Document:

Revised Interest Rate Swap Agreement, dated August 27,2012

 Exhibit 10.2 

 
 

 
  

					
		 		 	 Deutsche Bank AG New York Branch

60 Wall Street
 New York, NY
10005

 Revised as of August 27, 2012 

 

			
	Date	  	July 8, 2011
		
	To	  	Town Sports International, LLC
	Attention	  	Dan Gallagher
	Facsimile no	  	(212) 246-8422
		
	Our Reference:	  	Global No. N1539871N (previously N1317383N)
		
	Re:	  	Interest Rate Swap Transaction - This confirmation supersedes and replaces all prior communication between the parties hereto with respect to the Transaction described
below

 Ladies and Gentlemen 
 The purpose of this letter agreement is to set forth the terms and conditions of the Transaction entered into between Deutsche Bank AG (“DBAG”) and Town Sports International, LLC
(“Counterparty”) on the Trade Date specified below (the “Transaction”). This letter agreement constitutes a “Confirmation” as referred to in the Agreement specified below: 

The definitions and provisions contained in the 2006 ISDA Definitions (the “Definitions”) as published by the International Swaps and
Derivatives Association, Inc are incorporated by reference herein In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 
 For the purpose of this Confirmation, all references in the Definitions or the Agreement to a “Swap Transaction” shall be deemed to be references to this Transaction. 

1. This Confirmation, together with the Agreement, evidences a complete and binding agreement between DBAG (“Party A”) and Counterparty
(“Party B”) as to the terms of the Transaction to which this Confirmation relates. This Confirmation, together with all other documents referring to the ISDA Master Agreement (Multicurrency-Cross Border) as amended from time to time (the
“ISDA Form”) (each a “Confirmation”) confirming Transactions (each a “Transaction”) entered into between us (notwithstanding anything to the contrary in a Confirmation), shall supplement, form a part of, and be subject
to an agreement in the form of the ISDA Form as if Party A and Party B had executed an agreement on the Trade Date of the first such Transaction between us in such form with any amendments thereto mentioned in this Confirmation, with the Schedule
thereto (i) specifying only that (a) the governing law is the laws of the State of New York, provided, that such choice of law shall be superseded by any choice of law provision specified in the Agreement upon its execution, and
(b) the Termination Currency is U.S. Dollars and (ii) incorporating the addition to the definition of “Indemnifiable Tax” contained in (page 48 of) the ISDA “User’s Guide to the 1992 ISDA Master Agreements” (the
“Agreement”). In the event of any inconsistency between the terms of this Confirmation, and the terms of the Agreement, this Confirmation will prevail for the purpose of the Transaction. 

 

			
	 Chairman of the Supervisory Board Paul Achleitner
 Management Board Jürgen Fitschen (Co-Chairman), Anshuman Jain (Co-Chairman), Stefan Krause, Stephan Leithner, Stuart Lewis, Rainer Neske, Henry Ritchotte
	 	 Deutsche Bank AG is authorised under German Banking Law (competent authority BaFin - Federal Financial Supervising Authority) and
regulated by the Financial Services Authority for the conduct of UK business, a member of the London Stock Exchange. Deutsche Bank AG is a joint stock corporation with limited liability Incorporated in the Federal Republic or Germany HRB No. 30 000
District Court of Frankfurt am Main, Branch Registration in England and Wales BR000005, Registered address Winchester House, 1 Great Winchester Street, London EC2N 2DB
 Deutsche Bank Group online http://www.deutsche-bank.com

 2. The terms of the particular Transaction to which this Confirmation relates are as follows: 

 

			
	 Notional Amount
	  	USD 150,000,000
		
	 Trade Date
	  	July 1, 2011
		
	 Effective Date
	  	July 13, 2011
		
	 Termination Date
	  	July 13, 2014, subject to adjustment in accordance with the Modified Following Business Day Convention.

 Fixed Amounts: 
  

			
	 Fixed Rate Payer
	  	Counterparty
		
	 Fixed Rate Payer Period End Dates
	  	The 13th Business Day of each month of each year, commencing August 13, 2011, through and including the Termination Date, subject to adjustment in accordance with the Modified
Following Business Day Convention.
		
