Document:

EXHIBIT 10.2 - 12/22/2004 FORM 8-K

EXHIBIT 10.2

AWARD AGREEMENT

(Non-Qualified Stock Option)

          
This Award Agreement is made as of <Date>, between BALLY TOTAL FITNESS
HOLDING CORPORATION, a Delaware corporation (hereinafter called the Company) and
«Name», an employee of the Company or one or more of its
Subsidiaries (hereinafter called the Employee). 

          
WHEREAS, the Company has heretofore adopted the 1996 Long-Term Incentive Plan of
Bally Total Fitness Holding Corporation (the Plan); and 

          
WHEREAS, it is a requirement of the Plan that an Award Agreement be executed to
evidence the Non-Qualified Stock Option (the Award) granted to the Employee.

          
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth,
and for other good and valuable consideration, the parties hereto have agreed,
and do hereby agree, as follows: 

          
1.   Grant of Award.   The Company hereby grants to
the Employee the right and option (hereinafter called the Option) to purchase
all or any part of an aggregate of <<Shares>> shares of the Common
Stock, $.01 par value, of the Company (Shares) (such number being subject to
adjustment as set forth herein and in the Plan ) on the terms and conditions set
forth herein and in the Plan.

          
2.   Type of Option.   The Option granted under this
Award Agreement is a Non-Qualified Stock Option and shall not be treated by the
Company or the Employee as an Incentive Stock Option for federal income tax
purposes.

          
3.   Option Price.   The option price of the Shares
covered by the Option is <Price>.

1

          
4.   Term of Option.

          
       (a)   The
term of the Option shall be for a period of ten (10) years from the date hereof,
subject to earlier termination as hereinafter provided, and

          
       (b)  
Prior to its expiration or termination, and except as hereinafter provided, the
Option may be exercised within the following time limitations:

	 	            
(i)   After one year from the date of this Agreement, it may be
exercised as to not more than one-third (1/3) of the Shares originally subject
to the Option.

	 	            
(ii)   After two years from the date of this Agreement, it may be
exercised as to not more than an aggregate of two-thirds (2/3) of the Shares
originally subject to the Option.

	 	            
(iii)   After three years from the date of this Agreement, it may be
exercised as to any part or all of the Shares originally subject to the
Option.

          
5.   Exercise of Option

          
       (a)   In order to exercise
the Option, the person or persons entitled to exercise shall notify Charles
Schwab Employee Stock Plan Services of the number of full shares with respect to
which the Option is to be exercised utilizing the cashless exercise program and
procedures the Company has established and communicated to the Employee. The
exercise price for the shares to be purchased shall be paid in accordance with
the cashlesss exercise program and procedures.

          
       (b)   If at any time during
the term of this Option the Company discontinues its “cashless exercise
program, then in order to exercise the Option, the person or persons entitled to
exercise it shall deliver to the Secretary of the Company, or such other person
designated for this purpose, written notice of the number of full 

2

Shares with respect to
which the Option is to be exercised.

The notice shall be
accompanied by payment in full for any Shares being purchased. Such payment
shall be in cash, or, upon approval of the Committee, by certificates of Shares
held for more than six (6) months, duly endorsed in blank, equal in value to the
purchase price of the Shares to be purchased based on their Fair Market Value on
the date of exercise, or, upon approval of the committee, by a combination of
cash and Shares. No fractional Shares shall be issued. 

          
       (c)   No Shares shall be
issued until full payment therefor has been made, and Employee shall have none
of the rights of a stockholder in respect of such Shares until they are so
issued.

