Document:

Exhibit
10(nn)

 

EXECUTION COPY

 

EMPLOYMENT AGREEMENT

 

This Agreement, dated as of
January 17, 2006, by and between Jeffrey R. Speed (the “Executive”) and Six
Flags, Inc., a Delaware corporation (the “Company”).

 

WITNESSETH

 

WHEREAS,
the Company has offered Executive, and Executive has accepted, employment on
the terms and conditions set forth in this Agreement; and

 

WHEREAS, the Company and
Executive wish to set forth such terms and conditions in a binding written
agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth in this Agreement, it is hereby
agreed as follows:

 

1.             Term of Employment. Subject to earlier termination in accordance with
Section 4 hereof, Executive’s employment with the Company shall begin on
February 1, 2006 (the “Effective Date”) and end on the fourth anniversary
thereof; provided that the Executive shall have the right to elect to extend
the term for two successive one-year periods upon no more than 120 days and no
less than 90 days advance written notice to the Company (the initial four-year
term and any extension thereof under this Section 1 shall hereinafter be
referred to as the “Term”).

 

2.             Position, Duties and Location.

 

(a)           Position. Beginning on the Effective Date,
Executive shall serve as an Executive Vice President of the Company, with the
duties and responsibilities customarily assigned to such position and such
other customary duties as may reasonably be assigned to Executive from time to
time by the Chief Executive Officer consistent with such position. The
Executive shall at all times report directly to the Chief Executive Officer.

 

(b)           Duties. During his employment with the Company,
Executive shall devote substantially all his business attention and time to the
duties reasonably assigned to him by the Chief Executive Officer consistent
with Executive’s position and shall use his reasonable best efforts to carry
out such duties faithfully and efficiently. During the Term, it shall
not be a violation of this Agreement for the Executive to (i) serve on industry
trade, civic or charitable boards or committees; (ii) deliver lectures or
fulfill speaking engagements; or (iii) manage personal investments, as long as
such activities do not materially interfere with the performance of the
Executive’s duties and responsibilities. The Executive shall be permitted to
serve on for-profit corporate boards of directors and advisory committees if
approved in advance by the Board, which approval shall not unreasonably be
withheld.

 

 

(c)           Location.
Executive’s principal place of employment shall be located in New York, New
York; provided that Executive will travel and render services at such
locations as may reasonably be required by his duties hereunder.

 

3.             Compensation.

 

(a)           Base Salary. During his employment with the Company,
Executive shall receive a base salary (the “Base Salary”) at an annual rate of
$700,000. Base Salary shall be paid at such times and in such installments as
the Company customarily pays the base salaries of its employees. The Base
Salary shall be increased by no less than $25,000 per year on each anniversary
of the Effective Date, and the term “Base Salary” shall thereafter refer to the
Base Salary as so increased.

 

(b)           Annual Bonus. During his employment with the
Company, Executive shall be paid an annual bonus in the discretion of the Board
of Directors; provided that in no event will Executive’s annual
bonus be less than $250,000; provided further that Executive’s bonus
will be no less than $300,000 for fiscal year 2006 of the Company. Such bonus shall
be payable at such time as bonuses are paid to other senior executive officers
of the Company.

 

(c)           Equity Awards.

 

(i)        As soon as practicable following
Executive’s execution of this Agreement, the Company shall grant Executive an
option to purchase 150,000 shares of its common stock (the “Up-Front Option”)
under the Company’s applicable Stock Option and Incentive Plan (the “Plan”). The
per share exercise price of the Up-Front Option shall be the fair market value
(as determined under the Plan) of the Company’s common stock on the date of
grant  Subject to Executive’s continuing
employment with the Company and the provisions of Section 4(b), the Up-Front
Option shall vest 20% on the date of grant and the remainder shall vest in four
equal installments on the first four anniversaries of the Effective Date.
During the Term, the Company shall grant Executive additional options to
purchase no less than an additional 200,000 shares of the Company’s common
stock (the “Additional Option” and, together with the Up-Front Option, the “Option”)
at a per share exercise price equal to the fair market value (as determined
under the Plan) of the Company’s common stock on any subsequent grants. Such
Additional Options shall be granted to the Executive ratably over the initial
four-year term (for the avoidance of doubt, an annual grant of an option to
purchase no less than 50,000 shares) and each such Additional Option shall vest
20% on the date of grant and the remainder shall ratably vest over a period of
time no longer than four years from the date of grant of such Additional Option.
In the event of stock split, stock dividend, share combination, exchange of
shares, recapitalization, merger, consolidation, reorganization, liquidation or
other comparable changes or transactions of or by the Company, an appropriate
adjustment to the number and/or type of shares into which the Options are
exercisable shall be made to give proper effect to such event.

