Document:

EX-10.1

 

Exhibit
10.1

Dick’s Sporting Goods

Supplemental Smart Savings

Plan

Effective:
July 1, 2006

 

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	CONTENTS
	 	 	 	 	 	 	i	 
	          Article
	 	I.	 	INTRODUCTION	 	 	1	 
	 
	 	1.1	 	Introduction and Purpose	 	 	1	 
	          Article
	 	II.	 	DEFINITIONS	 	 	2	 
	 
	 	2.1	 	Account(s)	 	 	2	 
	 
	 	2.2	 	Affiliated Company	 	 	2	 
	 
	 	2.3	 	Base Salary Deferral Account	 	 	2	 
	 
	 	2.4	 	Base Salary Deferral Credits	 	 	2	 
	 
	 	2.5	 	Benefit Distribution Date	 	 	2	 
	 
	 	2.6	 	Board of Directors	 	 	2	 
	 
	 	2.7	 	Change in Control	 	 	2	 
	 
	 	2.8	 	Code	 	 	4	 
	 
	 	2.9	 	Committee	 	 	4	 
	 
	 	2.10	 	Company	 	 	5	 
	 
	 	2.11	 	Compensation	 	 	5	 
	 
	 	2.12	 	Deferral Election	 	 	5	 
	 
	 	2.13	 	Dick’s Matching Deferral Account	 	 	5	 
	 
	 	2.14	 	Dick’s Matching Deferral Credits	 	 	5	 
	 
	 	2.15	 	Disability	 	 	5	 
	 
	 	2.16	 	Effective Date	 	 	5	 
	 
	 	2.17	 	Eligible Employee	 	 	5	 
	 
	 	2.18	 	ERISA	 	 	5	 
	 
	 	2.19	 	Incentive Bonus Award Deferral Account	 	 	6	 
	 
	 	2.20	 	Incentive Bonus Award Deferral Credits	 	 	6	 
	 
	 	2.21	 	Installment(s)	 	 	6	 
	 
	 	2.22	 	Normal Form of Distribution	 	 	6	 
	 
	 	2.23	 	Participant	 	 	6	 
	 
	 	2.24	 	Performance-based Compensation	 	 	6	 
	 
	 	2.25	 	Plan	 	 	6	 
	 
	 	2.26	 	Plan Year	 	 	6	 
	 
	 	2.27	 	Quarterly Bonus Deferral Account	 	 	6	 
	 
	 	2.28	 	Quarterly Bonus Deferral Credits	 	 	7	 
	 
	 	2.29	 	Separation from Service	 	 	7	 
	 
	 	2.30	 	Specified Employee	 	 	7	 
	 
	 	2.31	 	Valuation Date	 	 	7	 
	 
	 	2.32	 	Vanguard Funds	 	 	7	 
	          Article
	 	III.	 	ELIGIBILITY AND PARTICIPATION	 	 	8	 
	 
	 	3.1	 	Eligibility to Participate	 	 	8	 
	 
	 	3.2	 	Change in Status as Eligible Employee	 	 	8	 

Dick’s Sporting Goods Supplemental Smart Savings Plan

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	          Article
	 	IV.	 	DEFERRAL ELECTIONS	 	 	9	 
	 
	 	4.1	 	Establishment of Participant Accounts	 	 	9	 
	 
	 	4.2	 	Participant Deferral Credits	 	 	9	 
	 
	 	4.3	 	Deferral Election	 	 	10	 
	 
	 	4.4	 	Company Matching Credits	 	 	10	 
	 
	 	4.5	 	Credits for Investment Earnings and Debits for Investment Losses	 	 	11	 
	          Article
	 	V.	 	VESTING	 	 	13	 
	 
	 	5.1	 	Vesting of Accounts	 	 	13	 
	 
	 	5.2	 	Vesting of Dick’s Matching Deferral Account	 	 	13	 
	          Article
	 	VI.	 	PAYMENT OF BENEFITS	 	 	14	 
	 
	 	6.1	 	Distribution Elections	 	 	14	 
	 
	 	6.2	 	Timing of Distributions — Benefit Distribution Date	 	 	14	 
	 
	 	6.3	 	Form of Distribution	 	 	15	 
	 
	 	6.4	 	Revised Distribution Election
— Time and Form of Distribution	 	 	15	 
	 
	 	6.5	 	Permitted Acceleration of Payment:
Domestic Relations Order	 	 	15	 
	 
	 	6.6	 	Payment for Unforeseen Emergency	 	 	16	 
	 
	 	6.7	 	Payment of Disability Benefits	 	 	16	 
	 
	 	6.8	 	Payment of Death Benefits	 	 	17	 
	 
	 	6.9	 	Change in Control	 	 	17	 
	 
	 	6.10	 	Valuation of Distributions	 	 	18	 
	          Article
	 	VII.	 	AMENDMENT OR TERMINATION OF PLAN	 	 	19	 
	 
	 	7.1	 	Amendments Generally	 	 	19	 
	 
	 	7.2	 	Right to Terminate	 	 	19	 
	          Article
	 	VIII.	 	MISCELLANEOUS	 	 	21	 
	 
	 	8.1	 	Unfunded Plan	 	 	21	 
	 
	 	8.2	 	Nonguarantee of Employment	 	 	21	 
	 
	 	8.3	 	Nonalienation of Benefits	 	 	21	 
	 
	 	8.4	 	Taxes and Withholding	 	 	22	 
	 
	 	8.5	 	Applicable Law	 	 	22	 
	 
	 	8.6	 	Headings and Subheadings	 	 	22	 
	 
	 	8.7	 	Successors	 	 	22	 
	 
	 	8.8	 	No Guarantee of Tax Consequences	 	 	22	 
	          Article
	 	IX.	 	ADMINISTRATION OF THE PLAN	 	 	23	 
	 
	 	9.1	 	Powers and Duties of the Executive Benefits Committee	 	 	23	 
	 
	 	9.2	 	Claims Procedure	 	 	24	 
	          EXECUTION OF DOCUMENT
	 	25	 

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Article I. INTRODUCTION

	1.1	 	Introduction and Purpose
	 	 	Dick’s Sporting Goods Supplemental Smart Savings Plan (the “Plan”) has been established by
Dick’s Sporting Goods, Inc. (the “Company”) for the purpose of providing deferred
compensation for a select group of management or highly compensated employees who contribute
materially to the continued growth, development and future business
success of the Company.
This Plan is intended to enhance the long-term performance and retention of such management
or highly compensated employees selected to participate in this Plan.
	 
