Offer Letter of Employment, dated September 6, 2024, between United Parks & Resorts Inc. and Michael Rady

Contract Categories: Human Resources - Employment Agreements
EX-10.59 6 prks-ex10_59.htm EX-10.59 EX-10.59

 

 

Exhibit 10.59

 

September 6, 2024

 

Michael Rady

 

Dear Michael,

 

We are pleased to offer you the position of Chief Human Resources Officer of United Parks & Resorts Inc. (the “Company”) with a start date commencing on [xx], 2024 or such earlier date as agreed between you and the Company’s Chief Executive Officer (the “Start Date”). You will be compensated at an annual rate of $250,000, payable semi-monthly (the “Base Salary”).

 

You will be eligible to participate in the annual incentive bonus plan, as adopted by the Company from time to time (the “Annual Bonus Plan”), with a target annual incentive bonus of 80% of your Base Salary, less applicable taxes, deductions, and withholdings, payable in cash and/or stock in the Company’s sole discretion. The plan year is currently from January 1 to December 31 and awards are prorated based on date of hire. Target incentives do not constitute a promise of payment. Any actual bonus paid will be subject to the terms and conditions of the Annual Bonus Plan and contingent upon the level of achievement of Company performance objectives as established by the Compensation Committee of the Company’s Board of Directors (the “Board”) for such fiscal year and, to the extent applicable, the assessment of your individual performance goals for such fiscal year. To qualify for an incentive bonus under the Annual Bonus Plan, you must remain continuously employed by the Company through the date that the incentive bonus is paid.

 

You are eligible to participate in the long-term equity incentive plan as adopted by the Company from time to time. Your annual target opportunity under the long-term incentive plan is 100% of your Base Salary, subject to vesting and other terms and conditions of both the Company's standard stock award agreement and the Company's equity incentive plan (more detail to be provided to you). The next anticipated long-term award will be made in 2025. You may also be eligible for a prorated amount of the 2024 long-term award based on your date of hire. This equity grant will be made after your Start Date subject to Board approval. The Compensation Committee and Board have regularly scheduled meetings during the year to review and approve equity awards associated with this plan.

 

Subject to Compensation Committee approval, you will receive an initial equity award of

$1,500,000. This award will consist of a grant of Restricted Stock Units (“RSUs”) with a grant date value of $500,000. You will also receive a number of Options equal to $500,000 (the number of Options determined by $500,000 divided by the closing stock price on date immediately prior to your Start Date). One quarter of each of the Restricted Stock Units and Options shall vest on each of the first four anniversaries of the date of the grant. You will also receive Performance Stock Units (“PSUs”) with a grant date value of $500,000 pursuant


 

 

 

 

to the vesting terms established under the Company’s 2024 long-term equity incentive plan. The actual number of Options, RSUs and PSUs that you will receive will be determined based upon the fair market value of the Company’s common stock on the grant date or Start Date, as applicable. These initial equity grants will be made as of your Start Date. In addition, you will receive a one-time equity grant of RSUs totaling $150,000 that will vest on March 31, 2025. All equity grants contemplated herein will be made in accordance with the Company's Equity Award Grant Policy. All vesting events are contingent upon your continued employment with the Company through such dates. The terms will be outlined in greater detail in your definitive binding grant agreements.

 

As a valued Ambassador of the Company, you will be eligible to participate in our competitive benefits package. You must enroll in your benefits within 31 days of your hire date. Failure to do so will result in the inability to enroll in benefits until the next plan year unless you experience a qualifying life event. You and your eligible dependents will be eligible to participate in the Company's Health & Welfare plans effective the first of the month following your date of hire. You will be eligible for participation in the 401K plan the start of the month following 6 months of employment. To view benefit plan details before orientation, you can visit: https://alliantbenefits.cld.bz/SeaWorld-2024-New-Hire-Guide/.

You will be eligible to receive severance benefits comparable to other executives at your level under the Company’s Key Employee Severance Plan, as in effect from time to time (the “Plan”). The Plan is attached as Exhibit B hereto.

 

During the course of your employment, it is likely that you will become knowledgeable about confidential and/or proprietary information related to the operations, products and services of the Company and its affiliates. Similarly, you may have confidential or proprietary information from prior employers that should not be used or disclosed to anyone at the Company. Therefore, you will be required to read, complete, and sign the Company’s standard Intellectual Property & Confidentiality Agreement. As a condition of your employment and by signing below you agree to be bound by the non-competition, non- solicitation, non-disparagement and other provisions set forth in Appendix A to Exhibit A attached hereto. In addition, the Company insists that you comply with any existing and/or continuing contractual obligations that you may have with your former employers. By signing this offer letter, you represent that your employment with the Company shall not breach any agreement you have with any third party.

 

As a Company Ambassador, you must devote your full business efforts and time to the Company. This obligation, however, will not preclude your from engaging in appropriate civic, charitable or religious activities or, with the consent of the Board, from serving on the boards of directors of companies that are not competitors to the Company as long as the activities do not materially interfere or conflict with your responsibilities to or your ability to perform your duties of employment at the Company. Any outside activities must be in

 


 

 

 

 

compliance with and approved if required by the Company’s Code of Business Conduct and Ethics or its Corporate Governance Guidelines.

 

As standard policy, this offer of employment is contingent upon successfully completing and passing a pre-employment background check and agreeing to adhere to all Company policies and procedures. All payments set forth herein are subject to applicable taxes, deductions, and withholdings.

 

This offer letter and the referenced documents and agreements constitute the entire agreement between you and the Company with respect to the subject matter hereof and supersede any and all prior or contemporaneous oral or written representations, understandings, agreements, or communications between you and the Company concerning those matters.

 

We are confident that you will be able to make a significant contribution to our continued success, as an Ambassador of the Company. We look forward to having you on the team!

 


 

 

 

 

 

 

 

 

 

Sincerely,

 

/S/ Marc Swanson

 

Marc Swanson

Chief Executive Officer

 

I accept this offer of employment as described in this letter:

 

/S/ Michael Rady