 

2

 

(ii)       As soon as practicable following
Executive’s execution of this Agreement, the Company shall grant Executive an
award of 150,000 restricted shares of its common stock (the “Up-Front
Restricted Shares”) under the Plan. Subject to Executive’s continuing
employment with the Company and the provisions of Section 4(b), the Up-Front
Restricted Shares shall vest and the restrictions thereon shall lapse in equal
installments on each of January 1, 2007, January 1, 2008 and January 1, 2009. During
the Term, the Company shall grant Executive no less than an additional 200,000
restricted shares (“Additional Restricted Shares” and, together with the
Up-Front Restricted Shares, the “Restricted Shares”). Such Additional
Restricted Shares shall be granted to the Executive ratably over the initial
four-year term (for the avoidance of doubt, an annual award of no less than
50,000 Restricted Shares) and shall vest and the restrictions thereon shall
lapse ratably over a period of time no longer than three years from the date of
grant of the Additional Restricted Shares. In the event of stock split, stock
dividend, share combination, exchange of shares, recapitalization, merger,
consolidation, reorganization, liquidation or other comparable changes or
transactions of or by the Company, an appropriate adjustment to the number
and/or type of Restricted Shares and Additional Restricted Shares shall be made
to give proper effect to such event.

 

(d)           Benefits. During his
employment with the Company, the Company shall provide, and the
Executive shall be entitled to participate in or receive benefits under any
pension plan, profit sharing plan, stock option plan, stock purchase plan or
arrangement, health, disability and accident plan or any other employee benefit
plan or arrangement, including any non-qualified or deferred compensation or
retirement programs made available now or in the future to senior executives of
the Company; provided Executive complies with the conditions attendant with
coverage under such plans or arrangements. Nothing contained herein shall be
construed to require the Company to establish any plan or arrangement not in
existence on the date hereof or to prevent the Company from modifying or
terminating any plan or arrangement in existence on the date hereof. Without limiting the generality of the
foregoing, Executive shall be entitled to no less than four weeks of paid
vacation per calendar year.

 

(e)           Perquisites; Expenses. During his employment
with the Company, Executive
shall be entitled to (i) perquisites on the same basis as perquisites
are generally provided to senior executives of the Company, including first class air travel, and (ii) an
automobile allowance of $500 per month. In addition, the Company shall
promptly pay or, if such expenses are paid directly by Employee, the Executive
shall be entitled to receive prompt reimbursement, for all reasonable expenses
that Executive incurs during his employment with the Company in carrying out
Executive’s duties under this Agreement, including, without limitation, those
incurred in connection with business related travel or entertainment, upon
presentation of expense statements and customary supporting documentation.

 

(f)            Relocation
Expenses. The Company shall reimburse Executive for expenses incurred by
Executive in connection with his relocation from California to the New York
metropolitan area in accordance with the Company’s applicable relocation plan
which is attached hereto as Annex A; provided that the purchase option through
Sirva Relocation shall not apply.

 

3

 

4.             Termination of Employment.

 

(a)           Death; Disability; Termination For Cause. Executive’s
employment shall terminate automatically upon his death or Disability (as
defined below). The Company may terminate Executive’s employment for Cause (as
defined below). Upon a termination of Executive’s employment (i) due to
Executive’s death or Disability, or (ii) by the Company for Cause, Executive
(or, in the case of Executive’s death, Executive’s estate and/or beneficiaries)
shall be entitled to: (A) unpaid Base Salary through the Date of Termination;
(B) any earned but unpaid bonus for the prior fiscal year of the Company; (C)
any benefits due to Executive under any employee benefit plan of the Company
and any payments due to Executive under the terms of any Company program,
arrangement or agreement, excluding any severance program or policy and (D) any
expenses owed to the Executive (collectively, the “Accrued Amounts”). Executive
shall have no further right or entitlement under this Agreement; provided,
however, that in the event of a termination of Executive’s employment
due to Executive’s death or Disability, all Options and Restricted Shares
previously granted to Executive shall fully vest.

