Employment Agreement - Bally's Health & Tennis Corp. and Dave Tolmie
BALLY'S HEALTH & TENNIS CORPORATION
8700 W. Bryn Mawr, 2nd Floor
Chicago, Illinois 60631
Phone 312 399-1300
Fax 312-380-7679
December 28, 1994
Mr. Dave Tolmie
11639 Saint David's Lane
Lutherville, MD 21093
(410) 561-3402
Dear Dave,
This letter is to formally offer you the position of Vice President of Planning
and Development. You should know that everyone with whom you have spoken is
enthusiastic about the prospect of your joining Bally. We believe your
background, qualifications and enthusiasm will contribute immensely to our
business and, in return, your experience with Bally will serve you well in the
future.
In your position as Vice President of Planning and Development, you will report
to Mike Lucci, President of Bally's Health & Tennis Corporation. Your primary
duty's will be the following:
- Strategic Planning
- Real Estate Site Selection and Demographic Analysis
- Negotiations
- Property Disposal and Integration of Disposals with Franchising
- Franchising
- New Business Ventures
- Special Projects as Assigned
In terms of the compensation package, you will receive an initial base monthly
salary of $ 16,250 which would total $ 195,000 on an annualized basis. In
addition, you will receive a $ 1,041 monthly car allowance which would total $
12,500 on an annualized basis.
You will be eligible for up to a 40% year-end discretionary bonus. Please keep
in mind that this bonus is completely discretionary and will be decided based on
Company performance and individual merit. It is possible that due to poor
company performance, you may receive no bonus and therefore you should plan
accordingly.
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BALLY'S HEALTH & TENNIS CORPORATION
Mr. Dave Tolmie
December 28, 1994
Page 2
Nevertheless, during your first two (2) years of employment, 1995 and 1996, you
will be guaranteed 50% of this bonus ($ 39,000). In order to receive this
guarantee, you must be on the payroll for the entire calendar year. If your
employment ends prior to the end of 1995, or prior to the end of 1996 you will
not be eligible for any partial or pro-rated payouts for that partial employment
year.
In addition, we will offer you an additional incentive plan based on company
performance. The following grid shall apply:
Company Achievement Bonus Accumulated
------------------- ----- -----------
Profit & Loss Bonus
------------- -----
To be determined $ 25,000 $ 25,000
? 25,000 50,000
? 25,000 75,000
? 25,000 100,000
You will have full participation in the following Bally Health & Benefits plans:
- Bally Health Care, including Dental, Life and Disability
- Participation in a 401K Plan
- Participation in a Stock Option and Stock Purchase Plan
- Participation in a Deferred Compensation Plan
- Bally's Executive Medical Plan
Please understand, however, that there may be waiting periods for various plans,
and there also is an exclusion under the Health Insurance Plan concerning
certain pre-existing conditions.
Bally will pay for any COBRA costs incurred during this waiting period. Bally's
Benefit Booklet will provide a more detailed review of the Fringe Benefit
Program.
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BALLY'S HEALTH & TENNIS CORPORATION
Mr. Dave Tolmie
December 28, 1994
Page 3
While it is our sincere hope that our relationship will be a long one, please
understand that Bally's does not offer employment on a fixed term basis, and the
representations in this letter and from our various meetings should not be
construed in any manner as a proposed contract for any fixed term. Employment at
Bally remains terminable at will at the option of Bally or the employee.
Nevertheless, any time during your first three (3) years of employment we will
offer the following Severance Package. If your employment is terminated by the
company for any reason other than cause, you will be paid eighteen (18) months
of your base salary plus a bonus (based on the prior year bonus).
In addition, if during your first three (3) years of employment, Mike Lucci
leaves the employment of Bally's for any reason, you may resign from the company
with a guarantee of one (1) year at full pay including bonus (based on the prior
year bonus).
If you have any questions about this offer, please let me know. Otherwise, we
look forward to your signing and returning a copy of this letter to confirm your
acceptance of our offer. As we discussed, we would like for you to begin work,
if possible, the week of January 9, 1995.
We hope to hear from you soon.
Very truly yours,
/s/ Harold Morgan
Harold Morgan
Vice President of Human Resources
I hereby accept employment based on the conditions described in this offer
letter.
Dec. 30, 1994 /s/ Dave Tolmie
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Date Signature