	 	 	This Plan is intended to constitute a non-qualified, unfunded plan for federal tax purposes
and for purposes of Title I of the Employee Retirement Income Security Act of 1974 as
amended from time to time (“ERISA”). Further, this Plan is intended to comply with section
409A of the Internal Revenue Code (the “Code”) and is to be construed in accordance Code
Section 409A and the regulations issued thereunder, as in effect from time to time. Without
affecting the validity of any other provision of the Plan, to the extent that any Plan
provision does not meet the requirements of Code Section 409A and the regulations issued
thereunder, the Plan shall be construed and administered as necessary to comply with such
requirements until this Plan is appropriately amended to comply with such requirements.
	 
	 	 	This Plan shall function solely as a “top-hat” plan within the meaning of Sections 201(2),
301(a)(3), and 401(a)(l) of the ERISA. As such, this Plan is subject to limited ERISA
reporting and disclosure requirements, and is exempt from all other ERISA requirements.
Distributions required or contemplated by this Plan or actions required to be taken under
this Plan shall not be construed as creating a trust of any kind or a fiduciary
relationship between the Company and any Participant, any Participant’s designated
beneficiary, or any other person.
	 
	 	 	This Plan is to be maintained according to the terms of this document and the Company or
its designee shall have the sole authority to construe, interpret and administer the Plan.

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Article II. DEFINITIONS

Wherever used in the Plan, the following terms have the meanings set forth below, unless otherwise
expressly provided:

	2.1	 	Account(s)
	 	 	Account(s) means the separate account established for recordkeeping purposes only for each
Participant comprising of the Base Salary Deferral Account, the Incentive Bonus Award
Deferral Account, the Quarterly Bonus Deferral Account, and the Dick’s Matching Deferral
Account as further described in Section 4.1 of the Plan.
	 
	2.2	 	Affiliated Company
	 	 	Affiliated Company means (i) the Company, (ii) any other corporation which is a member of
the controlled group of corporations which includes the Company, as determined in
accordance with the ownership rules of Code Section 1563, without regard, however, to
subsections (a)(4) or (e)(3)(C) of such Section 1563, and (iii) any other entity in which
the Company has a significant equity interest or owns a substantial capital or profits
interest.
	 
	2.3	 	Base Salary Deferral Account
	 	 	Base Salary Deferral Account means the separate account established by the Committee for
recordkeeping purposes only to track Base Salary Deferrals in the name of each Participant
in accordance with Section 4.1 of the Plan.
	 
	2.4	 	Base Salary Deferral Credits
	 	 	Base Salary Deferral Credits means the amounts credited to a Participant’s Base Salary
Deferral Account in accordance with Section 4.2 of the Plan.
	 
	2.5	 	Benefit Distribution Date
	 	 	Benefit Distribution Date means the specific distribution date elected by the Participant
as described in Section 6.2 of the Plan.
	 
	2.6	 	Board of Directors
	 	 	Board of Directors means the Board of Directors of the Company, or if the context
requires, the Compensation Committee of the Board of Directors.
	 
	2.7	 	Change in Control
	 	 	Change in Control means a change in ownership or control of the Company or a Change in
Control means one of the events described below. Whether a Change in Control has occurred
shall be objectively determinable and not subject to the discretion of the Committee, the
Board of Directors or any other person.

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	(a)	 	Change in Ownership of the Company. The acquisition by any person,
entity or group of stock of the Company that, together with the stock already
held by such person, entity or group, constitutes more than 50% of the total
fair market value or total voting power of the stock of the Company; provided
that if any one person, entity or group is considered to own more than 50% of
the total fair market value or total voting power of the stock of the Company,
the acquisition of additional stock by the same person, entity or group shall
not be considered to cause a change in ownership of the Company under this
section, or a change in effective control of the Company under subsection (b)
below. An increase in the percentage of stock owned by any person, entity or
group, as a result of a transaction in which the Company acquires its stock in
exchange for property shall be treated as an acquisition of stock for purposes
of this section. This section shall only apply when there is a transfer of
Company stock (or issuance of Company stock) and stock of the Company
remains outstanding after the transaction.
	 
	(b)	 	Change in Effective Control of the Company. During any 12-month
period, (i) the acquisition by any person, entity or group of stock of the
Company that constitutes 35% or more of the total voting power of the stock
of the Company, or (ii) a majority of the members of the Board of Directors is
replaced by directors whose appointment or election is not endorsed by a
majority of the members of the Board of Directors as constituted prior to the
date of such appointment or election; provided that if any person, entity or
group is considered to effectively control the Company within the meaning of
this section, the acquisition of additional control of the Company shall not be
considered to cause a change in effective control of the Company under this
section, or a change of ownership of the Company under subsection (a).
	 
	(c)	 	Change in Ownership of a Substantial Portion of the Company’s Assets.
During any 12-month period, the acquisition by any person, entity or group of assets of
the Company that have a total gross fair market value equal to more than 40% of the total
gross fair market value of all of the assets of the Company immediately prior to such
acquisition. For purposes of this section, “gross fair market value” means the value of
the Company’s total assets or the value of the assets being disposed of, determined
without regard to any associated liabilities. Notwithstanding the foregoing, a Change in
Control shall not occur under this section where there is a transfer of assets to an
entity that is controlled by the shareholders of the Company immediately after the
transfer, including:

	 	(1)	 	a shareholder of the Company (immediately before the asset transfer) in
exchange for or with respect to its stock;

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\

	 	(2)	 	an entity, 50% or more of the total value or voting power of which is
owned, directly or indirectly, by the Company;
	 
	 	(3)	 	a person, entity or group that owns, directly or indirectly,
50% or
more of the total value or voting power of all of the outstanding stock
of the Company; or
	 
	 	(4)	 	an entity, at least 50% of the total value or voting power of
which is
owned, directly or indirectly, by a person, entity or group described
above in subparagraph (3).

	 	(d)	 	For purposes of Section 2.5, the following rules shall apply:

	 	(1)	 	Persons or entities shall not be considered to be
acting as a group solely
because they purchase or own stock or assets (as relevant) of the
Company at the same time, or as a result of the same public offering. However, persons or entities shall be considered to be acting as a group
if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business
transaction with the Company. If a person or entity owns stock of the
Company and stock of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business
transaction with the Company, such shareholder shall be considered to
be acting as a group only with other shareholders of the Company prior
to the transaction and not with respect to the shareholder’s ownership
interest in the other corporation.
	 
	 	(2)	 	Stock ownership shall be determined in accordance
with section 318(a)
of the Code. Stock underlying a vested option shall be considered to be
owned by the individual who holds the vested option (and stock
underlying an unvested option shall not be considered to be owned by
the individual who holds the unvested option). For purposes of the
preceding sentence, however, if a vested option is exercisable for stock
that is not substantially vested (as defined in Ireas, Reg. sections

1.83-3(b) and (j)), the stock underlying the option shall not be treated as
owned by the individual who holds the option.

	2.8	 	Code
	 	 	Code means the Internal Revenue Code of 1986, as amended.
	 
	2.9	 	Committee
	 	 	Committee means the Executive Benefits Committee of the Company that will be responsible
for the administration of the Plan pursuant to Article IX.

