Document:

exv10w30

Exhibit 10.30

	 		
	
	 	File Copy

	 	 	 

	3200 Windy Hill Road, Suite B-100

	 	770 767 4500 T
	Atlanta, GA 30339

	 	678 279 7534 F

May 14, 2010

Gordon Norman, M.D.

1931 Port Edward Place

Newport Beach, CA 92660

Dear Gordon:

I am pleased to confirm the severance arrangement offered to you in consideration for you
continuing in your position of Chief Innovation Officer on behalf of Alere Health, LLC (the
“Company”). In this position you will report directly to Tom Underwood, President & CEO. This
letter is intended to summarize in full the severance arrangement provided to you at the sole
discretion of the Company upon separation of employment and is in lieu of and supersedes any
previous agreement or understanding between the parties with respect to such matters.

In the event your employment with the Company terminates, then the following clauses will apply:

(a) Voluntary Resignation. If your employment terminates by reason of your voluntary
resignation (and is not an involuntary termination or a termination for Cause (as defined below)),
then you shall not be entitled to receive severance or salary continuation. Your benefits will be
continued under the Company’s then existing benefit plans and policies in accordance with, and to
the extent generally permitted with respect to any terminating employees under, such plans and
policies in effect on the date of termination.

(b) Involuntary Termination. Subject to paragraphs (e) and (f) below, in the event of your
involuntary termination by the Company for reasons other than for Cause, you will receive severance
payments equivalent to your base salary payments for a period of twelve (12) months following the
termination date (the “Severance Period”). Although such payments will be measured by your salary
at the time of termination of your employment, you will no longer be an employee of the Company
after your termination date. Such payments will be made ratably over the Severance Period
according to the Company’s standard payroll schedule, and shall be subject to applicable
withholdings. Payments made during the Severance Period will be limited to the applicable portion
of your annual base salary, less withholdings; however, because you will no longer be a Company
employee, you will not accrue any bonus, PTO or other compensation during the Severance Period.
Following the Severance Period, you will be entitled to no further severance or salary
continuation. For the duration of the Severance Period, you and anyone entitled to claim under or
through you, shall be entitled to all benefits under the group medical plan and dental care plan or
other present or future similar group employee benefit plan or program of the Company for which you
are eligible at the date of termination. To receive these benefits, you must elect COBRA; however,
you will continue participation in these plans at the “active” employee contribution rate for you
and your dependents (where applicable) for the duration of the period of severance pay. Other
benefits not described above will be continued under the Company’s then existing benefit plans and
policies in accordance with, and to the extent generally permitted with respect to any terminating
employees under such plans and policies in effect on the date of termination.

(c) Involuntary Termination for Cause. If your employment is terminated for Cause,
then you will not be entitled to receive severance or salary continuation. Your benefits will be
continued under the Company’s then

 

 

Gordon Norman

May 14, 2010

Page 2 of 4

existing benefit plans and policies in accordance with, and to the extent generally permitted with
respect to any terminating employees under, such plans and policies in effect on the date of
termination.

(d) Termination Upon Death or Disability. If your employment is terminated as a result of
your death or disability, your benefits and the benefits extended to your family will be continued
under the Company’s then existing benefit plans and policies in accordance with, and to the extent
generally permitted with respect to any similarly terminating employees under, such plans and
policies in effect on the date of termination (including, without limitation, any life insurance or
disability insurance plans in place at the time of such termination), but neither you nor, in the
event of your death, your estate or beneficiaries will be entitled to further compensation
hereunder.

(e) Release Agreement. The Company’s obligation to provide severance payments to you under
paragraph (b) above is expressly contingent upon the Company’s prior receipt of an executed copy of
the Release Agreement attached to this Agreement as Exhibit “A” (the Release Agreement”). The
Company will have no obligation to provide severance payments to you in the event that you (i) do
not deliver to the Company an executed release agreement in the form of the Release Agreement or in
some other form satisfactory to the Company, or (ii) do deliver an executed Release Agreement to
the Company, but you breach any representation, warranty or covenant of the Release Agreement after
delivery. Furthermore, the Company will be entitled to accrue and withhold any severance payment
otherwise due during any period in which the Release Agreement is revocable (in whole or in part)
by you, provided that any such withheld payments will promptly be remitted to you when the Release
Agreement becomes irrevocable.

