to satisfaction of the vesting conditions in Section 2(a).

 

2.                                    Terms of Retricted Stock Units.

 

(a)                               Vesting and Payment.

 

(i)                                  The RSUs will vest on _____________, provided that the Participant has not incurred a Termination of Directorship prior to such date. There shall be no proportionate or partial vesting in the periods between the Grant Date and the vesting date and vesting shall occur only on each vesting date, provided that no Termination of Directorship has occurred prior to such date.

 

(iii)                          Pursuant to the Participant’s deferral election, the RSUs (to the extent vested) shall be payable on _______________ (or such earlier date or event as provided for under the Deferral Plan) (the “Payment Date”). Upon or promptly (and in no event later than 30 days) after the Payment Date, the Company shall issue and deliver, unless the Company is using book entry, to the Participant a stock certificate registered in the name of the Participant representing one share of Common Stock (a “Share”) for each vested RSU and deliver to the Participant any related Dividend Equivalents (as defined below), subject to applicable withholding.  Upon payment of the Shares, the vested RSUs will be deemed fully settled and will be cancelled.

 

(b)                              Dividend Equivalents.  If the Company pays cash or stock dividends on the Common Stock, the Participant shall receive credit for such dividends (“Dividend Equivalents”) in accordance with Article VI of the Deferral Plan.

 

 

(c)                               Forfeiture.  The Participant shall forfeit to the Company, without compensation, any and all unvested RSUs upon the Participant’s Termination of Directorship for any reason.  Additionally, in the event the Participant engages in Detrimental Activity prior to, or during the one year period after, any vesting of RSUs, all unvested RSUs shall be immediately forfeited to the Company and the Participant shall pay to the Company an amount equal to the Fair Market Value at the time of vesting of any RSU which had vested in the period referred to above.

 

(d)                             Withholding.  The Participant shall pay, or make arrangements to pay, in a manner satisfactory to the Company, an amount equal to the amount of any applicable foreign, federal, state, provincial and local taxes that the Company is required to withhold at any time.  In the absence of such arrangements, any statutorily required withholding obligation may, as determined at the sole discretion of the Committee, be satisfied by reducing the number of Shares otherwise deliverable to the Participant by a number of Shares whose Fair Market Value on the applicable vesting date is equal to the amount of taxes required to be withheld (disregarding any fraction of a Share required to satisfy such tax obligations, which fractional amount due must be paid instead in cash by the Participant).

 

(e)                               Delivery Delay.  The delivery of any certificate representing the Shares may be postponed by the Company for such period as may be required for it to comply with any applicable foreign, federal, state or provincial securities law, or any national securities exchange listing requirements, and the Company is not obligated to issue or deliver any Shares if, in the opinion of counsel for the Company, such issuance or delivery constitutes a violation by the Participant or the Company of any provisions of any applicable foreign, federal, state or provincial law or of any regulations of any governmental authority or any national securities exchange.

 

3.                                    No Obligation to Continue Directorship.  This Agreement is not an agreement of directorship.  This Agreement does not guarantee that the Company or its Affiliates will engage or retain, or continue to engage or retain the Participant for any period of time, nor does it modify in any respect the Company’s (or any Affiliate’s) right to terminate or modify the Participant’s directorship or compensation.

 

4.                                    Transferability.  The Participant is prohibited to sell, transfer, pledge, hypothecate, assign or otherwise dispose of the RSUs.  Any attempted sale, transfer, pledge, hypothecation, assignment or other disposition of the RSUs in violation of the Stock Plan, the Deferral Plan or this Agreement shall be void and of no effect and the Company shall have the right to disregard the same on its books and records and to issue “stop transfer” instructions to its transfer agent.

 

5.                                    Uncertificated Shares.  Notwithstanding anything else herein, to the extent permitted under applicable foreign, federal, state or provincial law, the Company may issue the Shares in the form of uncertificated shares. Such uncertificated shares shall be credited to a book entry account maintained by the Company (or its designee) on behalf of the Participant. If thereafter certificates are issued with respect to the uncertificated shares, such issuance and delivery of certificates shall be in accordance with the applicable terms of this Agreement.

 

6.                                    Rights as a Stockholder.  The Participant shall have no rights as a stockholder with respect to any Shares unless and until the Participant has become the holder of record of the Shares, and no adjustments will be made for dividends in cash or other property, distributions or other rights in respect of any such Shares, except as otherwise specifically provided for in this Agreement or the Stock Plan.

 

 

7.                                    Provisions of Plans Control.  This Agreement is subject to all the terms, conditions and provisions of the Stock Plan and the Deferral Plan (together, the “Plans”), including, without limitation, the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plans as may be adopted by the Committee and as may be in effect from time to time.  The Plans are incorporated herein by reference.  By signing and returning this Agreement, the Participant acknowledges having received and read a copy of each of the Plans and agrees to comply with each Plan, this Agreement and all applicable laws and regulations. If and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of either Plan, the applicable Plan shall control, and this Agreement shall be deemed to be modified accordingly. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes any prior agreements between the Company and the Participant with respect to the subject matter hereof.

 

8.                                    Amendment.  To the extent applicable, the Board or the Committee may at any time and from time to time amend, in whole or in part, any or all of the provisions of this Agreement to comply with Section 409A of the Code and the regulations thereunder or any other applicable law and may also amend, suspend or terminate this Agreement subject to the terms of the Plans. Except as otherwise provided in the Plans, no modification or waiver of any of the provisions of this Agreement shall be effective unless in writing by the party against whom it is sought to be enforced. This Agreement is intended to comply with the applicable requirements of Section 409A of the Code and shall be limited, construed and interpreted in a manner so as to comply therewith.

 

9.                                    Notices.  Any notice or communication given hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, or by regular United States mail, first class and prepaid, to the appropriate party at the address set forth below (or such other address as the party shall from time to time specify):

 

If to the Company, to:

 

GNC Holdings, Inc.

300 Sixth Avenue

Pittsburgh, Pennsylvania 15222

Attention: Chief Legal Officer

 

with a copy (which shall not constitute notice) to:

 

McGuireWoods LLP
 EQT Plaza
 625 Liberty Avenue, 23rd Floor
 Pittsburgh, Pennsylvania 15222
 Attention:  Scott E. Westwood

 

If to the Participant, to the address on file with the Company.

 

 

10.                            Miscellaneous.

 

(a)                               This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns.

 

(b)                              This Agreement shall be governed and construed in accordance with the laws of Delaware (regardless of the law that might otherwise govern under applicable Delaware principles of conflict of laws).

 

(c)                               This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one contract.

 

(d)                             The failure of any party hereto at any time to require performance by another party of any provision of this Agreement shall not affect the right of such party to require performance of that provision, and any waiver by any party of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right under this Agreement.

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

 

	
 
    	
 
    	
GNC   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
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PARTICIPANT
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
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Name:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00216-of-00352.parquet"}]]