Document:

EX-10.9.1

EXHIBIT 10.9.1

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	RECITALS
	AGREEMENT
	Annex A

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     AMENDMENT NO. 2 TO REGISTRATION RIGHTS AGREEMENT dated as of May 30, 2006 (this
“Amendment”), among Town Sports International Holdings, Inc., a Delaware corporation (the
“Company”), Town Sports International, Inc., a New York corporation (“TSI”), and
those of the Stockholders (as defined in the Registration Rights Agreement referred to below) that
are signatory hereto (the Company, TSI and such Stockholders are herein referred to collectively as
the “Parties”).

RECITALS

     A. The Parties and certain other Stockholders have entered into that certain Registration
Rights Agreement dated as of February 4, 2004, as amended by Amendment No. 1 to the Registration
Rights Agreement dated as of March 23, 2006 (the “Registration Rights Agreement”).

     B. Each of the persons listed on Annex A to this Amendment have either (i) entered
into an Executive Stock Agreement with the Company and certain other parties or a joinder agreement
with the Company, and pursuant to such Executive Stock Agreements or joinder agreements, the
Company has agreed to provide such persons with certain registration rights under the Registration
Rights Agreement, or (ii) the Company has otherwise agreed to provide such persons with
registration rights under the Registration Rights Agreement.

     C. The Company has agreed to register the Canterbury Registrable Securities in connection with
the Company’s planned IPO.

     D. The Farallon Investors have agreed to purchase 1,300,000 Canterbury Registrable
Securities from the Canterbury Investors immediately after the consummation of the Company’s
planned IPO.

     E. The Company desires to provide the Farallon Investors with registration rights for such
Canterbury Registrable Securities.

     F. The Parties desire to amend the Registration Rights Agreement in accordance with Section
11(c) of the Registration Rights Agreement.

AGREEMENT

     NOW, THEREFORE, on the basis of the preceding facts, and in consideration of the mutual
agreements and covenants set forth below and other good and valuable consideration, the receipt and
sufficiency of which hereby are acknowledged, the Parties agree as follows:

     1. Definitions. Unless the context otherwise requires, all capitalized and other
defined terms not defined in this Amendment shall have the respective meanings accorded to them in
the Registration Rights Agreement.

 

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     2. Amendments.

     (a) The Registration Rights Agreement hereby is amended to provide that, for all purposes of
the Registration Rights Agreement (including the Company’s planned IPO), each of the persons listed
on Annex A shall be deemed an “Executive”, as such term is defined in the Registration
Rights Agreement, in addition to those stockholders of the Company listed on the Executive
Signature Pages to the Registration Rights Agreement as originally entered into.

     (b) The definition of “Farallon Registrable Securities” in Section 1 of the
Registration Rights Agreement is hereby amended in its entirety to read as follows
following the consummation of the Company’s IPO:

     “ “Farallon Registrable Securities” means (i) any shares of
Common Stock held by the Farallon Investors or issued or issuable to the
Farallon Investors or their respective affiliates or partners on or after
December 10, 1996, (ii) the Purchased Canterbury Registrable Securities,
(iii) the 250,000 shares of Common Stock purchased by the Farallon Investors
in the Company’s IPO and (iv) any shares of capital stock of the Company
issued or issuable with respect to the securities referred to in clause (i),
(ii) and (iii) by way of a stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or
other reorganization. For purposes of this Agreement, a Person will be
deemed to be a holder of Farallon Registrable Securities whenever such
Person has the right to acquire directly or indirectly such Farallon
Registrable Securities (upon conversion or exercise in connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such
acquisition has actually been effected. Such securities will cease to be
Farallon Registrable Securities when sold pursuant to Rule 144 or any
offering registered under the Securities Act. For avoidance of doubt, the
immediately preceding sentence shall not apply to the sale of the Purchased
Canterbury Registrable Securities by the Canterbury Investors to the
Farallon Investors pursuant to the transactions contemplated in the
Securities Purchase Agreement.”

