Document:

Exhibit 10.14

 

OPTION
AGREEMENT

 

OPTION AGREEMENT (this “Agreement”), dated as
of «Grant_Date», by and between the
Company and the grantee, the individual’s whose name appears on the signature
page hereof (the “Grantee”).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS, the Board has determined that it is in the
best interests of the Company and its shareholders for the Company to grant
from time to time options to purchase Common Stock to executive officers or key
employees of, or consultants to, or any key employees of any entity which
provides services to, the Company or its Subsidiaries in order to motivate and
align the interests of such individuals with those of the Company’s
shareholders, and in connection therewith, the Board has established the
Equinox Holdings, Inc. 2000 Stock Incentive Plan (as the same may be
amended from time to time, the “Plan”);

 

WHEREAS, pursuant to the Plan, the Board has
authorized the grant to the Grantee of non-qualified stock options to purchase
shares of Common Stock pursuant to the Plan; and

 

WHEREAS, the Grantee and the Company desire to enter
into an agreement to evidence and confirm the grant of such stock options on
the terms and conditions set forth herein;

 

NOW, THEREFORE, to evidence the stock options so
granted, and to set forth the terms and conditions governing such stock
options, the Company and the Grantee hereby agree as follows:

 

1.                                       Certain
Definitions.  Capitalized terms used
herein without definition shall have the meaning assigned to them in the Plan,
provided however, that whenever the term “Participant” appears in the Plan such
term shall be substituted with the term “Grantee” (as defined in the
introductory paragraph hereof).  As used
in this Agreement, the following terms shall have the following meanings:

 

(a)                                  “Affiliate”
shall mean, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, Controls, is Controlled by, or
is under common Control with the first Person, including but not limited to
a Subsidiary of the first Person, a Person of which the first Person
is a Subsidiary, or another Subsidiary of a Person of which the first
Person is also a Subsidiary.

 

(b)                                 “Control”
(including the terms “controlled by” and “under common control with”) shall
mean, with respect to any Person, the possession, directly or indirectly,
severally or jointly, of the power to direct or cause the direction of the

 

 

management policies of such Person, whether through the ownership of
voting securities, by contract or credit arrangement, as trustee or executor,
or otherwise.

 

(c)                                  “Exercise
Date” shall have the meaning set forth in Section 6 hereof.

 

(d)                                 “Exercise
Price” shall have the meaning set forth in Section 6 hereof.

 

(e)                                  “Exercise
Shares” shall have the meaning set forth in Section 6 hereof.

 

(f)                                    “Grant
Date” shall mean the date hereof, which is the date on which the Options
are granted to the Grantee.

 

(g)                                 “Grantee”
shall have the meaning set forth in the introductory paragraph hereto.

 

(h)                                 “Normal
Termination Date” shall mean the tenth anniversary of the date hereof.

 

(i)                                     “Option
Price” shall mean, with respect to each Share covered by an Option, the
exercise price at which the Grantee may purchase such Share pursuant to such
Option as determined in Section 2(b) hereof.

 

(j)                                     “Person”
shall mean any natural person, firm, partnership, limited liability company,
association, corporation, company, trust, business trust, governmental
authority or other entity.

 

(k)                                  “Plan”
shall have the meaning set forth in the recitals to this Agreement.

 

(l)                                     “Rule 144”
shall mean Rule 144 promulgated under the Securities Act.

 

(m)                               “Shares”
shall mean the shares of Common Stock subject to the Options.

 

(n)                                 “Sponsors”
shall mean the North Castle Partners, L.L.C., and Childs.

 

(o)                                 “Successor”
shall mean, with respect to any Person, a Person that succeeds to the
first Person’s assets and liabilities by merger, liquidation, dissolution or
otherwise by operation of law, or a Person to which all or substantially
all the assets and/or business of the first Person are transferred.

 

2

 

2.                                       Grant
of Options.

 

(a)                                  Confirmation
of Grant.  The Company hereby
evidences and confirms its grant to the Grantee, effective as of the date
hereof, of «Total_Options» Options.  The Options are not intended to be incentive
stock options under the U.S. Internal Revenue Code of 1986, as amended.  This Agreement is subordinate to, and the
terms and conditions of the Options granted hereunder are subject to, the terms
and conditions of the Plan.  If there is
any inconsistency between the terms hereof and the terms of the Plan, the terms
of the Plan shall govern.

 

(b)                                 Option
Price.  Each Option granted hereunder
shall have the option price per share set forth opposite the number of Options
on Schedule A attached hereto, which in each case is not less than the
Fair Market Value on the Grant Date.

 

3.                                       Vesting
and Exercisability.

 

(a)                                  Options.  Upon the occurrence of a Change of Control or
Public Offering, if the Sponsors realize an internal rate of return of at least
twenty percent (20%), thirty-three and one third (331/3%)
of the Options shall become vested and exercisable; provided, that, for each
one percent (1%) (or portion thereof) increase in such return (above 20%)
realized by the Sponsors upon the occurrence of such event, an additional six
and two-thirds percent (62/3%) (or portion thereof) of
the Options shall become vested and exercisable; provided, further, that, one
hundred percent (100%) of the Options shall become vested and exercisable upon
the occurrence of such event if the return realized by the Sponsors equals or
exceeds thirty percent (30%).  The
Sponsors’ realized internal rate of return will be calculated after giving full
effect to the dilution of the Sponsors’ interest in the Company by the value of
the outstanding Options that can be exercised upon such Change of Control or
Public Offering.  In the event less than
100% of the Options granted hereunder become vested as a result of the first
Change in Control or Public Offering, upon any and all subsequent Public
Offerings or divestitures of the Sponsor’s interests (until the Sponsors
beneficially own less that 5% of the total outstanding equity interests in the
Company), the foregoing internal rates of returns shall be recalculated in the
same manner as provided above and, to the extent such recalculation results in
an increased internal rate of return that would result in more Options becoming
vested and exercisable, such additional Options shall become vested and exercisable.

 

(b)                                 Conditions.  The Board, in its sole discretion, may
accelerate the vesting and exercisability of any Option, all Options or any
class of Options, at any time and from time to time.  Shares covered by Options which are vested
and exercisable may, subject to the provisions hereof, be purchased at any time
and from time to time on or after the date the corresponding Options become
exercisable in accordance with the provisions of this Section 3 until the
date one day prior to the date on which such Options terminate, provided that
any such purchase shall be effected pursuant and subject to

 

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Sections 5 and 6 hereof and the provisions contained in the
Shareholders Agreement and the Stock Subscription Agreement related to the
purchase of such Shares.

 

4.                                       Termination
of Options.

 

(a)                                  Normal
Termination Date.  Subject to
Sections 4(b) and 8 hereof, the Options shall terminate and be canceled on
the Normal Termination Date.

 

(b)                                 Early
Termination.

 

(i)                                     Termination
Other Than For Cause.  If the
Grantee’s employment with a member of the Company Group terminates for any
reason other than for Cause, then a percentage of Options granted hereunder
that has not become vested and exercisable pursuant to Section 3 shall
terminate and be cancelled immediately upon such termination of employment in
accordance with the following table:

 

	
  Length of time from Grant

  Date to date of termination

  	
   

  	
  % of Options granted

  hereunder terminated

  	
   

  
	
  Less than 1 year

  	
   

  	
  100

  	
  %

  
	
  1 year but less than 2 years

  	
   

  	
  75

  	
  %

  
	
  2 years but less than 3 years

  	
   

  	
  50

  	
  %

  
	
  3 years but less than 4 years

  	
   

  	
  25

  	
  %

  
	
  4 years or more

  	
   

  	
  0

  	
  %

  

 

With respect to any Options that are not terminated
and canceled upon the Grantee’s termination of employment in accordance with
the above table (the “Remaining Options”), the Company shall have the
option to (A) permit the Grantee to exercise such Remaining Options
(whether or not then vested or exercisable) until the first to occur of (x)
the 90th day after the effective date of the Grantee’s termination
of employment or, in the case of a termination for death or Disability, the
twelve month anniversary of such effective date; and (y) the Normal
Termination Date, (B) permit such Remaining Options to remain
outstanding and subject to provisions contained herein without modification,
except that the provisions of the first sentence of this Section 4(b)(i),
Section 4(b)(iii) hereof and Section 6 of the Plan shall no
longer apply or (C) purchase all or any portion of the Remaining
Options in accordance with Section 5(c). 
Any Options held by a Participant for which the Company has selected the
Option provided in clause (A) above that are not exercised within the
applicable periods described in this paragraph shall terminate and be canceled
upon the expiration of such period.

