Document:

exv10w1

 

EXHIBIT 10.1

EXECUTION VERSION

AMENDMENT NO. 1 TO LIMITED WAIVER AND FORBEARANCE AGREEMENT

     AMENDMENT NO. 1 TO LIMITED WAIVER AND FORBEARANCE AGREEMENT, dated as of July 13, 2007 (this
“Amendment”), by and between Bally Total Fitness Holding Corporation, a corporation
organized under the laws of Delaware (the “Company”), the Guarantors listed on Exhibit
A hereto (the “Guarantors”) and the Persons listed on Exhibit B hereto (each, a
“Holder” and collectively, the “Holders”). Capitalized terms used and not
otherwise defined herein shall have the meanings ascribed to them in the Limited Waiver and
Forbearance Agreement (as defined below).

     WHEREAS, the Holders are the beneficial owners of the 10 1/2% Senior Notes due 2011 of the
Company (the “Notes”) issued pursuant to an Indenture, dated as of July 2, 2003 (as amended
or supplemented, the “Indenture”), between the Company, the Guarantors and U.S. Bank
National Association, as trustee (the “Trustee”), and consequently, the Holders are the
beneficial owners of a majority in aggregate principal amount of Notes outstanding;

     WHEREAS, pursuant to a Limited Waiver and Forbearance Agreement, dated as of May 14, 2007 (the
“Limited Waiver and Forbearance Agreement”), by and between the Company, the Guarantors and
the Holders, the Holders waived certain Defaults or Events of Defaults under the Indenture relating
to the Reporting Obligations, the Interest Payment Default, the Sale and Leaseback Matters and the
Notice Obligations (collectively, the “Waived Matters”);

     WHEREAS, the waiver of the Waived Matters expired as of the date hereof in accordance with the
terms of the Limited and Waiver Forbearance Agreement;

     WHEREAS, the Company desires to seek an extension of the Forbearance from holders of the Notes
to July 31, 2007, subject to the terms hereof.

     NOW, THEREFORE, in consideration of the promises and the representations, warranties,
covenants and agreements herein contained, and intending to be legally bound hereby, the Company
and the Holders hereby agree as follows:

ARTICLE I.

AMENDMENTS

     Section 1.1 Amendments to Limited Waiver and Forbearance Agreement. The Limited
Waiver and Forbearance Agreement is, effective as of the date hereof and subject to the
satisfaction of the conditions precedent set forth in Section 2.1 hereof, hereby amended as
follows:

          (a) Section 1.1 is deleted in its entirety and replaced with the following:

          “Section 1.1 Reserved. [Reserved]”

          (b) Section 1.3(a) is deleted in its entirety and replaced with the following:

          "(a) Pursuant to Section 5.12 of the Indenture, and notwithstanding any notice from any holder
of the Notes, but subject to the remaining provisions of this Section 1.3(a), each

 

 

Holder hereby agrees to forbear, and directs the Trustee to forbear, at all times from the
Effective Date to, but not including, the Forbearance and Waiver Expiration Date, from taking or
exercising any Enforcement Action in connection with the Waived Matters (the
“Forbearance”); provided, however, that no Holder shall be required to expend any funds or
indemnify the Trustee in connection with the Forbearance or any related direction to the Trustee.
Notwithstanding the foregoing sentence or any other provisions of this Agreement, nothing in this
Agreement shall impair any right of any Holders to declare all unpaid principal of, premium, if
any, and accrued interest on the indebtedness outstanding under the Indenture to be due and
payable; provided, however, that the Company and the Guarantors reserve (i) all of their rights to
contest the validity and enforceability of any such declaration, and (ii) any and all other rights
with respect to any such declaration or any effects thereof.”

          (c) Article IV is amended by inserting Section 4.3, as follows, immediately following the end
of Section 4.2:

          “Section 4.3 Assumption by Transferees. (a) If, following execution of this Agreement
by a Holder, such Holder hypothecates, pledges, conveys, transfers, assigns or sells (collectively,
a “Transfer”) all or a part of the Notes held by such Holder to any Person (each such
Person, a “Transferee”), the Transferee must, as a condition precedent to the settlement of
such Transfer, execute an assumption in substantially the form attached hereto as Exhibit E
(the “Assumption Agreement”). To the maximum extent permitted by applicable law, any
Transfer that is made in violation of the immediately preceding sentence shall be null and void. A
Holder shall provide to the Company a copy of the executed Assumption Agreement within three
business days of the execution of an agreement (or trade confirmation) in respect of such
Transfer.”