     (c) Section 1 of the Registration Rights Agreement is hereby amended to add the following
defined term following the consummation of the Company’s IPO:

     “ “Purchased Canterbury Registrable Securities” means the
1,300,000 Canterbury Registrable Securities that FCP, FCIP, Farallon Capital
Institutional Partners II, L.P. (“FII”) and RRC purchased from Canterbury
Detroit and Canterbury Mezzanine pursuant to the securities purchase
agreement (the “Securities Purchase Agreement”) by and among FCP, FCIP, FII,
RRC, Canterbury Detroit and Canterbury Mezzanine.”

     (d) A new paragraph (c) is hereby added to the end of Section 4 of the
Registration Rights Agreement as follows:

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     “(c) Notwithstanding anything to the contrary in this Section 4, the
provisions of Section 4(a) and Section 4(b) shall not apply in the case of
the Company’s IPO, and shall otherwise be waivable at the discretion of the
underwriters managing any registered public offering.”

     (e) A new Section 12 of the Registration Rights Agreement hereby is added immediately
following Section 11 to read in its entirety as follows:

     “12. Termination of Registration Rights. Notwithstanding
anything to the contrary in this Agreement, at the time at which all
Executive Registrable Securities held by a holder (and any affiliate of the
holder with whom such holder must aggregate its sales under Rule 144) are
(a) included for resale in, or otherwise covered by, an effective
registration statement under the Securities Act, (b) saleable in any three
(3)-month period without registration under the Securities Act in compliance
with Rule 144, including Rule 144(k), or (c) saleable under Rule 701 under
the Securities Act, such securities will cease to be Executive Registrable
Securities, and thereafter such holder shall not be entitled to exercise any
right provided for in Section 2 or Section 3 hereunder, nor be entitled to
receive any notice thereunder, in each case with respect to the Executive
Registrable Securities.”

     3. Governing Law. This Amendment shall be governed by, construed and enforced in
accordance with, the laws of the State of New York.

     4. Counterparts. This Amendment may be executed (including by facsimile transmission)
with counterpart signature pages or in any number of counterparts, each of which when executed
shall be deemed to be an original, but all of which taken together shall constitute one and the
same agreement.

     5. Bound Parties. The Registration Rights Agreement is being amended by this
Amendment pursuant to Section 11(c) of the Registration Rights Agreement and this Amendment shall
be effective upon the execution and delivery hereof by the requisite approval of the Company and
those Stockholders specified in Section 11 of the Registration Rights Agreement.

     6. No Other Amendment; Etc. Except as expressly amended by this Amendment, the
Registration Rights Agreement otherwise shall remain unaffected and shall be in full force and
effect. For the avoidance of doubt, no other agreement now existing or hereafter entered into that
provides for, or otherwise contains, any restriction on the sale, disposal or other transfer of
Registrable Securities shall be deemed to be limited, modified, amended or waived as a result of
the execution and delivery of the Registration Rights Agreement or this Amendment.

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     IN WITNESS WHEREOF, the Parties hereto have executed and delivered this
Amendment as of the date first above written.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.

 	 
	 	By:  	/s/ Richard Pyle
 	 
	 	 	Name:  	Richard Pyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	TOWN SPORTS INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Richard Pyle
 	 
	 	 	Name:  	Richard Pyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	BRUCKMANN, ROSSER, SHERRILL & CO., LP

 	 
	 	By:  	/s/ Paul Kaminski
 	 
	 	 	Name:  	Paul Kaminski 	 
	 	 	Title:  	Authorized signer for BRSE Associates, Inc., the General
Partner of BRS Partners, LP, the General Partner of Bruckmann,
Rosser, Sherrill & Co., LP 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	FARALLON CAPITAL PARTNERS, L.P. 

BY: FARALLON PARTNERS, L.L.C.

ITS: GENERAL PARTNER

 	 
	 	By:  	/s/ Mark C. Wehrly
 	 
	 	 	Name:  	Mark C. Wehrly 	 
	 	 	Title:  	Managing Member 	 
	 
	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS, L.P.

BY: FARALLON PARTNERS, L.L.C.