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	2.10	 	Company
	 	 	Company means Dick’s Sporting Goods, Inc., a Delaware corporation, and its affiliates or
subsidiaries.
	 
	2.11	 	Compensation
	 	 	Compensation means regular gross base salary, quarterly and annual bonus awards eligible
for deferral and earned by the Participant for service as an Eligible Employee during the
Plan Year. In no event, however, shall a Participant’s Compensation include, for purposes of
the Plan, any item of compensation paid or distributed to the Participant after a period of
deferral, whether under this Plan or any other program of deferred compensation maintained
by the Company or any Affiliated Company.
	 
	2.12	 	Deferral Election
	 	 	Deferral Election means the written or electronic media salary reduction agreement entered
into by an Eligible Employee and the Committee pursuant to this Plan and which is made on
a form and manner described in Section 4.3 of the Plan.
	 
	2.1.3	 	Dick’s Matching Deferral Account
	 	 	Dick’s Matching Deferral Account means the separate account established by the
Committee for recordkeeping purposes only to track Dick’s Matching Deferral Credits in the
name of each Participant in accordance with Section 4.1 of the Plan.
	 
	2.14	 	Dick’s Matching Deferral Credits
	 	 	Dick’s Matching Deferral Credits means the amounts credited to a Participant’s Dick’s
Matching Deferral Account in accordance with Section 4.2 of the Plan.
	 
	2.15	 	Disability
	 	 	Disability means any medical or physical impairment that can be expected to result in
death or to last for at least 12 months as determined by the Committee.
	 
	2.16	 	Effective Date
	 	 	Effective Date means July 1,2006.
	 
	2.17	 	Eligible Employee
	 	 	Eligible Employee means any senior managers and other highly compensated employees of the
Company who are designated by the Company and approved by the Committee.
	 
	2.18	 	ERISA
	 	 	ERISA means the Employee Retirement Income Security Act of 1974, as amended.

Dick’s Sporting Goods Supplemental Smart Savings Plan

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	2.19	 	Incentive Bonus Award Deferral Account
	 	 	Incentive Bonus Award Deferral Account means the separate account established by the
Committee for recordkeeping purposes only to track Incentive Bonus Award Deferrals in the
name of each Participant in accordance with Section 4.1 of the Plan.
	 
	2.20	 	Incentive Bonus Award Deferral Credits
	 	 	Incentive Bonus Award Deferral Credits means the amounts credited to a Participant’s
Incentive Bonus Award Deferral Account in accordance with Section 4.2 of the Plan.
	 
	2.21	 	Installment(s)
	 	 	Installment(s) means an aggregate single payment for the purpose of subsequent deferral
rules according to Code Section 409A and the regulations thereunder.
	 
	2.22	 	Normal Form of Distribution
	 	 	Normal Form of Distribution means a single lump sum payment.
	 
	2.23	 	Participant
	 	 	Participant means any present or former Eligible Employee who has become a Participant in
the Plan in accordance with the provisions of Article III and who continues to have an
Account balance under the Plan or whose beneficiary has such account balance.
	 
	2.24	 	Performance-based Compensation
	 	 	Performance-based Compensation means compensation that is paid contingent on the
satisfaction of pre-established objective or subjective performance criteria. If
subjective, the criteria must relate to Participant performance as an individual, or, a
group of Participants including the individual.
	 
	2.25	 	Plan
	 	 	Plan means the Dick’s Sporting Goods Supplemental Smart Savings Plan, as set forth in this
document and as amended from time to time.
	 
	2.26	 	Plan Year
	 	 	Plan Year means the calendar year, the twelve-month period beginning each January 1 and
ending on December 31. The first year will be a short Plan Year beginning July 1, 2006 and
ending December 31, 2006.
	 
	2.27	 	Quarterly Bonus Deferral Account
	 	 	Quarterly Bonus Deferral Account means the separate account established by the Committee
for recordkeeping purposes only to track Quarterly Bonus Deferral Credits in the name of
each Participant in accordance with Section 4.1 of the Plan.

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	2.28	 	Quarterly Bonus Deferral Credits
	 	 	Quarterly Bonus Deferral Credits means the amounts credited to a Participant’s
Quarterly Bonus Deferral Account in accordance with Section 4.2 of the Plan.
	 
	2.29	 	Separation from Service
	 	 	Separation from Service means termination of employment by an employee of the Company
resulting from death, retirement or otherwise. The employment relationship is treated as
continuing in tact while the employee is on military leave, sick leave, or other bona fide
leave of absence if the period of such leave does not exceed six months, or if longer, so
long as the employee’s right to reemployment with the Company is provided either by statute
or by contract. If the period of leave exceeds six months and the individual’s right to
reemployment is not provided either by statute or by contract, the employment relationship
is deemed to terminate on the first date immediately following such six-month period.
Termination of employment occurs if the Participant does not provide service as a part-time
employee within the limits specified under Code section 409A and the regulations
thereunder.
	 
	2.30	 	Specified Employee
	 	 	Specified Employee means a Specified Employee, as defined in Code Section 416(i)
without regard to section 416(i)(5), of the Company (whose stock is publicly traded on an
established securities market) determined during the 12-month period ending December 31,
and effective for the 12-month period commencing on the following April 1.
	 
	2.31	 	Valuation Date
	 	 	Valuation Date means each day the New York Stock Exchange is open for trading.
	 
	2.32	 	Vanguard Funds
	 	 	Vanguard Funds means one or more of the regulated investment companies offered by The
Vanguard Group, Inc. and made available under the Plan by the Company for designation by
Participants under the Plan for purposes of determining investment earnings and losses.
The term Vanguard Funds shall also include any additional or successor investments that
may be selected by the Committee for determining investment gains and losses for the
Accounts.

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Article III. ELIGIBILITY AND PARTICIPATION

	3.1	 	Eligibility to Participate
	 
	 	 	Any Eligible Employee shall be eligible to become a Participant in this Plan as described
below, upon the completion of a Deferral Election subject to the approval of the Committee.

	 	(a)	 	Eligible Employees satisfying the eligibility requirements on the Effective Date will
enter the Plan on the Effective Date and may make a Deferral Election to defer Compensation for
services to be performed subsequent to the Deferral Election within 30 days after the Effective
Date. Except as provided in Section 3.1(b), employees deemed eligible after the Effective Date
shall commence participation on the first day of the Plan Year following satisfaction of the
eligibility requirements.
	 
	 	(b)	 	Notwithstanding Section 3.1(a), the Company may separately designate an employee for
eligibility solely for deferral of the annual Incentive Bonus Award after the commencement of the
Plan Year. Such Eligible Employee who is first selected for participation in the Plan after the
start of a Plan Year must, in order to participate in the Plan, make his or her Deferral Election
at least six (6) months prior to the close of the service period for which the Performance-based
Compensation is earned, or otherwise specified under Code Section 409A.
	 