	 Fixed Rate Payer Payment Dates
	  	The 13th Business Day of each month of each year, commencing August 13, 2011, through and including the Termination Date, subject to adjustment in accordance with the Modified
Following Business Day Convention.
		
	 Fixed Rate
	  	1.983% from August 13, 2012 to but excluding August 22, 2012.
		
		  	then:
		
		  	1.783% from August 22, 2012 to and including the Termination Date.
		
	 Fixed Rate Day Count Fraction
	  	Actual/360
		
	 Fixed Rate Payer Business Days
	  	New York, London
		
	 Fixed Rate Payer Business
 Day Convention
	  	Modified Following

 Floating Amounts: 
  

			
	 Floating Rate Payer
	  	DBAG
		
	 Floating Rate Payer Period End Dates
	  	The 13th Business Day of each month of each year, commencing August 13, 2011, through and including the Termination Date, subject to adjustment in accordance with the Modified
Following Business Day Convention.
		
	 Floating Rate Payer Payment Dates
	  	The 13th Business Day of each month of each year, commencing August 13, 2011, through and including the Termination Date, subject to adjustment in accordance with the Modified
Following Business Day Convention.
		
	 Floating Rate Option
	  	The greater of 1.5% or USD-LIBOR-BBA from August 13, 2012 to but excluding August 22, 2012.
		
		  	then:
		
		  	The greater of 1.25% or USD-LIBOR-BBA from August 22, 2012 to and including the Termination Date.
		
	 Designated Maturity
	  	1 month
		
	 Spread
	  	None
		
	 Floating Rate Day Count Fraction
	  	Actual/360
		
	 Reset Dates
	  	The first Business Day in each Calculation Period
		
	 Compounding
	  	Inapplicable
		
	Business Days:	  	New York and London

  
 2 

 3. Additional Provision 
 1) CROSS DEFAULT 
 The “Cross Default” provisions of Section 5(a)(vi) of the
ISDA Form will apply to DBAG and Counterparty, provided, however, that, Section 5(a)(vi)(l) is amended by deleting in the seventh line thereof the words “, or becoming capable at such time of being declared,”, provided
further, that, with respect to Section 5(a)(vi)(2), “Cross Default” shall not include any default that (A) is the result of mistake, administrative or back office error, wire transfer difficulties or an error, omission or
problem of an administrative or operational nature, and such default is cured within three (3) Local Business Days of such party’s receipt of written notice of its default, or (B) was caused solely because such party was precluded
from performing its obligations under the relevant Specified Indebtedness, or was unable to so perform, using reasonable means, directly or through the office of the party through which it was acting for purposes of the relevant Specified
Indebtedness, by reason of force majeure, act of state, illegality or impossibility and such default was cured within three (3) Local Business Days of the termination of such force majeure, act of state, illegality or impossibility,
provided, however, in either case the party availing itself of such provision to excuse a default for the grace period so provided had, in the case of a payment default, the necessary funds on hand to effect any such payment that is excused
for the grace period specified above. 
 “Threshold Amount” means in relation to Counterparty, USD 10,000,000 and in relation to DBAG,
3 percent of the ordinary shareholders’ funds of DBAG appearing as such on its most recently published audited accounts. 
 2)
ADDITIONAL TERMINATION EVENTS 
 Each of the following shall constitute an Additional Termination Event: 

A Counterparty’s obligations to DBAG under this Agreement 
 (i) cease to be secured pursuant to the Security Documents (as such term is defined in the Credit Agreement) at any time for any reason, or 

(ii) cease to be equally and ratably secured with Counterparty’s obligations to the Lender (as such term is defined in the Credit
Agreement) under the Credit Agreement pursuant to the relevant Security Documents at any time for any reason, or 
 (iii) cease
to be guaranteed by the Subsidiary Guarantors (as such term is defined in the Credit Agreement) at any time for any reason. 
 For the purpose
of the foregoing Termination Events, the Affected Party shall be Counterparty. 
 B Any collateral under Credit Support Documents
is released at any time when DBAG, or an Affiliate of DBAG is not a party to the Credit Agreement, unless such release will not have a material adverse effect on DBAG in respect of this Agreement or the release of such collateral was provided for
pursuant to the terms of the Credit Agreement in effect when DBAG or an Affiliate of DBAG was a party to such Credit Agreement or DBAG shall have consented in writing prior to such release (such consent not to be unreasonably withheld). 

