Document:

EXHIBIT 4.2 - 09/07/2005 FORM 8-K

Exhibit 4.2 

SUPPLEMENTAL INDENTURE 

        SUPPLEMENTAL
INDENTURE, dated as of September 2, 2005, among Bally Total Fitness Holding Corporation, a
Delaware corporation (the “Company”), and U.S. Bank National Association, as
trustee (the “Trustee”). 

        WHEREAS,
the Company has duly issued its 9-7/8% Senior Subordinated Notes due 2007 in the aggregate
principal amount of $299,764,000 (the “Notes”) pursuant to an Indenture dated as
of December 16, 1998, between the Company and the Trustee (as amended or supplemented, the
“Indenture”), and the Notes are outstanding on the date hereof; 

        WHEREAS,
the Company solicited, and received, consents (the “Initial Consent
Solicitation”) upon the terms and subject to the conditions set forth in the
Company’s Consent Solicitation Statement dated November 15, 2004 and the accompanying
Letter of Consent, from Holders (as defined in the Indenture) representing at least a
majority in aggregate principal amount of the outstanding Notes to certain waivers of
Defaults (as defined in the Indenture) and amendments to the Indenture described therein; 

        WHEREAS,
pursuant to the Initial Consent Solicitation and Sections 5.13 and 10.19 of the Indenture,
Holders representing at least a majority in aggregate principal amount of the outstanding
Notes have waived certain Defaults under and prospective compliance with Sections 7.4,
10.17 and 10.18(b) of the Indenture through the Waiver Expiration Date; 

        WHEREAS,
Section 9.2 of the Indenture provides that, with the consent of the Holders of at least a
majority in aggregate principal amount of the outstanding Notes, the Company and the
Trustee may enter into an indenture supplemental to the Indenture for the purpose of
amending, modifying or changing the Indenture or the Notes; 

        WHEREAS,
to waive compliance with Section 7.4 of the Indenture through the Waiver Expiration Date,
the Company and the Trustee entered into an indenture supplemental to the Indenture on
December 7, 2004 in accordance with Section 9.2 of the Indenture; 

        WHEREAS,
the Company has also solicited, and has received, consents (the “Consent
Solicitation”) upon the terms and subject to the conditions set forth in the Consent
Agreements from Holders representing at least a majority in aggregate principal amount of
the outstanding Notes to obtain an extension of certain waivers of Defaults received in
the Initial Consent Solicitation and amendments to the Indenture described therein; 

        WHEREAS,
pursuant to the Consent Solicitation and Sections 5.13 and 10.19 of the Indenture, Holders
representing at least a majority in aggregate principal amount of the outstanding Notes
have agreed to an extension of the waivers received in the Initial Consent Solicitation
with respect to certain Defaults under and prospective compliance with Sections 7.4, 10.17
and 10.18(b) of the Indenture through the New Waiver Expiration Date (as defined below); 

        WHEREAS,
to extend the waiver of compliance with Section 7.4 of the Indenture through the New
Waiver Expiration Date, the Indenture requires the Company and the Trustee to enter into
an indenture supplemental to the Indenture in accordance with Section 9.2 of the
Indenture; and 

        WHEREAS,
Section 9.4 of the Indenture provides that a supplemental indenture becomes effective in
accordance with its terms and thereafter binds every Holder; 

        NOW,
THEREFORE, the parties hereto agree as follows: 

        SECTION
1.   ACKNOWLEDGEMENTS. (a) The Trustee acknowledges that the Holders representing at least a
majority in aggregate principal amount of the outstanding Notes have waived through the
New Waiver Expiration Date the Company’s obligation to file with the SEC and furnish
to Holders of Notes and the Trustee the Prior Information as required by Sections 7.4,
10.17 and 10.18(b) of the Indenture in accordance with and subject to the terms and
conditions set forth in the Consent Solicitation Materials. 

             
(b) Subject to the terms and conditions set forth in the Consent Solicitation
          Materials, the Trustee acknowledges that pursuant to Section 5.13 of the
          Indenture by reason of such waiver referenced in paragraph (a) above, any past
          Default or any Event of Default arising therefrom and their respective
          consequences shall cease to exist through the New Waiver Expiration Date. 