 

(b)           Termination Without Cause or for Good Reason. (i)  The Company may terminate Executive’s
employment without Cause and Executive may terminate his employment for Good
Reason, in each case upon thirty days prior written notice. In the event that,
during the Term, the Company terminates the Executive’s employment without
Cause or Executive terminates his employment for Good Reason, Executive shall
be entitled to the following in lieu of any payments or benefits under any
severance program or policy of the Company, and subject to execution by Executive
of a waiver and release of claims in a form reasonably determined by the
Company:

 

(i)
the Accrued Amounts;

 

(ii)
a lump sum cash severance payment equal to the unpaid balance of the Base
Salary and annual bonuses Executive would have been paid for the balance of the
then-current Term hereof measured from the Date of Termination to the
expiration date of the Term, but in no event less than two times the sum of (X)
Executive’s Base Salary and (Y) annual bonus; the severance payable shall be
computed based upon (A) Executive’s highest Base Salary in effect at any time
during his employment with the Company and (B) 
Executive’s annual bonus, if any, received for the most recent completed
fiscal year of the Company prior to the Date of Termination;

 

(iii)
continued coverage for a period of twelve months commencing on the date of
termination (A) for Executive (and his eligible dependents, if any) under the
Company’s health plans on the same basis as such coverage is made available to
executives employed by the Company (including, without limitation, co-pays,
deductibles and other required payments and limitations) and (B) under any
Company life insurance plan in which Executive was participating immediately
prior to the date of termination; and

 

(iv)
full vesting of all Options and Restricted Shares previously granted to
Executive.

 

4

 

(c)           Definitions.           For
purposes of this Agreement, the following definitions shall apply:

 

(i)        “Cause” shall mean: (A) Executive’s
willful and continuing failure (except where due to physical or mental
incapacity) to substantially perform his duties hereunder which is not remedied
within 15 days after receipt of written notice from the Company specifying such
failure; (B) Executive’s willful malfeasance or gross neglect in the
performance of his duties hereunder; (C) Executive’s conviction of, or plea of
guilty or nolo contendere to, the commission of a felony or a
misdemeanor involving moral turpitude; (D) the commission by Executive of an
act of fraud or embezzlement against the Company or any affiliate; or (E)
Executive’s willful breach of any material provision of this Agreement (as
determined in good faith by the Board of Directors) which is not remedied
within 15 days after receipt of written notice from the Company specifying such
breach. For purposes of the preceding sentence, no act or failure to act by
Executive shall be considered “willful” unless done or omitted to be done by
Executive in bad faith or without reasonable belief that Executive’s action or
omission was in the best interests of the Company.

 

(ii)       “Disability” shall have the same
meaning as in, and shall be determined in a manner consistent with any
determination under, the long-term disability plan of the Company in which
Executive participates from time to time, or if Executive is not covered by
such a plan, “Disability” shall mean Executive’s permanent physical or mental
injury, illness or other condition that prevents Executive from performing his
duties to the Company for a total of six months during any 12-month period, as
reasonably determined by a physician selected by the Executive and acceptable
to the Company or the Company’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

 

(iii)      “Good Reason” shall mean the
occurrence, without Executive’s express written consent, of: (A) an adverse
change in Executive’s employment’s title or change in Executive’s duty to
report directly to the Chief Executive Officer; (B) a diminution in Executive’s
employment duties, responsibilities or authority, or the assignment to
Executive of duties that are materially inconsistent with his position; (C) any
reduction in Base Salary or annual bonus less than the minimum amount set forth
in Section 3(b); (D) a relocation of Executive’s principal place of employment
to a location outside of the New York Area that would unreasonably increase
Executive’s commute; or (E) any willful breach by the Company of any material
provision of this Agreement (including but not limited to any breach of its
obligations under Section 3 hereof) which is not cured within 15 days after
written notice is received from Executive.

 

5

 

(iv)      “Date of Termination”/”Notice of
Termination.”  Any termination of the
Executive’s employment by the Company or by the Executive under this Section
4 (other than termination pursuant to due to death) shall be communicated
by a written notice to the other party hereto indicating the specific
termination provision in this Agreement relied upon, setting forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so indicated, and
specifying a “Date of Termination” which, if submitted by Executive, shall be
at least 30 days following the date of such notice (a “Notice of Termination”).
A Notice of Termination submitted by the Company may provide for a “Date of
Termination” on the date the Executive receives the Notice of Termination, or
any date thereafter elected by the Company in its sole discretion. The failure
by the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Cause or Good Reason
shall not waive any right of the Executive or the Company hereunder or preclude
the Executive or the Company from asserting such fact or circumstance in
enforcing the Executive’s or the Company’s rights hereunder.