 

(ii)                                  Notification.  The Company shall notify the Grantee of its
election under Section 4(b)(i) within ten business days after the
effective date of the Grantee’s termination of employment; provided that, in
the case of a termination for any reason other than death, Disability or for
Cause, a failure by the Company

 

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to timely notify such
Grantee shall be deemed to be an election by the Company of the option
described in clause (A) of Section 4(b)(i); provided further that, in
the case of a termination for death or Disability, a failure to timely notify
such Grantee shall be deemed to be an election by the Company of the option
described in clause (B) of Section 4(b)(i).

 

(iii)                               Termination
for Cause.  Notwithstanding anything
else contained in this Agreement, if the Grantee’s employment with a member of
the Company Group is terminated for Cause, all Options (whether or not then
vested or exercisable) shall automatically terminate and be canceled
immediately upon such termination.

 

5.                                       Restrictions
on Exercise; Non-Transferability of Options; Repurchase of Remaining Options.

 

(a)                                  Restrictions on Exercise.  Once
exercisable in accordance with the provisions of this Agreement, the Options
may be exercised only with respect to full shares of Common Stock.  No fractional shares of Common Stock shall be
issued.  Notwithstanding any other
provision of this Agreement, the Options may not be exercised in whole or in
part, and no certificates representing Shares shall be delivered, (A) unless
all requisite approvals and consents of any governmental authority of any kind
having jurisdiction over the exercise of the Options or the delivery of the
Shares upon exercise of the Options shall have been secured, provided that the
Company shall use its reasonable efforts to obtain any such approvals or
consents unless the Board determines in its sole discretion that the Company
would incur material costs, fees or expenses or which would require registration
of the securities with such governmental authority, (B) unless the
purchase of the Shares upon the exercise of the Options shall be exempt from
registration under applicable U.S. federal and state securities laws, or the
purchase of the Shares shall have been registered under such laws, and (C) unless
all applicable U.S. federal, state and local tax withholding requirements shall
have been satisfied.

 

(b)                                 Non-Transferability
of Options.  The Options may be
exercised only by the Grantee or, following his death, by the Grantee’s
estate.  Each Option is not assignable or
transferable, in whole or in part, and it may not, directly or indirectly, be
offered, transferred, sold, pledged, assigned, alienated, hypothecated or
otherwise disposed of or encumbered (including without limitation by gift,
operation of law or otherwise) other than by will or by the laws of descent and
distribution to the estate of the Grantee upon the Grantee’s death.

 

(c)                                  Purchase
of Options on Termination of Employment.

 

(i)                                     Termination
of Employment.  If the Grantee’s
active employment with the Company or any Subsidiary thereof that employs the
Grantee is, or has been, terminated for any reason other than for Cause, the
Company shall have an option to purchase all or any portion of the Remaining
Options and/or the Options

 

5

 

that have become vested
and exercisable pursuant to Section 3 (the “Vested Options”) held
by the Grantee (or, if the Grantee’s employment was terminated by the Grantee’s
death or the Grantee dies after his termination of employment, the Grantee’s
estate) and shall have ten business days from the date of the Grantee’s
termination of employment (such ten business day period being hereinafter
referred to as the “First Purchase Period”) during which to give notice
in writing to the Grantee of its election to exercise or not to exercise such
right to purchase, in whole or in part, the Remaining Options or Vested
Options, as the case may be.  The Company
hereby undertakes to use reasonable efforts to act as promptly as practicable
following such date of termination to make such election.  If the Company fails to give notice that it
intends to exercise its right to purchase the Remaining Options or Vested
Options, as the case may be, within the First Purchase Period, or chooses to
purchase none or only a portion of the Remaining Options, or Vested Options, as
the case may be, by giving such notice, the North Castle Fund shall have the
right to purchase all or any portion of the Remaining Options or Vested
Options, as the case may be, not purchased by the Company, and shall have until
the expiration of the earlier of (x) five business days following the
end of the First Purchase Period or (y) five business days from the date
of receipt by the North Castle Fund of written notice from the Company as to
whether it intends to exercise its right to purchase any of the Remaining
Options or Vested Options, as the case may be (such five business day period
being hereinafter referred to as the “Second Purchase Period”), to give
notice in writing to the Grantee (or the Grantee’s estate) of the North Castle
Fund’s exercise of its right to purchase all or any portion of such Remaining
Options or Vested Options, as the case may be. 
The Grantee (or the Grantee’s estate) shall be entitled to retain any
Remaining Options and Vested Options that are not purchased by the Company or
the North Castle Fund pursuant to this Section 5(c), subject to all of the
provisions of this Agreement (including, without limitation, Section 3(a))
except that the provisions of the first sentence of Section 4(b)(i),
Section 4(b)(iii) hereof and Section 6 of the Plan shall no
longer apply with respect to such Remaining Options or Vested Options.  For all purposes under this Agreement, the
terms “employment” or “termination of employment” with respect to a person who
is not an employee shall mean services with, or the termination of services
with, (i) the entity for whom the Participant provides services to, (ii) the
Company, or (iii) the Company by the entity from whom the Participant
provides services to.

 

(ii)                                  Purchase
Price, etc.  All purchases pursuant
to this Section 5(c) by the Company or the North Castle Fund shall be
for a purchase price and effected in the manner prescribed by
Sections 5(f), (g) and (h).

 

(d)                                 Notice
of Termination. The Company shall give written notice of any termination of
the Grantee’s employment to the North Castle Fund, except that if such
termination (if other than as a result of death) is by the Grantee, the Grantee
shall

 

6

 

give written notice of such termination to the Company and the Company
shall give written notice of such termination to the North Castle Fund.

 

(e)                                  Public
Offering.  In the event that a Public
Offering has been consummated, neither the Company nor the North Castle Fund
shall have any rights to purchase the Remaining Options or Vested Options
pursuant to Section 5(c).

 

(f)                                    Purchase
Price.  Subject to
Section 11(c) hereof, the purchase price to be paid to the Grantee
(or the Grantee’s estate) for the Remaining Options or Vested Options, as the
case may be, purchased pursuant to Section 5(c) (the “Purchase
Price”) shall be equal to the excess, if any, of (i) the
aggregate Fair Market Value, as of the Determination Date, of the shares of
Common Stock then covered by the Remaining Options or Vested Options, as the
case may be, being purchased over (ii) the aggregate Option Price
for such Remaining Options or Vested Options, as the case may be.

 

(g)                                 Closing
of Purchase; Payment of Purchase Price. 
Subject to Section 11, the closing of a purchase of any Remaining
Options or Vested Options, as the case may be, pursuant to this Section 5
shall take place at the principal office of the Company on the tenth business
day following the receipt by the Grantee (or his or her estate) of the
Company’s or the North Castle Fund’s, as the case may be, notice of exercise of
its right to purchase any such Remaining Options or Vested Options, as the case
may be, pursuant to Section 5(c). 
At the closing, the Company or the North Castle Fund, as the case may
be, shall pay the Purchase Price to the Grantee (or his or her estate) for the
Remaining Options or Vested Options, as the case may be, being purchased by
delivery of a check for such Purchase Price payable to the order of the Grantee
(or his or her estate) and (ii) the Grantee (or his or her estate)
shall deliver to the Company such instruments as the Company may reasonably
request, signed by the Grantee (or his or her estate), free and clear of all
security interests, liens, claims, encumbrances, charges, options, restrictions
on transfer, proxies and voting and other agreements of whatever nature.