As used herein and throughout this Agreement, “Credit Agreement” means that USD 300,000,000 Credit and Guarantee Agreement dated as of
May 11, 2011 among Town Sports International Holdings, Inc., Town Sports International, LLC, as the Borrower, Various Lenders and Deutsche Bank Trust Company Americas, as Administrative Agent, Deutsche Bank Securities Inc. and Keybank National
Association, as Joint Lead Arrangers and Joint Book Running Managers, and Keybank National Association as Syndication Agent as may be amended, modified, restated or replaced from time to time. 

3) CREDIT SUPPORT DOCUMENTS / PROVIDER 

Credit Support Document The Security Documents referenced in the Credit Agreement and herein shall be deemed to be Credit Support Documents, with
respect to the Counterparty for the purposes of this Agreement. 
 Credit Support Provider The Subsidiary Guarantors as defined in the
Credit Agreement and herein shall be deemed to be Credit Support Providers, with respect to the Counterparty for the purposes of this Agreement. 

  
 3 

 4) AGREEMENT TO DELIVER DOCUMENTS 
 For the purpose of Section 4(a)(ii) of this Agreement, Party B agrees to deliver true and complete copies of all documents delivered to the Lenders under the Credit Agreement if DBAG or an Affiliate
of DBAG is not a party to such Credit Agreement. This delivery obligation will be covered by the representation of Party B as described in Section 3(d). 
 5) SET-OFF 
 Section 6(f) of the Agreement is deleted in its entirety and replaced with
the following: 
 “(f) Upon the designation of any Early Termination Date, the party that is not the Defaulting Party of Affected Party
(“X”) may, without prior notice to the Defaulting or Affected Party (“Y”), set off any sum or obligation (whether or not arising under this Agreement, whether matured or unmatured, whether or not contingent and irrespective of
the currency, place of payment or booking office of the sum or obligation) owed by Y to X (the “X Set Off Amount”) against any sum or obligation (whether or not arising under this Agreement, whether matured or unmatured, whether or not
contingent and irrespective of the currency, place of payment or booking office of the sum or obligation) owed by X to Y (the “Y Set Off Amount”) X will give notice to the other party of any set off effected under this Section 6(f).

 For this purpose, either the X Set Off Amount or the Y Set Off Amount (or the relevant portion of such set off amounts) may be converted by X
into the currency in which the other set off amount is denominated at the rate of exchange at which X would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency. 

If a sum or obligation is unascertained, X may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant
party accounting to the other when the obligation is ascertained. 
 Nothing in this Section 6(f) will be effective to create a charge or
other security interest. This Section 6(f) will be without prejudice and in addition to any right of set-off, combination of accounts, lien or other rights to which any party is at any time otherwise entitled (whether by operation of law,
contract or otherwise)”. 
 6) General Conditions to Payment. 
 Without limiting the rights of a Non-defaulting Party under Section 6, if an Event of Default with respect to a party has occurred and is continuing and consequently the Non-defaulting Party does not
make a scheduled payment or delivery by reason of the condition specified in Section 2(a)(iii)(l), the Non-defaulting Party shall have the right to suspend performance (including payments and deliveries) under any Transaction, provided that the
Non-defaulting Party shall provide written notice to the Defaulting Party within five (5) Local Business Day of its exercising its right to suspend performance under Section 2(a)(iii), and provided that in no event shall any such
suspension continue for longer than ninety (90) Local Business Days with respect to such Transaction unless an Early Termination Date shall have been declared and notice provided to the Defaulting Party thereof. 

7) Illegality. The parties agree that for the avoidance of doubt, for purposes of Section 5(b)(i) of the Agreement, “any applicable
law” shall include the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any rules and regulations promulgated thereunder and any similar law or regulation, without regard to Section 739 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the date hereof, and the consequences specified in the Agreement, including without
limitation, the consequences specified in Section 6 of the Agreement, shall apply to any Illegality arising from any such act, rule or regulation. 
 8) Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010: In connection with Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar
legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the Trade Date, the parties hereby specifically reserve the right to terminate, renegotiate, modify, amend or supplement the Transaction to the
extent that the enactment of the Dodd-Frank Wall Street Transparency and Accountability Act of 2010 or any similar legislation, rule or regulation (the “Applicable Act”), or any requirement under the Applicable Act or an amendment
made by the Applicable Act, constitutes a Termination Event or other similar event under the Transaction that would give rise to such a right to terminate, renegotiate, modify, amend or supplement the Transaction in accordance with its terms.