	 	(c)	 	Notwithstanding the foregoing, for each subsequent Plan Year of
participation, a Participant must file his or her non Performance-based Compensation Deferral
Election no later than the last day of the immediately preceding Plan Year and his or her
Performance-based Compensation Deferral Election at least six (6) months prior to the close of the
service period for which such Compensation is earned, or as otherwise specified under Code Section
409A.

	3.2	 	Change in Status as Eligible Employee
	 
	 	 	An Eligible Employee who ceases to satisfy the requirements of eligibility shall continue Deferral
Elections only for the calendar year in which such change in status occurred. The Committee shall
have complete discretion to exclude one or more individuals from Participant status for one or more
Plan Years as the Committee deems appropriate, even if the person is a Participant or Eligible
Employee

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Article IV. DEFERRAL ELECTIONS

	4.1	 	Establishment of Participant Accounts
	 	 	The Company shall establish and maintain on its books and records an Account with several
subaccounts in the name of each Participant in order to record:

	 	(a)	 	amounts of Base Salary Deferral Credits on the Participant’s behalf pursuant Section 4.3
of the Plan;
	 
	 	(b)	 	amounts of Quarterly Bonus Deferral Credits on the Participant’s behalf pursuant to
Section 4.3 of the Plan;
	 
	 	(c)	 	amounts of Incentive Bonus Award Deferral Credits on the Participant’s behalf pursuant
to Section 4.3 of the Plan;
	 
	 	(d)	 	amounts of Dick’s Matching Deferral Credits on the Participant’s behalf pursuant to
Section 4.4 of the Plan;
	 
	 	(e)	 	credits or debits for investment earnings or losses pursuant
to Section 4.5 of the Plan;
and
	 
	 	(f)	 	payments of benefits to the Participant or the Participant’s beneficiary pursuant to
Article VI of the Plan.

	4.2	 	Participant Deferral Credits

	 	(a)	 	A Participant may complete a Deferral Election as described
in Section 4.3 of the Plan to
reduce the amount of Compensation that the Participant would otherwise receive and separately elect
to defer:

	 	(1)	 	up to 15% percent of Base Salary each Plan Year; and/or
	 
	 	(2)	 	up to 15% of Quarterly Bonus compensation each Plan Year; and/or
	 
	 	(3)	 	up to 15% of annual Incentive Bonus Award compensation each
Plan Year.

	 	(b)	 	Deferral Credits amounts will be credited to the Participant’s Deferral Account in
accordance with the time and manner established by the Committee.
	 
	 	(c)	 	The Committee may revise the percentage of Compensation permitted under Sections
4.2(a)(l), 4.2(a)(2), and 4.2(a)(3) pursuant to Section 9 l(h).

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	 	(d)	 	Under no circumstances shall the total aggregate annual combined Base Salary, Quarterly
Bonus and Incentive Bonus Award Deferral Credits to this Plan be greater than the limit specified
in Section 402(g) of the Code for the applicable Plan Year, less the deferral amounts subject to
Section 402(g) of the Code credited to the Dick’s Sporting Goods, Inc. Smart Savings 401(k) Plan.

	4.3	 	Deferral Election

	 	(a)	 	A Participant may defer Compensation in a given calendar year based on elections made in
writing including electronic media to the Committee in accordance with administrative procedures as
follows:

	 	(1)	 	prior to the commencement of the Plan Year for Base Salary Deferrals and Quarterly
Bonus Deferrals,
	 
	 	(2)	 	six months or more in advance of the close of the service period for Incentive
Bonus Award Deferrals designated as Performance-based Compensation with service periods of twelve
months and more. In no event can an election be made, nor will it be accepted, after any such
Compensation has become both substantially certain to be paid and readily ascertainable.

	 	(b)	 	The rate of deferral made for a Plan Year will be irrevocable for that Plan Year.
	 
	 	(c)	 	Elections must be made separately for each Plan Year Employees who first become eligible
to participate in the Plan during any Plan Year shall be permitted to submit a Deferral Election
within a 30-day period of becoming eligible and entering the Plan.
	 
	 	(d)	 	Pursuant to Section 6.3 of the Plan, the Participant will also separately elect a form of
distribution for

	 	(1)	 	Base Salary Deferrals, Quarterly Bonus Award Deferrals, and Dick’s Matching Deferrals;
and/or
	 
	 	(2)	 	Incentive Bonus Award Deferrals with service periods of
twelve months and more.

	4.4	 	Company Matching Credits

	 	(a)	 	The Committee will credit the Dick’s Matching Deferral Account of each Participant who defers
Compensation in an amount equal to Section 4.4(a)(l) of the Plan less Section 4.4(a)(2) of the
Plan:

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	 	(1)	 	A discretionary percentage of Compensation determined annually by the Company and
deferred into both the Dick’s Sporting Goods, Inc. Smart Savings
401(k) Plan and this Plan up to
10% of Compensation, regardless of any statutory limit
	 
	 	(2)	 	The matching contribution made to Dick’s Sporting Goods,
Inc. Smart Savings 401(k) Plan.

	 	(b)	 	The Committee shall credit the full match eligible under to Dick’s Sporting Goods, Inc.
Smart Savings 401 (k) Plan to said Plan prior to any credits being made to this Plan.
	 
	 	(c)	 	The Committee shall determine the time and manner for crediting the Company Matching
Credits to the Participant’s Dick’s Matching Deferral Account.

	4.5	 	Credits for Investment Earnings and Debits for Investment Losses

	 	(a)	 	All amounts credited to a Participant’s Account shall be credited with amounts of
investment earnings or debited with amounts of investment losses that correspond to the total
investment return earned by the Vanguard Fund or combination of Vanguard Funds designated in
advance by the Participant for these purposes.
	 
	 	(b)	 	The designation of one or more Vanguard Funds by a Participant under this section of the
Plan shall be used solely to measure the amounts of investment earnings or losses that will be
credited or debited to the Participant’s Account on the Company’s books and records, and the
Company shall not be required under the Plan to establish any account in the Vanguard Funds or to
purchase any Vanguard Fund shares on the Participant’s behalf.
	 
	 	(c)	 	The designation by a Participant of any Vanguard Funds under this section of the Plan
shall be made in accordance with rules and procedures established by the Committee.
	 
	 	(d)	 	The Vanguard Funds are valued each day the New York Stock Exchange is open for trading.
	 
	 	(e)	 	A Participant may elect to revise the investment options with respect to existing Account
allocations or future contributions pursuant to the Deferral Election at any time by notification
to the Committee in the prescribed manner. The Committee, however, retains the right to review and
restrict transfer rights at any time.