 

5.             Confidentiality of Trade Secrets and Business
Information. Executive agrees that Executive will not, at any time during
Executive’s employment with the Company or thereafter, disclose or use any
trade secret, proprietary or confidential information of the Company or any
subsidiary or affiliate of the Company (collectively, “Confidential Information”),
obtained by him during the course of such employment, except for (i)
disclosures and uses required in the course of such employment or with the
written permission of the Company, (ii) disclosures necessary to establish or
assert Executive’s rights hereunder, or, (iii) as applicable, any subsidiary or
affiliate of the Company or as may be required by law; provided that, if
Executive receives notice that any party will seek to compel him by process of
law to disclose any Confidential Information, Executive shall promptly notify
the Company and provide reasonable cooperation to the Company (at the Company’s
sole expense) in seeking a protective order against such disclosure. Notwithstanding
the foregoing, “Confidential Information” shall not include information that is
or becomes publicly known outside the Company or any of its affiliates or
subsidiaries through no act or failure to act by Executive.

 

6.             Return of Information. Executive agrees that at
the time of any termination of Executive’s employment with the Company, whether
at the instance of Executive or the Company, and regardless of the reasons
therefore, Executive will deliver to the Company (at the Company’s expense),
and not keep or deliver to anyone else, any and all notes, files, memoranda,
papers and, in general, any and all physical (including electronic) matter
containing Confidential Information and other information relating to the
business of the Company or any subsidiary or affiliate of the Company which are
in Executive’s possession, except as otherwise consented in writing by the
Company at the time of such termination. The foregoing shall not prevent
Executive from retaining copies of personal diaries, personal notes, personal
address books, personal calendars, and any other personal information
(including, without limitation, information relating to Executive’s
compensation), but only to the extent such copies do not contain any
Confidential Information.

 

6

 

7.             Noncompetition. In
consideration for the compensation payable to Executive under this Agreement,
Executive agrees that Executive will not, during Executive’s employment with
the Company and for a period of one (1) year after any termination of
employment, render services to a Competitor of the Company or any affiliate,
regardless of the nature thereof, or engage in any activity which is in direct
conflict with or materially adverse to the interests of the Company or any affiliate.
For purposes of this Agreement, “Competitor” shall mean any business or
enterprise which operates theme parks or engages in the media or entertainment
business or in any other business that is competitive with the business of the
Company. Notwithstanding the foregoing, Executive’s providing services to an
affiliate of a Competitor that are not competitive with the business activities
of the Company shall not be a violation of the restrictions of this Section 7.
Nothing contained herein shall prevent Executive from acquiring, solely as an
investment, any publicly-traded securities of any person so long as he remains
a passive investor in such person and does not own more than 1% of the
outstanding securities thereof.

 

8.             Noninterference. During Executive’s
employment with the Company and for a period of one (1) year following any
termination of employment, Executive agrees not to directly or indirectly
recruit, solicit or induce, any employees, consultants or independent
contractors of the Company, any entity in which the Company has made a
significant investment, or any entity to which Executive renders services
pursuant to the terms of this Agreement (each, a “Restricted Entity”) to
terminate, alter or modify their employment or other relationship with the
Company or any Restricted Entity. During Executive’s employment with the
Company and for a period of one (1) year following any termination thereof,
Executive agrees not to directly or indirectly solicit any then current
customer or business partner of the Company or any Restricted Entity to
terminate, alter or modify its relationship with the Company or the Restricted
Entity or to interfere with the Company’s or any Restricted Entity’s
relationships with any of its customers or business partners on behalf of any
enterprise that directly or indirectly competes with the Company or the
Restricted Entity.

 

7

 

9.             Enforcement. Executive
acknowledges and agrees that:  (i) the
purpose of the covenants set forth in Sections 5 through 8 above is to protect
the goodwill, trade secrets and other confidential information of the Company;
(ii) because of the nature of the business in which the Company is engaged and
because of the nature of the Confidential Information to which Executive has
access, it would be impractical and excessively difficult to determine the
actual damages of the Company in the event Executive breached any such
covenants; and (iii) remedies at law (such as monetary damages) for any breach
of Executive’s obligations under Sections 5 through 8 would be inadequate. Executive
therefore agrees and consents that if Executive commits any breach of a
covenant under Sections 5 through 8, the Company shall have the right (in
addition to, and not in lieu of, any other right or remedy that may be
available to it) to temporary and permanent injunctive relief from a court of
competent jurisdiction, without posting any bond or other security and without
the necessity of proof of actual damage. If any portion of Sections 5 through 8
is hereafter determined to be invalid or unenforceable in any respect, such
determination shall not affect the remainder thereof, which shall be given the
maximum effect possible and shall be fully enforced, without regard to the invalid
portions. In particular, without limiting the generality of the foregoing, if
the covenants set forth in Section 7 are found by a court or an arbitrator to
be unreasonable, Executive and the Company agree that the maximum period, scope
or geographical area that is found to be reasonable shall be substituted for
the stated period, scope or area, and that the court or arbitrator shall revise
the restrictions contained herein to cover the maximum period, scope and area
permitted by law. If any of the covenants of Sections 5 through 8 are
determined to be wholly or partially unenforceable in any jurisdiction, such
determination shall not be a bar to or in any way diminish the Company’s right
to enforce any such covenant in any other jurisdiction.