  
 4 

 9. No Waiver of Rights. 

 

	(i)	Without limiting Section 9(d) or (f) of the Agreement, the parties hereby agree that no payment or delivery by a party made pursuant this Confirmation shall
be presumed to preclude such party’s right to challenge the determination of the amount of such payment or delivery obligation at a later date or be deemed to be a waiver of any Event of Default or Termination Event that exists as of the date
of any such payment or delivery and no failure of a party to invoke any dispute resolution procedures that may otherwise be available to such party in connection with any such payment or delivery shall be deemed to constitute a waiver of such
party’s right to assert that the demand for such payment or delivery constitutes a breach of this Agreement or to constitute a waiver of such party’s right to bring a suit or proceeding in respect thereof ”. 

(ii) Section 9(f) of this Agreement shall be amended by the addition of the following at the end of the provision. 

“(1) Failure by a party to expressly reserve any right, power or privilege it has under this Agreement, and/or (2) continued
performance by a party of its obligations or enjoyment of any rights under this Agreement shall not in any way undermine or prejudice the effectiveness of this Section”. 

 

	10.	Account Details: 

 Account
Details for DBAG 
  

			
	 USD DBAG Payment Instructions

Account With
 SWIFT Code

Favor Of
 Account Number
	  	  
 DB Trust Co Americas, New York

BKTRUS33
 Deutsche Bank AG, New York

01 473 969

		
	 Account Details for Counterparty
	  	
		
	Payment Instructions	  	Please provide

 11. Offices: 
 The Office for DBAG for this Transaction is New York, New York 
 The Office of
Counterparty for this Transaction New York, New York 
  

			
	12. Calculation Agent:	 	 DBAG, provided that if an Event of Default or a Potential Event
 of Default has occurred and is continuing with respect to DBAG, the Calculation Agent shall be a recognized dealer in the relevant derivatives market designated by Counterparty. The Calculation Agent
shall act in good faith and in a commercially reasonable manner. The Calculation Agent shall, upon request by Counterparty, provide a written explanation of any calculation, determination or adjustment made by it including, where applicable, a
description of the methodology and the basis for such calculation, determination or adjustment in reasonable detail.

  
 5 

 13. Representations 
 Each party will be deemed to represent to the other party on the date on which it enters into this Transaction that (absent a written agreement between the parties that expressly imposes affirmative
obligations to the contrary for this Transaction). 
 (A) Non-Reliance. It is acting for its own account, and it has made its own
independent decisions to enter into this Transaction and as to whether this Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary. It is not relying on any communication
(written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered
investment advice or a recommendation to enter into this Transaction No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction. 

(B) Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent
professional advice), and understands and accepts, the terms, conditions and risks of this Transaction. It is also capable of assuming, and assumes, the risks of this Transaction. 
 (C) Status of Parties. The other party is not acting as a fiduciary for, or an adviser to it in respect of this Transaction. 
 (D) Eligible Contract Participant. It is an “eligible contract participant” within the meaning of the Commodity Exchange Act, Section 1a(12). 

14. Tax Matters 
  

	(A)	Payer Tax Representations. For the purpose of Section 3(e) of the Agreement, each of Party A and Party B makes the following representation.

 It is not required by any applicable law, as modified by the practice of any relevant governmental revenue
authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of the Agreement) to be made by it to the other party under the
Agreement. In making this representation, it may rely on (i) the accuracy of any representation made by the other party pursuant to Section 3(f) of the Agreement, (ii) the satisfaction of the agreement of the other party contained in
Section 4(a)(i) or 4(a)(iii) of the Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the agreement of the
other party contained in Section 4(d) of the Agreement, provided that it shall not be a breach of this representation where reliance is placed on clause (ii) and the other party does not deliver a form or document under
Section 4(a)(iii) of the Agreement by reason of material prejudice to its legal or commercial position. 
  