Dick’s Sporting Goods Supplemental Smart Savings Plan

11

 

	(f)	 	If a Participant fails to make a proper designation, then his
or her Accounts shall be
deemed to be invested in the Vanguard Fund(s) designated by the Committee from time to time
in a uniform and nondiscriminatory manner. On the Effective Date of the Plan, the Committee
selected the Vanguard Prime Money Market Fund as the investment for Participants who fail to
make an investment election. This investment option can be changed by the Committee from
time to time in a uniform and nondiscriminatory manner.

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Article V. VESTING

	5.1	 	Vesting of Accounts
	 	 	A Participant shall be fully vested in the amounts credited to his or her Base Salary
Deferral, Quarterly Bonus Deferral and Incentive Bonus Deferral Accounts at all times.
	 
	5.2	 	Vesting of Dick’s Matching Deferral Account
	 	 	A Participant shall become vested in the amounts credited to his or her Dick’s Matching
Deferral Account under the service requirements in Dick’s Sporting Goods, Inc. Smart
Savings 401(k) Plan vesting schedule. Notwithstanding the foregoing, Dick’s Matching
Deferral Account shall become 100% fully vested in the event of Disability in accordance
with Section 6.7 or Death in accordance with Section 6.8.

Dick’s Sporting Goods Supplemental Smart Savings Plan

13

 

Article VI. PAYMENT OF BENEFITS

	6.1	 	Distribution Elections
	 	 	A Participant shall specify the time and form of distribution separately for his or
her Accounts for each Plan Year he or she makes a Deferral Election.
	 
	6.2	 	Timing of Distributions — Benefit Distribution Date

	 	(a)	 	Elected by Participant. A Participant shall separately elect, at the time of each
deferral of Compensation, to receive the associated distribution from
his or her 1) Base Salary Deferral Account, 2) Quarterly Bonus Deferral Account and 3) Incentive Bonus Award
Deferral Account in accordance with one of the two following options:

	 	(1)	 	The earlier of:

	 	(A)	 	A specific date which occurs no earlier than during the second Plan Year following the
Plan Year in which the Deferrals designated for distribution were credited; and
	 
	 	(B)	 	The date of Separation from Service with the Company, or

	 	(2)	 	The date of Separation from Service with the Company.

	 	 	 	Mandated Timing: A Participant shall receive distributions from his or her Dick’s Matching Deferral
Account following Separation from Service with the Company.
	 
	 	 	 	Payments will be made as soon as administratively feasible following the election designated by the
Participant and timing mandated by the Plan.
	 
	 	(b)	 	Failure to Elect. In the event a Participant fails to provide a Benefit Distribution
Date, Section 6.2(a)(2) of the Plan shall automatically apply. Active employees of the
Company may revise the Benefit Distribution Date in accordance with the revised distribution
election provisions in Section 6.4 of the Plan.
	 
	 	(c)	 	Timing. Distributions shall commence as soon as administratively feasible following
Separation from Service, Death, or Disability.
	 
	 	(d)	 	Notwithstanding any provision of this Plan to the contrary, no amount payable hereunder
may be made for a period of six months after Separation

Dick’s Sporting Goods Supplemental Smart Savings Plan

14

 

from
Service for any Eligible Employee or Participant that is a Specified Employee. Any
payment that would otherwise be due during the six-month period will be paid after the end of the
six months.

	6.3	 	Form of Distribution

	 	(a)	 	Elected by Participant. A Participant shall separately elect, at the time of each
deferral of Compensation, the associated form of distribution from his or her 1) Base Salary
Deferral Account, 2) Quarterly Bonus Deferral Account, 3) Incentive Bonus Award Deferral
Account and 4) Dick’s Matching Deferral Account in a manner prescribed by the Committee and
in accordance with one of the following two payment options:

	 	(1)	 	A single lump sum payment, or
	 
	 	(2)	 	Monthly, quarterly, semi-annual or annual Installments, with any Installment term between
2 and 15 years.

	 	(b)	 	Failure to Elect. In the event a Participant fails to provide the form of distribution,
Section 6.3(a)(l) of the Plan shall automatically apply. Active employees of the Company may
revise the form of payment in accordance with the revised distribution election provisions in
Section 6.4 of the Plan.

	6.4	 	Revised Distribution Election — Time and Form of Distribution

With respect to previously deferred Compensation, a Participant may elect to change the Benefit
Distribution Date elected pursuant to 6.2 of the Plan and/or the form of benefit elected pursuant
to Section 6.3 of the Plan (a “revised election”), if the following requirements are met:

	 	(a)	 	The revised election shall not take effect for at least twelve (12) months after the
date of such revised election;
	 
	 	(b)	 	The first payment with respect to such revised election shall not be made until at least
five (5) years after the date on which distribution would have otherwise begun; provided that
earlier distribution may be made in the event of the Participant’s Death or Disability;
	 
	 	(c)	 	If applicable, the revised election shall be made at least 12 months prior to a scheduled
Benefit Distribution Date.

	6.5	 	Permitted Acceleration of Payment: Domestic Relations Order
	 	 	Notwithstanding the Participant’s elected time and form of distribution pursuant to Section 6.2 of
the Plan and the restrictions of Section 6.3 of the Plan, the time or schedule of a payment shall
be made to the extent necessary to comply with a

Dick’s
Sporting Goods Supplemental Smart Savings Plan

15

 

	 	 	domestic relations older (as defined in section 414(p)(1)(B) of the Code) that meets the
requirements of the Company’s domestic relations order procedures applicable to non-qualified
plans, if such payment is made to an individual other than the
Participant. Subject to the review
and approval of the Committee, a domestic relations order distribution may be made from the Base
Salary, Quarterly Bonus, Incentive Bonus Award and Dick’s
Matching Deferral Accounts.
	 
	6.6	 	Payment for Unforeseen Emergency
	 	 	A Participant who incurs severe financial hardship as defined in this subsection (a) and does not
have other available resources as described in this subsection (b), may apply to the Committee for
an immediate distribution from his or her Accounts in an amount necessary to satisfy such financial
hardship and the tax liability attributable to such distribution.

	 	(a)	 	A Participant incurs a severe financial hardship as a result of the following:

	 	(i)	 	a sudden and unexpected illness or accident involving the Participant or his or her spouse 01
any dependent (as determined pursuant to Section 152(a) of the Code),
	 
	 	(ii)	 	a casualty loss involving the Participant’s property or
	 
	 	(iii)	 	other similar extraordinary and unforeseeable event beyond
the Participant’s control.

	 	(b)	 	Such Participant does not have any other resources available, whether through
reimbursement or compensation (by insurance or otherwise), liquidation of existing assets (to the
extent such liquidation would not itself result in financial
hardship), or cessation of
deferrals, to satisfy such financial emergency.
	 
	 	(c)	 	The determination of whether a Participant has incurred a severe financial hardship entitling
the Participant to a payment under this section shall be made by the Committee on a uniform and
non-discriminatory basis, and shall be based on appropriate documentation or other evidence
required by the Committee.