 

(h)                                 Withholding.  Whenever Shares are to be issued pursuant to
the Options, the Company may require the recipient of the Shares to remit to
the Company an amount in cash sufficient to satisfy any applicable U.S.
federal, state and local tax withholding requirements as a condition to the
issuance of such Shares.  In the event
any cash is paid to the Grantee pursuant to this Agreement or the Plan, the
Company shall have the right to withhold an amount from such payment sufficient
to satisfy any applicable U.S. federal, state and local tax withholding requirements.  If shares of Common Stock are traded on a
national securities exchange or bid and ask prices for shares of Common Stock
are quoted on the Nasdaq, the Company may, if requested by the Grantee,
withhold Shares to satisfy the minimum applicable withholding requirements,
subject to the provisions of the Plan and any rules adopted by the Board
regarding compliance with applicable law, including, but not limited to,
Section 16(b) of the Exchange Act.

 

7

 

6.                                       Manner
of Exercise.  Options may be
exercised, in whole or in part, by notice to the Secretary of the Company in
writing given at least 15 business days prior to the date as of which the
Grantee will so exercise the Options (the “Exercise Date”), specifying
the number of whole Shares with respect to which the Options are being
exercised (the “Exercise Shares”) and the aggregate Option Price for
such Exercise Shares, provided that if shares of Common Stock are traded on a
U.S. national securities exchange or bid and ask prices for shares of Common
Stock are quoted over Nasdaq, notice may be given five business days before the
Exercise Date.  On or before the Exercise
Date, the Company and the Grantee shall enter into (x) a Joinder
Agreement, and (y) a Stock Subscription Agreement.  In accordance with the Stock Subscription
Agreement, (i) on or before the Exercise Date, the Grantee shall
deliver to the Company full payment for the Exercise Shares in United States
dollars in cash or immediately available funds in an amount equal to the
product of the number of Exercise Shares, multiplied by the Option Price (the “Exercise
Price”) and (ii) the Company shall deliver to the Grantee a
certificate or certificates representing the Exercise Shares, registered in the
name of the Grantee and bearing appropriate legends as provided in
Section 7(b) hereof.  If, as of
the Exercise Date, shares of Common Stock are traded on a U.S. national
securities exchange or bid and ask prices for shares of Common Stock are quoted
over Nasdaq, the Grantee may, in lieu of tendering cash, tender shares of
Common Stock that have an aggregate Fair Market Value on the Exercise Date
equal to the Exercise Price or may deliver a combination of cash and such
shares of Common Stock having an aggregate Fair Market Value equal to the
difference between the Exercise Price and the amount of such cash as payment of
the Exercise Price, subject to such rules and regulations as may be
adopted by the Board to provide for the compliance of such payment procedure
with applicable law, including section 16(b) of the Exchange
Act.  The Company may require the Grantee
to furnish or execute such other documents as the Company shall reasonably deem
necessary (i) to evidence such exercise, (ii) to
determine whether registration is then required under the Securities Act and (iii) to
comply with or satisfy the requirements of the Securities Act, applicable state
securities laws or any other applicable law.

 

7.                                       Grantee’s
Representations, Warranties and Covenants.

 

(a)                                  Investment
Intention.  The Grantee represents
and warrants that the Options have been, and any Exercise Shares will be,
acquired by the Grantee solely for the Grantee’s own account for investment and
not with a view to or for sale in connection with any distribution
thereof.  The Grantee agrees that the
Grantee will not, directly or indirectly, offer, transfer, sell, pledge,
hypothecate or otherwise dispose of all or any of the Options or any of the
Exercise Shares (or solicit any offers to buy, purchase or otherwise acquire or
take a pledge of all or any of the Options or any of the Exercise Shares),
except in compliance with the Securities Act and the rules and regulations
of the Commission thereunder, and in compliance with applicable state or
foreign securities or “blue sky” laws. 
The Grantee further understands, acknowledges and agrees that none of
the Exercise Shares may be transferred, sold, pledged, hypothecated or
otherwise

 

8

 

disposed of unless the provisions of the Shareholders Agreement and
Stock Subscription Agreement shall have been complied with or have expired.

 

(b)                                 Legends.  The Grantee acknowledges that any certificate
representing the Exercise Shares shall bear an appropriate legend, which will
include, without limitation, the following language:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE OFFERED, SOLD, ASSIGNED,
PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF (EACH, A
“TRANSFER”) UNLESS AND UNTIL REGISTERED UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR UNLESS SUCH TRANSFER IS (A) EXEMPT FROM
REGISTRATION OR IS OTHERWISE IN COMPLIANCE WITH THE ACT AND SUCH LAWS IN THE
OPINION OF COUNSEL TO THE SHAREHOLDER, WHICH COUNSEL MUST BE, AND THE
FORM AND SUBSTANCE OF WHICH OPINION ARE, REASONABLY SATISFACTORY TO THE
ISSUER AND (B) IN COMPLIANCE WITH THE SHAREHOLDERS AGREEMENT OF THE
ISSUER, DATED AS OF DECEMBER 15, 2000 AND ANY AMENDMENTS, SUPPLEMENTS OR
MODIFICATIONS THERETO (THE “SHAREHOLDERS AGREEMENT”).

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN (I) A STOCK SUBSCRIPTION
AGREEMENT, DATED AS
OF               ,
200  , AND (II) A SHAREHOLDERS AGREEMENT, COPIES OF WHICH ARE
AVAILABLE FOR INSPECTION AT THE OFFICES OF THE COMPANY.  NO TRANSFER OF SUCH SECURITIES WILL BE MADE
ON THE BOOKS OF THE COMPANY, AND SUCH TRANSFER SHALL BE VOIDABLE, UNLESS
ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH AGREEMENTS.

 

(c)                                  Ability
to Bear Risk.  The Grantee covenants
that the Grantee will not exercise all or any of the Options unless (i) the
financial situation of the Grantee is such that the Grantee can afford to bear
the economic risk of holding the Exercise Shares for an indefinite period and (ii) the
Grantee can afford to suffer the complete loss of the Grantee’s investment in
the Exercise Shares.

 

(d)                                 Restriction
on Sale upon Public Offering.  The
Grantee agrees that, in the event that the Company files a registration
statement under the Securities Act with respect to an underwritten public
offering of any shares of its capital stock, the
Grantee

 

9

 

will not effect any public sale or distribution of any shares of the
Common Stock (other than as part of such public offering), including but not
limited to, pursuant to Rule 144 or Rule 144A under the Securities
Act, during the 20 days prior to and the 180 days (or such lesser number of
days that the managing underwriter may require) after the effective date of
such registration statement.  The Grantee
further understands and acknowledges that any sale, transfer or other
disposition of the Exercise Shares by him following a public offering will be
subject to compliance with, and may be limited under, the federal securities
laws and/or state “blue sky” laws.

 

8.                                       Change
in Control.  Unless otherwise
determined by the Committee, in the event of a Change in Control, each
outstanding Option exercisable pursuant to Section 2(b) shall be
canceled in exchange for a payment in cash of an amount equal to the excess, if
any, of the Change in Control Price over the Option Price; provided that if the
holders of Common Stock receive property other than cash as a result of a
Change of Control, then such payment shall be made in such other property in
the same proportion as the holders of Common Stock receive less the aggregate
Option Price in connection with such Change of Control.