        SECTION
2.   DEFINITIONS. Capitalized terms not defined herein shall have the meanings given to such
terms in the Indenture or any supplemental indenture related thereto. 

        SECTION
3.   AMENDMENT TO SECTION 1.1. The following defined terms are hereby inserted into Section
1.1 of the Indenture in their respective correct alphabetical order. To the extent the
defined terms are already included in the Indenture, such terms are replaced in their
entirety by the defined terms set forth below. 

        “Additional
Consent Fee” means: (i) with respect to the Initial Consent Solicitation, a payment
in cash to Consenting Holders equal to $2.50 per $1,000 in principal amount of Notes with
respect to which consents were received and not revoked in accordance with the terms of
the Company’s Consent Solicitation Statement dated November 15, 2004 and the related
Letter of Consent; and (ii) with respect to the Consent Solicitation and the follow-on
consent solicitation to be made after the date hereof to all Holders of Notes that did not
participate in the Consent Solicitation (the “Follow-On Consent Solicitation”),
at the election of the Consenting Holders, either (x) $20.00 in cash; or (y) 9.2308 shares
of the Company’s Common Stock, par value $0.01 per share (the “Common
Stock”), in each case per $1,000 in principal amount of Notes with respect to which
consents were received and not revoked in accordance with the terms and conditions set
forth in the Consent Agreements. 

        “Consent
Agreements” means the Consent Agreements, dated as of August 24, 2005, by and between
the Company and the holders of $156,404,000 of the Notes issued and outstanding under the
Indenture and the related Letters of Consent. 

        “Consenting
Holders” means: (i) with respect to the Initial Consent Solicitation, the Persons in
whose names Notes were registered in the Notes Register on November 18, 2004 from whom
properly executed, unrevoked Letters of Consent were received on or prior to December 7,
2004 in accordance with the terms of the Company’s Consent Solicitation Statement
dated November 15, 2004 and the related Letter of Consent; (ii) with respect to the
Consent Solicitation and the Follow-On Consent Solicitation, the Persons in whose names
the Notes were registered in the Notes Register on August 24, 2005 from whom properly
executed,

2

unrevoked Letters of Consent were
received on or prior to the consent date set forth in the Company’s Consent
Solicitation Statement and the related Letter of Consent in connection with the Follow-On
Consent Solicitation.  

        “New
Waiver Expiration Date” means 5:00 p.m., New York City time, on November 30, 2005. 

        “Prior
Information” means annual reports, quarterly reports and other documents which the
Company was required to file with the SEC pursuant to Sections 13(a) or 15(d) of the
Exchange Act and furnish to Holders of Notes and the Trustee and which have not been so
filed or furnished as of the date hereof. 

        SECTION
4.   AMENDMENT TO SECTION 7.4. Section 7.4 of the Indenture is hereby amended by deleting
the last paragraph and inserting the following in its place: 

        “Notwithstanding
any of the foregoing, and subject to the terms and conditions set forth in the Consent
Agreements, the Company shall not be required to comply with this Section 7.4 during the
period beginning on the date hereof and ending on the New Waiver Expiration Date.” 

        SECTION
5.     MISCELLANEOUS. 

                Section
5.1.   New York Law to Govern. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES THEREOF). 

                Section
5.2.   Counterparts. This Supplemental Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall together
constitute but one and the same instrument. 

                Section
5.3.   Effect of Headings. The Section headings herein are for convenience only and
shall not affect the construction hereof. 

                Section
5.4.   Trustee Disclaimer. The Trustee has accepted the amendment of the Indenture
effected by this Supplemental Indenture and agrees to execute the trust created by the
Indenture as hereby amended, but only upon the terms and conditions set forth in the
Indenture, including the terms and provisions defining and limiting the liabilities and
responsibilities of the Trustee, and, without limiting the generality of the foregoing,
the Trustee shall not be responsible in any manner whatsoever for or with respect to any
of the recitals or statements contained herein, all of which recitals or statements are
made solely by the Company, or for or with respect to (a) the validity or sufficiency of
this Supplemental Indenture or any of the terms or provisions hereof, (b) the proper
authorization hereof by the Company by corporate action or otherwise, (c) the due
execution hereof by the Company, (d) the consequences (direct or indirect and whether
deliberate or inadvertent) of any amendment herein provided for, and the Trustee makes no
representation with respect to any such matters and (e) the validity or sufficiency of the
solicitation or the consent solicitation materials or procedure in connection therewith. 

