Document:

EX-4.2 Agreement for Letter of Crdt 4/17/06

 

Exhibit 4.2

Citibank, N.A.

AGREEMENT FOR LETTER OF CREDIT

dated as of April 17, 2006

Unless otherwise defined in this Agreement, capitalized terms used in this Agreement shall
have the meanings set forth in Section 26.

Citibank, N.A. (“Citibank”) agrees to issue at the request and for the account of the
undersigned (the “Applicant”) one or more irrevocable letters of credit, each in a
form satisfactory to the Applicant and Citibank (each a “Credit”, and collectively,
the “Credits”), up to an aggregate maximum amount not to exceed the amount of the
Security Letter of Credit, substantially in accordance with the terms and conditions hereof.
In consideration of your issuing, from time to time, one or more Credits substantially in
accordance with the terms and conditions provided by the Applicant, Applicant unconditionally
agrees with Citibank as follows:

1. Condition to Issuance of any Credit. The obligation of Citibank to issue a Credit
hereunder, on any Business Day, is subject to (a) the Security Letter of Credit having an
available amount not less than the sum of (i) the aggregate amount of the Credits outstanding
on such date, plus (ii) the aggregate amount of Drafts, if any, not reimbursed by or on behalf
of Applicant on such date, plus (iii) the amount of the Credit that Applicant has requested
Citibank to issue on such date, (b) any such Credit having a maturity date that is no later
than five Business Days prior to the expiration date of the Security Letter of Credit and (c)
Citibank having received at least one Business Day’s prior written notice at its office
specified below requesting such Credit in the form attached as Annex I.

2. Reimbursement. Applicant will pay Citibank the amount of each draft or other request for
payment (each, a “Draft”) drawn under any Credit, whether drawn before, on or, if in
accordance with applicable law, after the expiry date stated in any such Credit. Each such
payment shall be made, following payment by Citibank, on demand.

3. Commissions, Fees, Charges and Expenses. Applicant will pay Citibank within ten Business
Days of demand therefor, all expenses, charges and other amounts which Citibank may actually
pay or actually incur in connection with the Credits, it being agreed that Applicant is not
obligated to pay to Citibank any commitment commission, facility fee or letter of credit fee
in respect of the Credits.

4. Payments; Interest on Past Due Amounts; Computations. All amounts due from Applicant shall
be paid to Citibank at 399 Park Avenue, New York, New York 10043 (or such other address
notified to Applicant in writing), with-out defense, set-off, cross-claim, or counterclaim of
any kind, in U.S. dollars and in same day funds, provided, however, that if any such amount is
denominated in a currency other than U.S. Dollars, Applicant will pay the equivalent of such
amount in U.S. Dollars computed at Citibank’s selling rate for cable transfers to the place
where and in the currency in which such amount is payable, or such other currency, place, form
and manner acceptable to Citibank in its sole discretion. Any amount not paid when due shall
bear interest until paid in full at a daily fluctuating interest rate per annum equal to two
percent per annum above the rate of interest announced publicly from time to time by Citibank
in New York as Citibank’s Base Rate. Applicant authorizes Citibank to charge any account of
Applicant for any amount when due. Unless otherwise agreed in writing as to any Credit, all
computations of commissions, fees and interest shall be based on a 360-day year and actual
days elapsed.

5. Additional Costs. (a) If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended by, Citibank; or

(ii) impose on Citibank any other condition affecting this Agreement or the Credits;

and the result of any of the foregoing shall be to increase the cost to Citibank in an amount
Citibank deems material of issuing or

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maintaining the Credits or reduce the amount of any sum
received or receivable by Citibank hereunder (whether of principal, interest or otherwise),
other than any increase in costs resulting from (i) Excluded Taxes or (ii) Indemnified Taxes
or Other Taxes to which Section 6 is applicable, then Applicant will pay to Citibank in
accordance with Section 4 such additional amount or amounts as will compensate Citibank for
such additional costs incurred or reduction suffered.

(b) If Citibank determines that any Change in Law regarding capital requirements has or would
have the effect of reducing the rate of return on Citibank’s capital or on the capital of
Citibank’s holding company, if any, as a consequence of this Agreement or the Credits to a
level below that which Citibank or Citibank’s holding company could have achieved but for such
Change in Law (taking into consideration Citibank’s policies and the policies of Citibank’s
holding company with respect to capital adequacy), then from time to time Applicant will pay
to Citibank in accordance with Section 4 such additional amount or amounts as will compensate
Citibank or Citibank’s holding company for any such reduction suffered.

(c) A certificate of Citibank setting forth the amount or amounts necessary to compensate
Citibank or its holding company, as the case may be, as specified in subsection (a) or (b) of
this Section, and explaining in reasonable detail the method by which such amount or amounts
shall have been determined, shall be delivered to Applicant and shall be conclusive absent
manifest error; provided that Citibank shall not be required to deliver information pursuant to
this Section relating to its business, other than any such information that is available to the
Applicant on a nonconfidential basis prior to the date of such certificate. Applicant shall pay
to Citibank the amount shown as due on any such certificate within 10 days after receipt
thereof.

(d) Failure or delay on the part of Citibank to demand compensation pursuant to this Section
shall not constitute a waiver of Citibank’s right to demand such compensation; provided that
Applicant shall not be required to compensate Citibank pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date that Citibank
notifies Applicant of the Change in Law giving rise to such increased costs or reductions and
of Citibank’s intention to claim compensation therefor.

6. Taxes. Any and all payments by or on account of any obligation of Applicant hereunder
shall be made free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if Applicant shall be required by applicable law to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) Citibank receives an amount equal to
the sum it would have received had no such deductions been made, (ii) Applicant shall make
such deductions and (iii) Applicant shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

(b) In addition, Applicant shall pay any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

(c) Applicant shall indemnify Citibank, within 10 days after written demand therefor, for the
full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by
Citibank on or with respect to any payment or an account of any Obligation of the Applicant
hereunder and any penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate as to the
amount of such payment or liability delivered to Applicant by Citibank shall be conclusive
absent manifest error. Notwithstanding the foregoing, the Applicant shall have no obligation
to indemnify Citibank for any interest, penalties or expenses described above and arising from
the gross negligence or willful misconduct of Citibank in taking any action it was required to
take
including, but not limited to, filing any tax return or report in a timely manner.

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(d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by Applicant
to a Governmental Authority, Applicant shall deliver to Citibank the original or a certified
copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the
return reporting such payment or other evidence of such payment reasonably satisfactory to
Citibank.

(e) Any foreign assignee that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which Applicant is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall, upon request of
Applicant, deliver to Applicant, at the time or times prescribed by applicable law or
reasonably requested by Applicant, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at
a reduced rate.

(f) If Citibank determines that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Applicant or with respect to which the Applicant has paid
additional amounts pursuant to this Section 6, it shall pay over such refund to the Applicant
(but only to the extent of indemnity payments made, or additional amounts paid, by the
Applicant under this Section 6 with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of Citibank and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund); provided,
that the Applicant, upon the request of Citibank, agrees to repay the amount paid over to the
Applicant (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to Citibank in the event Citibank is required to repay such refund to such
Governmental Authority. This Section shall not be construed to require Citibank to make
available its tax returns (or any other information relating to its taxes which it deems
confidential) to the Applicant or any other Person.

7. Indemnification. (a) Applicant agrees to pay (i) all reasonable out-of-pocket expenses
incurred by the Citibank and its Affiliates, including the reasonable fees, charges and
disbursements of counsel for Citibank, in connection with the preparation and administration
of this Agreement or any amendments, modifications or waivers of the provisions hereof
(whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii)
all reasonable out-of-pocket expenses incurred by Citibank, including the reasonable fees,
charges and disbursements of any counsel for Citibank, in connection with the enforcement or
protection of its rights in connection with this Agreement, including its rights under this
Section, or in connection with the Credits, including in connection with any workout,
restructuring or negotiations in respect thereof.

(b) Applicant agrees to indemnify Citibank, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related expenses,
including the reasonable fees, charges and disbursements of any counsel for any Indemnitee,
incurred by or asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective obligations
hereunder or the consummation of the transactions contemplated hereby, (ii) any Credit or the
use of the proceeds thereof (including any refusal by Citibank to honor a demand for payment
under any Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by Applicant or any of its
Subsidiaries, or any Environmental Liability related in any way to Applicant or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful misconduct

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of such Indemnitee or its Affiliates or from a breach of this Agreement by such Indemnitee.

(c) To the extent permitted by applicable law, each party hereto shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, any Credit or the use of the proceeds thereof.

(d) All amounts due under this Section shall be payable promptly after written demand therefor
accompanied by the appropriate invoice or other detail supporting such amount.

8. Obligations Absolute: Limitations of Liability. (a) Applicant’s obligation to repay the
Drafts and to make the other payments provided herein (the “Obligations”) shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of
validity or enforceability of the Credits or this Agreement, or any term or provision therein,
(ii) the existence of any claim, set-off, defense or other right that Applicant, or any
Affiliate of Applicant may have at any time against the beneficiary or any transferee of the
Credits (or any Persons or entities for whom such beneficiary or transferee may be acting),
Citibank or any other Person, whether in connection with this Agreement, the transactions
contemplated herein or any unrelated transaction; (iii) without limiting Section 8(b) below, any
Draft, demand certificate or any other document presented under the Credits proving to be
forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate
in any respect, (iv) without limiting Section 8(b) below, payment by Citibank under the Credits
against presentation of a Draft or other document that does not comply with the terms of the
Credits, (v) the surrender or impairment of any security for the performance or observance of
any of the terms of this Agreement or any Credit; (vi) any non-application or misapplication by
the beneficiary the Credits of the proceeds of any drawing under the Credits; (vii) the fact
that a Default shall have occurred and be continuing; or (viii) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions
of this Section, constitute a legal or equitable discharge of, or provide a right of setoff
against, Applicant’s obligations hereunder.

(b) Neither Citibank nor any of its Related Parties shall have any liability or responsibility
by reason of or in connection with the issuance or transfer of the Credits or any payment or
failure to make any payment thereunder (irrespective of any of the circumstances referred to in
the preceding subsection (a)), or any error, omission, interruption, loss or delay in
transmission or delivery of any Draft, notice or other communication under or relating to the
Credits (including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond the control of
Citibank; provided that the foregoing shall not be construed to excuse Citibank from liability
to Applicant to the extent of any direct damages (as opposed to consequential damages, claims in
respect of which are hereby waived by Applicant to the extent permitted by applicable law)
suffered by Applicant that are caused by Citibank’s failure to exercise care when determining
whether Drafts and other documents presented under the Credits comply with the terms thereof.
The parties hereto expressly agree that, in the absence of gross negligence or willful
misconduct on the part of Citibank (as finally determined by a court of competent jurisdiction),
Citibank shall be deemed to have exercised care in each such determination. In furtherance of
the foregoing and without limiting the generality thereof, the parties agree that, with respect
to documents presented that appear on their face to be in substantial compliance with the terms
of the Credits, Citibank may, in its sole discretion, either accept and make payment upon such
documents without responsibility for further investigation, regardless of any notice or
information to the contrary (other than a valid injunction issued by a court of competent
jurisdiction), or refuse to accept and make payment upon such documents if such
documents are not in strict compliance with the terms of the Credits.

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9. Independence. Applicant acknowledges that the rights and obligations of Citibank under the
Credits are independent of the existence, performance or nonperformance of any contract or
arrangement underlying the Credits, including contracts or arrangements between Citibank and
Applicant and between Applicant and the beneficiary of any Credit. Citibank shall have no duty
to notify Applicant of its receipt of a Draft, certificate or other document presented under any
Credit or of its decision to honor any such Credit. Citibank may, without incurring any
liability to Applicant or impairing its entitlement to reimbursement under this Agreement, honor
any Credit despite notice from Applicant of, and without any duty to inquire into, any defense
to payment or any adverse claims or other rights against the beneficiary of any Credit or any
other Person. Citibank shall have no duty to request or require the presentation of any
document, including any default certificate, not required to be presented under the terms and
conditions of any Credit. Citibank shall have no duty to seek any waiver of discrepancies from
Applicant, nor any duty to grant any waiver of discrepancies which Applicant approves or
requests. Citibank shall have no duty to extend the expiration date or term of any Credit or to
issue a replacement letter of credit on or before the expiration date of any Credit or the end
of such term.

10. Non-Documentary Conditions. Citibank is authorized (but shall not be required) to disregard
any non-documentary conditions stated in any Credit.

11. Transfers. If, at Applicant’s request, any Credit is issued in transferable form, Citibank
shall have no duty to determine the proper identity of anyone appearing in any transfer request,
Draft, or other document as transferee, nor shall Citibank be responsible for the validity or
correctness of any transfer.

12. Extensions and Modifications of the Credit. This Agreement shall be binding upon Applicant
with respect to any extension or modification of any Credit made at Applicant’s request or with
Applicant’s consent. Applicant’s Obligations shall not be reduced or impaired in any way by any
agreement by Citibank and the beneficiary of any Credit extending Citibank’s time to honor or to
give notice of discrepancies and any such agreement shall be binding upon Applicant.