 

9.                                       Representations
and Warranties of the Company.  The
Company represents and warrants to the Grantee that (a) the Company
has been duly incorporated and is an existing corporation in good standing
under the laws of the state of its incorporation, (b) this
Agreement has been duly authorized, executed and delivered by the Company and
constitutes a valid and legally binding obligation of the Company enforceable
against the Company in accordance with its terms, and (c) the
Exercise Shares, when issued, delivered and paid for, upon exercise of the
Options in accordance with the terms hereof, the Joinder Agreement and the
Stock Subscription Agreement, will be duly authorized, validly issued, fully
paid and nonassessable, and free and clear of any liens or encumbrances other
than those created pursuant to this Agreement, the Shareholders Agreement, the
Stock Subscription Agreement or otherwise in connection with the transactions
contemplated hereby.

 

10.                                 Capital
Adjustments.  The number and price of
the Shares covered by the Options shall be proportionately adjusted to reflect
any stock dividend, stock split or share combination of the Common Stock or any
recapitalization of the Company.  Subject
to any required action by the shareholders of the Company and Section 7 of
the Plan, in any merger, consolidation, reorganization, exchange of shares,
liquidation or dissolution, the Options shall pertain to the securities and
other property, if any, that a holder of the number of shares of Common Stock covered
by the Options would have been entitled to receive in connection with such
event.

 

11.                                 Certain
Restrictions on Repurchases.

 

(a)                                  Financing
Agreements, etc.  Notwithstanding any
other provision of this Agreement, the Company shall not be obligated or
permitted to pay the purchase price for any Remaining Options or Vested
Options, as the case may be, that the

 

10

 

Company may elect to purchase from the Grantee pursuant to
Section 5 if (i) the payment of such purchase price would
result in a violation of the terms or provisions of, or a default or an event
of default under, any financing or security agreement or document entered into
by the Company or any of its Subsidiaries prior to the date hereof, any refunding
thereof, or in connection with the operations of the Company or the
Subsidiaries from time to time (such agreements and documents, as each may be
amended, modified or supplemented from time to time, are referred to herein as
the “Financing Agreements”),
in each case as the same may be amended, modified or supplemented from time to
time, (ii) the payment of such purchase price would violate any of
the terms or provisions of the Certificate of Incorporation of the Company or (iii) the
Company has no funds legally available therefor under the General Corporation
Law of the State of Delaware.

 

(b)                                 Delay
of Repurchase.  In the event that the
payment of the purchase price for any Remaining Options or Vested Options, as
the case may be, by the Company otherwise permitted under Section 5 is
prevented solely by the terms of Section 11(a), (i) the
payment of such purchase price will be postponed and will be made without the
application of further conditions or impediments (other than as set forth in
Section 5 hereof or in this Section 11) at the first opportunity
thereafter when the Company has funds legally available therefor and when the
payment of such purchase price will not result in any default, event of default
or violation under any of the Financing Agreements or in a violation of any
term or provision of the Certificate of Incorporation of the Company and (ii) the
Grantee’s right to receive payment of such purchase price shall rank against
other similar rights with respect to shares of Common Stock or options in
respect thereof according to priority in time of the effective date of the
event giving rise to any such right, provided that any such right as to which a
common date determines priority shall be of equal priority and shall share pro
rata in any purchase payments made pursuant to clause (i) above.

 

(c)                                  Purchase
Price Adjustment.  In the event that
a repurchase of Remaining Options or Vested Options, as the case may be, from
the Grantee is delayed pursuant to this Section 11, the purchase price per
Share when the repurchase of such Remaining Options or Vested Options, as the
case may be, eventually takes place as contemplated by
Section 11(b) shall equal the sum of (i) the Purchase
Price determined in accordance with Section 6 hereof at the time that the
repurchase of such Remaining Options or Vested Options, as the case may be,
would have occurred but for the operation of this Section 11, plus (ii) an amount equal to
interest on such Purchase Price for the period from the date on which the
completion of the repurchase would have taken place but for the operation of
this Section 11 to the date on which such repurchase actually takes place
(the “Delay Period”) at a
rate equal to the average annual cost to the Company of its and its
Subsidiaries bank indebtedness obligations outstanding during the Delay Period
or, if there are no such obligations outstanding, one percentage point greater
than the average prime rate charged during such period by a nationally
recognized bank designated by the Company.

 

11

 

12.                                 Miscellaneous.

 

(a)                                  Notices.  All notices and other communications required
or permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested, postage prepaid, or by any recognized
international equivalent of such delivery, to the Company, the Sponsors or the
Grantee, as the case may be, at the following addresses or to such other address
as the Company, the Sponsors or the Grantee, as the case may be, shall specify
by notice to the others:

 

(i)                                     if
to the Company, to it at:

 

Equinox
Holdings, Inc.

895 Broadway

New York, New York  10003

Fax:  212-777-9510

Telephone:  212-677-0180

Attention:  Harvey J. Spevak

 

(ii)                                  if
to the Grantee, to the Grantee at the address set forth on the signature
page hereof:

 

(iii)                               if
to the North Castle Fund, to:

 

c/o
North Castle Partners, L.L.C.

183 E. Putnam Avenue

Greenwich, CT  06830

Fax:  (203) 862-3273

Telephone:  (203) 862-3259

Attention:  Adam Saltzman

 

All such
notices and communications shall be deemed to have been received on the date of
delivery if delivered personally or on the third business day after the mailing
thereof, provided that the party giving such notice or communication
shall have attempted to telephone the party or parties to which notice is being
given during regular business hours on or before the day such notice or
communication is being sent, to advise such party or parties that such notice
is being sent.  Copies of any notice or
other communication given under this Agreement shall also be given to:

 

North
Castle Partners, L.L.C.

183 E. Putnam Avenue

Greenwich, CT 06830

Fax:  (203) 862-3273

Telephone:  (203) 862-3250

Attention:  Peter J.
Shabecoff, Esq.

 

12

 

and

 

Debevoise &
Plimpton

919 Third Avenue

New York, New York  10022

Fax:  (212) 909-6836

Telephone:  (212) 909-6000

Attention:  Franci J.
Blassberg, Esq.

 

and

 

J.W.
Childs Equity Partners II, L.P.

c/o J.W. Childs Associates L.P.

One Federal Street

Boston, Massachusetts  02110

Fax:  617-753-1101

Telephone:  617-753-1100

Attention:  Glenn A. Hopkins

 

and

 

Kaye, Scholer, Fierman, Hays and Handler LLP

425 Park Avenue

New York, New York  10022

Fax:  212-836-6419

Telephone:  212-836-8019

Attention:  Stephen C.
Koval, Esq.

 

(b)                                 No
Right to Employment.  Nothing in this
Agreement shall be deemed to confer on the Grantee any right to continue in the
employ of the Company or any other member of the Company Group, or to interfere
with or limit in any way the right of the Company or any other member of the
Company Group to terminate such employment at any time.

 

(c)                                  Binding
Effect; Benefits.  This Agreement
shall be binding upon and inure to the benefit of the parties to this Agreement
and their respective successors and assigns. 
Except as provided in Section 5, nothing in this Agreement, express
or implied, is intended or shall be construed to give any person other than the
parties to this Agreement or their respective successors or assigns any legal
or equitable right, remedy or claim under or in respect of any agreement or any
provision contained herein.

 

(d)                                 Waiver;
Amendment.