[Signatures on following page] 

3

        IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first written above. 

	 	BALLY
TOTAL FITNESS HOLDING CORPORATION

	 	By:      /s/ Marc D. Bassewitz

	 	

	 	Name: Marc D. Bassewitz 

Title: Senior Vice President and General Counsel

	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

	 	By:      /s/ Patricia J. Kapsch

	 	

	 	Name: Patricia J. Kapsch 

Title: Assistant Vice President

          U.S. Bank, National Association as Trustee

4HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED

2002 stock option and incentive plan

NONQUALIFIED STOCK OPTION AGREEMENT

FOR NON-OFFICER DIRECTORS

          THIS NONQUALIFIED STOCK OPTION AGREEMENT (this "Agreement"), dated as of __________, is entered into between HARMAN INTERNATIONAL INDUSTRIES,
INCORPORATED, a Delaware corporation (the "Company"), and __________ ("Optionee").  Capitalized terms used herein but not defined shall have the meanings assigned to those terms in the Company's 2002 Stock Option and Incentive Plan (the "Plan").

W I T N E S S E T H:

          A.          Optionee is a non-officer director of the Company; and

          B.          Pursuant to the terms of the Plan, on __________, the date of the annual meeting of the Company's stockholders
(the "Date of Grant"), Optionee was automatically granted a nonqualified option to purchase shares of the Company's common stock, par value $0.01 per share ("Common Shares");

          NOW, THEREFORE, in consideration of these premises and the covenants and agreements set forth in this Agreement, the Company and Optionee agree as follows:

                    1.          Grant of Option.  The Company hereby
grants to Optionee, effective as of the           Date of Grant, an option (the "Option") to purchase __________ Common Shares (the           "Option Shares") at the
price of $_____ per share (the "Option Price").  This Agreement           constitutes an Evidence of Award under the Plan.

                    2.          Type of Option.  The Option is intended
to be a nonqualified stock option

          and shall not be treated as an "incentive stock option" within the meaning of Section 422 of

          the Code.

                    3.          Date of Expiration.  This Option shall
expire on the tenth anniversary of the

          Date of Grant (the "Date of Expiration"), unless earlier terminated under Section 6(a).

                    4.          Vesting of Option.

(a)               Except as otherwise provided in this Agreement, the Option shall become vested

          and exercisable to the extent of one-fifth of the Option Shares on each of the first five

          anniversaries of the Date of Grant.

(b)               Notwithstanding the provisions of Section 4(a) above, the Option shall become

          immediately exercisable in full upon the occurrence of a Change in Control (as defined

          below) on or before the Termination Date.  A "Change in Control" means the occurrence of

          any of the following events:

(i)                           the acquisition by any individual, entity or group (within the meaning
of

           Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the

          "Exchange Act")) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3

          promulgated under the Exchange Act) of 25% or more of the combined voting power of

          the then outstanding securities of the Company entitled to vote generally in the election of

          directors (the "Voting Shares"); provided,however, that for purposes of this Section 4(b)(i),

          the following acquisitions shall not constitute a Change in Control: (A) any issuance of

          Voting Shares directly from the Company that is approved by the Incumbent Board (as

          defined in Section 4(b)(ii) below), (B) any acquisition by the Company or a Subsidiary of

          Voting Shares, (C) any acquisition of Voting Shares by any employee benefit plan (or

          related trust) sponsored or maintained by the Company or any Subsidiary or (D) any

          acquisition of Voting Shares by any Person pursuant to a Business Combination that

          complies with clauses (A), (B) and (C) of Section 4(b)(iii) below;

(ii)                                individuals who, as of the date hereof,
constitute the Board (the