13. Covenants of Applicant. Applicant will, so long as any Credit or any reimbursement or other
payment obligation of Applicant under this Agreement remains outstanding, comply with the
covenants set forth below:

(a) Applicant will furnish to Citibank (i) within 90 days after the end of each fiscal year of
Applicant, its audited consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such year, setting forth in each
case in comparative form the figures for the previous fiscal year, all reported on by
independent public accountants of recognized national standing (without a “going concern” or
like qualification or exception and without any qualification or exception as to the scope of
such audit) to the effect that such consolidated financial statements present fairly in all
material respects the consolidated financial condition and results of operations of Applicant
and the Subsidiaries on a consolidated basis in accordance with GAAP; (ii) within 45 days after
the end of each of the first three fiscal quarters of each fiscal year of Applicant, its
consolidated balance sheet and related statements of operations and cash flows as of the end of
and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in
each case in comparative form the figures for the corresponding period or periods of (or, in the
case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of
its Financial Officers as presenting fairly in all material respects the financial condition and
results of operations of Applicant and the Subsidiaries on a consolidated basis in accordance
with GAAP, subject to normal year-end audit adjustments and the absence of footnotes; (iii)
concurrently with any delivery of financial statements under clause (i) or (ii) above, a
certificate of a Financial Officer of Applicant certifying as to whether a Default has occurred
and, if a Default has occurred, specifying the details thereof and any action taken or proposed
to be taken with respect thereto; (iv) promptly after the same become publicly available, copies
of all reports on Forms 10-K, 10-Q and 8-K (or any substitute or
successor forms) filed by Applicant with the Securities and Exchange Commission, or any

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Governmental Authority succeeding to any or all of the functions of said Commission, or
distributed by Applicant to its shareholders generally, as the case may be; (v) promptly
following a request therefor, all documentation and other information that Citibank reasonably
requests as necessary in order for it to comply with its ongoing obligations under applicable
“know your customer” and anti-money laundering rules and regulations, including the USA Patriot
Act; and (vi) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of Applicant or any Material Subsidiary, or
compliance with the terms of this Agreement, as Citibank may reasonably request. Information
required to be delivered pursuant to this Section shall be deemed to have been delivered if such
information, or one or more annual or quarterly reports containing such information, shall be
available on the website of the Securities and Exchange Commission at http://www.sec.gov and a
confirming electronic correspondence shall have been delivered or caused to be delivered to
Citibank providing notice of such posting or availability; provided that Applicant shall deliver
paper copies of such information to Citibank if Citibank requests such delivery. Information
required to be delivered pursuant to this Section may also be delivered by electronic
communications pursuant to procedures approved by the Citibank.

(b) Applicant will furnish to Citibank prompt written notice of the occurrence of any Default
promptly after any Financial Officer becomes aware thereof. Each notice delivered under this
subsection (b) shall be accompanied by a statement of a Financial Officer or other executive
officer of Applicant setting forth the details of the event or development requiring such notice
and any action taken or proposed to be taken with respect thereto.

(c) Applicant will, and will cause each of the Material Subsidiaries to, (i) keep and maintain
all property material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted, except where the failure to do so could not reasonably be
expected to have a Material Adverse Effect, and (ii) maintain, with financially sound and
reputable insurance companies, insurance or maintain a self-insurance program in such amounts
and against such risks as are customarily maintained by companies of similar size and financial
strength engaged in the same or similar businesses operating in the same or similar locations
(including without limitation by the maintenance of adequate self-insurance reserves to the
extent customary among such companies).

(d) Applicant will, and will cause each of the Material Subsidiaries to, keep proper books of
record and account in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. Applicant will, and will cause each of
the Material Subsidiaries to, permit any representatives designated by Citibank, at its own
expense if an Event of Default has not occurred and is continuing, upon reasonable prior notice,
to visit and inspect its properties, to examine and make extracts from its books and records,
and to discuss its affairs, finances and condition with its officers, all at such reasonable
times and as often as reasonably requested.

(e) Applicant will, and will cause each of the Material Subsidiaries to, comply with all laws,
rules, regulations and orders of any Governmental Authority applicable to it or its property,
except where the failure to do so, individually and in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

(f) Applicant will observe or perform each covenant, condition and agreement contained in
Section 5.03 (but only with respect to the Applicant’s existence) and in Article VI of the
Credit Agreement.

14. Representations and Warranties of Applicant. Applicant represents and warrants that (a) it
is duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, has all requisite power and authority to carry on its business as now
conducted and is qualified to do business in, and is in good standing in, every jurisdiction
where such qualification is required, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect; (b) the
transactions contemplated by this Agreement
are within the Applicant’s corporate powers and have been duly authorized by all necessary

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corporate action, this Agreement has been duly executed and delivered by the Applicant and
constitutes a legal, valid and binding obligation of the Applicant, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law; (c) the transactions
contemplated by this Agreement (i) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except such as have been
obtained or made and are in full force and effect, except (A) those required in the ordinary
course of business of the Applicant in connection with the performance by the Applicant of its
obligations of the covenants hereunder, other filings under securities laws, and filings,
registrations consents or approvals in each case not required to be made or obtained by the date
hereof, and (B) the filing by the Applicant of a Periodic Report on Form 8-K with respect to the
transactions contemplated hereby, which filing will be made promptly following the execution and
delivery of this Agreement, (ii) will not violate any applicable law or regulation or the
charter, by-laws or other organizational documents of the Applicant or any order of any
Governmental Authority, (iii) will not result in a material violation of or default under any
indenture or other material agreement or instrument binding upon the Applicant or any of the
Subsidiaries or their assets, or give rise to a right thereunder to require any payment to be
made by the Applicant or any of the Subsidiaries, and (iv) will not result in the creation or
imposition of any material Liens on any material assets of the Applicant or any of the
Subsidiaries; (d) Applicant has heretofore furnished to Citibank its consolidated balance sheet
and statements of income, stockholders’ equity and cash flows as of and for the fiscal year
ended December 31, 2005, reported on by independent public accountants. Such financial
statements present fairly, in all material respects, the financial position and results of
operations and cash flows of Applicant and its Subsidiaries as of such date and for the fiscal
year then ended in accordance with GAAP; (e) each of the reports required to be filed by
Applicant under Section 13(a) of the Securities Exchange Act of 1934 on or prior to the date
hereof has been filed and, as of the respective dates thereof and the date hereof, such reports
did not contain and do not contain an untrue statement of a material fact and did not omit and
do not omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; (f) neither Applicant nor
any of the Subsidiaries is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying Margin Stock and (g)
neither the Applicant nor any of the Subsidiaries is an “investment company” as defined in, or
subject to regulation under, the Investment Company Act of 1940.

15. Default. Each of the following shall be an “Event of Default” under this Agreement:
(a) the Applicant’s failure to pay (i) when due, any principal of any obligation to Citibank
under this Agreement, or (ii) within five (5) Business Days when due, any interest on any
obligation to Citibank or any fee or other amount payable to Citibank under this Agreement, (b)
Applicant’s failure to observe or perform any covenant, condition or agreement contained in
Section 5.03 (but only with respect to the Applicant’s existence) or in Article VI of the Credit
Agreement, (c) Applicant’s failure to observe or perform any covenant, condition or agreement
contained in this Agreement (other than those specified in clauses (a) and (b) of this Section),
and such failure shall continue unremedied for a period of 60 days after written notice thereof
from Citibank to the Applicant, (d) any representation or warranty made in this Agreement or any
document delivered by it under this Agreement, shall prove to have been incorrect in any
material respect when made, deemed made or delivered, (e) any “Event of Default” under and as
defined in the Credit Agreement, shall have occurred and be continuing or (f) Applicant or any
Subsidiary shall fail to make any payment (whether of principal or interest and regardless of
amount) in respect of any Material Indebtedness, when and as the same shall become due and
payable (subject to any applicable grace period); provided, however, any Event
of Default shall be deemed waived by Citibank if and for so long as the amount available to be
drawn under the Security Letter of Credit or the amount of Security Letter of Credit Proceeds
then held by Citibank equals of exceeds the aggregate
amount of the Credits plus the aggregate outstanding principal amount of reimbursement

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obligations under Section 2 at the time of determination.

16. Remedies; Security Letter of Credit Proceeds. (a) To the extent the Obligations are not
fully satisfied pursuant to the last sentence of Section 16(b), if any Event of Default shall
have occurred and be continuing, the amount of each Credit as well as any or all Obligations
shall, at Citibank’s option, become due and payable immediately without presentment, demand,
protest, or notice of any kind, all of which are hereby expressly waived by Applicant;
provided, however, that in the event of an actual or deemed entry of an order
for relief with respect to Applicant under the U.S. Federal Bankruptcy Code, the amount of the
Credit and all Obligations shall automatically become due and payable without presentment,
demand, protest or notice of any kind, all of which are hereby expressly waived by Applicant. In
addition, Citibank may (i) if any Credit shall not have been issued, by notice to Applicant
declare its obligation to issue any Credit to be terminated, whereupon the same shall forthwith
terminate, and (ii) send notice to Applicant of the occurrence of an Event of Default thereby
resulting in (I) the termination of the Credits on the tenth Business Day following receipt by
Applicant of such notice and (II) pursue all other remedies available at law, by contract, in
equity or otherwise.

(b) Citibank agrees, to the fullest extent permitted by law, (i) to apply the proceeds of each
draw under the Security Letter of Credit directly to the satisfaction of the Obligations due and
payable at the time of such draw and (ii) to apply any remaining amount of such draw (and any
proceeds or investments thereof) directly to the other Obligations, when and as such Obligations
become due and payable (such drawn amounts and any proceeds or investments thereof,
“Security Letter of Credit Proceeds”). Receipt or application of the Security Letter of
Credit Proceeds to the Obligations in accordance with the foregoing shall constitute for all
purposes of this Agreement (including reinstatement, if applicable, of amounts available to be
drawn under any Credit) satisfaction of the Obligations to the extent of the amounts so applied.

(c) Subject to Section 16(b), Applicant agrees that Citibank will have the sole right to sell,
pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of, or otherwise use
in its business any Security Letter of Credit Proceeds it holds, free from any claim or right of
any nature whatsoever of Applicant, including any equity or right of redemption by Applicant.
For purposes of any rights or remedies authorized under this Agreement, Citibank will be deemed
to continue to hold all Security Letter of Credit Proceeds, regardless of whether Citibank has
exercised any rights with respect to any Security Letter of Credit Proceeds pursuant to the
preceding sentence.

(d) Citibank agrees that promptly following the Termination Date, Citibank will return to
Applicant all Security Letter of Credit Proceeds, if any, then held by Citibank. Citibank and
Applicant agree that, for the avoidance of doubt, (i) the Security Letter of Credit Proceeds are
the property of Citibank and not of Applicant, (ii) Applicant has no interest in the Security
Letter of Credit or any Security Letter of Credit Proceeds other than the right to receive any
remaining Security Letter of Credit Proceeds following the Termination Date as described in the
immediately preceding sentence, and (iii) this Agreement does not constitute a transfer of the
property of Applicant.

(e) Applicant agrees that, from time to time upon the written request of Citibank, Applicant
will execute and deliver such further documents and do such other acts and things as Citibank
may reasonably request in order fully to effect the purposes of this subsection. Citibank may
employ agents and attorneys in fact in connection with this Section and shall not be responsible
for the negligence or misconduct of any such agents or attorneys in fact selected by it in good
faith.

17. Set-off. If any Event of Default shall occur and be continuing, Citibank may set-off and
apply any and all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by Citibank to or for the credit or the
account of Applicant (“Deposits”) against any and all of the Obligations to the extent
that such Obligations have not been fully satisfied pursuant to the last
sentence of Section 16(b) or otherwise, irrespective of whether or not Citibank shall

Page 8

 

have made
any demand under this Agreement and although such Deposits or Obligations may be unmatured or
contingent. Citibank’s rights under this Section are in addition to other rights and remedies
(including other rights of set-off) which Citibank may have under this Agreement or applicable
law.

18. Waiver of Immunity. Applicant acknowledges that this Agreement is, and each Credit will be,
entered into for commercial purposes and, to the extent that Applicant now or later acquires any
immunity from jurisdiction of any court or from any legal process with respect to itself or its
property, Applicant now irrevocably waives its immunity with respect to the Obligations.

19. Notices; Interpretation; Severability. Notices shall be effective, if to Applicant, when
sent to its address indicated below the signature line and, if to Citibank, when received at Two
Penns Way, Suite 110, New Castle, Delaware 19720, Attention Dennis Banfield, facsimile number:
212-994-0847, or as to either, such other address as either may notify the other in writing.
Headings are included only for convenience and are not interpretative. The term
“including” means “including without limitation.” If any provision of this Agreement is
held illegal or unenforceable, the validity of the remaining provisions shall not be affected.

20. Successors and Assigns. This Agreement shall be binding upon Applicant and its successors
and permitted assigns, and shall inure to the benefit of and be enforceable by Citibank, its
successors and assigns. Applicant shall not voluntarily transfer or otherwise assign any of its
obligations under this Agreement. Citibank, subject, if the transferee is not an Affiliate, to
Applicant’s consent if no Event of Default exists, may transfer or otherwise assign its rights
and obligations under this Agreement, in whole or in part, and shall be forever relieved from
any liability with respect to the portion of Citibank’s rights or obligations transferred or
assigned. Applicant acknowledges that information pertaining to Applicant as it relates to this
Agreement or the Credits may be disclosed to (actual or potential) transferees or assignees so
long as such actual or potential transferee agrees to be bound by the confidentiality provisions
hereof. This Agreement shall not be construed to confer any right or benefit upon any Person
other than Applicant and Citibank and their respective successors and permitted assigns.

21. Modification; No Waiver. None of the terms of this Agreement may be waived or amended except
in a writing signed by the party against whose interest the term is waived or amended.
Forbearance, failure or delay by Citibank in the exercise of a remedy shall not constitute a
waiver, nor shall any exercise or partial exercise of any remedy preclude any further exercise
of that or any other remedy. Any waiver or consent by Citibank shall be effective only in the
specific instance and for the specific purpose for which it is given and shall not be deemed,
regardless of frequency given, to be a further or continuing waiver or consent.

