UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Life Time Fitness, Inc.

(Exact name of Registrant as specified in its charter)

Minnesota		001-32230		41-1689746
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

6442 City West Parkway Eden Prairie, Minnesota		55344
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code		(952) 947-0000

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 1.01. Entry into a Material Definitive Agreement.

2006 Key Executive Incentive Compensation Plan

On May 1, 2006, the Compensation Committee of the Board of Directors of Life Time Fitness, Inc. (the “Company”) approved the 2006 Key Executive Incentive Compensation Plan (the “Incentive Plan”) for the Company’s executive officers. The form of Incentive Plan award is attached hereto as Exhibit 10.1 and incorporated herein by reference. The Incentive Plan provides for monthly payouts based on the Company’s earnings before taxes (EBT) for the year-to-date period (YTD) as compared against the Company’s 2006 financial plan. In addition, the Incentive Plan provides for an additional year-end payment based on the Company’s capital expenditures (CapEx) as compared to the Company’s 2006 financial plan. The payout formulas are described in more detail in the form of Incentive Plan award filed as an exhibit. The Incentive Plan award for each executive officer specifies the Guaranteed Pay (salary) and Target Pay (salary plus incentive amount) for that executive officer, which are listed below:

Executive Officer		Guaranteed Pay				Target Pay
Bahram Akradi Chairman of the Board of Directors, President and Chief Executive Officer		$	870,000			$	1,275,000
Michael J. Gerend Executive Vice President and Chief Operating Officer		$	300,000			$	450,000
Michael R. Robinson Executive Vice President and Chief Financial Officer		$	280,000			$	420,000
Mark L. Zaebst Executive Vice President, Real Estate and Development		$	240,000			$	360,000
Eric J. Buss Executive Vice President, General Counsel and Secretary		$	200,000			$	300,000

Item 9.01. Financial Statements and Exhibits.

     The following Exhibit is being filed herewith:

     10.1 Form of 2006 Key Executive Incentive Compensation Plan.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.