GNC 2010 Annual Report Download - page 44

Table of Contents
On September 1, 2009, David Berg joined the Company as its Executive Vice President of Global Business Development and Chief
Operating Officer, International. In connection with his employment, our Parent's Compensation Committee granted Mr. Berg certain options
("Preferred Stock Options") to purchase 12,750 shares of our ultimate Parent's Series A Cumulative Preferred Stock, par value $0.001 per
share ("Preferred Stock"), pursuant to the terms of a Preferred Stock Option Agreement. The Preferred Stock Options are not governed by the
2007 Plan, and the grant was not approved by our or our Parent's security holders. The Preferred Stock Options have an exercise price equal
to $5.00 per share (plus accrued and unpaid dividends through the date of exercise). A portion of the Preferred Stock Options vest on the first
anniversary of employment; the balance vest on the second anniversary; provided, that Mr. Berg is permitted to exercise his vested Preferred
Stock Options only within the seven day period following each vesting date. If Mr. Berg does not exercise his vested Preferred Stock Options
within such exercise period, then such vested Preferred Stock Options terminate and expire. See Item 11, "Executive Compensation —
Employment and Separation Agreements." 38