Document:

exv10w1

 

EXHIBIT 10.1

Schedule of Parties to Executive Employment Agreements

     Each of the following employees is a party to the form of Executive Employment
Agreement filed as Exhibit 10.32 to Amendment No. 3 to the Registration
Statement on Form S-1 (No. 333-113764) of Life Time Fitness, Inc. filed with
the SEC on June 9, 2004:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Length of Severance Period
	Employee
	 	Title
	 	Termination
	 	Change of Control

	 	 	 	 	 	 	(Section 3(a)(i))	 	(Section 3(c)
	Mike Gerend +
	 	EVP	 	18 mos.	 	21 mos.
	Mike Robinson +
	 	EVP	 	18 mos.	 	21 mos.
	Mike Brown
	 	SVP	 	18 mos.	 	12 mos.
	Eric Buss
	 	SVP	 	  9 mos.*	 	12 mos.
	Steve Lundeen
	 	SVP	 	   12 mos.**	 	18 mos.
	Mark Zaebst
	 	SVP	 	18 mos.	 	12 mos.
	Jeff Zwiefel
	 	SVP	 	18 mos.	 	12 mos.

* Effective September 27, 2004 (fifth anniversary of employment with LTF),
Length of Severance Period Termination benefits will be extended to 18 mos.

** Effective September 1, 2008 (fifth anniversary of employment with LTF),
Length of Severance Period Termination benefits will be extended to 18 mos.

+ Upon execution of the new executive employment agreement, Mr. Robinson’s
employment agreement with the Company dated March 4, 2002 terminated and Mr.
Gerend’s executive employment agreement with the Company dated January 23, 2003
terminated.exv10w2

 

 

EXHIBIT 10.2

Life Time Fitness, Inc.

2004 Long-Term Incentive Plan

Incentive Stock Option Agreement

	 	 	 	 	 
	Name of Optionee:
	 	 	 	 
	 
	 	 	 	 
	No. of Shares Covered:

	 	 	 	Date of Grant:
	 
	 	 	 	 
	Exercise
Price Per
Share:  $               
     

	 	Expiration Date:
	 
	 	 	 	 
	Exercise Schedule (Cumulative):

	 	 	 
	Date(s) of

Exercisability
	 	No. of Shares as to Which

Option Becomes Exercisable

This is an Incentive Stock Option Agreement (the “Agreement”) between Life Time
Fitness, Inc., a Minnesota corporation (the “Company”), and the optionee
identified above (the “Optionee”) effective as of the date of grant 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, a
committee of the Board of Directors (the “Board”), administers the Plan and has
the authority to determine the awards to be granted under the Plan; and

     WHEREAS, the Committee has determined that the Optionee is eligible to
receive an award under the Plan in the form of an incentive stock option (the
“Option”);

     NOW, THEREFORE, the Company hereby grants this Option to the Optionee
under the terms and conditions as follows.

Terms and Conditions*

	1.	 	Grant. The Optionee is granted this Option to purchase the number of
 shares of Common Stock (the “Shares”) specified at the beginning of this
Agreement.

*     Unless the context indicates otherwise, terms that are not defined in this
Agreement shall have the meaning set forth in the Plan as it
currently exists
or as it is amended in the future. 

 

 

	2.	 	Exercise Price. The price to the Optionee of each Share subject to this
Option shall be the exercise price specified at the beginning of this
Agreement (which price shall not be less than the Fair Market Value as of
the date of grant).
	 
	3.	 	Incentive Stock Option. This Option is intended to be an “incentive
stock option” within the meaning of Section 422 of the Code, and shall not
be an “incentive stock option” to the extent it does not so qualify. The
terms of the Plan and the Option shall be interpreted and administered so
as to satisfy the requirements of the Code.
	 
	4.	 	Exercise Schedule. This Option shall vest and become exercisable as to
the number of Shares and on the dates specified in the exercise schedule
at the beginning of this Agreement. The exercise schedule shall be
cumulative; thus, to the extent this Option has not already been exercised
and has not expired, terminated or been cancelled, the Optionee or the
person otherwise entitled to exercise this Option as provided herein may
at any time, and from time to time, purchase all or any portion of the
Shares then purchasable under the exercise schedule.
	 
