Document:

EX-10.12

 

Exhibit 10.12

          This FIRST AMENDMENT to PROFESSIONAL SERVICES AGREEMENT (this “First Amendment”),
is dated as of June 1, 2004, by and between TOWN SPORTS INTERNATIONAL, INC., a New York corporation
(the “Company”), and BRUCKMANN, ROSSER, SHERRILL & CO., INC. (the “Consultant”).
Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such
terms in the Professional Services Agreement, dated as of December 10, 1996, by and between the
Company and the Consultant (the “Professional Services Agreement”).

          WHEREAS, the Company and the Consultant have agreed to amend the Professional Services
Agreement in the manner hereinafter set forth, and, subject to the terms hereof.

          NOW, THEREFORE, in consideration of the mutual covenants contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

          Section 1. Amendment to the Professional Services Agreement. Section 1 of the
Professional Services Agreement is hereby amended and restated as follows:

          1. Term. This Agreement shall remain in effect so long as BRS shall hold directly or
indirectly 20% or more of common stock of the Company or Town Sports International Holdings, Inc.,
a Delaware corporation, held by it as of the date hereof unless the Company and the Consultant
terminate this Agreement by mutual written agreement.

          Section 2. Effect on Consulting Agreement. Except as expressly amended hereby, the
Consulting Agreement shall remain in full force and effect and shall not by implication or
otherwise (a) alter, modify, amend or in any way affect any of the terms, conditions, obligations,
covenants or agreements contained in the Consulting Agreement, all of which are hereby ratified and
affirmed in all respects and shall continue in full force and effect or (b) prejudice any right or
remedy that the Consultant may now or in the future have under or in connection with the Consulting
Agreement.

          Section 3. Reference to the Effect on the Consulting Agreement. Upon the
effectiveness of this First Amendment, on and after the date hereof, each reference in the
Consulting Agreement (including any reference therein to “this Agreement,” “hereunder,” “hereof,”
“herein” or words of like import referring thereto) shall mean and be a reference to the Consulting
Agreement as amended hereby.

          Section 4. Severability. Whenever possible, each provision of this First Amendment
shall be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this First Amendment is held to be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of this Agreement.

          Section 5. Counterparts; Effectiveness. This First Amendment may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed and delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument. This First Amendment shall become effective upon the
execution of a counterpart hereof by each of the parties hereto, and written or telephonic
notification of such execution and authorization of delivery thereof has been received by the
Company and the Consultant.

 

 

          Section 6. Descriptive Headings; Interpretation. The descriptive headings of this
First Amendment are inserted for convenience only and do not constitute a substantive part of this
First Amendment. The use of the word “including” in this First Amendment shall be by way of
example rather than by limitation.

          Section 7. Governing Law. THIS FIRST AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK OF THE UNITED STATES WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAWS.

* * * * *

  2

 

 

          IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the date and
year first above written.

	 	 	 	 	 	 	 
	 	 	TOWN SPORTS INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/S/ Richard Pyle	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	

	 	 	 	Name: Richard Pyle	 	 
	

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	BRUCKMANN, ROSSER, SHERRILL & CO, INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/S/ Rice Edmonds	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Rice Edmonds	 	 
	

	 	 	 	Title: Principalexv10w01

 

Exhibit 10.01

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933.

« »

CONFIDENTIAL TO: « » « »

In the meeting on « », the Compensation Committee of the Board of Directors granted to you
Performance Shares under the Steelcase Inc. Incentive Compensation Plan (the “Plan”), subject to
the terms of this Award Agreement.

This Award Agreement provides additional information regarding your Award and your rights under the
Plan. A copy of the Plan has already been provided to you. If there is any inconsistency between
this Award Agreement and the Plan, the Plan controls. Capitalized terms used in this Award
Agreement are defined in the Plan, unless defined here.

Overview of Your Award

	1.  	Type of Award: Performance Shares as authorized under Section 9 of the Plan.
	 
	2.  	Target Number of Performance Shares under this Award: « »
	 
	3.  	Award Date: « »
	 
	4.  	Performance Measure: Cash flow per share during the « »-year performance period, as
outlined in Section 12 of the Plan.
	 