ITS: GENERAL PARTNER

 	 
	 	By:  	/s/ Mark C. Wehrly
 	 
	 	 	Name:  	Mark C. Wehrly 	 
	 	 	Title:  	Managing Member 	 
	 
	 	RR CAPITAL PARTNERS, L.P.

BY: FARALLON PARTNERS, L.L.C.

ITS: GENERAL PARTNER

 	 
	 	By:  	/s/ Mark C. Wehrly
 	 
	 	 	Name:  	Mark C. Wehrly 	 
	 	 	Title:  	Managing Member 	 
	 
	 	FARALLON CAPITAL INSTITUTIONAL PARTNERS II, L.P.

BY: FARALLON PARTNERS, L.L.C.

ITS: GENERAL PARTNER

 	 
	 	By:  	/s/ Mark C. Wehrly
 	 
	 	 	Name:  	Mark C. Wehrly 	 
	 	 	Title:  	Managing Member 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	CANTERBURY DETROIT PARTNERS, L.P.

 	 
	 	By:  	/s/ Patrick Turner
 	 
	 	 	Name:  	Patrick Turner 	 
	 	 	Title:  	Manager 	 
	 
	 	CANTERBURY MEZZANINE CAPITAL, L.P.

 	 
	 	By:  	/s/ Patrick Turner
 	 
	 	 	Name:  	Patrick Turner 	 
	 	 	Title:  	Manager 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	ROSEWOOD CAPITAL, L.P.

 	 
	 	By:  	/s/ Kyle Anderson
 	 
	 	 	Name:  	Kyle Anderson 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	CS EQUITY II LLC

 	 
	 	By:  	/s/ Jason M. Fish
 	 
	 	 	Name:  	Jason M. Fish 	 
	 	 	Title:  	Chief Investment Officer 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	BCB PARTNERSHIP

 	 
	 	By:  	/s/ S. Sherrill (Power of Attorney)
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	NAZ PARTNERSHIP

 	 
	 	By:  	/s/ S. Sherrill (Power of Attorney)
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	IRA FBO PAUL KAMINSKI DB SECURITIES AS CUSTODIAN

 	 
	 	By:  	/s/ S. Sherrill (Power of Attorney)
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Keith Alessi
 	 
	 	KEITH ALESSI 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Paul Arnold
 	 
	 	PAUL ARNOLD 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Bruce C. Bruckmann
 	 
	 	BRUCE BRUCKMANN 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ S. Sherrill (Power of Attorney)
 	 
	 	ELIZABETH MCSHANE 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ S. Sherrill (Power of Attorney)
 	 
	 	BEVERLY PLACE 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ S. Sherrill (Power of Attorney)
 	 
	 	D. BRUCKMANN 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ S. Sherrill (Power of Attorney)
 	 
	 	HAROLD O. ROSSER 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ S. Sherrill (Power of Attorney)
 	 
	 	VIRGIL SHERRILL 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Stephen Sherrill
 	 
	 	STEPHEN SHERRILL 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ S. Sherrill (Power of Attorney)
 	 
	 	NANCY ZWENG 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ S. Sherrill (Power of Attorney)
 	 
	 	PAUL D. KAMINSKI 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Mark Smith
 	 
	 	MARK SMITH 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Robert Giardina
 	 
	 	ROBERT GIARDINA 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Richard Pyle
 	 
	 	RICHARD PYLE 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Alexander Alimanestianu
 	 
	 	ALEXANDER ALIMANESTIANU 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Debbie Smith
 	 
	 	DEBBIE SMITH 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Carol Cornbill
 	 
	 	CAROL CORNBILL 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Edward Trainor
 	 
	 	EDWARD TRAINOR 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Robert Calvo
 	 
	 	ROBERT CALVO 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Maggie Stevens
 	 
	 	MAGGIE STEVENS 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Ray Dewhirst
 	 
	 	RAY DEWHIRST 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Nina Duchaine
 	 
	 	NINA DUCHAINE 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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	 	/s/ Felicia Bochicchio
 	 
	 	FELICIA BOCHICCHIO 	 
	 	 	 
	 

[Signature page to Amendment No. 2 to the Registration Rights Agreement]