22. Multiple Role Disclosure. Citibank and its Affiliates offer a wide range of financial
services, including back-office letter of credit processing services on behalf of financial
institutions and letter of credit beneficiaries. Our services are provided internationally to a
wide range of customers, some of whom may be Applicant’s counter-parties or competitors.
Applicant acknowledges and accepts that Citibank and its Affiliates may perform more than one
role in relation to any particular Credit.

23. Integration; Remedies Cumulative; Delivery by Facsimile. This Agreement constitutes the
entire agreement between the parties concerning Citibank’s issuance of a Credit or Credits for
Applicant’s account and supersedes all prior or simultaneous agreements, written or oral. All
rights and remedies of Citibank under this Agreement and other documents delivered in connection
with this Agreement are cumulative and in addition to any other right or remedy under this
Agreement, the Credits or applicable law. Delivery of a signed signature page to this Agreement
by facsimile transmission shall be effective as, and shall constitute physical delivery of, a
signed original counterpart of this Agreement.

24. Termination; Surviving Provisions. This Agreement shall be terminated only upon payment in
full to Citibank of all Obligations hereunder. Restrictive provisions in this
Agreement, such as indemnity, tax, immunity, and jurisdiction provisions shall survive

Page 9

 

termination of this Agreement. If any Credit is issued in favor of any bank or other financial
or commercial entity in support of an undertaking issued by such bank or entity on behalf of
Applicant or Citibank, Applicant shall remain liable under this Agreement (even after expiry of
any such Credit) for amounts paid and expenses incurred by Citibank with respect to any such
Credits or the undertaking until Citibank is released by such other bank or entity.

25. Governing Law; Submission to Jurisdiction; Confidentiality. (a) This Agreement shall be
governed by and construed in accordance with the laws of the State of New York. Applicant
hereby submits to the nonexclusive jurisdiction of the United States District Court for the
Southern District of New York and of any New York State court sitting in New York City for
purposes of all legal proceedings arising out of or relating to this Agreement or the
transactions contemplated hereby. Applicant irrevocably waives, to the fullest extent permitted
by law, any objection which it may now or hereafter have to the laying of venue of any such
proceeding brought in such a court and any claim that any such proceeding brought in such a
court has been brought in an inconvenient forum.

(b) Applicant agrees that Citibank may issue Credits subject to the Uniform Customs and Practice
for Documentary Credits, 1993 Revision, International Chamber of Commerce Publication No. 500
(the “UCP”) or the International Standby Practices, International Chamber of Commerce
No. 590 (the “ISP”) or, at Citibank’s option, such later revision thereof in effect at
the time of issuance of any Credit. The UCP or the ISP, as applicable, shall serve, in the
absence of proof to the contrary, as evidence of general banking usage with respect to the
subject matter thereof.

(c) Applicant agrees that for matters not addressed by the UCP or the ISP, the Credits shall be
subject to and governed by the laws of the state of New York and applicable U.S. Federal laws.
If, at Applicant’s request, any Credit expressly chooses a state or country law other than New
York, U.S.A., or is silent with respect to UCP, ISP or governing law, Citibank shall not be
liable for any payment, cost, expense or loss resulting from any action or inaction taken by
Citibank if such action or inaction is justified under UCP, ISP, New York law or the law
governing any such Credit.

(d) Citibank agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (i) to Citibank and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other advisers (it
being understood that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information confidential) on
a “need to know” basis solely in connection with the transactions contemplated by this
Agreement, (ii) to the extent requested by any regulatory authority, provided, however, that, to
the extent legally permitted, the Applicant is promptly notified in order that it may seek a
protective order or take other appropriate action, (iii) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process, (iv) to the extent reasonably
required or reasonably deemed advisable in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of
rights hereunder, (v) subject to an agreement containing provisions substantially the same as
those of this subsection (d), to (A) any assignee of or participant in, or any prospective
assignee of or participant in, any of its rights or obligations under this Agreement or (B) any
actual or prospective counterparty (or its advisors) to any securitization, swap or derivatives
transaction relating to the Applicant, any Subsidiaries and the obligations hereunder, (vi) with
the consent of the Applicant or (vii) to the extent such Information (A) becomes publicly
available other than as a result of a breach of this subsection (d) or (B) becomes available to
Citibank on a nonconfidential basis from a source other than the Applicant. For the purposes of
this subsection (d), “Information” means all information received from the Applicant in
connection with this Agreement relating to the Applicant or its business, other than any such
information that is available to Citibank on a nonconfidential basis prior to disclosure by the
Applicant; provided that, in the case of information received from the Applicant after the date
hereof, such information is clearly
identified as confidential at the time of delivery. Any Person required to maintain the

Page 10

 

confidentiality of Information as provided in this subsection (d) shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

26. Defined Terms. Unless otherwise defined in this Agreement, capitalized terms used in this
Agreement shall have the following meanings:

“Affiliate” means, with respect to a specified Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

“Applicant” shall have the meaning set forth in the Preamble hereto.

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial
banks in New York, New York are authorized or required by law to remain closed.

“Capital Lease” means, with respect to any Person which is the lessee thereunder, any lease or
charter of property, real or personal, which would, in accordance with GAAP, be recorded as an
asset under a capital lease on a balance sheet of such Person.

“Change in Law” means (a) the adoption of any law, rule or regulation after the date of this
Agreement, (b) any change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the date of this Agreement or (c) compliance by
Citibank (or, for purposes of Section 5(b), by any lending office of Citibank or by Citibank’s
holding company, if any) with any request, guideline or directive (whether or not having the
force of law) of any Governmental Authority made or issued after the date of this Agreement.

“Consolidated Net Revenue” means, for any period, the net revenue of the Applicant and its
Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.

“Consolidated Total Assets” means, on any date, the aggregate amount of assets of the Applicant
and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

“Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings
correlative thereto.

“Credit” shall have the meaning set forth in the Preamble hereto.

“Credit
Agreement” means the Credit Agreement, dated as of April
 17, 2006, among
Applicant, as borrower, the lenders named therein, Citicorp USA, Inc., as issuing bank and
administrative agent, and JPMorgan Chase Bank, N.A., as paying agent, as amended, supplemented,
modified, amended and restated or refinanced from time to time.

“Default” means any event or condition that constitutes an Event of Default or that upon notice,
lapse of time or both would, unless cured or waived, become an Event of Default.

“Deposits” shall have the meaning set forth in Section 17 hereto.

“Draft” shall have the meaning set forth in Section 2 hereto.

“Environmental Laws” means any and all federal, state, local and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or other governmental restrictions relating to the environment
or the release of any materials into the environment.

“Environmental Liability” means any liability, contingent or otherwise (including any liability
for damages, costs of environmental remediation, fines, penalties or indemnities), of Applicant
or any of its Consolidated Subsidiaries directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials,
(c) exposure to any Hazardous Materials, (d) the release or threatened release of any

Page 11

 

Hazardous
Materials into the environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the foregoing.

“Event of Default” shall have the meaning set forth in Section 15 hereto.

“Excluded Taxes” means, with respect to Citibank, or any other recipient of any payment to be
made by or on account of any obligation of Applicant hereunder, (a) income or franchise taxes
imposed on (or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which its principal
office is located or, in the case of Citibank, in which its applicable lending office is
located, (b) any branch profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction in which Applicant is located, (c) in the case of a foreign
assignee or any foreign branch or Affiliate of Citibank caused by Citibank to issue a Credit,
any withholding tax that is imposed by the United States of America on amounts payable to such
foreign assignee at the time such foreign assignee becomes a party to this Agreement or such
foreign branch or Affiliate is caused to issue such a Credit or is attributable to such foreign
assignee’s or such foreign branch’s or Affiliate’s failure or inability to comply with Section
6(e), except to the extent that such foreign assignee’s assignor (if any) was entitled, at the
time of assignment, to receive additional amounts from Applicant with respect to such
withholding tax pursuant to Section 6(a) and (d) in the case of any foreign assignee or foreign
branch, any withholding tax that is imposed by the U.S. on amounts payable to such foreign
assignee or foreign branch that are attributable to such foreign assignee or foreign branch’s
failure to comply with Section 6(e).

“Financial Officer” means, with respect to the Applicant, the chief financial officer, principal
accounting officer, treasurer or controller of the Applicant.

“GAAP” means generally accepted accounting principles in the United States of America.

“Governmental Authority” means the government of the United States of America, or any other
nation or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining
to government.

“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous
or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates,
asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or
medical wastes and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

“Hedging Agreement” means any agreement with respect to any swap, forward, future or derivative
transaction or option or similar agreement involving, or settled by reference to, one or more
rates, currencies or prices of commodities, equity or debt instruments or securities, or
economic, financial or pricing indices or measures of economic, financial or pricing risk or
value, or any similar transaction or any combination of such transactions; provided that no
phantom stock or similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of the Applicant or the
Subsidiaries shall be a Hedging Agreement. The amount of the obligations of the Applicant or any
Subsidiary in respect of any Hedging Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Applicant or such Subsidiary would be
required to pay if such Hedging Agreement were terminated at such time.

“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for
borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or
similar instruments, (c) all obligations of such Person under conditional sale or other title
retention agreements relating to property acquired by such Person, (d) all obligations of such
Person in respect of the deferred purchase price of property or services, (e) all Indebtedness
of others secured by (or for which

Page 12

 

the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness
secured thereby has been assumed, (f) all guarantees by such Person of Indebtedness of others,
(g) all capital lease obligations of such Person, and (h) all obligations, contingent or
otherwise, of such Person as an account party in respect of letters of credit, letters of
guaranty and banker’s acceptances; provided, however, that Indebtedness of any Person shall not
include (i) trade payables, (ii) any obligations of such Person incurred in connection with
letters of credit, letters of guaranty or similar instruments obtained or created in the
ordinary course of business to support obligations of such Person that do not constitute
Indebtedness or (iii) endorsements of checks, bills of exchange and other instruments for
deposit or collection in the ordinary course of business.

“Indemnified Taxes” means Taxes (other than Excluded Taxes) and Other Taxes.

“Indemnitee” shall have the meaning ascribed to it in Section 7.

“ISP” shall have the meaning set forth in Section 25 hereto.

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, the
Applicant or any Subsidiary shall be deemed to own subject to a Lien any asset which it has
acquired or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, Capital Lease or other title retention agreement relating to such asset.

“Material Adverse Effect” means an event or circumstance that constitutes a material adverse
effect on (a) the business, operations or condition, financial or otherwise, of the Applicant
and the Subsidiaries taken as a whole, (b) the ability of the Applicant to perform any of its
material obligations under the Credit Agreement or this Agreement or (c) the legality, validity,
binding effect or enforceability against the Applicant of the Credit Agreement or this
Agreement.

“Material Indebtedness” means Indebtedness (other than the loans and letters of credit issued
under the Credit Agreement), or obligations in respect of one or more Hedging Agreements, of any
one or more of the Applicant and its Subsidiaries in an aggregate principal amount exceeding
$50,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the
obligations of the Applicant or any Subsidiary in respect of any Hedging Agreement at any time
shall be the maximum aggregate amount (giving effect to any netting agreements) that the
Applicant or such Subsidiary would be required to pay if such Hedging Agreement were terminated
at such time.

“Material Subsidiary” means, at any time, (a) each Subsidiary that would be a “significant
subsidiary” within the meaning of Rule 1-02 under Regulation S-X promulgated by the Securities
and Exchange Commission and (b) each other Subsidiary designated as a “designated subsidiary” by
the Applicant. The Applicant will designate one or more Subsidiaries as “designated
subsidiaries” when and as necessary in order that there will at no time be two or more
Subsidiaries that are not Material Subsidiaries under the preceding sentence but that, if
considered together as a single Subsidiary, would cause the total for all such Subsidiaries to
exceed 20% of either (i) Consolidated Total Assets at such time or (ii) Consolidated Net Revenue
for the period of four calendar quarters ended at or most recently prior to such time.

“Obligations” shall have the meaning set forth in Section 8 hereto.

“Other Taxes” means any and all present or future stamp or documentary taxes or any other excise
or property taxes, charges or similar levies (but excluding any tax, charge or levy that
constitutes an Excluded Tax) arising from any payment made hereunder or from the execution,
delivery or enforcement of, or otherwise with respect to, this Agreement.

“Person” means an individual, a corporation, a limited liability company, a partnership, an
association, a trust or any other entity or organization, including a government or political
subdivision or an agency or instrumentality thereof or any successor or assign thereof.

Page 13

 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the
respective directors, officers, employees, agents and advisors of such Person and such Person’s
Affiliates.

“Security Letter of Credit” means a Letter of Credit issued by Citicorp USA, Inc. naming
Citibank as beneficiary to support the payment by the Applicant of the Obligations.

“Security Letter of Credit Proceeds” shall have the meaning set forth in Section 16 hereto.

“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation,
limited liability company, partnership, association or other entity the accounts of which would
be consolidated with those of the parent in the parent’s consolidated financial statements if
such financial statements were prepared in accordance with GAAP, as well as any other
corporation, limited liability company, partnership, association or other entity of which
securities or other ownership interests representing more than 50% of the equity or more than
50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.

“Subsidiary” means any subsidiary of the Applicant.

“Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges
or withholdings imposed by any Governmental Authority.

“Termination Date” means the later to occur of (a) the termination of the Security Letter
of Credit and (b) the date of the termination or expiry of all Credits and the payment in full
(including, without limitation, by application of Security Letter of Credit Proceeds in
accordance with this Agreement) of all Obligations that are or may become payable.