          (d) Section 6.1(f)(A) is amended by deleting the phrase “July 13, 2007” and replacing it with
the phrase “July 31, 2007”.

          (e) Article VII is amended by inserting Section 7.14, as follows, immediately following the
end of Section 7.13:

          “Section 7.14 Holders. Notwithstanding any other provision hereof, for purposes this
Agreement, as amended by Amendment No. 1 to this Agreement, dated July 13, 2007, the Holders under
this Agreement shall constitute “Holders” under the Indenture and the Company shall not contest the
validity of a notice sent by any such Holders pursuant to section 5.2 of the Indenture on the
grounds that such Holders are not registered owners of Notes.”

          (f) Exhibit C attached hereto is inserted in the Agreement as Exhibit E to the
Agreement immediately following Exhibit D to the Agreement.

ARTICLE II.

CONDITIONS OF EFFECTIVENESS

     Section 2.1 Conditions of Effectiveness. This Amendment shall become effective as of
the date first above written when:

2

 

          (a) the Company shall have received counterparts of this Amendment executed by holders of a
majority in aggregate principal amount outstanding of the Notes;

          (b) The Senior Subordinated Notes Forbearance Agreement shall have been amended in the form
attached hereto as Exhibit D, and such amendment shall become effective contemporaneously
with this Amendment;

          (c) The Credit Agreement Forbearance Agreement shall have been amended in the form attached
hereto as Exhibit E, and such amendment shall become effective contemporaneously with this
Amendment; and

          (d) Holders of a majority in aggregate principal amount of the Notes shall have executed a
direction letter to the Trustee extending the Forbearance and Waiver Expiration Date to July 31,
2007, in the form attached hereto as Exhibit F.

ARTICLE III.

MISCELLANEOUS

     Section 3.1 Reference to Limited Waiver and Forbearance Agreement. On and after the
effectiveness of this Amendment, each reference in the Limited Waiver and Forbearance Agreement to
“this Agreement,” “hereunder,” “hereof” or words of like import referring to the Limited Waiver and
Forbearance Agreement shall mean and be a reference to the Limited Waiver and Forbearance Agreement
as amended by this Amendment.

     Section 3.2 Full Force and Effect. The Limited Waiver and Forbearance Agreement, as
specifically amended by this Amendment, is and shall continue to be in full force and effect and is
hereby in all respects ratified and confirmed.

     Section 3.3 No Waiver. The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy
of any party under the Limited Waiver and Forbearance Agreement, nor constitute a waiver of any
provision of the Limited Waiver and Forbearance Agreement.

     Section 3.4 Execution in Counterparts. This Amendment may be executed in any number
of counterparts, all of which taken together shall constitute one and the same instrument, and each
of the parties hereto may execute this Amendment by signing any such counterpart. A facsimile or
electronic mail transmission of this Amendment bearing a signature on behalf of a party hereto
shall be legal and binding on such party.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

3

 

     IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this
Amendment to be executed by their respective duly authorized officers, as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	BALLY TOTAL FITNESS HOLDING CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	THE GUARANTORS	 	 
	 
	 	 	 	 	 	 
	 	 	Each Guarantor Listed on Exhibit A Hereto	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

SIGNATURE OF BENEFICIAL HOLDER

	 	 	 
	By:
	 	 
	 

	 	 

	 	 	 
	Name (please print):
	 	 
	 

	 	 

	 	 	 
	Title:
	 	 
	 

	 	 

	 	 	 
	Address (including zip code):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 	 
	Telephone Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Fax Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Tax Identification or Social Security Number:
	 	 
	 

	 	 

	 	 	 
	Aggregate Principal Amount of Notes Held:
	 	 
	 

	 	 

 

 

EXHIBIT A

Bally Fitness Franchising, Inc.

Bally Franchise RSC, Inc.

Bally Franchising Holdings, Inc.

Bally Total Fitness Corporation

Bally Total Fitness Holding Corporation

Bally Total Fitness International, Inc.

Bally Total Fitness of Missouri, Inc.

Bally Total Fitness of Toledo, Inc.

Bally Total Fitness of Connecticut Coast, Inc.

Bally Total Fitness of Connecticut Valley, Inc.

Greater Philly No. 1 Holding Company

Greater Philly No. 2 Holding Company

Health & Tennis Corporation of New York

Holiday Health Clubs of the East Coast, Inc.

Bally Total Fitness of Upstate New York, Inc.