 

10.           Indemnification. The Company shall indemnify Executive against any
and all losses, liabilities, damages, expenses (including attorneys’ fees)
judgments, fines and amounts paid in settlement incurred by Executive in
connection with any claim, action, suit or proceeding (whether civil, criminal,
administrative or investigative), including any action by or in the right of
the Company, by reason of any act or omission to act in connection with the
performance of his duties hereunder to the full extent that the Company is
permitted to indemnify a director, officer, employee or agent against the
foregoing under applicable law. The Company shall at all times cause Executive
to be included, in his capacity hereunder, under all liability insurance
coverage (or similar insurance coverage) maintained by the Company from time to
time.

 

8

 

11.           Arbitration. In the event that any dispute arises between the
Company and the Executive regarding or relating to this Agreement and/or any aspect
of the Executive’s employment relationship with the Company, the parties
consent to resolve such dispute through mandatory arbitration under the
Commercial Rules of the American Arbitration Association (“AAA”), before
a single arbitrator in New York, New York. The parties hereby consent to the
entry of judgment upon award rendered by the arbitrator in any court of
competent jurisdiction. Notwithstanding the foregoing, however, should adequate
grounds exist for seeking immediate injunctive or immediate equitable relief,
any party may seek and obtain such relief. The parties hereby consent to the
exclusive jurisdiction in the state and Federal courts of or in the State of
New York for purposes of seeking such injunctive or equitable relief as set
forth above. Except as otherwise provided for herein, any and all out-of-pocket
costs and expenses incurred by the parties in connection with such arbitration
(including attorneys’ fees) shall be allocated by the arbitrator in substantial
conformance with his or her decision on the merits of the arbitration.

 

12.           Mutual Representations.

 

(a)           Executive
acknowledges that before signing this Agreement, Executive was given the
opportunity to read it, evaluate it and discuss it with Executive’s personal
advisors. Executive further acknowledges that the Company has not provided
Executive with any legal advice regarding this Agreement.

 

(b)           Executive
represents and warrants to the Company that the execution and delivery of this Agreement
and the fulfillment of the terms hereof (i) will not constitute a default
under, or conflict with, any agreement or other instrument to which he is a
party or by which he is bound and (ii) do not require the consent of any other
person.

 

(c)           The
Company represents and warrants to the Executive that this Agreement has been
duly authorized, executed and delivered by the Company and that such execution
and delivery and the fulfillment of the terms hereof will not constitute a
default under or conflict with any agreement or other instrument to which it is
a party or by which it is bound and (ii) do not require the consent of any other person, other than the
Board or Directors or its Compensation Committee.

 

(d)           Each
party hereto represents and warrants to the other that this Agreement constitutes
the valid and binding obligations of such party enforceable against such party
in accordance with its terms.

 

(e)           The
Company represents that it has sufficient common stock reserved for issuance
under an applicable equity compensation plan to satisfy the equity awards set
forth hereunder.

 

9

 

13.           Notices. All notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed given when delivered (a) personally, (b) by facsimile with evidence of
completed transmission, or (c) delivered by overnight courier to the Party
concerned at the address indicated below or to such changed address as such
Party may subsequently give such notice of:

 

If to the Company:

 

If to the Executive:

 

Jeffrey R. Speed

812 Valley Crest Street

La Canada, CA

91011

 

and a copy to:

 

Lia Law LLP

Attn: Robert M. Lia, Esq.

Two Lafayette Court

Greenwich, CT 06830

Fax: (203) 983-3036

 

14.           Assignment and Successors. This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns. The Company may, subject to the written consent of the
Executive, which shall not be unreasonably withheld, assign this Agreement to
another corporation, limited liability company, partnership, joint venture or
other business in which the Company has made an investment.

 

15.           Governing Law; Amendment. This
Agreement shall be governed by and construed in accordance with the laws of New
York, without reference to principles of conflict of laws. This Agreement may
not be amended or modified except by a written agreement executed by Executive
and the Company or their respective successors and legal representatives.