 

(i)                                     Waiver.  Any party hereto or beneficiary hereof may by
written notice to the other parties (A) extend the time for the
performance of any of the

 

13

 

obligations or other
actions of the other parties under this Agreement, (B) waive
compliance with any of the conditions or covenants of the other parties
contained in this Agreement and (C) waive or modify performance of
any of the obligations of the other parties under this Agreement; provided that
any waiver of the provisions of Section 4 must be consented to in writing by
the Sponsors.  Except as provided in the
preceding sentence, no action taken pursuant to this Agreement, including,
without limitation, any investigation by or on behalf of any party or
beneficiary, shall be deemed to constitute a waiver by the party or beneficiary
taking such action of compliance with any representations, warranties,
covenants or agreements contained herein. 
The waiver by any party hereto or beneficiary hereof of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of
any preceding or succeeding breach and no failure by a party or beneficiary to
exercise any right or privilege hereunder shall be deemed a waiver of such
party’s or beneficiary’s rights or privileges hereunder or shall be deemed a
waiver of such party’s or beneficiary’s rights to exercise the same at any
subsequent time or times hereunder.

 

(ii)                                  Amendment.  This Agreement may not be amended, modified
or supplemented orally, but only by a written instrument executed by the
Grantee and the Company, and (in the case of any amendment, modification or
supplement that adversely affects the rights of the Sponsors hereunder)
consented to by the Sponsors, as the case may be, in writing.  The parties hereto acknowledge that the
Company’s consent to an amendment or modification of this Agreement may be
subject to the terms and provisions of the Financing Agreements (as defined in
the Stock Subscription Agreement).

 

(e)                                  Assignability.  Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by the Grantee without the prior written consent of the other
parties, and the Sponsors.

 

(f)                                    Applicable
Law.  THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS WHICH WOULD REQUIRE OR
PERMIT APPLICATION OF THE LAW OF ANOTHER JURISDICTION, EXCEPT TO THE EXTENT
THAT THE CORPORATE LAW OF THE STATE OF INCORPORATION OF THE COMPANY
SPECIFICALLY AND MANDATORILY APPLIES.

 

(g)                                 Section and
Other Headings, etc.  The
section and other headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

 

(h)                                 Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.

 

14

 

IN WITNESS WHEREOF, the Company and the Grantee have
executed this Agreement as of the date first above written.

 

	
   

  	
  EQUINOX HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE GRANTEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: «Name»

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  «Address»

  

 

15

 

Schedule A

 

	
  Number of Options

  	
   

  	
  Option Price

  	
   

  
	
  «Total_Options»

  	
   

  	
  «Exercise_Price»

  	
   

  

 

16Exhibit 10.15

 

STOCK SUBSCRIPTION
AGREEMENT

 

STOCK
SUBSCRIPTION AGREEMENT, dated as of                ,
200  , between Equinox Holdings, Inc., a Delaware corporation
(the “Company”) and the purchaser, an employee of the Company, whose
name appears on the signature page hereof (the “Purchaser”).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has adopted the
Equinox Holdings, Inc. 2000 Stock Incentive Plan (as the same may be
amended from time to time, the “Stock Incentive Plan”);

 

WHEREAS,
the Company and the Purchaser entered into an Option Agreement, dated as of
                 ,
200  , pursuant to which the Company granted Purchaser options (the “Options”)
to purchase                
shares of Common Stock, par value $0.01 per share, of the Company (the “Common
Stock”) pursuant to the Stock Incentive Plan; and

 

WHEREAS,
the Purchaser desires to exercise                 
Options to purchase from the Company the aggregate number of shares of Common
Stock set forth on the signature page hereof (each a “Share” and,
collectively, the “Shares”), at an aggregate purchase price of $                  ,
and the Company desires to sell the Shares to the Purchaser on the terms and
subject to the conditions set forth herein.

 

NOW,
THEREFORE, to implement the foregoing and in consideration of the mutual
promises, covenants and agreements contained herein, the parties hereto hereby
agree as follows:

 

1.                                       Purchase
and Sale of Common Stock.

 

(a)                                  Purchase
of Common Stock.  Subject to all of
the terms and conditions of this Agreement, the Purchaser hereby subscribes for
and shall purchase, and the Company shall sell to the Purchaser, the Shares, at
an aggregate purchase price of $                
as calculated on Schedule A attached hereto, at the Closing provided for
in Section 2(a) hereof. 
Notwithstanding anything in this Agreement to the contrary, the Company
shall have no obligation to sell any shares of Common Stock (including the
Shares) to any person who is a resident of a jurisdiction in which the sale of
Common Stock to such person would constitute a violation of the securities, “blue
sky” or other laws of such jurisdiction, provided that the Company shall use
its reasonable efforts to comply with any such laws unless the Board determines
in its sole discretion that compliance would require the Company to incur
material costs or fees or which would require the Company to register the
Shares.

 

(b)                                 Consideration.  Subject to all of the terms and conditions of
this Agreement, the Purchaser shall deliver to the Company at the Closing
referred to in Section 2(a) hereof, immediately available funds in an
amount equal to the aggregate

 

 

purchase price for
the Shares to be purchased at such Closing set forth on the signature page hereof.

 

2.                                       Closing.

 

(a)                                  Time
and Place.  Except as otherwise
mutually agreed by the Company and the Purchaser, the closing of the purchase
and sale of the Shares pursuant to this Agreement shall be held at the offices
of Debevoise & Plimpton, 919 Third Avenue, New York, New York at 10:00 a.m.
(New York time) on or about                    ,
200   (the “Closing”).

 

(b)                                 Delivery
by the Purchaser.  At the Closing,
the Purchaser shall deliver to the Company the consideration referred to in Section 1(b) hereof.  On or before the Closing, the Purchaser shall
deliver to the Company a duly executed Joinder Agreement (as defined in the
Stock Incentive Plan).

 

(c)                                  Delivery
by the Company.  At the Closing, the
Company shall deliver to the Purchaser (i) a receipt for the
consideration received from the Purchaser and (ii) a stock
certificate registered in the Purchaser’s name and representing the Shares,
which certificate shall bear the legends set forth in Section 3(b).

 

3.                                       Purchaser’s
Representations, Warranties and Covenants.

 

(a)                                  Investment
Intention.  The Purchaser represents
and warrants that the Purchaser is acquiring the Shares solely for the
Purchaser’s own account for investment and not with a view to or for sale in
connection with any distribution thereof. 
The Purchaser agrees that the Purchaser will not, directly or
indirectly, offer, transfer, sell, pledge, hypothecate or otherwise dispose of
any of the Shares (or solicit any offers to buy, purchase or otherwise acquire
or take a pledge of any Shares), except in compliance with the Securities Act
of 1933, as amended (the “Securities Act”), and the rules and
regulations of the Securities and Exchange Commission (the “Commission”)
thereunder, and in compliance with applicable state securities or “blue sky”
laws and foreign securities laws, if any. 
The Purchaser further understands, acknowledges and agrees that none of
the Shares may be transferred, sold, pledged, hypothecated or otherwise
disposed of (i) unless the provisions of Section 4 herein and
the Shareholders Agreement shall have been complied with or have expired, (ii) unless
(A) such disposition is pursuant to an effective registration
statement under the Securities Act, (B) the Purchaser shall have
delivered to the Company an opinion of counsel, which opinion and counsel shall
be reasonably satisfactory to the Company, to the effect that such disposition
is exempt from the provisions of Section 5 of the Securities Act or (C) a
no-action letter from the Commission, reasonably satisfactory to the Company,
shall have been obtained with respect to such disposition and (iii) unless
such disposition is pursuant to registration under any applicable state
securities laws or an exemption therefrom.

 

(b)                                 Legends.  The Purchaser acknowledges that the
certificate or certificates representing the Shares shall bear the following
legends:

 

2

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE OFFERED, SOLD,
ASSIGNED, PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF (EACH, A “TRANSFER”)
UNLESS AND UNTIL REGISTERED UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS OR UNLESS SUCH TRANSFER IS (A) EXEMPT FROM REGISTRATION OR IS
OTHERWISE IN COMPLIANCE WITH THE ACT AND SUCH LAWS IN THE OPINION OF COUNSEL TO
THE SHAREHOLDER, WHICH COUNSEL MUST BE, AND THE FORM AND SUBSTANCE OF
WHICH OPINION ARE, REASONABLY SATISFACTORY TO THE ISSUER AND (B) IN
COMPLIANCE WITH THE SHAREHOLDERS AGREEMENT OF THE ISSUER, DATED AS OF                   ,
2000 AND ANY AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS THERETO (THE “SHAREHOLDERS
AGREEMENT”).

