NOTE 25. RELATED PARTY TRANSACTIONSManagement Services Agreement • May 10th, 2011 • GNC Holdings, Inc. • Retail-food stores
Management Services Agreement. In connection with the Merger, Holdings entered into a Management Services Agreement with ACOF Operating Manager II, L.P. (“ACOF Operating Manager II”), an affiliate of Ares. Under the agreement, ACOF Operating Manager II provides Holdings and its subsidiaries with certain services in exchange for an annual fee of $750,000, as well as customary fees for services rendered in connection with certain major financial transactions, plus reimbursement of expenses and a tax gross-up relating to a non-tax deductible portion of the fee. In addition, upon consummation of the Merger, Holdings incurred an aggregate fee of $5.0 million, plus reimbursement of expenses, payable to ACOF Operating Manager II for services rendered in connection with the Merger. As of December 31, 2010, $2.8 million had been paid pursuant to this agreement.