(f) Breach of Terms. In the event that you become eligible to receive severance pay and
benefits, as a condition to receiving this severance pay, in accordance with the Non-Competition
Agreement and the Non-Solicitation and Confidentiality Agreement you have signed contemporaneously
with this letter agreement, you will be required:

	 	Ø 	 	to keep strictly confidential any and all confidential, proprietary, sensitive or
secret material or information that you acquired or became aware of in connection with
your employment with the Company, and not to disclose to any person, or otherwise use
or exploit for any purpose whatsoever such materials or information;
	 
	 	Ø 	 	to return to the Company all property and all confidential and proprietary business
information and materials (in whatever medium) that you received while, or in
connection with, your employment;
	 
	 	Ø 	 	to not make any statements, take any actions, or conduct yourself in any way that
adversely affects the reputation or goodwill of the Company and any subsidiary, or
related entity of the Company.

In the event that the Company determines that you have breached the terms of this letter agreement
or any other agreement between you and the Company, which breach, if curable, is not cured within
five (5) days of notice thereof, then among other consequences any severance payments or benefit
continuation pursuant to this Agreement will immediately cease.

(g) Definitions. As used above, “Cause” shall mean (A) your failure, neglect, or refusal,
as determined by the reasonable judgment of the Company, to perform the duties of your position,
which failure, neglect, or refusal has not been cured by you within thirty (30) days of receipt of
written notice from the Company of such failure, neglect, or refusal and you have not at any time
thereafter repeated such failure or failed to sustain such cure; (B) any intentional act by you
that has the effect of injuring the reputation or business of the Company or any of its affiliates
in any material respect; (C) your continued or repeated absence from the Company, unless

 

 

Gordon Norman

May 14, 2010

Page 3 of 4

such absence is (1) approved or excused by the chief executive officer of the Company or (2) is the
result of your illness, disability, or incapacity (in which event (G) below shall control); (D)
your use of illegal drugs or repeated drunkenness; (E) your arrest and/or conviction for the
commission of a felony; (F) the commission by you of an act of fraud, deceit, material
misrepresentation or embezzlement against the Company, or any of its affiliates; (G) your
disability, which shall mean your inability to perform the essential functions of your position,
with or without reasonable accommodation by the Company, for an aggregate of one hundred twenty
(120) days (whether or not consecutive) during any 12-month period during the course of your
employment; or (H) a material failure to comply with the Company’s written policies or rules.

For purposes of this letter agreement, an involuntary termination by the Company without Cause will
specifically include your voluntary resignation as a result of, and not more than thirty (30) days
following the occurrence of any of the following without your prior approval: (A) a material
reduction of your duties or responsibilities, (B) your base salary is reduced by 10% or more from
the base salary in effect immediately prior to the reduction, except to the extent the base salary
of all other Executive Council members are proportionately reduced, or (C) the Company’s
requirement that you relocate (for any period in excess of 90 days) your principal place of
employment to a location more than fifty (50) miles away from the Company’s current location in
Irvine, California. Notwithstanding the foregoing, your voluntarily resignation will not be
considered an involuntary termination as described above unless you first provide the Company with
written notice of the events constituting the grounds for involuntary termination as set forth in
clauses (A), (B) or (C) above within fifteen (15) days of the initial existence of such grounds for
involuntary termination and a reasonable cure period of not less than fifteen (15) days following
the date of such notice.

(h) Other Agreements. This promotion is contingent upon your signing the updated
Non-Competition Agreement and the Non-Solicitation and Confidentiality Agreement attached hereto.
Please initial the first page of each agreement and sign the second page. Please indicate your
acceptance to the terms stated herein by signing the acceptance below and returning this letter,
along with an executed original of the attached agreements to me in the enclosed self-addressed
envelope. Please retain a copy of the fully executed agreements for your records.