	5.  	Performance Period: The Performance Period for this Award is « ».
	 
	6.  	Number of Performance Shares Earned: After completion of the Performance Period, the number
of Performance Shares earned under this Agreement will be paid in Shares and vest in
accordance with the following schedule:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Actual	 	 	 	 	 	 	 	Number of	 	 	 	Vesting at	 	 	 	Vesting at	 	 	 	Vesting at	 	 
	 	Performance	 	 	% of	 	 	 	Performance Shares	 	 	 	«  »	 	 	 	«  »	 	 	 	«  »	 	 
	 	Level	 	 	Target	 	 	 	Earned	 	 	 	(33%)	 	 	 	(66%)	 	 	 	(100%)	 	 
	 	«  » - «  »/share
	 	 	 	0	%	 	 	 	—	 	 	 	 	—	 	 	 	 	—	 	 	 	 	—	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	«  » - «  »/share
	 	 	 	50	%	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	«  » - «  »/share
	 	 	 	100	%	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	«  » - «  »/share
	 	 	 	150	%	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	«  » or more/share
	 	 	 	200	%	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 	 	 	«  »	 	 
	 

 

 

	7.  	Dividend Equivalents on Earned Performance Shares: Any dividends declared during the
Performance Period with respect to the shares underlying your earned Performance Shares will
be paid as soon as practicable following the end of the Performance Period, either in cash or
in stock, as determined by the Board of Directors. Cash equivalents will be valued as of the
date(s) on which the dividend(s) were declared during the Performance Period. Stock dividends
will be valued at the Fair Market Value measured at the end of the Performance Period, and
will be governed by Article 17.1 of the Plan.
	 
	8.  	Death, Disability or Retirement during the Performance Period:

	 	a)  	If you die or become totally and permanently disabled while an Employee during the
Performance Period, the target number of Performance Shares will be deemed earned and
vested according to the following schedule. Any remaining unearned Performance Shares will
be forfeited.

	 	•  	If death or qualifying disability occurs from « » through « »,

« » Performance Shares will immediately be earned and vested.

	 
	 	•  	If death or qualifying disability occurs from « » through « »,

« » Performance Shares will immediately be earned and vested.

	 
	 	•  	If death or qualifying disability occurs from « » through « »,

« » Performance Shares will immediately be earned and vested.

	 	b)  	In the event of your retirement during the Performance Period, you will be treated as
continuing in employment for purposes of earning and vesting in your Award. You will be
considered to have retired if your termination of employment occurs after your age plus
years of continuous service total 80 or more.

	9.  	Death, Disability or Retirement following the Performance Period:

	 	a)  	All earned Performance Shares will become immediately vested if you die or become
totally and permanently disabled while an Employee after the Performance Period.
	 
	 	b)  	In the event of your retirement after the Performance Period, you will be treated as
continuing in employment for purposes of vesting in your Award. You will be considered to
have retired if your termination of employment occurs after your age plus years of
continuous service total 80 or more.

	10.  	Forfeiture of Awards:

	 	a)  	All unearned Performance Shares will be forfeited upon a termination of your employment
during the Performance Period for any reason other than death, total and permanent
disability or retirement.

 

 

	 	b)  	All unvested Shares will be forfeited upon a termination of your employment following
the Performance Period for any reason other than death, total and permanent disability or
retirement.
	 
	 	c)  	If you engage in any Competition (as defined in the Plan and determined by the
Administration Committee in its discretion) within twelve months of vesting in any Shares
granted pursuant to this Award Agreement, (i) you will forfeit any unvested Shares granted
under this Award Agreement and (ii) you must return to the Company the Fair Market Value
(measured as of the Grant Date) of any Shares in which you vested during the twelve months
prior to your engagement in such Competition.

	11.  	Change in Control: Notwithstanding anything herein to the contrary, upon a Change in Control
after « », all Performance Shares granted pursuant to this Award Agreement will become
immediately earned at the target number of Performance Shares and fully vested, and shall be
paid out to you in Shares within thirty (30) days of the Change in Control.

	12.  	Transfer: Performance Shares may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution.

	13.  	Voting Rights and Dividends: During the Performance Period, you will not have voting rights
with respect to your Performance Shares and, other than as set forth in Section 7 of this
Award Agreement, you will not be entitled to receive any dividends declared with respect to
your Performance Shares. After the Performance Period, you will obtain voting rights and be
entitled to receive any dividends declared with respect to your earned Performance Shares.

	14.  	Taxes: The Company will make the required tax reporting to you and the IRS. The Company has
the right to withhold Shares or cash that would otherwise be received by you for the statutory
minimum Federal, state or local withholding tax due. The Company may also collect withholding
tax directly from you.

	15.  	Administration: This Award Agreement and the rights of the Participant hereunder are subject
to all the terms and conditions of the Plan, as the same may be amended from time to time, as
well as to such rules and regulations as the Committee may adopt for administration of the
Plan. It is expressly understood that the Committee or its designee is authorized to
administer, construe, and make all determinations necessary or appropriate to the
administration of the Plan and this Award Agreement, all of which shall be binding upon the
Participant.