 

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Annex A

Bartlett, Dirk

Brinsmade, Alexandra

Brush, Vince

Bubolo, Kelley

Buckbee, Bruce

Buckley, Gerard

Calvo, Gerard

Choo, Jeanie

Corella, Jill

Dang, Long

Daniel, Matt

Derleth, Karl

DiMaggio, Anthony

Donnelly, Allyson

Duncan, Rob

Fifield, Robert

Gallagher, Dan

Gerson, Susan

Gurtcheff, Chris

Hartop, David

Hatten, Doug

Haughey, Ann

Hennigan, Kate

Herbst, Robert

Hickey, Judith

Houren, Peggy

Hufcut, Lisa

Jones, Cheryl

Keightley, Tim

Kendig, Gary

Khan, Asif

Kraemer, John

Liang, Chee

Lande, Jeff

Marotta, Paul

McGovern, Maureen

Meltzer, Jodie

Napolitano, Frank

O’Hearen, Sean

Oberg, Nancy

Onofrio, Dan

Priestly, Lisa

Prue, Jenny

Rasulo, Pam

 

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Richmond, Merrill

Rockett, Jo

Rockett, Kate

Ruta, Chris

Shane, Adam

Sherman, Seth

Sinert, Jenny

Smallwood, John

Stabile, Chris

Stephen, Randy

Sullivan, Barbara

Talty, Fred

Terlitsky, Mark

Verina, Daniel

Werner, Doug

[Signature page to Amendment No. 2 to the Registration Rights Agreement]EX-10.26

 

EXHIBIT 10.26

AMENDMENT NO. 1

TO THE

TOWN SPORTS INTERNATIONAL HOLDINGS, INC.

2006 STOCK INCENTIVE PLAN

     WHEREAS, Town Sports International Holdings, Inc. (the “Corporation”) maintains the
Town Sports International Holdings, Inc. 2006 Stock Incentive Plan (the “Plan”);

     WHEREAS, pursuant to Section 13.1 of the Plan, the Compensation Committee of the Board of
Directors of the Corporation (the “Compensation Committee”) may at any time, and from time
to time, amend, in whole or in part, any of or all the provisions of the Plan; and

     WHEREAS, the Compensation Committee desires to amend the Plan, effective as of August 4, 2006;

     NOW, THEREFORE, pursuant to Section 13.1 of the Plan, the Plan hereby is amended, effective as
of August 4, 2006, as follows:

	 	1.	 	Section 2.13 of the Plan is amended in its entirety to read as follows:

           “ ‘Detrimental Activity’ means:

	 	(a)	 	disclosing, divulging, furnishing or making available to anyone at any
time, except as necessary in the furtherance of Participant’s
responsibilities to the Company or any of its Affiliates, either during or
subsequent to Participant’s service relationship with the Company or any of
its Affiliates, any knowledge or information with respect to confidential or
proprietary information, methods, processes, plans or materials of the
Company or any of its Affiliates, or with respect to any other confidential
or proprietary aspects of the business of the Company or any of its
Affiliate, acquired by the Participant at any time prior to the
Participant’s Termination;
	 
	 	(b)	 	any activity while employed or performing services that results, or if
known could reasonably be expected to result, in the Participant’s
Termination that is classified by the Company as a termination for Cause;
	 
	 	(c)	 	(i) directly or indirectly soliciting, enticing or inducing any employee
of the Company or of any of its Affiliates to be employed by a person or
entity that is, directly or indirectly, in competition with the business or
activities of the Company or any of its Affiliates; (ii) directly or
indirectly approaching any such employee for these purposes; (iii)
authorizing or knowingly approving the taking of any such action by a third
party on behalf of any such person or entity, or assisting any such person
or entity in taking such action; or (iv) directly or indirectly soliciting,
raiding, enticing or inducing any person or entity (other than the U.S.
Government or its agencies) that is, or at any time from and after the date
of grant of the Award was, a customer of the Company or any of its
Affiliates to

 