(i) Section 409A. Notwithstanding any other provision of this letter agreement, it is
intended that any payment or benefit provided pursuant to or in connection with this letter
agreement that is considered to be nonqualified deferred compensation subject to Section 409A of
the Internal Revenue Code of 1986, as amended shall be provided and paid in a manner, and at such
time and in such form, as complies with the applicable requirements of Section 409A of the Code.
If and to the extent required by Section 409A of the Code, no payment or benefit shall be made or
provided to a “specified employee” (as defined below) prior to the six (6) month anniversary of
your separation from service (within the meaning of Section 409A(a)(2)(A)(i) of the Code). The
amounts provided for in this letter agreement that constitute nonqualified deferred compensation
shall be paid as soon as the six month deferral period ends. In the event that benefits are
required to be deferred, any such benefit may be provided during such six month deferral period at
your expense, with your having a right to reimbursement from the Company for the amount of any
premiums or expenses paid by you once the six month deferral period ends. For this purpose, a
specified employee shall mean an individual who is a key employee (as defined in Section 416(i) of
the Code without regard to Section 416(i)(5) of the Code) of the Company or its affiliates at any
time during the 12-month period ending on each December 31 (the “identification date”). If you are
a key employee as of an identification date, you shall be treated as a specified employee for the
12-month period beginning on the April 1 following the identification date. Notwithstanding the
foregoing, you shall not be treated as a specified employee unless any stock of the Company or a
corporation or business affiliated with it pursuant to Sections 414(b) or (c) of the Code is
publicly traded on an established securities market or otherwise.

 

 

Gordon Norman

May 14, 2010

Page 4 of 4

(j) Attorney’s Fees. In the event of litigation to enforce a party’s rights under this
letter agreement, the non-prevailing party shall reimburse the prevailing party for all reasonable
attorney fees and costs resulting therefrom.

(k) Miscellaneous. The rights and obligations of the Company under this letter agreement
shall inure to the benefit of and shall be binding upon the successors and assigns of the Company.
You are not entitled to assign any of your rights or obligations under this letter agreement. In
the event any provision of this letter agreement is found to be unenforceable by a court of
competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow
enforceability of the provisions as so limited, it being intended that the parties shall receive
the benefits contemplated in this letter agreement to the fullest extent permitted by law. If a
deemed modification is not satisfactory in the judgment of such court, the unenforceable provision
shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not
be affected. All provisions of this Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware without reference to principles of conflict of laws. Any
lawsuit, claim, or other legal proceeding arising out of or relating to this Agreement shall be
brought exclusively in the federal or state courts located in the State of Delaware, and you and
the Company hereby submit to personal jurisdiction in the State of Delaware and to venue in such
courts. Any notice required or permitted by this letter agreement shall be in writing and shall be
delivered as follows with notice deemed given as indicated: (a) by personal delivery when delivered
personally; (b) by overnight courier with notice deemed given one business day after such notice is
sent; (c) by telecopy or facsimile transmission upon acknowledgement of receipt of electronic
transmission; or (d) by certified or registered mail, return receipt requested, upon verification
of receipt. Notice for you shall be sent to the address set forth above and notice for the Company
shall be sent to 3200 Windy Hill Road, Suite B-100, Atlanta, Georgia 30339, Attention: General
Counsel. Either party may provide in writing a different address for notice.

We are excited about the potential and expertise you will bring to your role. Please feel free to
contact me at 770-767-8024 if you have any questions or comments.

Sincerely,

Julie Griffin

Executive Vice President, Culture and Performance

ACCEPTANCE

     I have read and understand the foregoing which constitutes the entire and exclusive agreement
between the Company and the undersigned and supersedes all prior or contemporaneous proposals,
promises, understandings, representations, conditions, oral or written, relating to the subject
matter of this letter agreement. I understand and agree that my employment is at-will and is
subject to the terms and conditions contained herein.