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN (I) A STOCK SUBSCRIPTION
AGREEMENT, DATED AS OF              ,
200  , AND (II) A SHAREHOLDERS AGREEMENT, COPIES OF WHICH ARE
AVAILABLE FOR INSPECTION AT THE OFFICES OF THE COMPANY.  NO TRANSFER OF SUCH SECURITIES WILL BE MADE
ON THE BOOKS OF THE COMPANY, AND SUCH TRANSFER SHALL BE VOIDABLE, UNLESS
ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH THE TERMS OF SUCH AGREEMENTS.

 

(c)                                  Securities
Law Matters.  The Purchaser
acknowledges receipt of advice from the Company that (i) the offer
and sale of the Shares hereby have not been registered under the Securities Act
or any state or foreign securities or “blue sky” laws, (ii) it is
not anticipated that there will be any public market for the Shares, (iii) the
Shares must be held indefinitely and the Purchaser must continue to bear the
economic risk of the investment in the Shares unless there is a public market
for the Shares and, to the extent required under the Securities Act, the Shares
are registered for resale under the Securities Act and such state laws or an
exemption from registration is available, (iv) Rule 144
promulgated under the Securities Act (“Rule 144”) is not presently
available with respect to sales of any securities of the Company, and the
Company has made no covenant to make Rule 144 available, (v) when
and if the Shares may be disposed of without registration in reliance upon Rule 144,
such disposition by an affiliate of the Company, within the meaning of Rule 405,
can be made only in limited amounts in accordance with the terms and conditions
of Rule 144, (vi) the Company does not plan to file reports
with the Commission or make public information concerning the Company available
unless required to do so by law, (vii) if the exemption afforded by
Rule 144 is not generally available, sales of the Shares may be difficult
to effect because of the absence of public information concerning the Company, (viii) a
restrictive legend in the form heretofore set forth shall be placed on the
certificates representing the Shares and (ix) a notation shall be
made in the appropriate records of the Company indicating that

 

3

 

the Shares are
subject to restrictions on transfer set forth in this Agreement and, if the
Company should in the future engage the services of a stock transfer agent,
appropriate stop-transfer restrictions will be issued to such transfer agent
with respect to the Shares.

 

(d)                                 Compliance
with Rule 144.  If any of the
Shares are to be disposed of in accordance with Rule 144, the Purchaser
shall transmit to the Company an executed copy of Form 144 (if required by
Rule 144) no later than the time such form is required to be transmitted
to the Commission for filing and such other documentation as the Company may
reasonably require to assure compliance with Rule 144 in connection with
such disposition.

 

(e)                                  Ability
to Bear Risk.  The Purchaser
represents and warrants that (i) the financial situation of the
Purchaser is such that the Purchaser can afford to bear the economic risk of
holding the Shares for an indefinite period and (ii) the Purchaser
can afford to suffer the complete loss of the Purchaser’s investment in the
Shares.

 

(f)                                    Access
to Information.  The Purchaser
represents and warrants that (i) the Purchaser has carefully
reviewed the information describing the Company and the terms of the
transaction contemplated hereby furnished to the Purchaser and (ii) the
Purchaser is, and will be at the time of the closing, an officer or employee of
the Company or an Affiliate.

 

(g)                                 Restrictions
on Sale upon Public Offering.  The
Purchaser acknowledges and agrees that, in the event that the Company files a
registration statement under the Securities Act with respect to an underwritten
public offering of any shares of its capital stock, the Purchaser will not
effect any public sale or distribution of any shares of Common Stock (other
than as part of such underwritten public offering), including but not limited
to, pursuant to Rule 144 or Rule 144A under the Securities Act,
during the 20 days prior to and the 180 days (or such lesser number of days
that the managing underwriter may require) after the effective date of such
registration statement.  The Purchaser
further understands and acknowledges that any sale, transfer or other disposition
of the Shares by him following any underwritten public offering of the Common
Stock will be subject to compliance with, and may be limited under, the federal
securities laws and/or state “blue sky” securities laws.

 

4.                                       Restrictions
on Disposition of Shares.  Neither
the Purchaser nor any of the Purchaser’s heirs or representatives shall sell,
assign, transfer, pledge or otherwise directly or indirectly dispose of or
encumber any of the Shares to or with any other person, firm, trust,
association, corporation or entity except in compliance with the Shareholders
Agreement, dated as of                    ,
2000, among the Company, Purchaser and the other parties thereto.

 

5.                                       Repurchase
Right Effective on Termination of Employment.

 

(a)                                  Termination
of Employment.  If the Purchaser’s
active employment with the Company or any Subsidiary thereof that employs the
Purchaser is, or has been, terminated for any reason, the Company shall have
the option to purchase all or a portion

 

4

 

of the Shares then
held by the Purchaser (or, if his or her employment was terminated by his or
her death, his or her estate) and shall have 90 days from the date of
termination of Purchaser’s employment (such 90 day period, the “First Option
Period”) during which to give notice in writing to the Purchaser (or his or
her estate) of its election to exercise or not to exercise such option, in
whole or in part.  The Company hereby
undertakes to use reasonable efforts to act as promptly as practicable
following such date of termination to make such election.  If the Company fails to give notice that it
intends to exercise such option within the First Option Period or the Company
gives notice that it does not intend to exercise such option or that it intends
to exercise such option with respect to only a portion of the Shares, then
NCP-EH (as defined below) shall have the right to purchase any or all the
Shares then held by the Purchaser (or his or her estate) that will not be
repurchased by the Company, and shall have until the expiration of the earlier
of (x) 90 days following the end of the First Option Period or
(y) 90 days from the date of receipt by NCP-EH of written
notice from the Company indicating whether it will exercise its option to
purchase any of the Shares (such 90-day period being hereinafter referred to as
the “Second Option Period”), to give notice in writing to the Purchaser
(or his estate) of NCP-EH’s exercise of its option, in whole or in part.  If the options of the Company and NCP-EH to
purchase the Shares pursuant to this subsection are not exercised with
respect to all of the Shares as provided herein (other than as a result of Section 9
hereof), the Purchaser (or his or her estate) shall be entitled to retain the
Shares, as to which the right is not exercised, subject to all of the
provisions of this Agreement.  All
purchases pursuant to this Section 5(a) by the Company shall be for a
purchase price and in the manner prescribed by Section 6 hereof.  For all purposes under this Agreement, the
terms “employment” or “termination of employment” with respect to a person who
is not an employee shall mean services with, or the termination of services
with, (i) the entity for whom the Participant provides services to, (ii) the
Company, or (iii) the Company by the entity from whom the Participant
provides services to.

 

(b)                                 Notice
of Termination.  The Company or the
Subsidiary thereof that employs the Purchaser shall give written notice of any
termination of the Purchaser’s active employment with each of the Company and
any Subsidiary thereof that employs the Purchaser to NCP-EH, except that if
such termination (if other than as a result of death) is by the Purchaser, the
Purchaser shall give written notice of such termination to the Company and the
Company shall give written notice of such termination to NCP-EH .

 

(c)                                  Public
Offering.  In the event that a Public
Offering has been consummated, the Company and NCP-EH shall not have any rights
to purchase the Shares pursuant to this Section 5 and this Section 5
shall not apply to a sale as part of a Public Offering.