Bally Total Fitness of Colorado, Inc.

Bally Total Fitness of the Southeast, Inc.

Holiday/Southeast Holding Corp.

Bally Total Fitness of California, Inc.

Bally Total Fitness of the Mid-Atlantic, Inc.

BTF/CFI, Inc.

Bally Total Fitness of Greater New York, Inc.

Jack La Lanne Holding Corp.

Bally Sports Clubs, Inc.

New Fitness Holding Co., Inc.

Nycon Holding Co., Inc.

Bally Total Fitness of Philadelphia, Inc.

Bally Total Fitness of Rhode Island, Inc.

Rhode Island Holding Company

Bally Total Fitness of the Midwest, Inc.

Bally Total Fitness of Minnesota, Inc.

Tidelands Holiday Health Clubs, Inc.

U.S. Health, Inc.

A-1

 

EXHIBIT B

	 	 	 	 	 
	 	 	Aggregate Principal Amount	 
	Name of Holder	 	of Notes Held Beneficially	 
	 
	 	 	 	 

B-1

 

EXHIBIT C

Form of Assumption Agreement

     Reference is hereby made to the Limited Waiver and Forbearance Agreement, dated as of May 14,
2007 (the “Limited Waiver and Forbearance Agreement”), among Bally Total Fitness Holding
Corporation, the Guarantors listed on Exhibit A thereto and the Holders party thereto. Capitalized
terms not otherwise defined herein shall have the meaning ascribed to them in the Limited Waiver
and Forbearance Agreement.

     As a condition precedent to becoming the beneficial holder or owner of [•] dollars ($•) in
aggregate principal amount of Notes, the undersigned, [•] (the “Transferee”), hereby agrees
to become bound by the terms, conditions and obligations set forth in the Limited Waiver and
Forbearance Agreement.

     This agreement (this “Assumption Agreement”) shall take effect and shall become an
integral part of the Limited Waiver and Forbearance Agreement immediately upon its execution and
the Transferee shall be deemed to be bound by all of the terms, conditions and obligations of the
Limited Waiver and Forbearance Agreement as of the date thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

C-1

 

     IN WITNESS WHEREOF, this Assumption Agreement has been duly executed by each of the
undersigned as of the date specified below.

          Date: [•] , 200[•]

Transferee

	 	 	 
	By:
	 	 
	 

	 	 

	 	 	 
	Name (please print):
	 	 
	 

	 	 

	 	 	 
	Title:
	 	 
	 

	 	 

	 	 	 
	Address (including zip code):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 	 
	Telephone Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Fax Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Tax Identification or Social Security Number:
	 	 
	 

	 	 

	 	 	 
	Aggregate Principal Amount of Notes Held:
	 	 
	 

	 	 

Transferor

	 	 	 
	By:
	 	 
	 

	 	 

	 	 	 
	Name (please print):
	 	 
	 

	 	 

	 	 	 
	Title:
	 	 
	 

	 	 

	 	 	 
	Address (including zip code):
	 	 
	 

	 	 
	 
	 	 
	 

	 	 	 
	Telephone Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Fax Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Tax Identification or Social Security Number:
	 	 
	 

	 	 

	 	 	 
	Aggregate Principal Amount of Notes Transferred:
	 	 
	 

	 	 

C-2exv10w2

 

EXHIBIT 10.2

EXECUTION VERSION

AMENDMENT NO. 1 TO LIMITED WAIVER AND FORBEARANCE AGREEMENT

     AMENDMENT NO. 1 TO LIMITED WAIVER AND FORBEARANCE AGREEMENT, dated as of July 13, 2007 (this
“Amendment”), by and between Bally Total Fitness Holding Corporation, a corporation
organized under the laws of Delaware (the “Company”), and the Persons listed on Exhibit
A hereto (each, a “Holder” and collectively, the “Holders”). Capitalized terms
used and not otherwise defined herein shall have the meanings ascribed to them in the Limited
Waiver and Forbearance Agreement (as defined below).