          "Incumbent Board") cease for any reason to constitute at least a majority of the Board;

           provided,however, that any individual becoming a Director after the date hereof whose

           election, or nomination for election by the Company's stockholders, was approved by a

           vote of at least two-thirds of the Directors then constituting the Incumbent Board (either

           by a specific vote or by approval of the proxy statement of the Company in which such

           person is named as a nominee for director, without objection to such nomination) shall be

           deemed to have been a member of the Incumbent Board, but excluding, for this purpose,

           any such individual whose initial assumption of office occurs as a result of an actual or

           threatened election contest (within the meaning of Rule 14a‐12 of the Exchange Act) with

          respect to the election or removal of Directors or other actual or threatened solicitation of

          proxies or consents by or on behalf of a Person other than the Board;

(iii)                               consummation of a reorganization, merger or
consolidation, a sale or other

          disposition of all or substantially all of the assets of the Company or other transaction

          (each, a "Business Combination"), unless, in each case, immediately following the Business

          Combination, (A) all or substantially all of the individuals and entities who were the

          beneficial owners of Voting Shares immediately prior to the Business Combination

          beneficially own, directly or indirectly, more than 50% of the combined voting power of the

          then outstanding Voting Shares of the entity resulting from the Business Combination

          (including, without limitation, an entity which as a result of such transaction owns the

          Company or all or substantially all of the Company's assets either directly or through one

          or more subsidiaries), (B) no Person (other than the Company, such entity resulting from

          the Business Combination, or any employee benefit plan (or related trust) sponsored or

          maintained by the Company, any Subsidiary or such entity resulting from the Business

          Combination) beneficially owns, directly or indirectly, 25% or more of the combined

          voting power of the then outstanding Voting Shares of the entity resulting from the

          Business Combination and (C) at least a majority of the members of the board of directors

          of the entity resulting from the Business Combination were members of the Incumbent

          Board at the time of the execution of the initial agreement or of the action of the Board

          providing for the Business Combination; or

(iv)                               approval by the stockholders of the Company
of a complete liquidation or

          dissolution of the Company, except pursuant to a Business Combination that complies

          with clauses (A), (B) and (C) of Section 4(b)(iii) hereof.

(c)                 Notwithstanding the provisions of Section 3(a) above, the Option shall become

          immediately exercisable in full if Optionee's service on the Board terminates because

          Optionee dies or becomes permanently disabled on or before the Date of Expiration.

                    5.          Manner of Exercise.

(a)               To the extent the Option is exercisable in accordance with Section 5, the vested

          portion of any Option may be exercised by Optionee at any time, or from time to time, in

          whole or in part on or prior to the Termination Date; provided, however, that Optionee

          must exercise the Option in multiples of 50 Option Shares unless fewer than 50 Option

          Shares are available for purchase by Optionee under this Agreement at the time of exercise.

(b)               Optionee shall exercise the Option by delivering a signed written notice to the

          Company, which notice shall specify the number of Option Shares to be purchased and be

          accompanied by payment in full of the Option Price and any required taxes (as provided in

          the Plan) for the number of Option Shares specified for purchase.

(c)                Upon full payment of the Option Price and any required taxes, and subject to the

          applicable terms and conditions of the Plan and the terms and conditions of this

          Agreement, the Company will cause certificates for the Option Shares purchased hereunder

          to be delivered to Optionee.

                    6.          Termination.

(a)               The Option shall terminate on the earliest of the following dates (such date, the

          "Termination Date"):

(i)                               90 days after Optionee ceases to be a Director
for any reason other than

           death or permanent disability;

(ii)                              one year after the death or permanent disability of
Optionee, if Optionee

           dies or becomes permanently disabled while a Director;

(iii)                             the date the Option is terminated by the Committee (as
such term is defined

           in the Plan) under the circumstances described in Section 17(g) of the Plan; or

(iv)                             the Date of Expiration.

(b)                     During the 90 day period referred to in Section 6(a)(i) above and the one year

             period referred to in Section 6(a)(ii) above, the Option may be exercised only to the

             extent that, at the time that Optionee ceases to be a Director, it is exercisable pursuant to

             Section 4 hereof.