	 	 	This Option may also be exercised in full (notwithstanding the exercise
schedule) under the circumstances described in Sections 7(b) and 8 of
this Agreement if it has not expired prior thereto.
	 
	5.	 	Expiration. This Option shall expire at the earliest of:

	 	(a)	 	5:00 p.m. Central Time on the expiration date specified at
the beginning of this Agreement (which date shall not be later than
ten years after the date of grant);
	 
	 	(b)	 	5:00 p.m. Central Time on the expiration of the period after
the termination of employment of the Optionee within which the
Option can be exercised (as specified in Section 7 of this
Agreement); or
	 
	 	(c)	 	Termination of the Optionee’s employment for through
discharge for Cause.

	 	 	In no event may anyone exercise this Option, in whole or in part, after
it has expired, notwithstanding any other provision of this Agreement.
	 
	6.	 	Procedure to Exercise Option.
	 
	 	 	Notice of Exercise. This Option may be exercised by delivering written
notice of exercise to the outside Plan administrator, in the form
attached to this Agreement. The notice shall state the number of Shares
to be purchased, and shall be signed by the person exercising this
Option. If the person exercising this Option is not the Optionee, he/she
also must submit appropriate proof of his/her right to exercise this
Option.
	 
	 	 	Tender of Payment. Upon giving notice of any exercise hereunder, the
Optionee shall provide for payment of the purchase price of the Shares
being purchased through one or a combination of the following methods:

	 	(a)	 	Cash (including check, bank draft or money order);
	 
	 	(b)	 	To the extent permitted by law, through a broker-assisted
cashless exercise in which the Optionee simultaneously exercises the
Option and sells all or a portion of the Shares thereby acquired
pursuant to a brokerage or similar relationship and uses the
proceeds from such sale to pay the purchase price of such Shares;
	 
	 	(c)	 	By delivery to the Company of unencumbered Shares having an
aggregate Fair Market Value on the date of exercise equal to the
purchase price of such Shares; or
	 
	 	(d)	 	By authorizing the Company to retain, from the total number
of Shares as to which the Option is exercised, that number of Shares
having a Fair Market Value on the date of

 

 

	 	 	 	exercise equal to the
purchase price for the total number of Shares as to which the Option
is exercised.

	 	 	Notwithstanding the foregoing, the Optionee shall not be permitted to pay
any portion of the purchase price with Shares, or by authorizing the
Company to retain Shares upon exercise of the Option, if the Committee,
in its sole discretion, determines that payment in such manner is
undesirable.
	 
	 	 	Delivery of Certificates. As soon as practicable after the Company
receives the notice and purchase price provided for above, it shall
deliver to the person exercising this Option, in the name of such person,
a certificate or certificates representing the Shares being purchased.
The Company shall pay any original issue or transfer taxes with respect
to the issue or transfer of the Shares and all fees and expenses incurred
by it in connection therewith. All Shares so issued shall be fully paid
and nonassessable. Notwithstanding anything to the contrary in this
Agreement, no certificate for Shares distributable under the Plan shall
be issued and delivered unless the issuance of such certificate complies
with all applicable legal requirements including, without limitation,
compliance with the provisions of applicable state securities laws, the
Securities Act of 1933, as amended (the “Securities Act”) and the
Exchange Act.
	 
	7.	 	Employment Requirement. This Option may be exercised only while the
Optionee remains employed with the Company or a parent or subsidiary
thereof, and only if the Optionee has been continuously so employed since
the date of this Agreement; provided that:

	 	(a)	 	This Option may be exercised for ninety (90) days after the
Optionee’s employment by the Company ceases if such cessation of
employment is for a reason other than death or Total Disability, but
only to the extent that it was exercisable immediately prior to
termination of employment, provided that if termination of the
Optionee’s employment shall have been for Cause, the Option shall
expire, and all rights to purchase Shares hereunder shall terminate,
immediately upon such termination.
	 