 

16.           Severability. The invalidity
or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement. If any
provision of this Agreement shall be held invalid or unenforceable in part, the
remaining portion of such provision, together with all other provisions of this
Agreement, shall remain valid and enforceable and continue in full force and
effect to the fullest extent consistent with law.

 

17.           Tax Withholding. Notwithstanding
any other provision of this Agreement, the Company may withhold from amounts
payable under this Agreement all federal, state, local and foreign taxes that
are required to be withheld by applicable laws or regulations.

 

10

 

18.           No
Waiver. Executive’s or the Company’s failure to insist upon strict
compliance with any provision of, or to assert any right under, this Agreement
shall not be deemed to be a waiver of such provision or right or of any other
provision of or right under this Agreement. Any provision of this Agreement may
be waived by either party; provided that both parties agree to such
waiver in writing.

 

19.           No Mitigation. In no event shall Executive be obligated to seek
other employment or take other action by way of mitigation of the amounts
payable to Executive under any of the provisions of this Agreement and such
amounts shall not be subject to offset or otherwise reduced whether or not
Executive obtains other employment.

 

20.           Legal Fees. The Company shall
pay or reimburse the Executive for all reasonable legal fees, up to a maximum
of $15,000 incurred by him in connection with the negotiation of this Agreement
and any other agreements documenting his employment arrangement with the
Company.

 

21.           Section
409A. The parties acknowledge and agree that, to the extent applicable, this
Agreement shall be interpreted in accordance with Section 409A of the Internal
Revenue Code and the Department of Treasury Regulations and other interpretive
guidance issued thereunder, including without limitation any such regulations
or other guidance that may be issued after the Effective Date (“Section 409A”).
Notwithstanding any provision of this Agreement to the contrary, in the event
that the Company determines that any amounts payable hereunder will be
immediately taxable to the Executive under Section 409A, the Company may (a)
adopt such amendments to this Agreement and appropriate policies and
procedures, including amendments and policies with retroactive effect, that the
Company determines necessary or appropriate to preserve the intended tax treatment
of the benefits provided by this Agreement and/or (b) take such other actions
as the Company determines necessary or appropriate to comply with the
requirements of Section 409A.

 

22.           Headings. The Section headings
contained in this Agreement are for convenience only and in no manner shall be
construed as part of this Agreement.

 

23.           Entire Agreement. This
Agreement constitutes the entire agreement of the parties with respect to the
subject matter hereof and shall supersede all prior agreements, whether written
or oral, with respect thereto.

 

24.           Duration of Terms. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to give effect to
such rights and obligations.

 

25.           Counterparts. This Agreement
may be executed simultaneously in two or more counterparts, each of which shall
be deemed an original but all of which together shall constitute one and the
same instrument.

 

[The remainder of this page is intentionally left blank.]

 

11

 

IN WITNESS WHEREOF, the
Executive has hereunto set Executive’s hand and, pursuant to the authorization
of its Board of Directors, the Company has caused this Agreement to be executed
in its name on its behalf, all as of the day and year first above written.

 

 

	
   

  	
  SIX
  FLAGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Shapiro

  	
   

  
	
   

  	
  Name:

  	
  Mark Shapiro

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Jeffrey R. Speed

  	
   

  
	
   

  	
   

  	
  Jeffrey R. SpeedExhibit
10(oo)

 

EXECUTION COPY

 

EMPLOYMENT AGREEMENT

 

This Agreement, dated as of
January 17, 2006, by and between Louis Koskovolis (the “Executive”) and Six
Flags, Inc., a Delaware corporation (the “Company”).

 

WITNESSETH

 

WHEREAS, the Company has
offered Executive, and Executive has accepted, employment on the terms and conditions
set forth in this Agreement; and

 

WHEREAS, the Company and
Executive wish to set forth such terms and conditions in a binding written
agreement.

 

NOW, THEREFORE, in
consideration of the mutual covenants set forth in this Agreement, it is hereby
agreed as follows:

 

1.             Term of Employment. Executive’s employment with the Company shall
begin on January 23, 2006 (the “Effective Date”) and end on the fourth
anniversary thereof (the “Term”), subject to earlier termination in accordance
with Section 4 hereof.

 

2.             Position, Duties and Location.

 

(a)           Position. Beginning on the Effective Date,
Executive shall serve as the Executive Vice President, Corporate Alliances of
the Company, with the duties and responsibilities customarily assigned to such
position and such other duties as may reasonably be assigned to Executive from
time to time by the Chief Executive Officer consistent with such position. The
Executive shall at all times report directly to the Chief Executive Officer.