	 	 	 

	/s/ G
K Norman

	 	6-4-10
	 
	Gordon Norman

	 	Dateexv10w1

Exhibit 10.1

Life Time Fitness, Inc.

2004 Long-Term Incentive Plan

Restricted Stock Agreement (Forfeiture Component)

Name of Employee:

	 	 	 	 

	 	 	 	 
	No. of Shares Covered:

	 	 	Date of Issuance: February 23, 2011
	 	 	 	 

Vesting Schedule pursuant to Section 2 (Cumulative):

	 	 	 	 	 
	 	 	No. of Shares Which	 
	Vesting Date(s)	 	Become Vested as of Such Date	 
	 
	 	 	 	 
	February 23, 2012
	 	 	 	 
	February 23, 2013
	 	 	 	 
	February 23, 2014
	 	 	 	 
	February 23, 2015
	 	 	 	 

     This is a Restricted Stock Agreement (the “Agreement”) between Life Time Fitness,
Inc., a Minnesota corporation (the “Company”), and the employee identified above (the
“Employee”) effective as of the date of issuance specified above.

Recitals

     WHEREAS, the Company maintains the Life Time Fitness, Inc. 2004 Long-Term Incentive Plan (the
“Plan”);

     WHEREAS, pursuant to the Plan, the Company’s Compensation Committee (the “Committee”), a
committee of the Board of Directors (the “Board”), administers the Plan and the Committee
has the authority to grant awards under the Plan on behalf of the Company;

     WHEREAS, the Committee has determined that the Employee is eligible to receive such an award
under the Plan;

     NOW, THEREFORE, the Company hereby grants this award of Restricted Shares to the Employee
under the terms and conditions as follows.

Terms and Conditions

	1.	 	Grant of Restricted Stock.
	 
	 	 	(a) Subject to the terms and conditions of this Agreement, the Company has issued to the
Employee the number of Shares specified at the beginning of this Agreement. These Shares
are subject to the restrictions provided for in this Agreement and are referred to collectively
as the “Restricted Shares” and each as a “Restricted Share.”

 

 

	 	 	(b) The Restricted Shares will be evidenced by a book entry made in the records of the
Company’s transfer agent in the name of the Employee (unless the Employee requests a
certificate evidencing the Restricted Shares). All restrictions provided for in this
Agreement will apply to each Restricted Share and to any other securities distributed with
respect to that Restricted Share. Each Restricted Share will remain restricted and subject
to forfeiture to the Company unless and until that Restricted Share has vested in the
Employee in accordance with all of the terms and conditions of this Agreement. If a
certificate evidencing any Restricted Share is requested by the Employee, the Company shall
retain custody of any such certificate throughout the period during which any restrictions
are in effect and require, as a condition to issuing any such certificate, that the Employee
tender to the Company a stock power duly executed in blank relating to such custody.
	 
	2.	 	Vesting. The Restricted Shares that have not previously been forfeited will vest in
the numbers and on the dates specified in the Vesting Schedule at the beginning of this
Agreement. In addition, the Restricted Shares that have not previously vested or been
forfeited will vest immediately upon the first to occur of the following events: (i) death of
the Employee; (ii) Total Disability of the Employee; and, (iii) a Change of Control as defined
in the Plan. Notwithstanding the foregoing, the number of Restricted Shares vesting on each
date specified in the Vesting Schedule at the beginning of this Agreement may be reduced based
upon the relationship of the Company’s actual fully-diluted earnings-per-share (“EPS”) for
2011 to budgeted EPS for 2011, as specifically set forth on Exhibit A attached hereto, as such
targets may be amended from time-to-time by the Board. The Committee shall determine whether
the performance hurdle was achieved as promptly as practicable following review of the
Company’s audited fiscal 2011 financial results. In the event that a reduction is applied to
the Vesting Schedule at the beginning of this Agreement (a) such a reduction shall occur
immediately upon determination by the Committee that the performance hurdle was not achieved
and (b) if such reduction would cause the number of Restricted Shares subject to vesting on
each date specified in the Vesting Schedule to be a fraction of a share, the number of
Restricted Shares subject to vesting on each of the first two dates specified in the Vesting
Schedule shall be rounded down to the nearest whole-share while the number of Restricted
Shares subject to vesting on each of the last two dates specified in the Vesting Schedule
shall be rounded up to the nearest whole-share.
	 