          
6.   Nontransferability.   The Option shall not be
transferable other than: (a) by will or the laws of descent and distribution,
and the Option may be exercised, during the lifetime of the Employee, only by
him or her, or in the event of death, his or her Successor, or in the event of
disability, his or her personal representative, or (b) pursuant to a qualified
domestic relations order, as defined in the Internal Revenue Code of 1986, as
defined in the Code, or ERISA or the rules thereunder, (c) to the spouse,
children or grandchildren or parents of the Director (“Immediate Family
Members”), (d) to a trust or trusts for the exclusive benefit of the Director or
Immediate Family Members, (e) to a partnership or limited liability company in
which such Immediate Family Members and/or the Director are the only partners or
members, or (f) to an entity exempt from federal income tax pursuant to section
501(c)(3) of the Code or any successor provision. Following transfer, the Option
shall continue to be subject to the same terms and conditions of this agreement
and the Plan as were applicable immediately prior to transfer.

3

          
7.   Termination of Employment.   In the event that
the employment of the Employee shall be terminated (otherwise than by reason of
death, disability or retirement), then (a) the Option may be exercised by the
Employee (to the extent that he or she shall have been entitled to do so at the
termination of his or her employment) at any time within ninety (90) days after
such termination, but not beyond the original term thereof, and (b) the portion
of the Option that has not vested as of the date of the termination of the
Employees employment shall automatically terminate. So long as the Employee
shall continue to be an employee of the Company or of one or more of its
Subsidiaries, the Option shall not be affected by any change of duties or
position. Nothing in this Award Agreement shall confer upon the Employee any
right to continue in the employ of the Company or any of its Subsidiaries or
interfere in any way with the right of the Company or any such Subsidiary to
terminate his or her employment at any time. Anything herein contained to the
contrary notwithstanding, in the event of any termination of the Employees
employment for cause, the Option, to the extent not theretofore exercised, shall
automatically terminate.

          
8.   Death of Employee.   If the Employee shall die
while he or she shall be employed by the Company or one or more of its
Subsidiaries, then the Option may be exercised in full by the Employees
Successor at any time within three hundred sixty five (365) days after the
Employees death, but not beyond the original term of the Option. If the Employee
shall die within ninety (90) days after the termination of his employment with
the Company or one or more of its Subsidiaries, then the Option may be exercised
by the Employees Successor (to the extent the Employee would have been entitled
to do so at 

4

the date of his or her
death) at any time within three hundred sixty five (365) days after the
Employees death, but not beyond the original term of the Option.

          
9.    Disability of Employee.   If the employment of
the Employee shall terminate on account of his or her having become Adisabled,
as defined in Section 22(e)(3) of the Code, then the Option may be exercised in
full by the Employee or the Employees personal representative at any time within
three hundred and sixty five (365) days after the date on which his or her
employment terminated, but not beyond the original term of the Option.

          
10.   Retirement of Employee.   If the employment of
the Employee shall terminate by reason of the Employees retirement on or after
the Employees attainment of age sixty-five (65), then the Option may be
exercised in full by the Employee at any time within three hundred sixty five
(365) days after the date on which his or her employment terminated, but not
beyond the original term of the Option.

          
11.   Taxes.

          
       (a)   The Company shall have
the right to require an Employee entitled to receive Shares pursuant to the
exercise of this Option under the Plan to pay the Company the amount of any
taxes which the Company is or will be required to withhold with respect to such
shares before the certificate for such Shares is delivered pursuant to the
Option. The Company may elect to deduct such taxes from any other amounts then
payable in cash or Shares or from any other amounts payable to the Employee any
time thereafter.

          
       (b)   Upon approval of the
Committee, an Employee may elect to satisfy 

5

his tax liability with
respect to the exercise of the Option by having the Company withhold shares
otherwise issuable upon exercise of the Option; provided, however, if the
Employee is subject to Section 16(b) of the Exchange Act at the time the Option
is exercised, such election must satisfy the requirements of Rule
16b-3.