     WHEREAS, the Holders are the beneficial owners of the 9 7/8% Senior Subordinated Notes due
2007 of the Company (the “Notes”) issued pursuant to an Indenture, dated as of December 16,
1998 (as amended or supplemented, the “Indenture”), between the Company and U.S. Bank
National Association, as trustee (the “Trustee”), and consequently, the Holders are the
beneficial owners of a majority in aggregate principal amount of Notes outstanding;

     WHEREAS, pursuant to a Limited Waiver and Forbearance Agreement, dated as of May 14, 2007 (the
“Limited Waiver and Forbearance Agreement”), by and between the Company and the Holders,
the Holders (i) waived certain Defaults or Events of Defaults under the Indenture relating to the
Reporting Obligations, the Sale and Leaseback Matters and the Notice Obligations (collectively, the
“Waived Matters”) and (ii) agreed to forbear, and directed the Trustee to forbear, from
taking or exercising any Enforcement Action in connection with the Waived Matters and the Interest
Payment Default;

     WHEREAS, pursuant to Sections 5.13 and 10.19 of the Indenture, the Company desires to seek
waivers from holders of the Notes from the Effective Date to, but not including, the Forbearance
and Waiver Expiration Date of any Default or Event of Default (as such terms are defined in the
Indenture) arising from any declaration that all unpaid principal of, premium, if any, and accrued
interest on the indebtedness outstanding under the Senior Notes Indenture is due and payable; and

     WHEREAS, the Company desires to seek an extension of the Forbearance and Waiver Expiration
Date from holders of the Notes to July 31, 2007.

     NOW, THEREFORE, in consideration of the promises and the representations, warranties,
covenants and agreements herein contained, and intending to be legally bound hereby, the Company
and the Holders hereby agree as follows:

ARTICLE I.

AMENDMENTS

     Section 1.1 Amendments to Limited Waiver and Forbearance Agreement. The Limited
Waiver and Forbearance Agreement is, effective as of the date hereof and subject to the
satisfaction of the conditions precedent set forth in Section 2.1 hereof, hereby amended as
follows:

          (a) The second recital is deleted in its entirety and replaced with the following:

 

 

     “WHEREAS, pursuant to Sections 5.13 and 10.19 of the Indenture, the Company desires to seek
waivers from holders of the Notes from the Effective Date (as defined in Section 5.1 hereof) to,
but not including, the Forbearance and Waiver Expiration Date (as defined in Section 6.1 hereof) of
any Default or Event of Default (as such terms are defined in the Indenture) arising from (i) the
failure to file timely such reports as the Company is or may be required to file with the SEC
pursuant to Sections 13(a) or 15(d) of the Exchange Act and furnish such reports to the Trustee and
holders of the Notes in accordance with Sections 7.4 and 10.17 of the Indenture (the “Reporting
Obligations”), (ii) any declaration that all unpaid principal of, premium, if any, and accrued
interest on the indebtedness outstanding under the Senior Notes Indenture is due and payable (the
“Senior Notes Acceleration Notice”) and (iii) the failure to provide notice to the Trustee
of a Default or Event of Default arising in connection with the Reporting Obligations or the Senior
Notes Acceleration Notice in accordance with Section 10.18 of the Indenture (the “Notice
Obligations” and, together with the Reporting Obligations, the Senior Notes Acceleration Notice
and the Sale and Leaseback Matters (as defined in Section 7.1 hereof), the “Waived
Matters”);”

          (b) Section 6.1(f)(A) is amended by deleting the phrase “July 13, 2007” and replacing it with
the phrase “July 31, 2007”.

          (c) Article IV is amended by inserting Section 4.3, as follows, immediately following the end
of Section 4.2:

          “Section 4.3 Assumption by Transferees. (a) If, following execution of this Agreement
by a Holder, such Holder hypothecates, pledges, conveys, transfers, assigns or sells (collectively,
a “Transfer”) all or a part of the Notes held by such Holder to any Person (each such
Person, a “Transferee”), the Transferee must, as a condition precedent to the settlement of
such Transfer, execute an assumption in substantially the form attached hereto as Exhibit D
(the “Assumption Agreement”). To the maximum extent permitted by applicable law, any
Transfer that is made in violation of the immediately preceding sentence shall be null and void. A
Holder shall provide to the Company a copy of the executed Assumption Agreement within three
business days of the execution of an agreement (or trade confirmation) in respect of such
Transfer.”

          (d) Exhibit B attached hereto is inserted in the Agreement as Exhibit D to the
Agreement immediately following Exhibit C to the Agreement.

ARTICLE II.