“U.S.” means the United States of America.

“UCP” shall have the meaning set forth in Section 25 hereto.

“USA Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, as amended, supplemented, amended and
restated or otherwise modified from time to time.

27. JURY TRIAL WAIVER. APPLICANT AND CITIBANK EACH IRREVOCABLY WAIVES ITS RIGHT TO A JURY TRIAL
OF ANY CLAIM, COUNTERCLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE
CREDIT, OR ANY DEALINGS WITH ONE ANOTHER RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.

Page 14

 

	 	 	 	 	 	 	 
	Very truly yours,	 	 	 	 
	 
	 	 	 	 	 	 
	Applicant: The Sherwin-Williams Company	 	 	 	 
	 
	 	 	 	 	 	 
	By: (Authorized Signer):	 	 	 	 
	 
	 	/s/ 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Print Name)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Title)	 	 	 	 
	 
	 	/s/ 	 	 	           /s/
	 
	 	 	 	 	 	 
	 
	 	(Signature)	 	 	 	Relationship Manager (Signature & Stamp)
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Print Name)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Title)
	 	 	 	(Other required Signature & Stamp)
	 
	 	 	 	 	 
	Address:

	 	101 Prospect Avenue, N.W.	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Cleveland, OH 44115	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Co-Applicant (if any):	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By (Authorized Signer):	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Signature)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Print Name)	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	(Title)	 	 	 	 
	 
	 	 	 	 	 	 
	Address:

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(For Citibank Use Only)	 	 	 	 
	Approvals to Issue	 	 	 	 

Page 15

 

Annex I

Application for Standby Letter of Credit

Citibank, N.A., New York, NY 10043

Attn: Standby Letter of Credit Dept.,                Letter of Credit Reference No.                                         

	 	 	 	 	 
	 
	 	Applicant (Name and Address)	 	The Sherwin-Williams Company
	Advising Bank (Name and
Address)
	 	 	 	 
	 
	 	 	 	 
	 
	Beneficiary (Name and Address)
	 	Expiry Date and	 	[NOT LATER THAN [FIVE
	 
	 	Place:	 	BUSINESS DAYS] PRIOR TO THE
	 
	 	 	 	EXPIRATION DATE OF THE
	 
	 	 	 	SECURITY LETTER OF CREDIT]
	 
	 	 	 	 
	 
	 	Amount (In specific currency):	 	$
	 
	 	 	 

This Application is for the issuance of a standby letter of credit under and subject to the terms
and conditions of (select one):

|      The Agreement for Standby Letter of Credit attached hereto:

o      The Continuing Agreement for Commercial and / or Standby Letters of Credit dated _____________.â

o      Other (describe):

 

Subject to the following terms and conditions, please issue your irrevocable Letter of Credit
(hereinafter called the “Credit”) to be available by the beneficiary’s draft(s):
Drawn at sight on:

|      Citibank, N.A., New York, NY

o      Other:

 

(Name and Address of Paying Bank, if any)

Accompanied by Beneficiary’s written statement that the amount of any drafts(s) drawn hereunder
represent funds due and payable because of the following reasons (select one):

o      Applicant of the Credit has failed to comply with terms or conditions of a contract described as:

 

 

o      Applicant of the Credit has been awarded a contract under an offer to bid and has failed to
become a party to the contract related thereto

Page1

 

describe):

 

 

o      It has become necessary for the Beneficiary bank or other financial entity to make payment under
its undertaking issued on behalf of Applicant of this Credit, with an expiration date of
                                        , at its counters, in favor of
                                                                                , in relation to

                                                                                                                                                                

|      Description of transaction if other than described

above:  See attached

                                    (If a sample of the wording is
attached, insert “See Attached” above)

â       If a Continuing Agreement is already in place, submit only this Application, with
customer’s signature and account manager’s approvals on page 2
of this form.

o      Credit to be issued in transferable form.

Page2

 

|      Any transfer(s) to this Credit to be effective by  Citibank, N.A., at its Tampa, FL
offices

                (Indicate an appropriate transferring bank name and location)

o      Attachments hereto impose additional terms and conditions on Applicant and / or Citibank and are
incorporated into this Application and Agreement as if fully set forth herein.

o      All banking charges, other than Citibank, N.A. charges, are for account of: o      Beneficiary
o     Applicant

Transmit the Credit by:   o  Cable / SWIFT  o  Airmail   o  Courier Service.

All drafts and documents called for under the Credit are to be delivered by the negotiating or
paying bank to Citibank, N.A. New York by Airmail in a single mailing.

	 	 	 	 	 
	 

	 	 	 	 
	Applicant’s Signature

	 	 	 	Date
	 
	 	 	 	 
	 

	 	 	 	 
	Account Manager’s Signature and Stamp

	 	 	 	Date

The undersigned Co-Applicant hereby agrees to all terms and conditions contained in any “CONTINUING
AGREEMENT FOR STANDBY AND COMMERCIAL LETTERS OF CREDIT” that may be in place between Citibank, N.A.
and the primary Applicant.

                                        

                                                                 

Co-Applicant Signature (if any)                                                             Co-Applicant Name

      

                                        

                                                                                     

Co-Applicant Address                                                                                          Date

Page3EX-10.1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into on April 11, 2006 (the
“Execution Date”), to be effective for all purposes as of April 17, 2006 (the
“Effective Date”), by and between General Nutrition Centers, Inc., a Delaware corporation
(the “Company”) and wholly owned subsidiary of GNC Corporation, a Delaware corporation
(“GNC”), and Alan Schlesinger (the “Executive”).

          WHEREAS, the Company desires to employ the Executive on the terms and subject to the
conditions set forth herein and the Executive has agreed to be so employed.

          NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and
agreements set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound,
agree as follows:

          1. Employment of Executive; Duties.

               1.1 Title. During the Employment Period (as defined in Section 2 hereof), the
Executive shall serve as Executive Vice President and Chief Merchandising Officer of the Company
and of GNC. The Executive shall have the normal duties, responsibilities and authority
commensurate with such positions.

               1.2 Duties. During the Employment Period, the Executive shall do and perform all
services and acts necessary or advisable to fulfill the duties and responsibilities of the
Executive’s position and shall render such services on the terms set forth herein. In addition,
the Executive shall have such other executive and managerial powers and duties as may reasonably be
assigned to the Executive by the Board of Directors of the Company (the “Board”),
commensurate with the Executive serving as Executive Vice President and Chief Merchandising
Officer. The Company may adjust the duties and responsibilities of the Executive as an Executive
Vice President, notwithstanding the specific title set forth in Section 1.1 hereof, based upon the
Company’s needs from time to time. Except for sick leave, reasonable vacations and excused leaves
of absence, the Executive shall, throughout the Employment Period, devote substantially all the
Executive’s working time, attention, knowledge and skills faithfully, and to the best of the
Executive’s ability, to the duties and responsibilities of the Executive’s positions in furtherance
of the business affairs and activities of the Company and its subsidiaries and Affiliates (as
defined in Section 5.4(a) hereof) and, except where the Company provides its written consent
otherwise, shall maintain the Executive’s principal residence within 75 miles of the principal
office of the Company as of the Effective Date. The Executive shall at all times be subject to,
comply with, observe and carry out (a) the Company’s rules, regulations, policies and codes of
ethics and/or conduct applicable to its employees generally and in effect from time to time and (b)
such rules, regulations, policies, codes of ethics and/or conduct, directions and restrictions as
the Board may from time to time reasonably establish or approve for senior executive officers of
the Company.

 

 

          2. Term of Employment.

               2.1 Employment Period. The employment of the Executive hereunder shall continue until
March 31, 2008 (the “Initial Employment Period”), unless terminated earlier in accordance
with the provisions of Section 4 of this Agreement.

               2.2 Extension. Unless terminated earlier in accordance with the provisions of Section
4 of this Agreement, the employment of the Executive hereunder shall continue after the end of the
Initial Employment Period for additional one (1)-year periods (each an “Extension Period”
and, together with the Initial Employment Period, the “Employment Period”), unless the
Company or the Executive notifies the other in writing not less than thirty (30) days prior to the
end of the Initial Employment Period, or the end of the applicable Extension Period, of its or the
Executive’s election, in its or the Executive’s sole discretion, not to extend the Employment
Period.

          3. Compensation and General Benefits.

               3.1 Base Salary.

                    (a) During the Employment Period, the Company agrees to pay to the Executive an annual base
salary in an amount equal to $275,000 (such base salary, as may be adjusted from time to time
pursuant to Section 3.1(b), is referred to herein as the “Base Salary”). The Executive’s
Base Salary, less amounts required to be withheld under applicable law, shall be payable in equal
installments in accordance with the Company’s normal payroll practices and procedures in effect
from time to time for the payment of salaries to officers of the Company, but in no event less
frequently than monthly.

                    (b) The Board or the Compensation Committee established by the Board (the “Compensation
Committee”) shall review the Executive’s performance on an annual basis and, based on such
review, may change the Base Salary, as it, acting in its sole discretion, shall determine to be
reasonable and appropriate.

               3.2 Bonus. With respect to the 2006 calendar year and with respect to each calendar
year that commences during the Employment Period, the Executive shall be eligible to receive from
the Company an annual performance bonus (the “Annual Bonus”) on a basis and in an amount to
be determined by the Board or the Compensation Committee in the exercise of its sole discretion for
the applicable year. For 2006, the Executive’s target Annual Bonus shall be forty percent (40%) of
the Executive’s Base Salary with a maximum of one hundred percent (100%) of the Executive’s Base
Salary if the Company exceeds the annual goals determined by the Board or the Compensation
Committee for 2006, provided that any Annual Bonus payable for 2006 shall be prorated based
on the period employed in 2006 beginning on the Effective Date. Any Annual Bonus earned shall be
payable in full as soon as reasonably practicable following the determination thereof, but in no
event later than May 15 of the following year, and in accordance with the Company’s normal payroll
practices and procedures. Except as otherwise expressly provided in Section 4 hereof, any Annual
Bonus (or portion thereof) payable under this Section 3.2 shall not be payable unless the Executive
is employed by the Company on the last day of the period to which such Annual Bonus relates.

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               3.3 Expenses. During the Employment Period, in addition to any amounts to which the
Executive may be entitled pursuant to the other provisions of this Section 3 or elsewhere herein,
the Executive shall be entitled to receive reimbursement from the Company for all reasonable and
necessary expenses incurred by the Executive in performing the Executive’s duties hereunder on
behalf of the Company, subject to, and consistent with, the Company’s policies for expense payment
and reimbursement, in effect from time to time.

               3.4 Fringe Benefits. During the Employment Period, in addition to any amounts to
which the Executive may be entitled pursuant to the other provisions of this Section 3 or elsewhere
herein, the Executive shall be entitled to participate in, and to receive benefits under, (a) any
benefit plans, arrangements or policies made available by the Company to its employees generally,
subject to and on a basis consistent with the terms, conditions and overall administration of each
such plan, arrangement or policy and (b) without limiting the foregoing, the benefits set forth on
Exhibit B attached hereto.

               3.5 Stock Options.

                    (a) The Company shall recommend to the Compensation Committee of GNC that the Executive be
granted a nonqualified option under the General Nutrition Centers Holding Company (presently known
as GNC Corporation) 2003 Omnibus Stock Incentive Plan (the “Plan”) to purchase a total of
100,000 shares of Common Stock, par value $0.01 per share, of GNC (the “Common Stock”) with
a per share exercise price equal to the fair market value of the Common Stock on the date of grant,
as determined by the GNC Compensation Committee, or other Administrator of the Plan (as defined
therein). The Option shall have a term of seven (7) years from the date of grant. The Option shall
become vested and exercisable in equal installments of 25% on each anniversary of the date of
grant, subject to the Executive’s continued employment with the Company. Except as otherwise
provided herein, the Option shall be subject to the terms and conditions of the Plan and the form
of option agreement applicable for other senior executives of the Company approved by the
Administrator of the Plan.

                    (b) During the Employment Period and subject to the approval of the Compensation Committee and
the GNC Compensation Committee, or other Administrator of the Plan the Executive shall be eligible
to participate in and be granted awards under the Plan.

          4. Termination.

               4.1 General. The employment of the Executive hereunder (and the Employment Period)
shall terminate as provided in Section 2 hereof, unless earlier terminated in accordance with the
provisions of this Section 4.

               4.2 Death or Disability of the Executive.

                    (a) The employment of the Executive hereunder (and the Employment Period) shall terminate upon
(i) the death of the Executive and (ii) at the option of the Company, upon not less than fifteen
(15) days’ prior written notice to the Executive or the Executive’s personal representative or
guardian, if the Executive suffers a “Total Disability” (as defined in Section 4.2(b) hereof).
Upon termination for death or Total Disability, subject to

3

 

reduction by any benefits paid or payable to the Executive, the Executive’s beneficiaries or
estate under any Company-sponsored disability benefit plan program or policy for the period
following such date of termination; provided, however, that no such reduction shall
be made for any benefits paid upon the Executive’s death under the Company’s life insurance policy,
(A) the Company shall pay to the Executive, guardian or personal representative, as the case may
be, the Executive’s current Base Salary for the remainder of the Employment Period in effect
immediately prior to the date of termination and (B) subject further to the sole discretion of the
Board or the Compensation Committee, the Company may also pay to the Executive, guardian or
personal representative, as the case may be, a prorated share of the Annual Bonus pursuant to
Section 3.2 hereof (based on the period of actual employment) that the Executive would have been
entitled to had the Executive worked the full year during which the termination occurred, provided
that bonus targets are met for the year of such termination. Any bonus shall be payable as soon as
reasonably practicable following the determination thereof, but in no event later than May 15 of
the following year, and in accordance with the Company’s normal payroll practices and procedures.