	16.  	Required Approvals: This Award Agreement will be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities
exchanges as may be required.

	17.  	Governing Law: To the extent not preempted by federal law, this Award Agreement shall be
governed by, and construed in accordance with, the laws of the State of Michigan.

 

 

	18.  	Amendment: This Award Agreement may be amended or modified by the Committee as long as the
amendment or modification does not materially adversely affect your Award, provided, however,
that the Company may amend this Award Agreement in any manner reasonably intended to avoid the
acceleration of tax and the possible imposition of penalties under Section 409A of the Code.

By signing this Award Agreement, you hereby acknowledge:

	(a)  	that the Plan is discretionary in nature and may be suspended or terminated at any time;
	 
	(b)  	that each grant of a Performance Share is a one-time benefit which does not create any
contractual or other right to receive future grants of Performance Shares, or benefits in lieu
of Performance Shares;
	 
	(c)  	that all determinations with respect to future grants, if any, including, but not limited to,
the times when the Performance Share shall be granted, the number of Shares subject to each
grant, and the time or times when each Share shall vest, will be at the sole discretion of the
Board of Directors;
	 
	(d)  	that your participation in the Plan does not create a right to further employment with your
employer and shall not interfere with the ability of your employer to terminate your
employment relationship at any time with or without cause;
	 
	(e)  	that your participation in the Plan is voluntary;
	 
	(f)  	that the value of the Performance Shares is an extraordinary item of compensation which is
outside the scope of your employment contract, if any;
	 
	(g)  	that the Performance Share is not part of normal and expected compensation for purposes of
calculating any severance, resignation, redundancy, end of service payments, bonuses,
long-service awards, pension or retirement benefits or similar payments;
	 
	(h)  	that the right to the grant ceases upon termination of employment for any reason except as
may otherwise be explicitly provided in the Plan or this Award Agreement; and
	 
	(i)  	that the future value of the Performance Shares is unknown and cannot be predicted with
certainty.

 

 

By signing this Award Agreement, and as a condition of the grant of the Performance Shares, you
hereby consent to the collection, use and transfer of personal data as described below.

You understand that the Company and its subsidiaries hold certain personal information about you,
including, but not limited to, your name, home address and telephone number, email address, date of
birth, social security number, salary, nationality, job title, any shares of stock or directorships
held in the Company, details of all Performance Shares or other entitlement to Shares awarded,
canceled, exercised, vested, unvested or outstanding in your favor, for the purpose of managing and
administering the Plan (“Data”).

You further understand that the Company and/or its subsidiaries will transfer Data amongst
themselves as necessary for the purposes of implementation, administration and management of your
participation in the Plan, and that the Company and/or its subsidiaries may each further transfer
Data to any third parties assisting the Company in the implementation, administration and
management of the Plan (“Data Recipients”). You understand that these Data Recipients may be
located in your country of residence or elsewhere.

You hereby authorize the Data Recipients to receive, possess, use, retain and transfer Data in
electronic or other form, for the purposes of implementing, administering and managing your
participation in the Plan, including any transfer of such Data, as may be required for the
administration of the Plan and/or the subsequent holding of Shares on your behalf.

You understand that you may, at any time, review the Data, require any necessary amendments to it
or withdraw the consent herein in writing by contacting the Company. You further understand that
withdrawing consent may affect your ability to participate in the Plan and/or may affect your
Award.

If you have any questions regarding your Award or this Award Agreement, or would like a copy of the
Plan, please contact « », Manager, Compensation, at « ».

Sincerely,

James P. Hackett

President and CEO

 

 

Please acknowledge your agreement to participate in the Plan and this Award Agreement, and to abide
by all of the governing terms and provisions, by signing the following representation. Your signed
representation must be returned by « » to:

Compensation Department

Steelcase Inc.

PO Box 1967

Grand Rapids, MI 49501-1967

Agreement to Participate

By signing a copy of this Award Agreement and returning it I acknowledge that I have read the Plan,
and that I fully understand all of my rights under the Plan, as well as all of the terms and
conditions that may limit my rights under this Award Agreement. Without limiting the generality of
the preceding sentence, I understand that, subject to the terms of the Plan and this Award
Agreement, my right to the Performance Shares granted under this Award is conditioned upon my
continued employment with the Company.

	 	 	 
	Date:                                                                                                     
Participant:                                                                                           

	 	

	 
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SSN: « »

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