	 	(b)	 	This Option may be exercised with respect to all Shares
subject to this Option within one year after the Optionee’s
employment by the Company ceases if such cessation of employment is
because of death or Total Disability of the Optionee (all Shares
subject to this Option shall become exercisable in full on the date
of such death or Total Disability and remain exercisable for such
one-year period).

	 	 	Notwithstanding the above, the Option may not be exercised after it has
expired.
	 
	8.	 	Acceleration of Vesting.
	 
	 	 	Change in Control. In the event of a Change in Control, the Option shall
become fully exercisable and vested.
	 
	 	 	Discretionary Acceleration. Notwithstanding any other provisions of this
Agreement to the contrary, the Committee may, in its sole discretion,
declare at any time that the Option shall be immediately exercisable.
	 
	9.	 	Buy Out of Option Gains in the Event of a Change in Control. As set
forth in Section 7(a)(v) of the Plan, in the event of a Change in Control,
the Committee shall have the right to elect, in its sole discretion and
without the consent of the Optionee, to cancel the Option and to cause the
Company to pay to the Optionee the excess of the Fair Market Value of the
Shares covered by the Option over the exercise price of the Option, at the
date the Committee provides the Buy Out Notice.

 

 

	10.	 	Limitation on Transfer. During the lifetime of the Optionee, only the
Optionee or his/her guardian or legal representative may exercise the
Option. The Option may not be assigned or transferred by the Optionee
otherwise than by will or the laws of descent and distribution.
	 
	11.	 	No Shareholder Rights Before Exercise. No person shall have any of the
rights of a shareholder of the Company with respect to any Share subject
to the Option until the Share actually is issued to him/her upon exercise
of the Option.
	 
	12.	 	Discretionary Adjustment. In the event of any merger, reorganization,
consolidation, recapitalization, stock dividend, stock split, combination
or exchange of shares or other change in corporate structure affecting any
class of Common Stock, the Committee (or if the Company does not survive
any such transaction, a comparable committee of the board of directors of
the surviving corporation) may, but shall not be required to, without the
consent of the Optionee, make such adjustment as it determines in its
discretion to be appropriate as to the class, number and exercise price of
the Option.
	 
	13.	 	Transfer of Shares — Tax Effects. The Optionee hereby acknowledges that
if any Shares received pursuant to the exercise of any portion of the
Option are sold within two years from the date of grant or within one year
from the effective date of exercise of the Option, or if certain other
requirements of the Code are not satisfied, such Shares will be deemed
under the Code not to have been acquired by the Optionee pursuant to an
“incentive stock option” as defined in the Code; and that the Company
shall not be liable to the Optionee in the event the Option for any reason
is deemed not to be an “incentive stock option” within the meaning of the
Code.
	 
	14.	 	Withholding Taxes. The Company shall have the right to require the
payment (through withholding from the Optionee’s salary or otherwise) of
any federal, state, local or foreign taxes in connection with the exercise
of the Option.
	 
	15.	 	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
Optionee. If there is any inconsistency between the provisions of this
Agreement and the Plan, the provisions of the Plan shall govern.
	 
	16.	 	Discontinuance of Employment. This Agreement shall not give the Optionee
a right to continued employment with the Company or any parent or
subsidiary of the Company, and the Company or any such parent or
subsidiary employing the Optionee may terminate his/her employment at any
time and otherwise deal with the Optionee without regard to the effect it
may have upon him/her under this Agreement.
	 
	17.	 	Option Subject to Plan, Articles of Incorporation and By-Laws. The
Optionee acknowledges that the Option and the exercise thereof is 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.
	 
	18.	 	Obligation to Reserve Sufficient Shares. The Company shall at all times
during the term of the Option reserve and keep available a sufficient
number of Shares to satisfy this Agreement.
	 
	19.	 	Binding Effect. This Agreement shall be binding in all respects on the
heirs, representatives, successors and assigns of the Optionee.
	 
	20.	 	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 Optionee and the Company have executed this
Agreement as of the       day of          , 20      .