                    7.          Share Certificates.  All certificates
evidencing Option Shares purchased

             pursuant hereto, and any certificates for Common Shares issued as dividends on, in

             exchange of, or as replacements for, certificates evidencing Option Shares which, in the

             opinion of counsel for the Company, are subject to similar legal requirements, shall have

             endorsed thereon before issuance such restrictive or other legends as the Company's

             counsel may deem necessary or advisable.  The Company and any transfer agent shall not

             be required to register or record the transfer of any such shares unless and until the

             Company or its transfer agent shall have received from Optionee's counsel an opinion, in

             a form satisfactory to the Company, that any such transfer will not be in violation of any

             applicable law, rule or regulation.  Optionee agrees not to sell, assign, pledge or

             otherwise dispose of any Option Shares or any Common Shares that are subject to

              restrictions on transfer described in this Section 7 without the Company first receiving

              such an opinion.

                        8.            Transfer.  The Option may
not be transferred by Optionee except by will

              or the laws of descent and distribution and may not be exercised during the lifetime of

               Optionee except by Optionee or Optionee's guardian or legal representative acting on

              behalf of Optionee in a fiduciary capacity under state law and court supervision.

                        9.             Compliance with Law. 
The Company shall make reasonable efforts to

               comply with all applicable federal or state securities laws; provided,however, that

               notwithstanding any other provision of this Agreement, the Option shall not be

               exercisable if the exercise would result in a violation of any such laws.

                         10.          Communications.  All notices,
demands and other communications

               required or permitted hereunder or designated to be given with respect to the rights or

               interests covered by this Agreement shall be deemed to have been properly given or

               delivered when delivered personally or sent by certified or registered mail, return receipt

               requested, U.S. mail or reputable overnight carrier, with full postage prepaid and

               addressed to the parties as follows:

               If to the Company, at:       1101 Pennsylvania Avenue, N.W.

                                                            Suite
1010

                                                            Washington,
D.C.  20004

                                                            Attention:
Vice President-Financial Operations

               If to Optionee, at:              Optionee's address provided by Optionee on
the last

                                                            page
hereof

Either the Company or Optionee may change the above designated address by written notice to

the other specifying such new address.

                        11.          Interpretation. 
The interpretation and construction of this Agreement by

              the Committee shall be final and conclusive.  No member of the Committee shall be

              liable for any such action or determination made in good faith.

                        12.          Amendment in
Writing.  This Agreement may be amended as provided in

              the Plan; provided, however, that all such amendments shall be in writing.

                        13.          Integration. 
The Option is granted pursuant to the Plan.  Notwithstanding

           anything in this Agreement to the contrary, this Agreement is subject to all of the terms

          and conditions of the Plan, a copy of which is available upon request and which is

          incorporated herein by reference.  As such, this Agreement and the Plan embody the

          entire agreement and understanding of the Company and Optionee and supersede

          any prior understandings or agreements, whether written or oral, with respect to the

          Option.

                         14.         Severance.  In
the event that one or more of the provisions of this

           Agreement shall be invalidated for any reason by a court of competent jurisdiction, any

           provision so invalidated shall be deemed to be separable from the other provisions hereof

           and the remaining provisions hereof shall continue to be valid and fully enforceable.

                         15.          Governing
Law.  This Agreement is made under, and shall be construed in

              accordance with, the laws of the State of Delaware.

                         16.          Counterparts.  This Agreement may
be executed in one or more

              counterparts, each of which shall be deemed an original and all of which together shall

              constitute one and the same instrument.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                    IN WITNESS WHEREOF, this Agreement is executed by a duly authorized

representative of the Company on the day and year first above written.

                                                                            HARMAN
INTERNATIONAL INDUSTRIES,

                                                                            INCORPORATED

                                                                            By:  
                                                

                                                                             Name:  
     
                                               

                     
                                                       Title:  
                                                        

The undersigned Optionee hereby acknowledges receipt of an executed original of this Agreement and accepts the Option subject to the applicable terms and conditions of the Plan and the terms and conditions hereinabove set
forth.

Date:   
                                              
           
                                                           

                                                                        
Optionee

OPTIONEE:    Please complete/update the following information.

Name:                                                            
                                                           

Address:                                                         
                                                           

                                                                        
                                                           

                                                                        
                                                           

Social Security Number:

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