	6.7	 	Payment of Disability Benefits
	 	 	If a Participant becomes permanently and totally disabled, as determined by the Long Term
Disability Plan of the Company, the entire value of his or her Base Salary, Quarterly Bonus,
Incentive Bonus Award and Dick’s Matching Deferral Accounts shall be distributed to the Participant
in a single lump sum. Any distribution pursuant to this section will occur as soon as
administratively feasible following the determination of the Disability as approved by the
Committee.

Dick’s Sporting Goods Supplemental Smart Savings Plan

16

 

	6.8	 	Payment of Death Benefits

	 	(a)	 	Each Participant shall designate a beneficiary on the proper beneficiary form as
prescribed by the Committee to receive his or her Base Salary, Quarterly Bonus, Incentive Bonus
Award and Dick’s Matching Deferral Accounts in the event of death. If a Participant dies with a
balance credited to his or her Base Salary, Quarterly Bonus, Incentive Bonus Award and Dick’s
Matching Deferral Accounts, such balance shall be paid to the applicable beneficiary or
beneficiaries in a single lump-sum.
	 
	 	(b)	 	Any distributions pursuant to this section will occur following the date of death and
receipt by the Company of acceptable proof of the Participant’s death and approval by the Committee.
	 
	 	(c)	 	Notwithstanding the above, if no beneficiary designation is on file with the Company at the
time of death of the Participant or such designation is not effective for any reason then the
designated beneficiary to receive such benefits shall be as follows:

	 	(1)	 	the Participant’s surviving spouse; or
	 
	 	(2)	 	if there is no surviving spouse, then to the Participant’s estate.

	 	(d)	 	All decisions made by the Committee in good faith and based upon affidavit or other evidence
satisfactory to the Committee regarding questions of fact in the determination of the identity of
such beneficiary(ies) shall be conclusive and binding upon all parties, and payment made in
accordance therewith shall satisfy all liability hereunder.

	6.9	 	Change in Control
	 
	 	 	As soon as possible following a Change in Control of the Company all plan benefits are immediately
payable according to one of the following:

	 	a)	 	in the form of a single lump sum; or,
	 
	 	b)	 	according to the times and in the forms of distribution originally elected by the
Participant each class year.
	 
	 	Should a Participant during an annual election period fail to make an election for time and form of
payment pursuant to this section, the benefit distribution will be made in the form of a single
lump sum for the applicable class year.
	 
	 	A Change in Control is generally a change in ownership of the Company, a change in effective
control of the Company or a change in a substantial portion of the assets of

Dick’s Sporting Goods Supplemental Smart Savings Plan

17

 

	 	 	the Company as defined in Code Section 409A and IRS Notice 2005-1 and described in Section
2 of the Plan.
	 
	6.10	 	Valuation of Distributions
	 	 	The benefit amount of a Participant’s Accounts to be distributed pursuant to this Article VI shall
be based on the value of such Accounts on any business day that the New York Stock Exchange is open
for trading as soon as practicable after instructions are received in good order by the Committee.

Dick’s Sporting Goods Supplemental Smart Savings Plan

18

 

Article VII. AMENDMENT OR TERMINATION OF PLAN

	7.1	 	Amendments Generally
	 	 	The Company reserves the right to amend the Plan at any time. No amendment, however, may
reduce the amount credited to Accounts at the time of the amendment’s adoption, except as may
otherwise be required by law. Without limiting the generality of the foregoing, the Committee may
amend the Plan to impose such restrictions upon the timing, filing and effectiveness of Deferral
Elections, the investment procedures and investment alternatives available under the Plan and the
distribution provisions of Article VI which the Committee deems appropriate or advisable in order
to avoid the current income taxation of amounts deferred under the Plan which might otherwise occur
as a result of changes to the tax laws and regulations governing deferred compensation arrangements
such as the Plan and may also, in such event, cease further deferrals
under the Plan.
	 
	7.2	 	Right to Terminate
	 	 	The Company may terminate the Plan at any time in whole or in
part.

	 	(a)	 	Except for such modifications, limitations or restrictions as may otherwise be required to
avoid current income taxation or other adverse tax consequences as a result of changes to the tax
laws and regulations applicable to the Plan, no such plan amendment or plan termination authorized
by the Committee shall adversely affect the benefits accrued to date under the Plan or otherwise
reduce the then outstanding balances credited to Accounts or otherwise adversely affect the
distribution provisions in effect for those Accounts, and all amounts deferred prior to the date of
any such plan amendment or termination shall, subject to the foregoing exception, continue to
become due and payable in accordance with the distribution provisions of Article VI as in effect
immediately prior to such amendment or termination. Termination of the Plan shall not serve to
reduce the amount credited to an Account at the time of termination.
	 
	 	(b)	 	Notwithstanding the above, the Company may terminate the Plan and distribute the Participant’s
credited Accounts in the form of a single lump sum. Such a Plan termination may occur only if the
following conditions are met, pursuant to Code section 409A and the
regulations thereunder.

	 	(1)	 	No distribution from the plan, aside from distributions pending for the current year,
may be made for the first 12 months following Plan termination.
	 
	 	(2)	 	All distributions from the plan must be made no later than 24 months after the passing
of the resolution to terminate the Plan.

Dick’s Sporting Goods Supplemental Smart Savings Plan

19

 

	 	(3)	 	The Company must terminate all similar deferred compensation arrangements for
the impacted Participants simultaneously.
	 
	 	(4)	 	The Company shall not establish a new plan of the same type for 5 years from the date
of the original Plan Termination.

Dick’s Sporting Goods Supplemental Smart Savings Plan

20

 

Article VIII. MISCELLANEOUS

	8.1	 	Unfunded Plan
	 	 	This Plan is an unfunded deferred compensation arrangement
for Eligible Employees. While it is the
intention of the Company that this Plan shall be unfunded for federal tax purposes and for purposes
of Title I of ERISA, the Company may establish a grantor trust to satisfy part or all of its Plan
payment obligations so long as the Plan remains unfunded for federal tax purposes and for purposes of Title I of ERISA. Nothing contained in the Plan, and no action
taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship between the Company and any employee or other
person. To the extent any
person acquires a right to receive a payment from the Company under
the Plan, such right shall be
no greater than that of an unsecured general creditor of the Company.
	 
	8.2	 	Nonguarantee of Employment
	 	 	Nothing contained in the Plan shall be construed as a contract of employment between the Company
and any Participant, or as a right of any Participant to be continued in the employment of the
Company, or as a limitation of the right of the Company to discharge any Participant with or
without cause.
	 
	8.3	 	Nonalienation of Benefits

	 	(a)	 	Except as may be required by law and Section 6.5 of the Plan, benefits payable under the
Plan are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, charge, garnishment, execution, or levy of any kind, whether voluntary or involuntary.
Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise
dispose of any right to benefits under the Plan shall be void. The Company shall not in any manner
be liable for, or subject to, the debts, contracts, liabilities, engagements or torts of any person
entitled to benefits under the Plan.
	 