                    (b) Subject to the last sentence of this Section 4.2(b), for purposes of this Agreement,
“Total Disability” shall mean (i) if the Executive is subject to a legal decree of
incompetency (the date of such decree being deemed the date on which such disability occurred),
(ii) the written determination by a physician selected by the Company that, because of a medically
determinable disease, injury or other physical or mental disability, the Executive is unable
substantially to perform, with or without reasonable accommodation, the material duties of the
Executive required hereby, and that such disability has lasted for ninety (90) consecutive days or
any one hundred twenty (120) days during the immediately preceding twelve (12)-month period or is,
as of the date of determination, reasonably expected to last six (6) months or longer after the
date of determination, in each case based upon medically available reliable information or (iii)
Executive’s qualifying for benefits under the Company’s long-term disability coverage, if any. In
conjunction with determining mental and/or physical disability for purposes of this Agreement, the
Executive hereby consents to (x) any examinations that the Board or the Compensation Committee
determines are relevant to a determination of whether the Executive is mentally and/or physically
disabled or are required by the Company physician, (y) furnish such medical information as may be
reasonably requested and (z) waive any applicable physician patient privilege that may arise
because of such examination. Notwithstanding anything to the contrary in this Section 4.2(b),
Total Disability shall have the definition of “Disabled” contained in Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), in any instance in which amounts are paid
under this Agreement as a result of Executive’s Total Disability and such amounts are treated as
deferred compensation under Section 409A of the Code.

                    (c) With respect to outstanding stock options and other equity-based awards held by the
Executive as of the date of termination pursuant to this Section 4.2, (i) any such options that are
not vested or exercisable as of such date of termination shall immediately expire and any such
equity-based awards that are not vested as of such date of termination shall immediately be
forfeited and (ii) any such options that are vested and exercisable as of such date of termination
shall expire immediately following the expiration of the one hundred eighty (180)-day period
following such date of termination.

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                    (d) With respect to any shares of Common Stock held by the Executive that are vested as of the
date of termination pursuant to this Section 4.2 (or issued pursuant to the exercise of options
following such date of termination pursuant to Section 4.2(c) hereof), for the two hundred seventy
(270)-day period following such date of termination, the Company (or its designee) shall have the
right to purchase from the Executive or the Executive’s beneficiary, as applicable, and the
Executive or the Executive’s beneficiary hereby agrees to sell any or all such shares to the
Company (or the Company’s designee) for an amount equal to the product of (i) the per share current
fair market value of a share of Common Stock (as determined by the Board in good faith) and (ii)
the number of shares so purchased.

               4.3 Termination by the Company Without Cause or Resignation by the Executive For Good
Reason.

                    (a) The Company may terminate the Executive’s employment without “Cause” (as defined in
Section 4.3(g)), and thereby terminate the Executive’s employment (and the Employment Period) under
this Agreement at any time with no requirement for notice to the Executive.

                    (b) The Executive may resign, and thereby terminate the Executive’s employment (and the
Employment Period), at any time for “Good Reason” (as defined in Section 4.3(f) hereof), upon not
less than sixty (60) days’ prior written notice to the Company specifying in reasonable detail the
reason therefore; provided, however, that the Company shall have a reasonable
opportunity to cure any such Good Reason (to the extent possible) within thirty (30) days after the
Company’s receipt of such notice; and provided further that, if the Company is not seeking
to cure, the Company shall not be obligated to allow the Executive to continue working during such
period and may, in its sole discretion, accelerate such termination of employment (and the
Employment Period) to any date during such period.

                         (i) Executive may not terminate employment under this Agreement for Good Reason regarding any
of the Company’s acts or omissions of which Executive had actual notice for sixty (60) days or more
prior to giving notice of termination for Good Reason.

                         (ii) A determination of whether the Executive legitimately has Good Reason for termination of
the Executive’s employment under this Agreement, and of whether the Company has effectively cured
and thus eliminated the grounds for such Good Reason, shall be made only by the Chief Executive
Officer of the Company (the “Chief Executive Officer”), within the Chief Executive Officer’s sole
judgment and discretion, acting in good faith after having met with the Company’s Vice President of
Human Resources.

                    (c) In the event the Executive’s employment is terminated pursuant to this Section 4.3, then,
subject to Section 4.3(d) hereof, the following provisions shall apply:

                         (i) The Company shall continue to pay the Executive the Base Salary to which the Executive
would have been entitled pursuant to Section 3.1 hereof (at the Base Salary rate during the year of
termination) had the Executive remained in the employ

5

 

of the Company until the expiration of the Employment Period in effect immediately prior to
the date of termination, with all such amounts payable in accordance with the Company’s normal
payroll practices and procedures in the same manner and at the same time as though the Executive
remained employed by the Company.

                         (ii) If such termination occurs upon or within six (6) months following a Change of Control
(as defined in Exhibit A attached hereto), the Company shall continue to pay the Executive the Base
Salary to which the Executive would have been entitled pursuant to Section 3.1 hereof (at the Base
Salary rate during the year of termination) for the greater of (A) the period set forth in Section
4.3(c)(i) hereof or (B) a two (2)-year period following such date of termination, with all such
amounts payable in accordance with the Company’s normal payroll practices and procedures in the
same manner and at the same time as though the Executive remained employed by the Company.

                         (iii) In the event the Executive’s employment is terminated pursuant to this Section 4.3
without Cause, and if the Company has previously effected reductions in the Executive’s Base Salary
and the base salary of all executives at the same level as the Executive, which reductions were
substantially similar, then the Base Salary rate for purposes of Section 4.3(c)(i) or (ii) hereof
shall be the Base Salary rate in effect immediately prior to such reductions.

                         (iv) Subject to the sole discretion of the Board or the Compensation Committee, the Company
may pay to the Executive a prorated share of the Annual Bonus pursuant to Section 3.2 hereof (based
on the period of actual employment) that the Executive would have been entitled to had the
Executive worked the full year during which the termination occurred, provided that bonus targets
are met for the year of such termination. The bonus shall be payable as soon as reasonably
practicable following the determination thereof, but in no event later than May 15 of the following
year, and in accordance with the Company’s normal payroll practices and procedures.

                         (v) If the Executive elects continuation coverage (with respect to the Executive’s coverage
and/or any eligible dependent coverage) under the Consolidated Omnibus Budget Reconciliation Act of
1986 (“COBRA Continuation Coverage”) with respect to the Company’s group health insurance
plan, the Executive shall be responsible for payment of the monthly cost of COBRA Continuation
Coverage. Unless prohibited by law, the Company shall reimburse the Executive for any portion of
the monthly cost of COBRA Continuation Coverage that exceeds the amount of the monthly health
insurance premium (with respect to the Executive’s coverage and/or any eligible dependent coverage)
payable by the Executive immediately prior to the date of Executive’s termination, such
reimbursements to continue (A) through the expiration of the Employment Period in effect
immediately prior to the date of termination or (B) in the event that Executive’s Base Salary is
being paid pursuant to Section 4.3(c)(ii), for the period set forth therein. The Company shall pay
the reimbursements on a monthly basis in accordance with the Company’s normal payroll practices and
procedures.

                         (vi) With respect to outstanding options and other equity-based awards held by the Executive
as of the date of termination pursuant to this Section 4.3, (A) any such options that are not
vested or exercisable as of such date of termination

6

 

shall immediately expire and any such equity-based awards that are not vested as of such date
of termination shall immediately be forfeited and (B) any such options that are vested and
exercisable as of such date of termination shall expire immediately following the expiration of the
ninety (90)-day period following such date of termination.

                         (vii) With respect to any shares of Common Stock held by the Executive that are vested as of
the date of termination pursuant to this Section 4.3 (or issued pursuant to the exercise of options
following such date of termination pursuant to Section 4.3(c)(vi) hereof), for the one hundred
eighty (180)-day period following such date of termination, the Company (or its designee) shall
have the right to purchase from the Executive, and the Executive hereby agrees to sell any or all
such shares to the Company (or the Company’s designee), for an amount equal to the product of (A)
the per share current fair market value of a share of Common Stock (as determined by the Board in
good faith) and (B) the number of shares so purchased.

                         (viii) The Executive shall continue to be entitled to the perquisites available to the
Executive immediately preceding the Executive’s date of termination as provided in the Perquisite
Policy for Senior Executives (as such policy may be amended by the Board from time to time), in
each case (A) through the expiration of the Employment Period in effect immediately prior to the
date of termination or (B) in the event that Executive’s Base Salary is being paid pursuant to
Section 4.3(c)(ii), for the period set forth therein.

                    (d) As a condition precedent to the Executive’s right to receive the benefits set forth in
Section 4.3(c) hereof, the Executive agrees to execute a release of the Company and its respective
Affiliates, officers, directors, stockholders, employees, agents, insurers, representatives and
successors from and against any and all claims that the Executive may have against any such Person
(as defined in Section 5.4(f) hereof) relating to the Executive’s employment by the Company and the
termination thereof, such release to be in form and substance reasonably satisfactory to the
Company.

                    (e) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment, vesting, distribution or transfer by the Company or any successor, or any Affiliate of
the foregoing or by any other Person or that any other event occurring with respect to the
Executive and the Company for the Executive’s benefit, whether paid or payable or distributed or
distributable under the terms of this Agreement or otherwise (including under any employee benefit
plan) (a “Payment”) would be subject to or result in the imposition of the excise tax
imposed by Section 4999 of the Code (and any regulations or guidance promulgated or issued
thereunder, any successor provision, and any similar provision of state or local income tax law)
(collectively, the “Excise Tax”), then the amount of the Payment shall be reduced to the
highest amount that may be paid by the Company or other entity without subjecting any such Payment
to the Excise Tax (the “Payment Reduction”). The Executive shall have the right to
designate those payments or benefits that shall be reduced or eliminated under the Payment
Reduction to avoid the imposition of the Excise Tax, subject to the confirmation of the Accounting
Firm (as defined herein) with respect to the intended effect thereof. Notwithstanding the
foregoing, the Payment Reduction shall not apply if the Executive would, on a net after-tax basis,
receive less compensation than if the Payment were not so reduced.

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                         (i) Subject to the provisions of Section 4.3(e)(ii), all determinations required to be made
under this Section 4.3(e), including whether and when a Payment is subject to Section 4999 and the
assumptions to be utilized in arriving at such determination and in determining an appropriate
Payment Reduction, shall be made by PricewaterhouseCoopers LLP, or any other nationally recognized
accounting firm that shall be the Company’s outside auditors at the time of such determination (the
“Accounting Firm”), which Accounting Firm shall provide detailed supporting calculations to
the Executive and the Company within fifteen (15) business days of the receipt of notice from the
Company or the Executive that there will be a Payment that the Person giving notice believes may be
subject to the Excise Tax. All fees and expenses of the Accounting Firm shall be borne by the
Company. Any determination by the Accounting Firm shall be binding upon the Company and the
Executive in determining whether a Payment Reduction is required and the amount thereof (subject to
Sections 4.3(e)(ii) and (iii)), in the absence of material mathematical or legal error.

                         (ii) As a result of uncertainty in the application of Section 4999 that may exist at the time
of the initial determination by the Accounting Firm, it may be possible that in making the
calculations required to be made hereunder, the Accounting Firm shall determine that a Payment
Reduction need not be made that properly should be made (an “Overpayment”) or that a
Payment Reduction not properly needed to be made should be made (an “Underpayment”). If,
within seventy-five (75) days after the Accounting Firm’s initial determination under Section
4.3(e)(i), the Accounting Firm shall determine that an Overpayment was made, any such Overpayment
shall be treated for all purposes, to the extent practicable and subject to applicable law, as a
loan to the Executive with interest at the applicable Federal rate provided for in Section 1274(d)
of the Code and shall be repaid by the Executive to the Company within thirty-five (35) days after
the Executive receives notice of the Accounting Firm’s determination; provided,
however, that the amount to be repaid by the Executive to the Company either as a loan or
otherwise as a lump sum payment (where a loan is not practicable or permitted by law) shall be
reduced to the extent that any portion of the Overpayment to be repaid will not be offset by a
corresponding reduction in tax by reason of such repayment of the Overpayment. If the Accounting
Firm shall determine that an Underpayment was made, any such Underpayment shall be due and payable
by the Company to the Executive within thirty-five (35) days after the Company receives notice of
the Accounting Firm’s determination.

                         (iii) The Executive shall give written notice to the Company of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Executive of an Excise Tax,
such notice to be provided within fifteen (15) days after the Executive shall have received written
notice of such claim. The Executive shall cooperate with the Company in determining whether to
contest or pay such claim and shall not pay such claim without the written consent of the Company,
which shall not be unreasonably withheld, conditioned or delayed.

                         (iv) This Section 4.3(e) shall remain in full force and effect following the termination of
the Executive’s employment for any reason until the expiration of the statute of limitations on the
assessment of taxes applicable to the Executive for all periods in which the Executive may incur a
liability for taxes (including Excise Taxes), interest or penalties arising out of the operation of
this Agreement.