	(B)	Payee Tax Representations. For the purpose of Section 3(f) of the Agreement, Party A and Party B will make the following representation specified below.

  

	(i)	Party A It is a “foreign person” (as that term is used in Section 1 6041-4(a)(4) of the United States Treasury Regulations) for U.S. federal income tax
purposes, and each payment received or to be received by it will be effectively connected with its conduct of a trade or business in the United States. 

 (ii) Party B It is a “U.S. person” (as that term is used in Section 1 1441-4(a)(3)(ii) of the United States Treasury Regulations) for U.S. federal income tax purposes (or, if Party B is
disregarded entity for U.S. federal income tax purposes, its beneficial owner is). 

  
 6 

 (C) Tax Forms. For the purposes of Section 4(a)(i) and (ii) of the Agreement, each party
agrees to deliver the following documents, as applicable. 
  

					
	 Party required to
deliver document
	  	 Form/Document/Certificate
	  	 Date by which to be delivered

	Party A	  	Internal Revenue Service Form W-8ECI	  	Upon execution and delivery of this Confirmation, promptly upon reasonable demand by Party B, and promptly upon learning that any such form previously provided by Party A has become
obsolete or incorrect.
			
	Party B	  	Internal Revenue Service Form W-9	  	Upon execution and delivery of this Confirmation, promptly upon reasonable demand by Party A, and promptly upon learning that any such form previously provided by Party B has become
obsolete or incorrect.

  
 7 

 15. Please confirm that the foregoing correctly sets forth the terms of our agreement by having an
authorized officer sign this Confirmation and return it via facsimile or e-mail to. 
 Attention Derivative Documentation

 Telephone 44 20 7547 4755 
 Facsimile 44 20 7545 9761 
 E-mail Derivative Documentation@db.com 

This message will be the only form of Confirmation dispatched by us If you wish to exchange hard copy forms of this Confirmation, please contact us.

 Yours sincerely, 
 Deutsche Bank
AG 
  

					
	By:	 	 /s/ Jon Abela
	 	
	Name:	 	Jon Abela	 	
	Authorized Signatory	 	

  

			
	By:	 	 /s/ Paul Carter

	Name:	 	Paul Carter
	Authorized Signatory

 Confirmed as of the date first written above 
 Town Sports International LLC 
  

			
	By:	 	 /s/ Kieran Sikso

	Name:	 	 Kieran Sikso

	Title:	 	 VP Finance

  
 8EX-10.1

 Exhibit 10.1 
 AMENDMENT TO SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 THIS
AMENDMENT TO SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Amendment”), dated as of October 24, 2012 and effective as of October 1, 2012, is made by and between TransDigm Group Incorporated, a Delaware corporation (the
“Company”), and W. Nicholas Howley (“Executive”). 
 W I T N E S S E T H: 

WHEREAS, the Company and Executive are parties to the Second Amended and Restated Employment Agreement, dated as of February 24, 2011 (the
“Employment Agreement”) setting forth certain terms and conditions of Executive’s employment with the Company; and 
 WHEREAS,
the Company and Executive desire to amend the Employment Agreement on the terms and conditions set forth herein. 
 NOW, THEREFORE, in
consideration of the foregoing and of the respective covenants and agreements set forth below, the parties hereto agree as follows: 
 1.
Amendments. Each of Section 4(h), Section 4(i) and Section 4(j) of the Employment Agreement is hereby deleted in its entirety. 
 2. Counterparts. This Amendment may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement.

 3. Governing Law. This Amendment shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the
State of Ohio. 
 4. Full Force and Effect. Except as expressly amended by this Amendment, all other terms and conditions of the
Employment Agreement shall remain in full force and effect and unmodified hereby. 
 [SIGNATURE PAGE FOLLOWS] 

 IN WITNESS WHEREOF, the parties have executed this Amendment on the date and year first
above written. 
  

			
	TRANSDIGM GROUP INCORPORATED
		
	By:	 	/s/ Gregory Rufus
	Name:	 	Gregory Rufus
	Title:	 	Executive Vice President and Chief Financial Officer
	
	EXECUTIVE
	
	/s/ W. Nicholas Howley
	W. Nicholas Howley

  
 -2-

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