 

	 	 	 	become a customer of the Participant or a third party for the same or
similar products or services that it purchased from the Company or any of
its Affiliates, or approaching any customer of the Company or any of its
Affiliates for such purpose, or authorizing or knowingly approving the
taking of any action by a third party for such purpose;

	 	(d)	 	the Participant’s Disparagement, or inducement of others to do
so, of the Company or any of its Affiliates or their past and present officers,
directors, employees or products;
	 
	 	(e)	 	the Participant’s owning, managing, controlling, participating
in, consulting with, rendering services for, or in any manner engaging in, any
business that, directly or indirectly, is competitive with the business
conducted by the Company or any of its Affiliates within any metropolitan area
in which the Company or any of its Affiliates engages or has definitive plans
to engage in such business, or the rendering of services to such business if
such business is otherwise prejudicial to or in conflict with the interests of
the Company or any of its Affiliates; or
	 
	 	(f)	 	a material breach of any agreement between the Participant and the
Company or any of its Affiliates (including, without limitation, any
employment agreement or noncompetition or nonsolicitation or confidentiality
agreement).

Unless otherwise determined by the Committee at grant, Detrimental Activity shall
not be deemed to occur after the end of the one-year period following the
Participant’s Termination.

For purposes of clauses (a), (c), (e) and (f) above, the Chief Executive Officer of
the Company has the authority to provide the Participant with written authorization
to engage in the activities contemplated thereby and no other person shall have
authority to provide the Participant with such authorization. If it is determined
by a court of competent jurisdiction that any provision in the Plan in respect of
Detrimental Activities is excessive in duration or scope or otherwise is
unenforceable, then such provision may be modified or supplemented by the court to
render it enforceable to the maximum extent permitted by law.”

	 	2.	 	Section 4.2(b) of the Plan is amended in its entirety to read as follows:

“Subject to the provisions of Section 4.2(d), if there shall occur any such
change in the capital structure of the Company by reason of any stock split,
reverse stock split, stock dividend, subdivision, combination or
reclassification of shares that may be issued under the Plan, any
recapitalization, any merger, any consolidation, any spin off, any
reorganization or any partial or complete liquidation, or any other
corporate transaction or event having an effect similar to any of the
foregoing (a “Section 4.2 Event”), then (i) the aggregate number and/or

2

 

kind of shares that thereafter may be issued under the Plan, (ii) the number
and/or kind of shares or other property (including cash) to be issued upon
exercise of an outstanding Award or under other Awards granted under the
Plan, (iii) the purchase price thereof, and/or (iv) the individual
Participant limitations set forth in Section 4.1(b) (other than those based
on cash limitations) shall be appropriately adjusted. In addition, subject
to Section 4.2(d), if there shall occur any change in the capital structure
or the business of the Company that is not a Section 4.2 Event (an “Other
Extraordinary Event”), including by reason of any extraordinary dividend
(whether cash or stock), any conversion, any adjustment, any issuance of any
class of securities convertible or exercisable into, or exercisable for, any
class of stock, or any sale or transfer of all or substantially all the
Company’s assets or business, then the Committee, in its sole discretion,
may adjust any Award and make such other adjustments to the Plan. Any
adjustment pursuant to this Section 4.2 shall be consistent with the
applicable Section 4.2 Event or the applicable Other Extraordinary Event, as
the case may be, and in such manner as the Committee may, in its sole
discretion, deem appropriate and equitable to prevent substantial dilution
or enlargement of the rights granted to, or available for, Participants
under the Plan. Any such adjustment determined by the Committee shall be
final, binding and conclusive on the Company and all Participants and their
respective heirs, executors, administrators, successors and permitted
assigns. Except as expressly provided in this Section 4.2 or in the
applicable Award agreement, a Participant shall have no rights by reason of
any Section 4.2 Event or any Other Extraordinary Event.”

     IN WITNESS WHEREOF, the Corporation has caused this Amendment to be executed as of the 4th day
of August, 2006.

	 	 	 	 	 
	 	TOWN SPORTS INTERNATIONAL HOLDINGS, INC.

 	 
	 	By:  	/s/ Richard Pyle
 	 
	 	 	Name:  	Richard Pyle 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

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