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                    (f) For purposes of this Agreement, the Executive would be entitled to terminate the
Executive’s employment for “Good Reason” if without the Executive’s prior written consent:

                         (i) the Company fails to comply with any material obligation imposed by this Agreement;

                         (ii) the Company changes the Executive’s position from that of an Executive Vice President;
provided, however, that (A) a change in the Executive’s duties or responsibilities
without a change in the Executive’s position as an Executive Vice President shall not constitute
Good Reason and (B) nothing herein shall prohibit the Company from changing the Executive’s
specific title as an Executive Vice President, notwithstanding the specific title set forth in
Section 1.1 hereof, based upon the Company’s needs from time to time;

                         (iii) the Company effects a reduction in the Executive’s Base Salary, unless all executives at
the same level as the Executive receive a substantially similar reduction in base salary; or

                         (iv) the Company requires the Executive to be based (excluding regular travel
responsibilities) at any office or location more than 75 miles from the principal office of the
Company.

                    (g) For purposes of this Agreement, “Cause” means the occurrence of any one or more of
the following events, and the Company shall have the sole discretion to determine the existence of
Cause:

                         (i) a failure by the Executive to comply with any obligation under this Agreement;

                         (ii) the Executive’s being indicted for (A) any felony or (B) any misdemeanor that causes or
is likely to cause harm or embarrassment to the Company or any of its Affiliates, in the reasonable
judgment of the Board;

                         (iii) theft, embezzlement or fraud by the Executive in connection with the performance of the
Executive’s duties hereunder;

                         (iv) the Executive’s engaging in any activity that gives rise to a material conflict with the
Company or any of its Affiliates;

                         (v) the misappropriation by the Executive of any material business opportunity of the Company
or any of its Affiliates;

                         (vi) any failure to comply with, observe or carry out the Company’s rules, regulations,
policies and codes of ethics and/or conduct applicable to its employees generally and in effect
from time to time, including (without limitation) those regarding conflicts, potential conflicts of
interest or the appearance of a conflict of interest

9

 

                         (vii) any failure to comply with, observe or carry out the rules, regulations, policies,
directions, codes of ethics and/or conduct and restrictions established or approved by the Board
from time to time for senior executive officers of the Company, including (without limitation)
those regarding conflicts, potential conflicts of interest or the appearance of a conflict of
interest;

                         (viii) substance abuse or use of illegal drugs that, in the reasonable judgment of the Board,
(A) impairs the Executive’s performance of the Executive’s duties hereunder or (B) causes or is
likely to cause harm or embarrassment to the Company or any of its Affiliates; and

                         (ix) engagement in conduct that Executive knows or should know is injurious to the Company or
any of its Affiliates.

               4.4 Termination For Cause, Voluntary Resignation Other Than For Good Reason or Election
Not to Extend the Employment Period.

                    (a) (i) The Company may, upon action of the Board, terminate the employment of the Executive
(and the Employment Period) at any time for “Cause,” (ii) the Executive may voluntarily resign
other than for Good Reason and thereby terminate the Executive’s employment (and the Employment
Period) under this Agreement at any time upon not less than thirty (30)-days’ prior written notice
or (iii) either the Company or the Executive may elect not to extend or further extend the
Employment Period pursuant to Section 2.2 hereof.

                    (b) The following provisions shall apply upon termination by the Company for Cause, by the
Executive as the result of resignation for other than for Good Reason, or by the Company or the
Executive at the end of the Employment Period as the result of an election not to extend or further
extend the Employment Period:

                         (i) The Executive shall be entitled to receive all amounts of earned but unpaid Base Salary
and benefits accrued through the date of such termination. Except as provided below, all other
rights of the Executive (and all obligations of the Company) hereunder shall terminate as of the
date of such termination.

                         (ii) With respect to outstanding options and other equity-based awards held by the Executive
as of the date of termination pursuant to this Section 4.4, (A) any such options that are not
vested or exercisable as of such date of termination shall immediately expire and any such
equity-based awards that are not vested as of such date of termination shall immediately be
forfeited and (B) any such options that are vested and exercisable as of such date of termination
shall expire immediately following the expiration of the ninety (90)-day period following such date
of termination.

                         (iii) With respect to any shares of Common Stock held by the Executive that are vested as of
the date of termination pursuant to this Section 4.4 (or issued pursuant to the exercise of options
following such date of termination pursuant to Section 4.4(b)(ii) hereof), for the one hundred
eighty (180)-day period following such date of termination, the Company (or its designee) shall
have the right to purchase from the Executive and the Executive hereby agrees to sell any or all
such shares to the Company (or the Company’s

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designee) for an amount equal to the product of (A) the per share current fair market value of
a share of Common Stock (as determined by the Board in good faith) and (B) the number of shares so
purchased.

               4.5 Resignation from Officer Positions. Upon the termination of the Executive’s
employment for any reason (unless otherwise agreed in writing by the Company and the Executive),
the Executive will be deemed to have resigned, without any further action by the Executive, from
any and all officer, director and/or director positions that the Executive, immediately prior to
such termination, (a) held with the Company or any of its Affiliates and (b) held with any other
entities at the direction of, or as a result of the Executive’s affiliation with, the Company or
any of its Affiliates. If for any reason this Section 4.5 is deemed to be insufficient to
effectuate such resignations, then Executive will, upon the Company’s request, execute any
documents or instruments that the Company may deem necessary or desirable to effectuate such
resignations. In addition, the Executive hereby designates the Secretary or any Assistant
Secretary of the Company and of any Affiliate to execute any such documents or instruments as the
Executive’s attorney-in-fact to effectuate such resignations if execution by the Secretary or any
Assistant Secretary of the Company or Affiliate is deemed by the Company or the Affiliate to be a
more expedient means to effectuate such resignation or resignations.

               4.6 Section 409A of the Code. Notwithstanding anything to the contrary in this
Agreement, the parties mutually desire to avoid adverse tax consequences associated with the
application of Section 409A of the Code to this Agreement and agree to cooperate fully and take
appropriate reasonable actions to avoid any such consequences under Section 409A of the Code,
including delaying payments and reforming the form of the Agreement if such action would reduce or
eliminate taxes and/or interest payable as a result of Section 409A of the Code. In this regard,
notwithstanding anything to the contrary in this Section 4, to the extent necessary to comply with
Section 409A of the Code, any payment required under this Section 4 shall be deferred for a period
of six (6) months, regardless of the circumstances giving rise to or the basis for such payment.

          5. Confidentiality, Work Product and Non-Competition and Non-Solicitation.

               5.1 Confidentiality.

                    (a) In connection with the Executive’s employment with the Company, the Company promises to
provide the Executive with access to “Confidential Information” (as defined in Section 5.4(d)
hereof) in support of the Executive’s employment duties. The Executive recognizes that the
Company’s business interests require a confidential relationship between the Company and the
Executive and the fullest practical protection and confidential treatment of all Confidential
Information. At all times, both during and after the Employment Period, the Executive shall not
directly or indirectly: (i) appropriate, download, print, copy, remove, use, disclose, divulge,
communicate or otherwise “Misappropriate” (as defined in Section 5.4(e) hereof) any Confidential
Information, including, without limitation, originals or copies of any Confidential Information, in
any media or format, except for the Company’s benefit within the course and scope of the
Executive’s employment or with the prior written consent of the Chief Executive Officer or (ii)
take or encourage any action that would

11

 

circumvent, interfere with or otherwise diminish the value or benefit of the Confidential
Information to any of the Company Parties (as defined in Section 5.4(b) hereof).

                    (b) All Confidential Information, and all other information and property affecting or relating
to the business of the Company Parties within the Executive’s possession, custody or control,
regardless of form or format, shall remain, at all times, the property of the respective Company
Parties, the appropriation, use and/or disclosure of which is governed and restricted by this
Agreement.

                    (c) The Executive acknowledges and agrees that:

                         (i) the Executive occupies a unique position within the Company, and the Executive is and will
be intimately involved in the development and/or implementation of Confidential Information;

                         (ii) in the event the Executive breaches this Section 5.1 with respect to any Confidential
Information, such breach shall be deemed to be a Misappropriation of such Confidential Information;
and

                         (iii) any Misappropriation of Confidential Information will result in immediate and
irreparable harm to the Company.

                    (d) Upon receipt of any formal or informal request, by legal process or otherwise, seeking the
Executive’s direct or indirect disclosure or production of any Confidential Information to any
Person, the Executive shall promptly and timely notify the Company and provide a description and,
if applicable, hand deliver a copy of such request to the Company. The Executive irrevocably
nominates and appoints the Company as the Executive’s true and lawful attorney-in-fact to act in
the Executive’s name, place and stead to perform any act that the Executive might perform to defend
and protect against any disclosure of Confidential Information.

                    (e) At any time the Company may request, during or after the Employment Period, the Executive
shall deliver to the Company all originals and copies of Confidential Information and all other
information and property affecting or relating to the business of the Company Parties within the
Executive’s possession, custody or control, regardless of form or format, including, without
limitation any Confidential Information produced by the Executive. Both during and after the
Employment Period, the Company shall have the right of reasonable access to review, inspect, copy
and/or confiscate any Confidential Information within the Executive’s possession, custody or
control.

                    (f) Upon termination or expiration of this Agreement, the Executive shall immediately return
to the Company all Confidential Information, and all other information and property affecting or
relating to the business of the Company Parties, within the Executive’s possession, custody or
control, regardless of form or format, without the necessity of a prior Company request.

                    (g) During the Employment Period, the Executive represents and agrees that the Executive will
not use or disclose any confidential or proprietary information

12

 

or trade secrets of others, including but not limited to former employers, and that the
Executive will not bring onto the premises of the Company or access such confidential or
proprietary information or trade secrets of such others, unless consented to in writing by said
others, and then only with the prior written authorization of the Company.

               5.2 Work Product/Intellectual Property.

                    (a) Assignment. The Executive hereby assigns to the Company all right, title and
interest to all “Work Product” (as defined in Section 5.4(h) hereof) that (i) relates to any of the
Company Parties’ actual or anticipated business, research and development or existing or future
products or services, or (ii) is conceived, reduced to practice, developed or made using any
equipment, supplies, facilities, assets, information or resources of any of the Company Parties
(including, without limitation, any intellectual property rights).

                    (b) Disclosure. The Executive shall promptly disclose Work Product to the Chief
Executive Officer and perform all actions reasonably requested by the Company (whether during or
after the Employment Period) to establish and confirm the ownership and proprietary interest of any
of the Company Parties in any Work Product (including, without limitation, the execution of
assignments, consents, powers of attorney, applications and other instruments). The Executive
shall not file any patent or copyright applications related to any Work Product except with the
written consent of the Chief Executive Officer.

               5.3 Non-Competition and Non-Solicitation.

                    (a) In consideration of the Confidential Information being provided to the Executive as stated
in Section 5.1 hereof, and other good and valuable new consideration as stated in this Agreement,
including, without limitation, employment and/or continued employment with the Company, and the
business relationships, Company goodwill, work experience, client, customer and/or vendor
relationships and other fruits of employment that the Executive will have the opportunity to
obtain, use and develop under this Agreement, the Executive agrees to the restrictive covenants
stated in this Section 5.3.

                    (b) During the Employment Period and until the end of the Restricted Period (as defined in
Section 5.4(g) hereof), the Executive agrees that the Executive will not, directly or indirectly,
on the Executive’s own behalf or on the behalf of any other Person, within the United States of
America or in any other country or territory in which the businesses of the Company are conducted:

                         (i) engage in a Competing Business, including, without limitation, by owning, managing,
operating, controlling, being employed by, providing services as a consultant or independent
contractor to or participating in the ownership, management, operation or control of any Competing
Business;

                         (ii) induce or attempt to induce any customer, vendor, supplier, licensor or other Person in a
business relationship with any Company Party, for or with which the Executive or employees working
under the Executive’s supervision had any direct or indirect responsibility or contact during the
Employment Period, (A) to do business with a

13

 

Competing Business or (B) to cease, restrict, terminate or otherwise reduce business with the
Company for the benefit of a Competing Business, regardless of whether the Executive initiates
contact; or

                         (iii) (A) solicit, recruit, persuade, influence or induce, or attempt to solicit, recruit,
persuade, influence or induce anyone employed or otherwise retained by any of the Company Parties
(including any independent contractor or consultant), to cease or leave their employment or
contractual or consulting relationship with any Company Party, regardless of whether the Executive
initiates contact for such purposes or (B) hire, employ or otherwise attempt to establish, for any
Person, any employment, agency, consulting, independent contractor or other business relationship
with any Person who is or was employed or otherwise retained by any of the Company Parties
(including any independent contractor or consultant).

                    (c) The parties hereto acknowledge and agree that, notwithstanding anything in Section
5.3(b)(i) hereof, (i) the Executive may own or hold, solely as passive investments, securities of
Persons engaged in any business that would otherwise be included in Section 5.3(b)(i), as long as
with respect to each such investment the securities held by the Executive do not exceed five
percent (5%) of the outstanding securities of such Person and such securities are publicly traded
and registered under Section 12 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and (ii) the Executive may serve on the board of directors (or other
comparable position) or as an officer of any entity at the request of the Board; provided,
however, that in the case of investments otherwise permitted under clause (i) above, the
Executive shall not be permitted to, directly or indirectly, participate in, or attempt to
influence, the management, direction or policies of (other than through the exercise of any voting
rights held by the Executive in connection with such securities), or lend the Executive’s name to,
any such Person.

                    (d) The Executive acknowledges and agrees that, for purposes of this Section 5.3, indirect
acts by the Executive shall include, without limitation, an act by the Executive’s spouse,
ancestor, lineal descendant, lineal descendant’s spouse, sibling or other member of the Executive’s
immediate family.