          
12.   Adjustments Upon Changes in Capitalization..  
In the event of changes in all of the outstanding Shares by reason of stock
dividends, stock splits, reclassifications, recapitalizations, mergers,
consolidations, combinations, or exchanges of Shares, separations,
reorganizations, liquidations, or similar events, or in the event of
extraordinary cash or non-cash dividends being declared with respect to
outstanding Shares, or similar transactions or events, the number and class of
Shares subject to the Option hereby granted, the option price and all other
applicable provisions thereof shall, subject to the provisions of the Plan, be
correspondingly equitably adjusted by the Committee (which adjustment may, but
need not, include payment to the holder of the Option, in cash or in shares, in
an amount equal to the difference between the option price and the then current
Fair market Value of the Shares subject to the Option as equitably determined by
the Committee), as it shall decide in its sole discretion. The foregoing
adjustment and the manner of application of the foregoing provisions shall be
determined by the Committee, in its sole discretion. Any such adjustment may
provide for the elimination of any fractional share which might otherwise be
subject to the Option.

          
13.   Delivery of Shares on Exercise of Option.  
Delivery of certificates for shares pursuant to the exercise of this Option may
be postponed by the Company for such period as may be required for it with
reasonable diligence to comply with any applicable requirements of any federal,
state or local law or regulation or any administrative or quasi-administrative
requirement applicable to the sale, issuance, distribution or delivery 

6

of such Shares. The
Committee may, in its sole discretion, require the holder of the Option to
furnish the Company with appropriate representations and a written investment
agreement prior to the exercise of the Option and the delivery of any Shares
pursuant to the Option.

          
14.   Incorporation of Provisions of the Plan.   All
of the provisions of the Plan, pursuant to which this Award is granted, are
hereby incorporated by reference and made a part hereof as if specifically set
forth herein, and to the extent of any conflict between this Award Agreement and
the terms contained in the aforesaid Plan, the Plan shall control. Without
limiting the generality of the foregoing sentence and notwithstanding any other
provision of this Award Agreement, the Option shall be granted effective only
upon the authorization of the Committee. To the extent any capitalized terms are
not otherwise defined herein, they shall have the meaning set forth in the
Plan.

          
15.   Invalidity of Provisions.   The invalidity or
unenforceability of any provision of this Award Agreement as a result of a
violation of any state or federal law, or of the rules or regulations of any
governmental body, or any securities exchange shall not affect the validity or
enforceability of the remainder of this Award Agreement.

          
16.   Interpretation.   All decisions or
interpretations made by the Committee with regard to any question arising under
the Plan or this Award Agreement as provided by Section 4 of the Plan shall be
binding and conclusive on the Company and the Employee.

7

          
IN WITNESS WHEREOF, the Company has caused this Award Agreement to be duly
executed by its duly authorized officer, and the Employee has hereunto set his
or her hand, all as of the day and year first above written. 

	 	BALLY TOTAL FITNESS HOLDING

CORPORATION

	 	By:

	 	Its: Senior Vice President

	 	

Employee

	 	

Social Security Number

8EXHIBIT 10.3 - 12/22/2004 FORM 8-K

EXHIBIT 10.3

RESTRICTED
STOCK AWARD AGREEMENT

          
This Restricted Stock Award Agreement is made as of <Date> between BALLY
TOTAL FITNESS HOLDING CORPORATION, a Delaware corporation (the Company), and
«Name», an employee of the Company or one or more of its Subsidiaries
(“Employee”). 

          
WHEREAS, the Company has heretofore adopted the 1996 Long-Term Incentive Plan of
Bally Total Fitness Holding Corporation, as amended, (the “Plan”); and

          
WHEREAS, it is a requirement of the Plan that a Restricted Stock Award Agreement
be executed to evidence the Restricted Stock Award granted to Employee.

          
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth,
and for other good and valuable consideration, the parties hereto have agreed,
and do hereby agree, as follows: 

          
1.   Grant of Award.   The Company hereby grants to
Employee a Restricted Stock Award of an aggregate of <<Shares>>
shares of the common stock, $.01 par value, of the Company (the
“Shares”) on the terms and conditions set forth herein.