CONDITIONS OF EFFECTIVENESS

     Section 2.1 Conditions of Effectiveness. This Amendment shall become effective as of
the date first above written when:

          (a) the Company shall have received counterparts of this Amendment executed by holders of a
majority of the aggregate principal amount outstanding of the Notes;

          (b) The Senior Notes Forbearance Agreement shall have been amended in the form attached hereto
as Exhibit C, and such amendment shall become effective contemporaneously with this
Amendment;

2

 

          (c) The Credit Agreement Forbearance Agreement shall have been amended in the form attached
hereto as Exhibit D, and such amendment shall become effective contemporaneously with this
Amendment; and

          (d) Holders of a majority in aggregate principal amount of the Notes shall have executed a
direction letter to the Trustee extending the Forbearance and Waiver Expiration Date to July 31,
2007, in the form attached hereto as Exhibit E.

ARTICLE III.

MISCELLANEOUS

     Section 3.1 Reference to Limited Waiver and Forbearance Agreement. On and after the
effectiveness of this Amendment, each reference in the Limited Waiver and Forbearance Agreement to
“this Agreement,” “hereunder,” “hereof” or words of like import referring to the Limited Waiver and
Forbearance Agreement shall mean and be a reference to the Limited Waiver and Forbearance Agreement
as amended by this Amendment.

     Section 3.2 Full Force and Effect. The Limited Waiver and Forbearance Agreement, as
specifically amended by this Amendment, is and shall continue to be in full force and effect and is
hereby in all respects ratified and confirmed.

     Section 3.3 No Waiver. The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy
of any party under the Limited Waiver and Forbearance Agreement, nor constitute a waiver of any
provision of the Limited Waiver and Forbearance Agreement.

     Section 3.4 Execution in Counterparts. This Amendment may be executed in any number
of counterparts, all of which taken together shall constitute one and the same instrument, and each
of the parties hereto may execute this Amendment by signing any such counterpart. A facsimile or
electronic mail transmission of this Amendment bearing a signature on behalf of a party hereto
shall be legal and binding on such party.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

3

 

     IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have caused this
Amendment to be executed by their respective duly authorized officers, as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	BALLY TOTAL FITNESS HOLDING CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

SIGNATURE OF BENEFICIAL HOLDER

	 	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Name (please print):	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 	 	 

	 	 	 
	Address (including zip code):
	 	 
	 

	 	 

      

	 	 	 
	Telephone Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Fax Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Tax Identification or Social Security Number:
	 	 
	 

	 	 

	 	 	 
	Aggregate Principal Amount of Notes Held:
	 	 
	 

	 	 

 

 

EXHIBIT A

	 	 	 
	 	 	Aggregate Principal Amount
	Name of Holder	 	of Notes Held Beneficially
	 
	 	 

A-1

 

EXHIBIT B

Form of Assumption Agreement

     Reference is hereby made to the Limited Waiver and Forbearance Agreement, dated as of May 14,
2007 (the “Limited Waiver and Forbearance Agreement”), among Bally Total Fitness Holding
Corporation, the Persons listed on Exhibit A thereto and the Holders party thereto. Capitalized
terms not otherwise defined herein shall have the meaning ascribed to them in the Limited Waiver
and Forbearance Agreement.

     As a condition precedent to becoming the beneficial holder or owner of [•] dollars ($•) in
aggregate principal amount of Notes, the undersigned, [•] (the “Transferee”), hereby agrees
to become bound by the terms, conditions and obligations set forth in the Limited Waiver and
Forbearance Agreement.

     This agreement (this “Assumption Agreement”) shall take effect and shall become an
integral part of the Limited Waiver and Forbearance Agreement immediately upon its execution and
the Transferee shall be deemed to be bound by all of the terms, conditions and obligations of the
Limited Waiver and Forbearance Agreement as of the date thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

B-1

 

 

     IN WITNESS WHEREOF, this Assumption Agreement has been duly executed by each of the
undersigned as of the date specified below.

          Date: [•] , 200[•]

Transferee

	 	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Name (please print):	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 	 	 

	 	 	 
	Address (including zip code):
	 	 
	 

	 	 

      

	 	 	 
	Telephone Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Fax Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Tax Identification or Social Security Number:
	 	 
	 

	 	 

	 	 	 
	Aggregate Principal Amount of Notes Held:
	 	 
	 

	 	 

Transferor

	 	 	 	 	 
	By:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Name (please print):	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 	 	 

	 	 	 
	Address (including zip code):
	 	 
	 

	 	 

      

	 	 	 
	Telephone Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Fax Number (including area code):
	 	 
	 

	 	 

	 	 	 
	Tax Identification or Social Security Number:
	 	 
	 

	 	 

	 	 	 
	Aggregate Principal Amount of Notes Transferred:
	 	 
	 

	 	 

B-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]