GNC 2008 Annual Report Download - page 113

Table of Contents
GENERAL NUTRITION CENTERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Predecessor:
Management Service Fees. As of December 5, 2003, the Company and Parent entered into a management services agreement with Apollo
Management V. The agreement provides that Apollo Management V furnish certain investment banking, management, consulting, financial
planning, and financial advisory services on an ongoing basis and for any significant financial transactions that may be undertaken in the future.
The length of the agreement was ten years. There was an annual general services fee of $1.5 million, which was payable in monthly
installments. There were also major transaction services fees for services that Apollo Management V may provide which would be based on
normal and customary fees of like kind. In addition, the Company reimburses expenses that are incurred and paid by Apollo Management V on
behalf of the Company. For the nine months ended September 30, 2006 and the period from January 1, 2007 to March 15, 2007, $1.1 million
and $0.4 million, respectively, were paid to Apollo Management V under the terms of this agreement. In addition, as a result of the Merger, for
the period from January 1, 2007 to March 15, 2007, $7.5 million was paid to Apollo Management V as a one-time payment for the termination of
the management services agreement.
Management Service Fees. As of December 5, 2003 the Company and our Parent entered into a management services agreement with
Apollo Management V. The agreement provides that Apollo Management V furnish certain investment banking, management, consulting,
financial planning, and financial advisory services on an ongoing basis and for any significant financial transactions that may be undertaken in
the future. The length of the agreement is ten years. There is an annual general services fee of $1.5 million which is payable in monthly
installments. There are also major transaction services fees for services that Apollo Management V may provide which would be based on
normal and customary fees of like kind. In addition, the Company reimburses expenses that are incurred and paid by Apollo Management V on
behalf of the Company. 109