	 	 	 	 	 	 	 
	 	 	OPTIONEE
	 
	 	 	 	 	 	 
	 	 	
 
	 
	 	 	 	 	 	 
	 	 	Life Time Fitness, Inc.
	 
	 	 	 	 	 	 
	

	 	By	 	 	 	 
	 	 	 	 	
 
	

	 	 	 	Its	 	 
	

	 	 	 	 	 	
 

 

 

__________________, 20__

Merrill Lynch

Attn:

Dear Sir or Madame:

             I hereby exercise the following option (the “Option”) granted to me under
the Life Time Fitness, Inc. 2004 Long-Term Incentive Plan (the “Plan”) with
respect to the number of shares of Common Stock of Life Time Fitness, Inc. (the
“Company”) indicated below:

	 	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Date of Grant of Option:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Exercise Price Per Share:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Number of Shares With Respect to Which
the Option is Hereby Exercised:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Total Exercise Price:	 	 
	

	 	 	 	
 

	 	 	 	 	 
	

	 	o
	 	Enclosed with this letter is a check, bank draft or
money order in the amount of the Total Exercise Price.
	 
	 	 	 	 
	

	 	o
	 	I hereby agree to pay the Total Exercise Price within
five business days of the date hereof and, as stated in
the attached Broker’s Letter, I have delivered
irrevocable instructions to
                                    to promptly deliver to
the Company the amount of sale or loan proceeds from the
Shares to be issued pursuant to this exercise necessary
to satisfy my obligation hereunder to pay the Total
Exercise Price.
	 
	 	 	 	 
	

	 	o
	 	Enclosed with this letter is a certificate evidencing
unencumbered Shares (duly endorsed in blank) having an
aggregate Fair Market Value (as defined in the Plan)
equal to or in excess of the Total Exercise Price.
	 
	 	 	 	 
	

	 	o
	 	I elect to pay the Total Exercise Price through a
reduction in the number of Shares delivered to me upon
this exercise of the Option.

             If I am enclosing Shares with this letter, I hereby represent and warrant
that I am the owner of such Shares free and clear of all liens, security
interests and other restrictions or encumbrances. I agree that I will pay any
required withholding taxes in connection with this exercise.

 

 

             Please issue a certificate (the “Certificate”) for the number of Shares
with respect to which the Option is being exercised in the name of the person
indicated below and deliver the Certificate to the address indicated below:

	 	 	 	 	 
	

	 	Name in Which to Issue Certificate:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Address to Which Certificate Should be
Delivered:	 	 
	

	 	 	 	
 
	

	 	 	 	
 
	

	 	 	 	
 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Principal Mailing Address for Holder of
the Certificate (if different from above):	 	 
	

	 	 	 	
 
	

	 	 	 	
 
	

	 	 	 	
 
	

	 	 	 	
 

	 	 	 
	

	 	Very truly yours,
	 
	 	 
	

	 	
 
	

	 	Signature
	 
	 	 
	

	 	
 
	

	 	Name, please print
	 
	 	 
	

	 	
 
	

	 	Social Security Number

 

 

__________________, 20__

Life Time Fitness, Inc.

6442 City West Parkway

Eden Prairie, MN 55344

Attn: General Counsel

Dear Sir or Madame:

	 	 	 	 	 
	

	 	Name of Optionee:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Date of Grant of Option:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Exercise Price Per Share:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Number of Shares With Respect to Which
the Option is Hereby Exercised:	 	 
	

	 	 	 	
 
	 
	 	 	 	 
	

	 	Total Exercise Price:	 	 
	

	 	 	 	
 

             The above Optionee has requested that we finance the exercise of the above
Option to purchase Shares of Common Stock of Life Time Fitness, Inc. (the
“Company”) and has given us irrevocable instructions to promptly deliver to the
Company the amount of sale or loan proceeds from the Shares to be issued
pursuant to such exercise to satisfy the Optionee’s obligation to pay the Total
Exercise Price.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	
 
	 	 	Broker Name
	 
	 	 	 	 
	

	 	By

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