          
2.   Issuance of Shares.   As soon as reasonably
practicable after the payment by Employee of an amount equal to the aggregate
par value of the Shares issuable under the Restricted Stock Award and the
delivery by Employee to the Company of an executed stock power signed by
Employee and suitable to the Board, the Shares shall be issued in Employee’s
name. Upon issuance of the certificate or certificates for the Shares, Employee
shall be a stockholder with respect to the Shares and shall have all the rights
of a stockholder with respect to the Shares, including but not limited to, the
right to vote the Shares and to receive dividends and other distributions paid
with respect to the Shares. The certificate or certificates for the Shares,
together with the executed stock power shall be held by the Company in its
control for the account of Employee until the restrictions set forth in Section
3 of this Restricted Stock Award Agreement lapse (at which time a certificate or
certificates in respect of the appropriate number of Shares shall be delivered
to Employee) or, if earlier, until the Shares are forfeited to the Company and
canceled as provided in Section 3 of this Restricted Stock Award
Agreement.

          
3.   Restrictions on Award.   The Restricted Stock
Award shall be subject to the following terms and conditions:

1

	 	          
(a)   In the event Employee sells, exchanges, transfers, pledges,
hypothecates or otherwise disposes of (or purports or attempts to do any of the
foregoing) any or all of the Shares then held by the Company pursuant to Section
2 of this Restricted Stock Award Agreement (including any Shares issuable, but
not yet issued) with respect to which the restrictions set forth in this Section
3 have not lapsed in accordance with paragraph (c) below, then all of such
disposed (or purportedly disposed) Shares will be immediately forfeited to the
Company without notice and without consideration.

	 	          
(b)   If (i) the termination of Employee’s employment with the Company
and all Subsidiaries of the Company by the Company or any Subsidiary for Cause
occurs prior to May 16, 2007, or (ii) the termination of Employee’s employment
with the Company and all Subsidiaries of the Company by Employee occurs prior to
May 16, 2007, all of the Shares then held by the Company pursuant to Section 2
of this Restricted Stock Award Agreement with respect to which the restrictions
set forth in this Section 3 have not lapsed in accordance with paragraph (c)
below will be immediately forfeited to the Company without notice and without
consideration. For the purposes of this Restricted Stock Award Agreement,
"Cause" shall (i) have the same meaning as Employee’s employment agreement with
the Company or a Subsidiary assigns to such term and (ii), in the absence of
such a written employment agreement, shall exclude the Employee’s death or
Employee having become "disabled" within the meaning of Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended, and otherwise shall be determined by
the Committee and shall include, but not be limited to:

	 	          
          A.  
Employee’s fraud or dishonesty;

	 	          
          B.   the
willful and continued failure of Employee to perform substantially Employee’s
duties with the Company or its Subsidiaries (other than any such failure
resulting from incapacity due to physical or mental illness);

	 	          
          C.   the
the willful engaging by Employee in illegal conduct or gross misconduct which is
injurious to the Company or its Subsidiaries; or

	 	          
          D.   the
Employee’s conviction (including a plea of nolo contendere) of a felony or
of a crime involving moral turpitude.

2

	 	          
(c)   Subject to the restrictions set forth in subparagraph (b) above,
all restrictions set forth in this Section 3 shall lapse on, and a certificate
or certificates for those Shares that have not already been distributed to
Employee shall, subject to the provisions of Section 2 of this Restricted Stock
Award Agreement, be appropriately distributed to Employee as soon as reasonably
practicable after, the earlier of:

	 	(i)   	
four years from the date of issuance; ( MAY 15, 2007)

	 	(ii)   	
a Change in Control of the Company (as defined in the Plan)

	 	(iii)   	
Employee’s death

	 	or

	 	(iv)   	
Employee having become “disabled” within the meaning
of Section 22(e)(3) of the Internal Revenue Code of 1986, as
amended.

	 	          
(d)   In the event Employee’s employment with the Company and all
Subsidiaries of the Company is terminated by the Company other than for Cause
prior to the projected vesting date, all restrictions shall be removed, and any
certificate or certificates for Shares held by the Company in respect of
Employee pursuant to Section 2 of this Restricted Stock Award Agreement shall be
delivered to Employee.