	3.	 	Lapse of Restrictions; Issuance of Unrestricted Shares. Upon the vesting of any
Restricted Shares, such vested Restricted Shares will no longer be subject to forfeiture as
provided in Section 4 of this Agreement. Upon the vesting of any Restricted Shares, all
restrictions on such Restricted Shares will lapse, and the Company will, subject to the
provisions of the Plan, issue to the Employee a certificate evidencing the Restricted Shares
that is free of any transfer or other restrictions arising under this Agreement.
	 
	4.	 	Forfeiture. In the event that (i) the Employee’s employment is terminated for any
reason, whether by the Company, by the Employee or otherwise, voluntarily or involuntarily,
other than in the circumstances described in Section 2 of this Agreement, or (iii) the
Employee attempts to sell, assign, transfer or otherwise dispose of, or mortgage, pledge or
otherwise encumber any of the Restricted Shares or the Restricted Shares become subject to
attachment or any similar involuntary process, then any Restricted Shares that have not
previously vested shall be forfeited by the Employee to the Company, the Employee shall
thereafter have no right, title or interest whatever in such Restricted Shares, and, if the
Company does not have custody of any and all certificates
representing Restricted Shares so forfeited, the Employee shall immediately return to the
Company any and all certificates representing Restricted Shares so forfeited. Additionally,
the Employee will deliver to the Company a stock power duly executed in blank relating to
any and all certificates representing Restricted Shares forfeited to the Company in
accordance with the previous sentence or, if such stock power has

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	 	 	previously been tendered
to the Company, the Company will be authorized to deem such previously tendered stock power
delivered, and the Company will be authorized to cancel any and all certificates
representing Restricted Shares so forfeited and to cause a book entry to be made in the
records of the Company’s transfer agent in the name of the Employee (or a new stock
certificate to be issued, if requested by the Employee) evidencing any Shares that vested
prior to forfeiture. If the Restricted Shares are evidenced by a book entry made in the
records of the Company’s transfer agent, then the Company will be authorized to cause such
book entry to be adjusted to reflect the number of Restricted Shares so forfeited.
	 
	5.	 	Shareholder Rights. As of the date of issuance specified at the beginning of this
Agreement, the Employee shall have all of the rights of a shareholder of the Company with
respect to the Restricted Shares (including voting rights and the right to receive dividends
and other distributions), except as otherwise specifically provided in this Agreement.
	 
	6.	 	Restrictive Legends and Stop-Transfer Orders.
	 
	 	 	(a) The book entry or certificate representing the Restricted Shares may, at the Committee’s
discretion, contain a notation or bear the following legend (as well as any notations or
legends required by applicable state and federal corporate and securities laws) noting the
existence of the restrictions and the Company’s rights to reacquire the Restricted Shares
set forth in this Agreement:
	 
	 	 	“THE SHARES REPRESENTED BY THIS [BOOK ENTRY] [CERTIFICATE] MAY BE TRANSFERRED ONLY
IN ACCORDANCE WITH THE TERMS OF A RESTRICTED STOCK AGREEMENT BETWEEN THE COMPANY AND
THE SHAREHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.”
	 
	 	 	(b) The Employee agrees that, in order to ensure compliance with the restrictions referred
to herein, the Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and that, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.
	 
	 	 	(c) The Company shall not be required (i) to transfer on its books any Restricted Shares
that have been sold or otherwise transferred in violation of any of the provisions of this
Agreement or (ii) to treat as owner of the Restricted Shares or to accord the right to vote
or pay dividends to any purchaser or other transferee to whom the Restricted Shares shall
have been so transferred.
	 