                    (e) The Executive acknowledges that (i) the restrictive covenants contained in this Section
5.3 hereof are ancillary to and part of an otherwise enforceable agreement, such being the
agreements concerning Confidential Information and other consideration as stated in this Agreement,
(ii) at the time that these restrictive covenants are made, the limitations as to time, geographic
scope and activity to be restrained, as described herein, are reasonable and do not impose a
greater restraint than necessary to protect the good will and other legitimate business interests
of the Company, including without limitation, Confidential Information (including trade secrets),
client, customer and/or vendor relationships, client and/or customer goodwill and business
productivity, (iii) in the event of termination of the Executive’s employment, the Executive’s
experiences and capabilities are such that the Executive can obtain gainful employment without
violating this Agreement and without the Executive incurring undue hardship, (iv) based on the
relevant benefits and other new consideration provided for in this Agreement, including, without
limitation, the disclosure and use of Confidential Information, the restrictive covenants of this
Section 5.3, as applicable according to their terms, shall remain in full force and effect even in
the event of the Executive’s

14

 

involuntary termination from employment, with or without Cause and (v) the Executive has
carefully read this Agreement and has given careful consideration to the restraints imposed upon
the Executive by this Agreement and consents to the terms of the restrictive covenants in this
Section 5.3, with the knowledge that this Agreement may be terminated at any time in accordance
with the provisions hereof.

               5.4 Definitions. For purposes of this Agreement, the following terms shall have the
following meanings:

                    (a) An “Affiliate” of any specified Person means any other Person, whether now or
hereafter existing, directly or indirectly controlling or controlled by, or under direct or
indirect common control with, such specified Person. For purposes hereof, “control” or any other
form thereof, when used with respect to any Person, means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” shall have
meanings correlative to the foregoing.

                    (b) “Company Parties” means the Company, and its direct and indirect parents,
subsidiaries and Affiliates, and their successors in interest.

                    (c) “Competing Business” means any business that competes with any of the Company
Parties, including, without limitation, any enterprise that engages in, owns or operates businesses
that market, sell, distribute, manufacture or otherwise are involved in the nutritional supplements
industry.

                    (d) Confidential Information.

                         (i) Definition. “Confidential Information” means any and all material,
information, ideas, inventions, formulae, patterns, compilations, programs, devices, methods,
techniques, processes, know how, plans (marketing, business, strategic, technical or otherwise),
arrangements, pricing and other data of or relating to any of the Company Parties (as well as their
customers and/or vendors) that is confidential, proprietary or trade secret (A) by its nature, (B)
based on how it is treated or designated by a Company Party, (C) because the disclosure of which
would have a material adverse effect on the business or planned business of any of the Company
Parties and/or (D) as a matter of law.

                         (ii) Exclusions. Confidential Information does not include material, data, and/or
information (A) that any Company Party has voluntarily placed in the public domain, (B) that has
been lawfully and independently developed and publicly disclosed by third parties, (C) that
constitutes the general non-specialized knowledge and skills gained by the Executive during the
Employment Period or (D) that otherwise enters the public domain through lawful means;
provided, however, that the unauthorized appropriation, use or disclosure of
Confidential Information by the Executive, directly or indirectly, shall not affect the protection
and relief afforded by this Agreement regarding such information.

                         (iii) Inclusions. Confidential Information includes, without limitation, the following
information (including without limitation, compilations or collections of information) relating or
belonging to any Company Party (as well as their clients,

15

 

customers and/or vendors) and created, prepared, accessed, used or reviewed by the Executive
during or after the Employment Period: (1) product and manufacturing information, such as
ingredients, combinations of ingredients and manufacturing processes; (2) scientific and technical
information, such as research and development, tests and test results, formulae and formulations,
studies and analysis; (3) financial and cost information, such as operating and production costs,
costs of goods sold, costs of supplies and manufacturing materials, non-public financial statements
and reports, profit and loss information, margin information and financial performance information;
(4) customer related information, such as customer related contracts, engagement and scope of work
letters, proposals and presentations, customer-related contacts, lists, identities and prospects,
practices, plans, histories, requirements and needs, price information and formulae and information
concerning client or customer products, services, businesses or equipment specifications; (5)
vendor and supplier related information, such as the identities, practices, history or services of
any vendors or suppliers and vendor or supplier contacts; (6) sales, marketing and price
information, such as marketing and sales programs and related data, sales and marketing strategies
and plans, sales and marketing procedures and processes, pricing methods, practices and techniques
and pricing schedules and lists; (7) database, software and other computer related information,
such as computer programs, data, compilations of information and records, software and computer
files, presentation software and computer-stored or backed-up information including, but not
limited to, e-mails, databases, word processed documents, spreadsheets, notes, schedules, task
lists, images and video; (8) employee-related information, such as lists or directories identifying
employees, representatives and contractors, and information regarding the competencies (knowledge,
skill, experience), compensation and needs of employees, representatives and contractors and
training methods; and (9) business- and operation-related information, such as operating methods,
procedures, techniques, practices and processes, information about acquisitions, corporate or
business opportunities, information about partners and potential investors, strategies, projections
and related documents, contracts and licenses and business records, files, equipment, notebooks,
documents, memoranda, reports, notes, sample books, correspondence, lists and other written and
graphic business records.

                    (e) “Misappropriate”, or any form thereof, means:

                         (i) the acquisition of any Confidential Information by a Person who knows or has reason to
know that the Confidential Information was acquired by theft, bribery, misrepresentation, breach or
inducement of a breach of a duty to maintain secrecy or espionage through electronic or other means
(each, an “Improper Means”); or

                         (ii) the disclosure or use of any Confidential Information without the express consent of the
Company by a Person who (A) used Improper Means to acquire knowledge of the Confidential
Information, (B) at the time of disclosure or use, knew or had reason to know that his or her
knowledge of the Confidential Information was (x) derived from or through a Person who had utilized
Improper Means to acquire it, (y) acquired under circumstances giving rise to a duty to maintain
its secrecy or limit its use or (z) derived from or through a Person who owed a duty to the Company
to maintain its secrecy or limit its use or (C) before a material change of his or her position,
knew or had reason to know that it was Confidential Information and that knowledge of it had been
acquired by accident or mistake.

16

 

                    (f) “Person” means any individual, corporation, partnership, limited liability
company, joint venture, association, business trust, joint-stock company, estate, trust,
unincorporated organization, government or other agency or political subdivision thereof or any
other legal or commercial entity.

                    (g) “Restricted Period” means the longer of (i) twelve (12) months after the date of
termination of employment (the Executive’s last day of work for the Company) or (ii) the period
during which the Executive is receiving payments from the Company pursuant to Section 4 hereof.

                    (h) “Work Product” means all patents and patent applications, all inventions,
innovations, improvements, developments, methods, designs, analyses, drawings, reports, creative
works, discoveries, software, computer programs, modifications, enhancements, know-how,
formulations, concepts and ideas, and all similar or related information (in each case whether or
not patentable), all copyrights and copyrightable works, all trade secrets, confidential
information, and all other intellectual property and intellectual property rights that are
conceived, reduced to practice, developed or made by the Executive either alone or with others in
the course of employment with the Company (including employment prior to the date of this
Agreement).

               5.5 Remedies. Because the Executive’s services are unique and because the Executive
has access to Confidential Information, the Executive acknowledges and agrees that if the Executive
breaches any of the provisions of Section 5 hereof, the Company may suffer immediate and
irreparable harm for which monetary damages alone will not be a sufficient remedy. The restrictive
covenants stated in Section 5 hereof are without prejudice to the Company’s rights and causes of
action at law.

               5.6 Interpretation; Severability.

                    (a) The Executive has carefully considered the possible effects on the Executive of the
covenants not to compete, the confidentiality provisions and the other obligations contained in
this Agreement, and the Executive recognizes that the Company has made every effort to limit the
restrictions placed upon the Executive to those that are reasonable and necessary to protect the
Company’s legitimate business interests.

                    (b) The Executive acknowledges and agrees that the restrictive covenants set forth in this
Agreement are reasonable and necessary in order to protect the Company’s valid business interests.
It is the intention of the parties hereto that the covenants, provisions and agreements contained
herein shall be enforceable to the fullest extent allowed by law. If any covenant, provision or
agreement contained herein is found by a court having jurisdiction to be unreasonable in duration,
scope or character of restrictions, or otherwise to be unenforceable, such covenant, provision or
agreement shall not be rendered unenforceable thereby, but rather the duration, scope or character
of restrictions of such covenant, provision or agreement shall be deemed reduced or modified with
retroactive effect to render such covenant, provision or agreement reasonable or otherwise
enforceable (as the case may be), and such covenant, provision or agreement shall be enforced as
modified. If the court having jurisdiction will not review the covenant, provision or agreement,
the parties hereto shall mutually agree to a revision having an effect as close as permitted by
applicable law to the provision declared

17

 

unenforceable. The parties hereto agree that if a court having jurisdiction determines,
despite the express intent of the parties hereto, that any portion of the covenants, provisions or
agreements contained herein are not enforceable, the remaining covenants, provisions and agreements
herein shall be valid and enforceable. Moreover, to the extent that any provision is declared
unenforceable, the Company shall have any and all rights under applicable statutes or common law to
enforce its rights with respect to any and all Confidential Information or unfair competition by
the Executive.

          6. Miscellaneous.

               6.1 Public Statements.

                    (a) Media Nondisclosure. The Executive agrees that during the Employment Period or at
any time thereafter, except as may be authorized in writing by the Company, the Executive will not
directly or indirectly disclose or release to the Media any information concerning or relating to
any aspect of the Executive’s employment or termination from employment with the Company and/or any
aspect of any dispute that is the subject of this Agreement. For the purposes of this Agreement,
the term “Media” includes, without limitation, any news organization, station, publication,
show, website, web log (blog), bulletin board, chat room and/or program (past, present and/or
future), whether published through the means of print, radio, television and/or the Internet or
otherwise, and any member, representative, agent and/or employee of the same.

                    (b) Non-Disparagement. The Executive agrees that during the Employment Period or at
any time thereafter, the Executive will not make any statements, comments or communications in any
form, oral, written or electronic to any Media or any customer, client or supplier of the Company
or any of its Affiliates, which would constitute libel, slander or disparagement of the Company or
any of its Affiliates, including, without limitation, any such statements, comments or
communications that criticize, ridicule or are derogatory to the Company or any of its Affiliates;
provided, however, that the terms of this Section 6.1(b) shall not apply to
communications between the Executive and, as applicable, the Executive’s attorneys or other persons
with whom communications would be subject to a claim of privilege existing under common law,
statute or rule of procedure. The Executive further agrees that the Executive will not in any way
solicit any such statements, comments or communications from others.

               6.2 ARBITRATION. SUBJECT TO THE RIGHTS UNDER SECTION 6.3 HEREOF TO SEEK INJUNCTIVE OR
OTHER EQUITABLE RELIEF, BINDING ARBITRATION SHALL BE THE EXCLUSIVE REMEDY FOR ANY AND ALL DISPUTES,
CLAIMS OR CONTROVERSIES, WHETHER STATUTORY, CONTRACTUAL OR OTHERWISE, BETWEEN THE PARTIES HERETO
ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE EXECUTIVE’S EMPLOYMENT BY OR TERMINATION FROM
THE COMPANY (INCLUDING, BUT NOT LIMITED TO, THE AMOUNT OF DAMAGES, OR THE CALCULATION OF ANY BONUS
OR OTHER AMOUNT OR BENEFIT DUE) (COLLECTIVELY, “DISPUTES”). THE PARTIES EACH WAIVE THE
RIGHT TO A JURY TRIAL AND WAIVE THE RIGHT TO ADJUDICATE THEIR DISPUTES UNDER THIS AGREEMENT OUTSIDE
THE ARBITRATION FORUM PROVIDED FOR IN THIS

18

 

AGREEMENT, EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT. In the event either party
provides a notice of arbitration of any dispute to the other party, the parties agree to submit
that dispute to a single arbitrator selected from a panel of arbitrators of JAMS located in
Pittsburgh, Pennsylvania. The arbitration will be governed by the JAMS Comprehensive Arbitration
Rules and Procedures in effect at the time the arbitration is commenced. If for any reason JAMS
cannot serve as the arbitration administrator, the Company may select an alternative arbitration
administrator such as the American Arbitration Association, to serve under the terms of this
Agreement.

                    (a) VENUE. THE PARTIES STIPULATE AND AGREE THAT THE EXCLUSIVE VENUE OF ANY SUCH
ARBITRATION PROCEEDING (AND OF ANY OTHER PROCEEDING, INCLUDING ANY COURT PROCEEDING, UNDER THIS
AGREEMENT) SHALL BE ALLEGHENY COUNTY, PENNSYLVANIA (THE “AGREED VENUE”).

                    (b) Authority and Decision. The arbitrator shall have the authority to award the same
damages and other relief that a court could award. The arbitrator shall issue a reasoned award
explaining the decision and any damages awarded. The arbitrator’s decision will be final and
binding upon the parties and enforceable by a court of competent jurisdiction. The parties will
abide by and perform any award rendered by the arbitrator. In rendering the award, the arbitrator
shall state the reasons therefor, including (without limitation) any computations of actual damages
or offsets, if applicable.

                    (c) Fees and Costs. In the event of arbitration under the terms of this Agreement,
the fees charged by JAMS or other arbitration administrator and the arbitrator shall be borne by
the parties as determined by the arbitrator, except for any initial registration fee, which the
parties shall bear equally. Otherwise, the parties shall each bear their own costs, expenses and
attorneys’ fees incurred in arbitration; provided, however, that the prevailing
party shall be entitled to recover and have awarded its attorneys’ fees, court costs, arbitration
expenses, and its portion of the fees and costs charged by JAMS or other arbitration administrator,
regardless of which party initiated the proceedings, in addition to any other relief to which it
may be entitled.