	 	          
(e)   Vesting accelerates upon attainment of both of the criteria set
forth below. The measurement period begins January 1, 2003 and the attainment of
the goals is cumulative from January 1, 2003 and measured quarterly.

	 	Measurement	% of Grant Accelerated

	 	1/3	1/3	1/3

	 	Cumulative Free Cash Flow (1)	$25 million	$50 million	$100 million

	 	Cumulative EBITDA (2)	$200 million	$400 million	$600 million

	 	(1)   	
Free cash flow is calculated by subtracting cash used in
investing activities from cash provided by operating activities, both as
presented in the Company’s quarterly and annual financial
statements.

3

	 	(2)   	
Cumulative EBITDA is calculated as the sum of operating income,
depreciation and amortization and finance charges earned, each as presented in
the Company’s quarterly and annual financial statements.

          
4.   Taxes.   The Company shall have the right to
deduct, from any amounts payable at anytime to Employee, the amount of any taxes
which the Company is or will be required by law to withhold, as and when
required by law, with respect to the Shares received or to be received by
Employee pursuant to this Restricted Stock Award. The Company shall have the
right to require a person entitled to receive Shares pursuant to this Restricted
Stock Award Agreement to pay the Company the amount of any taxes which the
Company is or will be required to withhold with respect to such Shares before
the certificate or certificates for such Shares are delivered pursuant to the
Restricted Stock Award.

          
5.   Delivery of Shares on Exercise.   Delivery of
certificates for Shares pursuant to this Restricted Stock Award may be postponed
by the Company for such period as may be required for it with reasonable
diligence to comply with any applicable requirements of any federal, state or
local law or regulation or any administrative or quasi-administrative
requirement applicable to the sale, issuance, distribution or delivery of such
Shares. The Committee may, in its sole discretion, require Employee to furnish
the Company with appropriate representations and a written investment letter
prior to the delivery of any Shares pursuant to this Restricted Stock
Award.

          
6.   Incorporation of Provisions of the Plan.   All
of the provisions of the Plan pursuant to which this Restricted Stock Award
Agreement is granted are hereby incorporated by reference and made a part hereof
as if specifically set forth herein, and to the extent of any conflict between
this Restricted Stock Award Agreement and the terms in the aforesaid Plan, the
Plan shall control. To the extent any capitalized terms are not otherwise
defined herein, they shall have the meaning set forth in the Plan.

          
7.   Invalidity of Provisions.   The invalidity or
unenforceability of any provision of this Restricted Stock Award Agreement as a
result of a violation of any state or federal law, or of the rules or
regulations of any governmental regulatory body, or any securities exchange
shall not affect the validity or enforceability of the remainder of this
Restricted Stock Award Agreement.

4

          
8.   Waiver and Modification.   The provisions of
this Restricted Stock Award Agreement may not be waived or modified unless such
waiver or modification is in writing and signed by the parties
hereto.

           
9.   Interpretation.   All decisions or
interpretations made by the Committee with regard to any question arising under
the Plan or this Restricted Stock Award Agreement shall be binding and
conclusive on the Company and Employee.

          
10.   Multiple Counterparts.   This Restricted Stock
Award Agreement may be signed in multiple counterparts, all of which taken
together shall constitute an original agreement. The execution by one party of
any counterpart shall be sufficient execution by that party, whether or not the
same counterpart has been executed by any other party.

          
11.   Governing Law.   This Restricted Stock Award
Agreement shall be governed by the laws of the State of Delaware.

          
IN WITNESS WHEREOF, the Company has caused this Restricted Stock Award Agreement
to be duly executed by its duly authorized officer, and Employee has hereunto
set his hand, all as of the day and year first above written. 

	 	BALLY TOTAL FITNESS HOLDING

CORPORATION

	 	By:

	 	Its: Senior Vice President

	 	

Employee

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]