 

6.                                       Determination
of the Purchase Price; Manner of Payment.

 

(a)                                  Purchase
Price.  For the purposes of any
purchase of the Shares pursuant to Section 5, and subject to Section 9(c),
the purchase price per Share to be paid to the Purchaser (or his estate) for
each Share (the “Purchase Price”) shall equal the fair market value (the
“Fair Market Value”) of such Share as of the effective date of the
termination of employment that gives rise to the right of the Company to
repurchase such Share (such

 

5

 

date of
termination the “Determination Date”); provided that if the Purchaser’s
employment is terminated by the Company or any Subsidiary thereof for Cause,
the Purchase Price for such Share shall equal the lesser of (i) the
Fair Market Value of such Share as of the effective date of termination of
Purchaser’s employment and (ii) the price at which the Purchaser
purchased such Share from the Company pursuant to this Agreement.  Whenever determination of the Fair Market
Value of a Share is required by this Agreement, such Fair Market Value shall be
such amount as is determined in good faith by the Board.  In making a determination of Fair Market
Value, the Board shall give due consideration to such factors as it deems
appropriate, including, without limitation, the earnings and certain other
financial and operating information of the Company and its Subsidiaries in
recent periods, the potential value of the Company and its Subsidiaries as a
whole, the future prospects of the Company and its Subsidiaries and the
industries in which they compete, the history and management of the Company and
its Subsidiaries, the general condition of the securities markets, the fair
market value of securities of companies engaged in businesses similar to those
of the Company and its Subsidiaries.  The
determination of Fair Market Value will not give effect to any restrictions on
transfer of the Shares or the fact that such Shares would represent a minority
interest in the Company.  The Fair Market
Value as determined in good faith by the Board and in the absence of fraud
shall be binding and conclusive upon all parties hereto.  If the Company at any time subdivides (by any
stock split, stock dividend or otherwise) the Common Stock into a greater
number of shares, or combines (by reverse stock split or otherwise) the Common
Stock into a smaller number of shares, the Purchase Price (including any
minimum or maximum Purchase Price specified herein or in effect as a result of
a prior adjustment) shall be appropriately adjusted to reflect such subdivision
or combination.

 

(b)                                 Closing
of Purchase; Payment of Purchase Price. 
Subject to Section 9, the closing of a purchase pursuant to Section 6
shall take place at the principal office of the Company on the tenth business
day following the receipt by the Purchaser (or his or her estate) of the notice
of the Company and/or NCP-EH of its exercise of its option to purchase any of
the Shares pursuant to Section 6(a). 
At the closing, (i) the Company and NCP-EH, as the case may
be, shall pay to the Purchaser (or his or her estate) an amount equal to the
Purchase Price and (ii) the Purchaser (or his or her estate) shall
deliver to the Company such certificates or other instruments representing the
Shares so purchased, appropriately endorsed by the Purchaser (or his or her
estate), as the Company may reasonably require.

 

7.                                       Representations
and Warranties of the Company.  The
Company represents and warrants to the Purchaser that (a) the
Company has been duly incorporated and validly exists under the laws of the
state of its incorporation, (b) this Agreement has been duly
authorized, executed and delivered by the Company and constitutes a valid and
legally binding obligation of the Company enforceable against the Company in
accordance with its terms and (c) the Shares, when issued,
delivered and paid for in accordance with the terms hereof, will be duly and
validly issued, fully paid and nonassessable, and free and clear of any liens
or encumbrances other than those created pursuant to this Agreement, the
Shareholders Agreement, or otherwise in connection with the transactions
contemplated hereby.

 

6

 

8.                                       Covenants
of the Company.

 

(a)                                  Rule 144.  The Company agrees that at all times after it
has filed a registration statement after the date hereof pursuant to the
requirements of the Securities Act or Section 12 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), relating to any
class of equity securities of the Company (other than (i) the
registration of equity securities of the Company and/or options or interests in
respect thereof to be offered primarily to directors and/or members of
management or employees, sales agents or similar representatives of the Company
or its Subsidiaries, or directors or senior executives of corporations in which
entities managed or sponsored by North Castle Partners, L.L.C. (“North
Castle”) or J.W. Childs Associates, L.P. (“Childs Associates”) have
made equity investments and/or other persons with whom North Castle or Childs
Associates has consulting or other advisory relationships, or (ii) the
registration of equity securities and/or options or other interests in respect
thereof solely on Form S-4 or S-8 or any successor form), it will file the
reports required to be filed by it under the Securities Act and the Exchange
Act and the rules and regulations adopted by the Commission thereunder
(or, if the Company is not required to file such reports, it will, upon the
request of the Purchaser, make publicly available such information as necessary
to permit sales pursuant to Rule 144 under the Securities Act), to the
extent required from time to time to enable the Purchaser to sell the Shares
without registration under the Securities Act within the limitation of the
exemptions provided by (i) Rule 144, as such Rule may be
amended from time to time, or (ii) any successor rule or
regulation hereafter adopted by the Commission.

 

(b)                                 State
Securities Laws.  The Company agrees
to use its reasonable efforts to comply with all state securities or “blue sky”
laws, if any, applicable to the sale of the Shares to the Purchaser, provided
that the Company shall not be obligated to qualify or register the Shares under
any such law or to qualify as a foreign corporation or file any consent to
service of process under the laws of any jurisdiction or subject itself to
taxation as doing business in any such jurisdiction.

 

9.                                       Certain
Restrictions on Repurchases.

 

(a)                                  Financing
Agreements, etc.  Notwithstanding any
other provision of this Agreement, the Company shall not be obligated or
permitted to pay the purchase price for any Shares that the Company may elect
to purchase from the Purchaser pursuant to Section 5 if (i) the
payment of such purchase price would result in a violation of the terms or
provisions of, or a default or an event of default under, any financing or
security agreement or document entered into by the Company or any of its
Subsidiaries prior to the date hereof, any refunding thereof, or in connection
with the operations of the Company or the Subsidiaries from time to time (such
agreements and documents, as each may be amended, modified or supplemented from
time to time, are referred to herein as the “Financing Agreements”), in each case as the same may be
amended, modified or supplemented from time to time, (ii) the
payment of such purchase price would violate any of the terms or provisions of
the Certificate of Incorporation of the Company or (iii) the
Company has no funds legally available therefor under the General Corporation
Law of the State of Delaware.

 

7

 

(b)                                 Delay
of Repurchase.  In the event that the
payment of the purchase price for any Shares by the Company otherwise permitted
under Section 5 is prevented solely by the terms of Section 9(a), (i) the
payment of such purchase price will be postponed and will be made without the
application of further conditions or impediments (other than as set forth in Section 5
hereof or in this Section 9) at the first opportunity thereafter when the
Company has funds legally available therefor and when the payment of such
purchase price will not result in any default, event of default or violation
under any of the Financing Agreements or in a violation of any term or
provision of the Certificate of Incorporation of the Company and (ii) the
Purchaser’s right to receive payment of such purchase price shall rank against
other similar rights with respect to shares of Common Stock or options in
respect thereof according to priority in time of the effective date of the
event giving rise to any such right, provided that any such right as to which a
common date determines priority shall be of equal priority and shall share pro
rata in any purchase payments made pursuant to clause (i) above.

 

(c)                                  Purchase
Price Adjustment.  In the event that
a repurchase of Shares from the Purchaser is delayed pursuant to this Section 9,
the purchase price per Share when the repurchase of such Shares eventually
takes place as contemplated by Section 9(b) shall equal the sum of (i) the
Purchase Price determined in accordance with Section 6 hereof at the time
that the repurchase of such Shares would have occurred but for the operation of
this Section 9, plus (ii) an
amount equal to interest on such Purchase Price for the period from the date on
which the completion of the repurchase would have taken place but for the
operation of this Section 9 to the date on which such repurchase actually
takes place (the “Delay Period”)
at a rate equal to the average annual cost to the Company of its and its
Subsidiaries bank indebtedness obligations outstanding during the Delay Period
or, if there are no such obligations outstanding, one percentage point greater
than the average prime rate charged during such period by a nationally
recognized bank designated by the Company.

