GNC 2011 Annual Report Download - page 28

Table of Contents
Restrictions in the agreements governing our existing and future indebtedness may prevent us from taking actions that we believe would be in the best
interest of our business.
The agreements governing our existing indebtedness contain and the agreements governing our future indebtedness will likely contain customary
restrictions on us or our subsidiaries, including covenants that restrict us or our subsidiaries, as the case may be, from:
incurring additional indebtedness and issuing preferred stock;
granting liens on our assets;
making investments;
consolidating or merging with, or acquiring, another business;
selling or otherwise disposing of our assets;
paying dividends and making other distributions to our stockholders;
entering into transactions with our affiliates; and
incurring capital expenditures in excess of limitations set within the agreement.
Our ability to comply with these covenants and other provisions of the Senior Credit Facility and the indentures governing the Senior Notes and the
Senior Subordinated Notes may be affected by changes in our operating and financial performance, changes in general business and economic conditions,
adverse regulatory developments or other events beyond our control. The breach of any of these covenants could result in a default under our debt, which
could cause those and other obligations to become immediately due and payable. In addition, these restrictions may prevent us from taking actions that we
believe would be in the best interest of our business and may make it difficult for us to successfully execute our business strategy or effectively compete with
companies that are not similarly restricted.
We depend on the services of key executives and changes in our management team could affect our business strategy and adversely impact our
performance and results of operations.
Our senior executives are important to our success because they have been instrumental in setting our strategic direction, operating our business,
identifying, recruiting and training key personnel, identifying opportunities and arranging necessary financing. Losing the services of any of these individuals
could adversely affect our business until a suitable replacement is hired. We believe that our senior executives could not be replaced quickly with executives
of equal experience and capabilities. We do not maintain key person life insurance policies on any of our executives.
If our risk management methods are not effective, our business, reputation and financial results may be adversely affected.
We have methods to identify, monitor and manage our risks; however, these methods may not be fully effective. Some of our risk management methods
may depend upon evaluation of information regarding markets, customers or other matters that are publicly available or otherwise accessible by us. That
information may not in all cases be accurate, complete, up-to-date or properly evaluated. If our methods are not fully effective or we are not successful in
monitoring or evaluating the risks to which we are or may be exposed, our business, reputation, financial condition and operating results could be materially
and adversely affected. In addition, our insurance policies may not provide adequate coverage.
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