 

(b)           Duties. During his employment with the Company,
Executive shall devote substantially all his business attention and time to the
duties reasonably assigned to him by the Chief Executive Officer consistent
with Executive’s position and shall use his reasonable best efforts to carry
out such duties faithfully and efficiently.

 

(c)           Location.
Executive’s principal place of employment shall be located in New York, New
York; provided that Executive will travel and render services at such
locations as may reasonably be required by his duties hereunder.

 

3.             Compensation.

 

(a)           Base Salary. During his employment with the
Company, Executive shall receive a base salary (the “Base Salary”) at an annual
rate of $650,000  Base Salary shall be
paid at such times and in such installments as the Company customarily pays the
base salaries of its employees. The Base Salary may be increased, but not be
reduced, in the 

 

 

discretion
of the Company, and the term “Base Salary” shall thereafter refer to the Base
Salary as so increased.

 

(b)           Annual Bonus. During his employment with the Company, Executive
shall be paid an annual bonus in the discretion of the Company; provided
that in no event will Executive’s annual bonus be less than $200,000 for fiscal
year 2006 and $250,000 thereafter.

 

(c)           Signing Bonus.     At
the Effective Date, Executive shall receive a signing bonus in the amount of
$50,000. .

 

(d)           Equity Awards. As soon as practicable
following Executive’s execution of this Agreement, the Company shall grant
Executive an option to purchase 200,000 shares of its common stock (the “Option”)
under the Company’s applicable Stock Option and Incentive Plan (the “Plan”). The
per share exercise price of the Option shall be the fair market value (as
determined under the Plan) of the Company’s common stock on the date of grant. Subject
to Executive’s continuing employment with the Company and the provisions of
Section 4(b), the Option shall vest 20% on the date of grant and the remainder
shall vest in four equal installments on the first four anniversaries of the
Effective Date. In the event of stock split, stock dividend, share combination,
exchange of shares, recapitalization, merger, consolidation, reorganization,
liquidation or other comparable changes or transactions of or by the Company,
an appropriate adjustment to the number and/or type of shares into which the
Option is exercisable shall be made to give proper effect to such event.

 

(e)           Benefits. During his
employment with the Company, the Company shall provide, and the
Executive shall be entitled to participate in or receive benefits under any
pension plan, profit sharing plan, stock option plan, stock purchase plan or
arrangement, health and accident plan or any other employee benefit plan or arrangement
made available now or in the future to executives of the Company; provided
Executive complies with the conditions attendant with coverage under such plans
or arrangements. Nothing contained herein shall be construed to require the
Company to establish any plan or arrangement not in existence on the date
hereof or to prevent the Company from modifying or terminating any plan or
arrangement in existence on the date hereof. Without limiting the generality of the foregoing, Executive shall be
entitled to no less than four weeks of paid vacation per calendar year.

 

(e)           Perquisites; Expenses. During his employment
with the Company, Executive
shall be entitled to (i) perquisites on the same basis as perquisites
are generally provided to executives of the Company and (ii) first class air travel. In addition,
the Company shall promptly pay or, if such expenses are paid directly by
Employee, the Executive shall be entitled to receive prompt reimbursement, for
all reasonable expenses that Executive incurs during his employment with the
Company in carrying out Executive’s duties under this Agreement, including,
without limitation, those incurred in connection with business related travel
or entertainment, upon presentation of expense statements and customary supporting
documentation.

 

2

 

4.             Termination of Employment.

 

(a)           Death; Disability; Termination For Cause. Executive’s
employment shall terminate automatically upon his death or Disability (as
defined below). The Company may terminate Executive’s employment for Cause (as
defined below) without prior notice. Upon a termination of Executive’s
employment (i) due to Executive’s death or Disability, or (ii) by the Company
for Cause, Executive (or, in the case of Executive’s death, Executive’s estate
and/or beneficiaries) shall be entitled to: (A) unpaid Base Salary through the
date of the termination; (B) any earned but unpaid bonus for the prior fiscal
year of the Company; and (C) any benefits due to Executive under any employee
benefit plan of the Company and any payments due to Executive under the terms
of any Company program, arrangement or agreement, excluding any severance
program or policy (collectively, the “Accrued Amounts”). Executive shall have
no further right or entitlement under this Agreement; provided, however,
that in the event of a termination of Executive’s employment due to Executive’s
death or Disability, all Options previously granted to Executive shall fully
vest.