	 	(b)	 	Notwithstanding Section 8.3(a) of the Plan, if a Participant is indebted to the Company
at any time when payments are to be made by the Company to the Participant under the provisions of
the Plan, the Company shall have the right to reduce the amount of payment to be made to the
Participant (or the Participant’s beneficiary) to the extent of
such indebtedness. Any election by
the Company not to reduce such payment shall not constitute a waiver of its claim for such
indebtedness.

Dick’s
Sporting Goods Supplemental Smart Savings Plan

21

 

	8.4	 	Taxes and Withholding
	 	 	For each Plan Year in which the Participant defers a portion of Compensation under this
Plan, the Company will withhold from the Participant’s non-deferred Compensation the Participant’s
share of FICA and other employment taxes. FICA taxes will also be withheld from Participant’s
non-deferred compensation upon any step-up in vesting on the Dick’s Matching Deferral Account.
	 
	8.5	 	Applicable Law
	 	 	This Plan shall be construed and enforced in accordance with the laws of the United States
and the Commonwealth of Pennsylvania.
	 
	8.6	 	Headings and Subheadings
	 	 	Headings and subheadings in this Plan are inserted for convenience only and are not to be
considered in the construction of the provisions.
	 
	8.7	 	Successors
	 	 	The Company and its affiliates shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets
of the Company and its affiliates (taken as a whole) expressly to assume and agree to perform under
the terms of the Plan in the same manner and to the same extent that the Company and its affiliates
would be required to perform it if no such succession had taken place
(provided that such a
requirement to perform which arises by operation of law shall be deemed to satisfy the requirements
for such an express assumption and agreement), and in such event the Company and its affiliates (as
constituted prior to such succession) shall have no further obligation under or with respect to the
Plan.
	 
	8.8	 	No Guarantee of Tax Consequences
	 	 	Neither the Committee nor the Company may make any commitment or guarantee that any amounts
paid to or for the benefit of a Participant under this Plan will be excludable from the
Participant’s gross income for federal or state or local income tax purposes, or that any other
federal or state or local tax treatment will apply to or be available to any Participant. It shall
be the obligation of each Participant to determine whether each payment under this Plan is
excludable from the Participant’s gross income for federal,
state, and local income tax purposes. In
addition, while the Company intends to have this Plan comply with Section 409A of the Code, this
section may impose upon Participants certain taxes or other charges for which the Participant is
solely responsible.

Dick’s Sporting Goods Supplemental Smart Savings Plan

22

 

Article IX. ADMINISTRATION OF THE PLAN

	9.1	 	Powers and Duties of the Executive Benefits Committee
	 	 	The Board of Directors, or its appointed designee, shall appoint members of the Committee. The
Committee will be responsible for the administration of the Plan, subject to Rule 303A.05 of the
New York Stock Exchange Listed Company Manual and the Company’s
Compensation Committee Charter. The
Committee shall have full responsibility to represent the Company and the Participants in all
things it may deem necessary for the proper administration of the
Plan. Subject to the terms of the
Plan, the decision of the Committee upon any question of fact, interpretation, definition or
procedures relating to the administration of the Plan shall be conclusive The responsibilities of
the Committee shall include the following:

	 	(a)	 	Verifying all procedures by which payments to Participants and their beneficiaries
are authorized.
	 
	 	(b)	 	Deciding all questions relating to the eligibility of employees to become Participants
in the Plan.
	 
	 	(c)	 	Interpreting the provisions of the Plan in all particulars.
	 
	 	(d)	 	Establishing and publishing rules and regulations for carrying out the Plan.
	 
	 	(e)	 	Preparing an individual record for each Participant in the Plan, which shall be
available for examination by such Participant, or authorized persons.
	 
	 	(f)	 	Reviewing and answering any denied claim for benefits that has been appealed to
the Committee under the provisions of this Article.
	 
	 	(g)	 	Engaging vendors to execute the operations of the Plan.
	 
	 	(h)	 	At the direction of the Company, revise the maximum deferral permitted pursuant to
Section 4.2(c) of the Plan.
	 
	 	(i)	 	At the direction of the Company, determine on an annual basis the rate of discretionary
matching credit made to the Participant’s Dick’s Matching Deferral Account.

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23

 

	9.2	 	Claims Procedure

	 	(a)	 	Filing of Claim. Any Participant or beneficiary under the Plan may file a written claim
for a Plan benefit with the Committee or with a person named by the Committee to receive claims
under the Plan.
	 
	 	(b)	 	Notice of Denial of Claim. In the event of a denial or limitation of any benefit or
payment due to or requested by any Participant or beneficiary under the Plan (“claimant”), the
claimant shall be given a written notification, including electronic communication, containing
specific reasons for the denial or limitation of the benefit. The written notification shall
contain specific reference to the pertinent Plan provisions on which the denial or limitation of
the benefit is based. In addition, it shall contain a description of any other material or
information necessary for the claimant to perfect a claim, and an explanation of why such material
or information is necessary. The notification shall further provide appropriate information as to
the steps to be taken if the claimant wishes to appeal the denial or limitation of benefit and
submit a claim for review. This written notification shall be given to a claimant within 90 days
after receipt of the claim by the Committee unless special circumstances require an extension of
time for process of the claim. If such an extension of time for processing is required, written
notice of the extension shall be furnished to the claimant prior to the termination of said 90-day
period, and such notice shall indicate the special circumstances which make the postponement
appropriate.
	 
	 	(c)	 	Right of Review. In the event of a denial or limitation of the claimant’s benefit, the claimant
or the claimant’s duly authorized representative shall be permitted to review pertinent documents
free of charge upon request and to submit to the Committee issues and
comments in writing. In
addition, the claimant or the claimant’s duly authorized representative may make a written request
for a full and fair review of the claim and its denial by the Committee; provided, however, that
such written request must be received by the Committee within 60 days after receipt by the claimant
of written notification of the denial or limitation of the claim. The 60-day requirement may be
waived by the Committee in appropriate cases.
	 
	 	(d)	 	Decision on Review. A decision shall be rendered by the Committee within 60 days after the
receipt of the request for review, provided that where special circumstances require an extension
of time for processing the decision, it may be postponed on written notice to the claimant (prior
to the expiration of the initial 60-day period) for an additional 60 days, but in no event shall
the decision be rendered more than 120 days after the receipt of such request for review. Any
decision by the Committee shall be furnished to the claimant in writing and shall set forth the
specific reasons for the decision and the specific plan provisions on
which the decision is based.