                    (d) Limited Scope. The following are excluded from binding arbitration under this
Agreement: claims for workers’ compensation benefits or unemployment benefits; replevin; and
claims for which a binding arbitration agreement is invalid as a matter of law.

               6.3 Injunctive Relief. The parties hereto may seek injunctive relief in arbitration;
provided, however, that as an exception to the arbitration agreement set forth in
Section 6.2 hereof, the parties, in addition to all other available remedies, shall each have the
right to initiate an action in any court of competent jurisdiction in order to request injunctive
or other equitable relief regarding the terms of Sections 5 or 6.2 hereof. The exclusive venue of
any such proceeding shall be in the Agreed Venue. The parties agree (a) to submit to the
jurisdiction of any competent court in the Agreed Venue, (b) to waive any and all defenses the
Executive may have on the grounds of lack of jurisdiction of such court and (c) that neither party
shall be required to post any bond, undertaking or other financial deposit or guarantee in seeking

19

 

or obtaining such equitable relief. Evidence adduced in any such proceeding for an injunction
may be used in arbitration as well. The existence of this right shall not preclude or otherwise
limit the applicability or exercise of any other rights and remedies that a party hereto may have
at law or in equity.

               6.4 Settlement of Existing Rights. In exchange for the other terms of this Agreement,
the Executive acknowledges and agrees that: (a) the Executive’s entry into this Agreement is a
condition of employment and/or continued employment with the Company, as applicable; (b) except as
otherwise provided herein, this Agreement will replace any existing employment agreement between
the parties and thereby act as a novation, if applicable; (c) the Executive is being provided with
access to Confidential Information, including, without limitation, proprietary trade secrets of one
or more Company Parties, to which the Executive has not previously had access; (d) all Company
inventions and intellectual property developed by the Executive during any past employment with the
Company and all goodwill developed with the Company’s clients, customers and other business
contacts by the Executive during any past employment with Company, as applicable, is the exclusive
property of the Company; and (e) all Confidential Information and/or specialized training accessed,
created, received or utilized by the Executive during any past employment with Company, as
applicable, will be subject to the restrictions on Confidential Information described in this
Agreement, whether previously so agreed or not.

               6.5 Entire Agreement; Waiver. This Agreement contains the entire agreement between
the Executive and the Company with respect to the subject matter hereof, and supersedes any and all
prior understandings or agreements, whether written or oral. No modification or addition hereto or
waiver or cancellation of any provision hereof shall be valid except by a writing signed by the
party to be charged therewith. No delay on the part of any party to this Agreement in exercising
any right or privilege provided hereunder or by law shall impair, prejudice or constitute a waiver
of such right or privilege.

               6.6 Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania, without regard to principles of conflict of
laws.

               6.7 Successors and Assigns; Binding Agreement. The rights and obligations of the
parties under this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their heirs, personal representatives, successors and permitted assigns. This Agreement is a
personal contract, and, except as specifically set forth herein, the rights and interests of the
Executive herein may not be sold, transferred, assigned, pledged or hypothecated by any party
without the prior written consent of the others. As used herein, the term “successor” as it
relates to the Company, shall include, but not be limited to, any successor by way of merger,
consolidation or sale of all or substantially all of such Person’s assets or equity interests.

               6.8 Representation by Counsel; Independent Judgment. Each of the parties hereto
acknowledges that (a) it or the Executive has read this Agreement in its entirety and understands
all of its terms and conditions, (b) it or the Executive has had the opportunity to consult with
any individuals of its or the Executive’s choice regarding its or the Executive’s

20

 

agreement to the provisions contained herein, including legal counsel of its or the
Executive’s choice, and any decision not to was the Executive’s or its alone and (c) it or the
Executive is entering into this Agreement of its or the Executive’s own free will, without coercion
from any source, based upon its or the Executive’s own independent judgment.

               6.9 Interpretation. The parties and their respective legal counsel actively
participated in the negotiation and drafting of this Agreement, and in the event of any ambiguity
or mistake herein, or any dispute among the parties with respect to the provisions hereto, no
provision of this Agreement shall be construed unfavorably against any of the parties on the ground
that the Executive, it, or the Executive’s or its counsel was the drafter thereof.

               6.10 Survival. The provisions of Sections 4.3(e), 5 and 6 hereof shall survive the
termination of this Agreement.

               6.11 Notices. All notices and communications hereunder shall be in writing and shall
be deemed properly given and effective when received, if sent by facsimile or telecopy, or by
postage prepaid by registered or certified mail, return receipt requested, or by other delivery
service which provides evidence of delivery, as follows:

	 	 	 
	 

	 	If to the Company, to:
	 
	 	 
	 

	 	General Nutrition Centers, Inc.

300 Sixth Avenue

Pittsburgh, PA 15222

Attention: General Counsel
	 
	 	 
	 

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

	 	Gardere Wynne Sewell LLP

1601 Elm Street, Suite 3000

Dallas, Texas 75201-4761

Attention: Ronald M. Gaswirth, Esq.

Telephone: (214) 999-4601

Facsimile: (214) 999-3601

E-mail: rgaswirth@gardere.com
	 
	 	 
	 

	 	If to the Executive, to:
	 
	 	 
	 

	 	Alan Schlesinger

at the most recent address of the

Executive on file with the Company

or to such other address as one party may provide in writing to the other party from time to time.

               6.12 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original and all of which together shall constitute one and the same
instrument. Facsimile transmission of any signed original document or

21

 

retransmission of any signed facsimile transmission will be deemed the same as delivery of an
original. At the request of any party, the parties will confirm facsimile transmission by signing
a duplicate original document.

               6.13 Captions. Paragraph headings are for convenience only and shall not be
considered a part of this Agreement.

               6.14 No Third Party Beneficiary Rights. Except as otherwise provided in this
Agreement, no entity shall have any right to enforce any provision of this Agreement, even if
indirectly benefited by it.

               6.15 Withholding. Any payments provided for hereunder shall be paid net of any
applicable withholding required under Federal, state or local law and any additional withholding to
which Executive has agreed.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

22

 

          IN WITNESS WHEREOF, the parties have duly executed this Agreement, intending it as a document
under seal, on the Execution Date to be effective for all purposes as of the Effective Date.

	 	 	 	 	 	 	 
	WITNESS/
	 	 	 	 	 	 
	ATTEST:	 	 	 	GENERAL NUTRITION CENTERS, INC.
	 
	 	 	 	 	 	 
	     /s/ Toni Vardiman

	 	 	 	By:
	 	     /s/ Robert J. DiNicola
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Robert J. DiNicola
	 

	 	 	 	 	 	Executive Chairman of the Board
	 
	 	 	 	 	 	 
	     /s/ Ronald M. Gaswirth

	 	 	 	By:
	 	     /s/ Joseph Fortunato
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joseph Fortunato
	 

	 	 	 	 	 	President and Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	 	 	EXECUTIVE
	 
	 	 	 	 	 	 
	     /s/ Ronald M. Gaswirth

	 	 	 	 	 	     /s/ Alan Schlesinger
	 	 	 	 	 
	 	 	 	 	Name: Alan Schlesinger

23

 

EXHIBIT A

Definition of Change of Control

     “Change of Control” means:

     (1) any event occurs the result of which is that any “Person,” as such term is used in
Sections 13(d) and 14(d) of the Exchange Act, other than one or more Permitted Holders or their
Related Parties, becomes the beneficial owner, as defined in Rules l3d-3 and l3d-5 under the
Exchange Act (except that a Person shall be deemed to have “beneficial ownership” of all shares
that any such Person has the right to acquire within one year) directly or indirectly, of more than
50% of the Voting Stock of GNC or any successor company, including, without limitation, through a
merger or consolidation or purchase of Voting Stock of GNC; provided that the Permitted Holders or
their Related Parties do not have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the GNC Board of Directors; provided further that the
transfer of 100% of the Voting Stock of GNC to a Person that has an ownership structure identical
to that of GNC prior to such transfer, such that GNC becomes a wholly owned Subsidiary of such
Person, shall not be treated as a Change of Control;

     (2) after an initial public offering of Capital Stock of GNC, during any period of two (2)
consecutive years, individuals who at the beginning of such period constituted the GNC Board of
Directors, together with any new directors whose election by such GNC Board of Directors or whose
nomination for election by the stockholders of GNC was approved by a vote of a majority of the
directors of GNC then still in office who were either directors at the beginning of such period or
whose election or nomination for election was previously so approved, cease for any reason to
constitute a majority of the GNC Board of Directors then in office;

     (3) the sale, lease, transfer, conveyance or other disposition, in one or a series of related
transactions other than a merger or consolidation, of all or substantially all of the assets of GNC
and its Subsidiaries taken as a whole to any Person or group of related Persons other than a
Permitted Holder or a Related Party of a Permitted Holder; or

     (4) the adoption of a plan relating to the liquidation or dissolution of GNC.

     For purposes of this definition, the following terms shall have the meanings set forth below:

     An “Affiliate” of any specified Person means any other Person, whether now or hereafter
existing, directly or indirectly controlling or controlled by, or under direct or indirect common
control with, such specified Person. For purposes hereof, “control” or any other form thereof,
when used with respect to any Person, means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “controlling” and “controlled” shall have meanings correlative to the
foregoing.

     “Apollo” means Apollo Management V, L.P. and its Affiliates or any entity controlled thereby
or any of the partners thereof.

A-1

 

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in, however designated,
equity of such Person, including any Preferred Stock, but excluding any debt securities convertible
into such equity.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “GNC” means GNC Corporation, a Delaware corporation.

     “GNC Board of Directors” means the Board of Directors of GNC or any committee thereof duly
authorized to act on behalf of such Board of Directors.

     “Permitted Holder” means Apollo.

     “Person” means any individual, corporation, partnership, limited liability company, joint
venture, association, business trust, joint-stock company, estate, trust, unincorporated
organization, government or other agency or political subdivision thereof or any other legal or
commercial entity.

     “Preferred Stock” as applied to the Capital Stock of any corporation means Capital Stock of
any class or classes, however designated, that is preferred as to the payment of dividends, or as
to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such corporation.

     “Related Party” means:

     (1) any controlling stockholder, 80% (or more) owned Subsidiary, or immediate family
member (in the case of an individual) of any Permitted Holder; or

     (2) any trust, corporation, partnership, limited liability company or other entity, the
beneficiaries, stockholders, partners, members, owners or Persons beneficially holding an
80% or more controlling interest of which consist of any one or more Permitted Holders
and/or such other Persons referred to in the immediately preceding clause (1).

     “Subsidiary” means, with respect to any specified Person:

     (1) any corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency and after giving effect to any voting agreement or stockholders’ agreement
that effectively transfers voting power) to vote in the election of directors, managers or
trustees of the corporation, association or other business entity is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person (or a combination thereof); and

     (2) any partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general

A-2

 

partners of which are that Person or one or more Subsidiaries of that Person (or any
combination thereof).

     “Voting Stock” of an entity means all classes of Capital Stock of such entity then outstanding
and normally entitled to vote in the election of directors or all interests in such entity with the
ability to control the management or actions of such entity.

     Notwithstanding anything to the contrary in this Exhibit A, the definition of Change of
Control shall be interpreted consistently with the definition of “Change of Control” contained in
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and regulations
and guidance issued by the Internal Revenue Service under Section 409A of the Code, including IRS
Notice 2005-1.

A-3

 

EXHIBIT B

Fringe Benefits

	1.	 	Health insurance in accordance with the Company’s health insurance plan or program in effect
from time to time (with eligibility beginning on the first of the month following 30 days of
employment).

	2.	 	Prescription drug coverage in accordance with the Company’s health insurance plan or program,
or separate prescription drug coverage plan or program, in effect from time to time (with
eligibility beginning on the first of the month following 30 days of employment).

	3.	 	Dental insurance in accordance with the Company’s dental insurance plan or program in effect
from time to time (with eligibility beginning on the first of the month following 30 days of
employment).

	4.	 	Long-term disability insurance in accordance with the Company’s long-term disability
insurance plan or program in effect from time to time (with eligibility beginning on the first
of the month following 30 days of employment).

	5.	 	Short-term disability insurance in accordance with the Company’s short-term insurance plan or
program in effect from time to time (with eligibility beginning on the first of the month
following 30 days of employment).

	6.	 	Life insurance coverage in amount equal to one (1) times Base Salary (with eligibility
beginning on the first of the month following 30 days of employment).

	7.	 	Automobile allowance in an annual amount equal to $6,500, which shall be paid in 26 equal
bi-weekly installments each year in accordance with the Company’s normal payroll practices and
procedures in effect from time to time.

	8.	 	Professional Assistance with an annual value in an amount equal to $7,500, which shall be
paid in 26 equal bi-weekly installments each year in accordance with the Company’s normal
payroll practices and procedures in effect from time to time.

	9.	 	A supplemental retirement allowance in an annual amount equal to $10,000, which shall be paid
in 26 equal bi-weekly installments each year in accordance with the Company’s normal payroll
practices and procedures in effect from time to time.

	10.	 	A financial planning and tax preparation allowance in an amount equal to $5,000 per year,
which shall be paid in 26 equal bi-weekly installments each year in accordance with the
Company’s normal payroll practices and procedures in effect from time to time.

11. A downtown Pittsburgh parking lease with an annual value in an amount equal to $3,300.

B-1

 

	12.	 	The Company will pay for the Executive’s relocation to
the Pittsburg, Pennsylvania area in
accordance with the Company’s policy applicable to senior executives. The relocation
process will be administered by The Relocation Center.

B-2

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