Project 500 Awards Agreement under Six Flags Entertainment Corporation Long-Term Incentive Plan
This agreement outlines the Project 500 Awards, an equity incentive program for management of Six Flags Entertainment Corporation. The program rewards management with company shares if they achieve $500 million in Modified EBITDA by December 31, 2015. Achieving the target earlier results in additional shares: a 15% bonus for reaching the goal in 2014 and a 35% bonus for 2013. A minimum threshold of $475 million applies, and any excess performance above this is credited to the next year. The specific terms are detailed in a separate agreement.
Exhibit 10.1
Project 500 Program
PROJECT 500 AWARDS UNDER
SIX FLAGS ENTERTAINMENT CORPORATION
LONG-TERM INCENTIVE PLAN
Overview
The objective of the Project 500 Awards under the Six Flags Entertainment Corporation Long-Term Incentive Plan (“Project 500 Awards”) is to provide management with an equity incentive to achieve $500 million of Modified EBITDA in a calendar year (the “EBITDA Target”) by December 31, 2015. An aggregate of 1,400,000 shares would be issued if the EBITDA Target is achieved in calendar 2015, to the extent provided in the applicable Project 500 Awards agreement.
The Project 500 Awards provide management with incentive to reach the EBITDA Target earlier by providing: (a) a 15% early achievement bonus (1,610,000 total shares) if the EBITDA Target is met for calendar year 2014 and (b) a 35% early achievement bonus (1,890,000 total shares) if the EBITDA Target is met for calendar year 2013, all to the extent provided in the applicable Project 500 Awards agreement.
A minimum achievement hurdle of 95% ($475 million) applies and any overperformance above $475 million would be credited to the immediately subsequent calendar year.
The terms and conditions of the Project 500 Awards are set forth in a separate Project 500 Awards agreement that shall apply in the event of any conflict with this Overview.
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