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24

 

	 	(e)	 	Important Timing Rules. Any claim for benefits must be filed with the Committee within
six months of when the benefits were due or such claim will be
forever barred. If a Participant’s
claim for benefits is denied in whole or in part, such Participant
may file suit only in a state or
federal court in Allegheny County, Pennsylvania. Before such Participant may file suit in a state
or federal court, Participant must exhaust the Plan’s
administrative claims procedure. If
any such judicial or administrative proceeding is undertaken, the evidence presented will be
strictly limited to the evidence timely presented to the Committee. In addition, any such judicial
or administrative proceeding must be filed within six (6) months after the Committee’s final
decision or such claim will be forever barred.

EXECUTION OF DOCUMENT

	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	      Dick’s Sporting Goods, Inc.
	 
	 	 	 	 	 	 	 	 
	/s/ William R. Newlin 

SECRETARY

	 	 
	 	By

Title:
	 	/s/ Jay G. Crosson
 

SVP — HR
 

	 	 
	 

	 	 	 	Date:
	 	6/28/06
 

	 	 

Dick’s Sporting Goods Supplemental Smart Savings Plan

25EX-10.1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”) is entered into on July 6, 2006 (the
“Execution Date”), to be effective for all purposes as of May 21, 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 Joseph J. Weiss (the “Executive”).

     WHEREAS, the Executive is currently employed by the Company; and

     WHEREAS, the Company desires to continue to employ the Executive, and enter into a new
employment agreement with 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 Senior Vice President of Merchandising of the Company. The Executive
shall have the normal duties, responsibilities and authority commensurate with such position.

          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, commensurate with the Executive serving as a Senior Vice President. The
Company may adjust the duties and responsibilities of the Executive as a Senior 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 position 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 of Directors of the
Company (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
December 31, 2007 (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 $225,000 (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 thirty-five percent
(35%) of the Executive’s Base Salary with a maximum of fifty-five percent (55%) of the Executive’s
Base Salary if the Company exceeds the annual goals determined by the Board or the Compensation
Committee for 2006. 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.

2

 

          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. During the Employment Period and subject to the approval of the
Compensation Committee and the GNC Compensation Committee, or other Administrator of the Plan (as
defined therein), the Executive shall be eligible to participate in and be granted awards under the
General Nutrition Centers Holding Company (presently known as GNC Corporation) 2003 Omnibus Stock
Incentive Plan (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 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, (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.

3

 

               (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.

               (d) With respect to any shares of Common Stock, par value $0.01 per share, of GNC (the
“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

4

 

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 sixty (60) 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
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

5

 

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 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.

6

 

               (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.

               (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.

               (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

7

 

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.

               (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:

8

 

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

               (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.

               (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

               (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;

9

 

               (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 designee) for an amount equal to the product
of (A) the per share current fair

10

 

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 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 (as defined in Section 5.4(g) hereof),
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

13

 

Executive’s supervision had any direct or indirect responsibility or contact
during the Employment Period, (A) to do business with a 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

14

 

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
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 retail
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

15

 

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, 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.

16

 

                    (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.

                    (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.

17

 

               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 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

18

 

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 6.2 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 AGREEMENT, EXCEPT AS OTHERWISE PROVIDED IN THIS
AGREEMENT.

                    (a) Mediation First. In the event either party provides a notice of arbitration of
any Dispute to the other party, the parties shall promptly proceed to make a good-faith effort to
settle the Dispute by agreement, in a full-day, non-binding mediation with a mediator selected from
a panel of mediators of JAMS. The mediation will be governed by JAMS mediation procedures in
effect at the time of the mediation. The parties shall equally bear the costs for mediation,
including the mediator’s fees; provided, however, that the parties shall each bear
their own individual costs and attorneys’ fees for mediation. If for any reason JAMS cannot serve
as the mediation administrator, the Company may select an alternative mediation administrator, such
as the American Arbitration Association (“AAA”), to serve under the terms of this
Agreement. The Executive may, but is not required to, be represented by counsel in mediation. Any
mediators proposed for the panel provided for in this Section 6.2(a) must be available to serve in
the Agreed Venue.

                    (b) Procedure Generally. In the event that the parties fail to settle at the
mediation required by this Agreement, the parties agree to submit the Dispute to a single
arbitrator selected from a panel of JAMS arbitrators. The arbitration will be governed by the JAMS
Comprehensive Arbitration Rules and Procedures in effect at the time the arbitration is commenced,
subject to the terms and modifications of this Agreement. If for any reason JAMS cannot serve as
the arbitration administrator or cannot fulfill the panel requirements of this Section 6.2, the
Company may select an alternative arbitration administrator, such as AAA, to serve under the terms
of this Agreement.

                    (c) Arbitrator Selection. To select the arbitrator, the parties shall make their
respective strikes from a panel of former federal court judges and magistrates, to

19

 

the extent available from JAMS (the “First Panel”). If the parties cannot agree upon
an arbitrator from the First Panel or if such a panel is not available from JAMS, then the parties
will next make their respective strikes from a panel of former Pennsylvania state court trial and
appellate judges, to the extent available from JAMS (the “Second Panel”). Any arbitrators
proposed for the First and Second Panels provided for in this Section 6.2(c) must be available to
serve in the Agreed Venue. If the parties cannot agree upon an arbitrator from the Second Panel or
if such a panel is not available from JAMS, then the parties will next make their respective
strikes from the panel of all other JAMS arbitrators available to serve in the Agreed Venue.

                    (d) 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”).

                    (e) 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.

                    (f) 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. The Executive may, but is not required to, be represented by counsel in
arbitration.

                    (g) 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

20

 

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

21

 

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:
	 
	 	 
	 

	 	Joseph J. Weiss
	 

	 	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

22

 

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]

23

 

     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/ Sheila Kiggins

	 	By: /s/ Joseph Fortunato	 	 
	 

	 	 	 	 
	 

	 	Joseph Fortunato	 	 
	 

	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 
	 

	 	EXECUTIVE	 	 
	 
	 	 	 	 
	 /s/ Sheila Kiggins

	 	 /s/ Joseph J. Weiss	 	 
	 

	 	 	 	 
	 

	 	Name: Joseph J. Weiss	 	 

24

 

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.
	 
	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.
	 
	3.	 	Dental insurance in accordance with the Company’s dental insurance plan or program in effect
from time to time.
	 
	4.	 	Long-term disability insurance in accordance with the Company’s long-term disability
insurance plan or program in effect from time to time.
	 
	5.	 	Short-term disability insurance in accordance with the Company’s short-term insurance plan or
program in effect from time to time.
	 
	6.	 	Life insurance coverage in amount equal to one (1) times Base Salary.
	 
	7.	 	Automobile allowance in an annual amount equal to $5,000, 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.
	 
	8.	 	Professional Assistance with an annual value in an amount equal to $3,500, 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 $4,950 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 $2,640.
	 
	12.	 	An executive medical allowance in an annual amount equal to $6,000, 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.

B-1

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