	7.	 	Tax Consequences and Withholdings. The Employee understands that unless a proper and
timely Section 83(b) election has been made as further described below, generally under
Section 83 of the Code, at the time the Restricted Shares vest, the Employee will be obligated
to recognize ordinary income and be taxed in an amount equal to the Fair Market Value as of
the date of vesting for the Restricted Shares then vesting. The Employee shall be solely
responsible for any tax obligations that may arise as a result of the Restricted Shares. 
	 
	8.	 	Section 83(b) Election. The Employee has been informed that, with respect to the
grant of Restricted Shares, an election may be filed by the Employee with the Internal Revenue
Service, within 30 days of the date of issuance, electing pursuant to Section 83(b) of the
Code to be taxed currently on the Fair Market Value of the Restricted Shares on the date of
issuance. The Employee acknowledges that it is the Employee’s sole responsibility to timely
file the election under Section 83(b) of the Code.

3

 

	 	 	If the Employee makes such election, the Employee shall promptly provide the Company a copy
and the Company may require at the time of such election an additional payment for
withholding tax purposes based on the Fair Market Value of the Restricted Shares as of the
date of issuance.
	 
	9.	 	Interpretation of This Agreement. All decisions and interpretations made by the
Committee with regard to any question arising hereunder or under the Plan shall be binding and
conclusive upon the Company and the Employee. If there is any inconsistency between the
provisions of this Agreement and the Plan, the provisions of the Plan shall govern.
	 
	10.	 	Award Subject to Plan, Articles of Incorporation and By-Laws. The Employee
acknowledges that the Restricted Shares are subject to the Plan, the Articles of
Incorporation, as amended from time to time, and the By-Laws, as amended from time to time, of
the Company, and any applicable federal or state laws, rules or regulations.
	 
	11.	 	Binding Effect. This Agreement shall be binding in all respects on the heirs,
representatives, successors and assigns of the Employee.
	 
	12.	 	Choice of Law. This Agreement is entered into under the laws of the State of
Minnesota and shall be construed and interpreted thereunder (without regard to its conflict of
law principles).

     IN WITNESS WHEREOF, the Employee and the Company have executed this Agreement as of the
23rd day of February, 2011.

	 	 	 	 	 
	 	_______________ (“Employee”)

 

Life Time Fitness, Inc.
 	 
	 	By  	Eric J. Buss 	 
	 	 	Its Executive Vice President 	 
	 	 	 	 

4

 

	 	 	 	 	 

Exhibit A

Restricted Stock

Forfeiture Table

	 	 	 	 	 
		 	Percentage of Original Restricted Shares
	Actual EPS for 2011 as a Percentage of 2011 Budgeted EPS	 	Granted to be Forfeited
	 
	100% or Above
	 	 	0	%
	99% to 100%
	 	 	1	%
	98% to 99%
	 	 	2	%
	97% to 98%
	 	 	3	%
	96% to 97%
	 	 	4	%
	95% to 96%
	 	 	5	%
	94% to 95%
	 	 	6	%
	93% to 94%
	 	 	7	%
	92% to 93%
	 	 	8	%
	91% to 92%
	 	 	9	%
	90% to 91%
	 	 	10	%
	89% to 90%
	 	 	12	%
	88% to 89%
	 	 	14	%
	87% to 88%
	 	 	16	%
	86% to 87%
	 	 	18	%
	85% to 86%
	 	 	20	%
	84% to 85%
	 	 	22	%
	83% to 84%
	 	 	24	%
	83% or Less
	 	 	25	%

In the event that the Company’s Net Income for 2011 is less than $0, the entire amount of
restricted shares granted pursuant to this Restricted Stock Agreement shall be forfeited in full.

Actual EPS for 2011 shall not include any share-based compensation expense recognized by the
Company, if any, in connection with the 996,000 “performance based” restricted shares that the
Company granted on June 11, 2009, or the dilutive impact of any such shares being included in the
calculation of EPS for 2011.

5

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