 

10.                                 Miscellaneous.

 

(a)                                  Notices.  All notices and other communications required
or permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested, postage prepaid to the Company or the
Purchaser, as the case may be, at the following addresses or to such other
address as the Company or the Purchaser, as the case may be, shall specify by
notice to the others:

 

(i)                                     if
to the Company, to the Company at:

 

Equinox Holdings, Inc.

895 Broadway

New York, New York  10003

Attention:  Chief Executive
Officer

 

(ii)                                  if
to the Purchaser, to the Purchaser at the address set forth on the signature page hereof:

 

8

 

(iii)                               if
to NCP-EH, to:

 

NCP-EH, L.P.

c/o North Castle Partners, L.L.C.

183 E. Putnam Avenue

Greenwich, CT  06830

Attention:  Adam Saltzman

 

All such notices and communications shall be deemed to
have been received on the date of delivery if delivered personally or on the
third business day after the mailing thereof; provided that the party giving
such notice or communication shall have attempted to telephone the party or
parties to which notice is being given during regular business hours on or
before the day such notice or communication is being sent, to advise such party
or parties that such notice or communication is being sent.  Copies of any notice or other communication
given under this Agreement shall also be given to:

 

North Castle Partners,
L.L.C.

183 E. Putnam Avenue 

Greenwich, CT 06830

Attention:  Adam Saltzman

 

and

 

Debevoise &
Plimpton

919 Third Avenue

New York, New York  10022

Attention:  Franci J. Blassberg, Esq.

 

And

 

J.W. Childs Equity
Partners II, L.P.

c/o J.W. Childs Associates L.P.

One Federal Street

Boston, Massachusetts  02110

Attention:  Glenn A. Hopkins

 

and

 

Kaye, Scholer,
Fierman, Hays and Handler LLP

425 Park Avenue

New York, New York  10022

Attention:  Stephen C. Koval, Esq.

 

(b)                                 Binding
Effect; Benefits.  This Agreement
shall be binding upon the parties to this Agreement and their respective
successors and assigns and shall inure to the benefit of the parties to this
Agreement, NCP-EH, L.P. (“NCP-EH”) and their respective successors and
assigns.  Nothing in this Agreement,
express or implied, is intended or shall be construed to give any person other
than the parties to this Agreement,

 

9

 

NCP-EH or their
respective successors or assigns any legal or equitable right, remedy or claim
under or in respect of any agreement or any provision contained herein.

 

(c)                                  Waiver;
Amendment.

 

(i)                                     Waiver.  Any party hereto or beneficiary hereof may by
written notice to the other parties (A) extend the time for the
performance of any of the obligations or other actions of the other parties
under this Agreement, (B) waive compliance with any of the
conditions or covenants of the other parties contained in this Agreement and (C) waive
or modify performance of any of the obligations of the other parties under this
Agreement, provided that any waiver of the provisions of Section 5, must
be consented to in writing by NCP-EH. 
Except as provided in the preceding sentence, no action taken pursuant
to this Agreement, including, without limitation, any investigation by or on
behalf of any party or beneficiary shall be deemed to constitute a waiver by
the party or beneficiary taking such action of compliance with any
representations, warranties, covenants or agreements contained herein.  The waiver by any party hereto or beneficiary
hereof of a breach of any provision of this Agreement shall not operate or be
construed as a waiver of any preceding or succeeding breach and no failure by a
party to exercise any right or privilege hereunder shall be deemed a waiver of
such party’s or beneficiary’s rights or privileges hereunder or shall be deemed
a waiver of such party’s or beneficiary’s rights to exercise the same at any
subsequent time or times hereunder.

 

(ii)                                  Amendment.  This Agreement may not be amended, modified
or supplemented orally, but only by a written instrument executed by the Purchaser
and the Company, and, in the case of any amendment, modification or supplement
to or affecting any of Section 5 or that adversely affects the rights of
NCP-EH hereunder, consented to by NCP-EH in writing.  The parties hereto acknowledge that the Company’s
consent to an amendment or modification of this Agreement may be subject to the
terms and provisions of the financing arrangements to which the Company may be
party or bound.

 

(d)                                 Assignability.  Except as provided herein, neither this
Agreement nor any right, remedy, obligation or liability arising hereunder or
by reason hereof shall be assignable by the Company or the Purchaser without
the prior written consent of the other party hereto, and NCP-EH; provided that
this Agreement and the rights, remedies, obligations and liabilities of the
Company shall be assignable by the Company to any Successor of the Company.

 

(e)                                  Applicable
Law.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
NEW YORK, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS WHICH WOULD
REQUIRE APPLICATION OF THE LAW OF ANOTHER JURISDICTION EXCEPT TO THE EXTENT
THAT THE CORPORATE LAW OF THE STATE OF INCORPORATION OF THE COMPANY
SPECIFICALLY AND MANDATORILY APPLIES.

 

10

 

(f)                                    Jurisdiction.  The Purchaser hereby irrevocably and
unconditionally submits, for himself and his property, to the nonexclusive
jurisdiction of any New York State court or Federal court of the United States
of America sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out or of relating to this Agreement or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State
court or, to the extent permitted by law, in such Federal court.  Each of the parties hereby agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement shall affect any right that the Company may otherwise have to bring
any action or proceeding relating to this Agreement against the Purchaser or
his properties in the courts of any jurisdiction.  The Purchaser hereby irrevocably and
unconditionally waives, to the fullest extent he or she may legally and
effectively do so, any objection that he may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement in any New York or Federal court.  Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

 

(g)                                 Section and
Other Headings, etc.  The section and
other headings contained in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

 

(h)                                 Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.

 

(i)                                     Certain
Definitions.

 

“Affiliate”:  with respect to any Person, means
any other Person that, directly or indirectly through one or more
intermediaries, Controls, is Controlled by, or is under common Control with the
first Person, including but not limited to a Subsidiary of the first
Person, a Person of which the first Person is a Subsidiary, or
another Subsidiary of a Person of which the first Person is also
a Subsidiary.

 

“Control”:  with respect to any Person, means the
possession, directly or indirectly, severally or jointly, of the power to
direct or cause the direction of the management policies of such Person,
whether through the ownership of voting securities, by contract or credit
arrangement, as trustee or executor, or otherwise.

 

“Person”:  any natural person, firm, partnership,
limited liability company, association, corporation, company, trust, business
trust, governmental authority or other entity.

 

“Subsidiary”:  with respect to any Person, each corporation
or other Person in which the first Person owns or Controls, directly or
indirectly, capital stock or other ownership

 

11

 

interests representing 50% or more of the
combined voting power of the outstanding voting stock or other ownership
interests of such corporation or other Person.

 

“Successor”:  of a Person means a Person that
succeeds to the first Person’s assets and liabilities by merger, liquidation,
dissolution or otherwise by operation of law, or a Person to which all or
substantially all the assets and/or business of the first Person are
transferred.

 

[the remainder of this page has
been intentionally left blank.]

 

12

 

IN
WITNESS WHEREOF, the Company and the Purchaser have executed this Agreement as
of the date first above written.

 

	
   

  	
  EQUINOX HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  Name

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE PURCHASER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
  as
  Attorney-in-Fact

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Address of the Purchaser:

  

 

 

Total Number of Shares

of Common Stock of

Equinox Holdings, Inc.

to be Purchased:

 

	
  Total Cash Purchase

  	
   

  	
   

  	
   

  
	
  Price:

  	
   

  	
  $«Share_Amount»

  	
   

  

 

13

 

Schedule A

 

Calculation of Purchase
Price

 

	
  Number of Options

  	
   

  	
  Exercise Price Per Option

  	
   

  	
  Aggregate Exercise Price

  Per Tranche

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