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Title: |
Employment Agreement |
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Date: |
2004 |
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Size: |
Preview shows 7KB of 62KB total |
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Price: |
$54 |
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ID: |
#2136290 |
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EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is entered into as
of the 5th day of December, 2003 (the "Effective Date"), by and between General
Nutrition Centers, Inc., a Delaware corporation (the "Company"), and LOUIS
MANCINI (the "Executive").
WHEREAS, the Company desires to employ 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 the President and
Chief Executive Officer of the Company. The Executive shall have the normal
duties, responsibilities and authority commensurate with such positions. During
the Employment Period, in his capacity as President and Chief Executive Officer
of the Company, the Executive shall report directly to the Board of Directors of
the Company (the "Board").
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 his positions 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 him by the Board, commensurate with his serving as President and
Chief Executive Officer. Except for sick leave, reasonable vacations, and
excused leaves of absence, the Executive shall, throughout the Employment
Period, devote substantially all his working time, attention, knowledge and
skills faithfully and to the best of his ability, to the duties and
responsibilities of his positions in furtherance of the business affairs and
activities of the Company, and its subsidiaries and affiliates and, except where
the Company provides its written consent otherwise, shall maintain his 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, observe and
carry out such rules, regulations, policies, directions, and restrictions as the
Board may from time to time reasonably establish for senior executive officers
of the Company.
2. TERM OF EMPLOYMENT.
2.1 EMPLOYMENT PERIOD. Subject to (i) the
consummation of the transaction pursuant to that certain Purchase Agreement
dated October 16, 2003 by and among Royal Numico N.V., Numico USA, Inc. and
Apollo GNC Holding, Inc. (the "Transaction"), and (ii) execution by the
Executive of that certain Stockholders' Agreement by and among General Nutrition
Centers Holding Company ("Holdings") and its Stockholders dated December 5, 2003
and (iii) the investment by Executive of $600,000 in common stock ("Common
Stock") of Holdings on the closing of the Transaction, the employment of the
Executive hereunder shall
{PAGE}
continue until the later to occur of (i) December 31, 2005, or (ii) the
applicable expiration date of any extension of this Agreement as provided in
SECTION 2.2 hereof, unless terminated earlier in accordance with the provisions
of this Agreement (the "Employment Period").
2.2 EXTENSION. On October 31, 2004, and on each
October 31st thereafter, the Employment Period shall be extended for an
additional one-year period unless the Company or the Executive notifies the
other in writing at least 30 days prior to such date of its or his election, in
its or his 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 Five Hundred Twenty-Five Thousand Dollars ($525,000) (such base salary, as
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 practice of the Company 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
increase Executive's Base Salary, as it, acting in its sole discretion, shall
determine to be reasonable and appropriate.
3.2 BONUS. With respect to the 2004 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") based upon the Company's attainment of
annual goals established by the Board or the Compensation Committee, which are
based on the Company's earnings before interest, taxes, depreciation and
amortization ("EBITDA") and debt amortization goals. Executive's target Annual
Bonus shall be fifty percent (50%) of Executive's Base Salary with a maximum of
one hundred and twenty percent (120%) of Executive's Base Salary if the Company
exceeds the EBITDA and debt amortization goals based on levels to be determined
by the Board or the Compensation Committee for the applicable year. Any Annual
Bonus earned shall be payable in full within forty-five (45) days following the
determination of the amount thereof and in accordance with the Company's normal
payroll practices and procedures. Any Annual Bonus 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.
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 3.3 or elsewhere herein, the Executive shall be
entitled to receive prompt reimbursement from the Company for all reasonable and
necessary expenses incurred by him in performing his duties hereunder on behalf
of the Company, subject to, and consistent with, the Company's policies for
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