 

(b)           Termination Without Cause or for Good Reason. (i)  The Company may terminate Executive’s
employment without Cause and Executive may terminate his employment for Good
Reason, in each case upon thirty days prior written notice. In the event that,
during the Term, the Company terminates the Executive’s employment without
Cause or Executive terminates his employment for Good Reason, Executive shall
be entitled to the following in lieu of any payments or benefits under any
severance program or policy of the Company, and subject to execution by
Executive of a waiver and release of claims in a form reasonably determined by
the Company:

 

(i)
the Accrued Amounts;

 

(ii)
a lump sum cash severance payment equal to the unpaid balance of the Base
Salary and annual bonuses Executive would have been paid for the balance of the
Term hereof measured from the date of termination of employment pursuant to
this paragraph 4(b) to the expiration date of the Term; the severance payable
shall be computed based upon (A) Executive’s highest Base Salary in effect at
any time during his employment with the Company and (B)  Executive’s annual bonus received for the
most recent completed fiscal year of the Company prior to the date of
termination;

 

(iii)
continued coverage for a period of twelve months commencing on the date of
termination (A) for Executive (and his eligible dependents, if any) under the
Company’s health plans on the same basis as such coverage is made available to
executives employed by the Company (including, without limitation, co-pays,
deductibles and other required payments and limitations) and (B) under any
Company life insurance plan in which Executive was participating immediately
prior to the date of termination; and

 

(iv)
other than in the event of a termination for Good Reason pursuant to Section
4(c)(iii)(D), full vesting of all Options previously granted to Executive.

 

(c)           Definitions.           For
purposes of this Agreement, the following definitions shall apply:

 

3

 

(i)            “Cause”
shall mean: (A) Executive’s willful and continuing failure (except where due to
physical or mental incapacity) to perform his duties hereunder; (B) Executive’s
willful malfeasance or gross neglect in the performance of his duties
hereunder; (C) Executive’s conviction of, or plea of guilty or nolo
contendere to, the commission of a felony or a misdemeanor involving moral
turpitude; (D) the commission by Executive of an act of fraud or embezzlement
against the Company or any affiliate; or (E) Executive’s willful breach of any
material provision of this Agreement. For purposes of the preceding sentence,
no act or failure to act by Executive shall be considered “willful” unless done
or omitted to be done by Executive in bad faith and without reasonable belief
that Executive’s action or omission was in the best interests of the Company.

 

(ii)           “Disability”
shall have the same meaning as in, and shall be determined in a manner
consistent with any determination under, the long-term disability plan of the
Company in which Executive participates from time to time, or if Executive is
not covered by such a plan, “Disability” shall mean Executive’s permanent
physical or mental injury, illness or other condition that prevents Executive
from performing his duties to the Company, as reasonably determined by the
Board of Directors of the Company.

 

(iii)          “Good
Reason” shall mean the occurrence, without Executive’s express written consent,
of: (A) an adverse change in Executive’s employment’s title; (B) a significant
diminution in Executive’s employment duties, responsibilities or authority, or
the assignment to Executive of duties that are materially inconsistent with his
position; (C) any reduction in Base Salary; (D) a relocation of Executive’s
principal place of employment to a location outside of the New York
metropolitan area; or (E) any willful breach by the Company of any material
provision of this Agreement which is not cured within 15 days after written
notice is received from the Executive.

 

5.             Confidentiality of Trade Secrets and Business
Information. Executive agrees that Executive will not, at any time during
Executive’s employment with the Company or thereafter, disclose or use any
trade secret, proprietary or confidential information of the Company or any
subsidiary or affiliate of the Company (collectively, “Confidential Information”),
obtained during the course of such employment, except for disclosures and uses
required in the course of such employment or with the written permission of the
Company or, as applicable, any subsidiary or affiliate of the Company or as may
be required by law; provided that, if Executive receives notice that any party
will seek to compel him by process of law to disclose any Confidential
Information, Executive shall promptly notify the Company and cooperate with the
Company in seeking a protective order against such disclosure.

 

6.             Return of Information. Executive agrees that at
the time of any termination of Executive’s employment with the Company, whether
at the instance of Executive or the Company, and regardless of the reasons
therefore, Executive will deliver to the Company, and not keep or deliver to
anyone else, any and all notes, files, memoranda, papers and, in general, any
and all physical (including electronic) matter containing Confidential Information
and other information relating to the business of the Company or any subsidiary
or affiliate of the Company which are in Executive’s possession, except as
otherwise consented in writing by the Company at the time of such termination. The
foregoing shall not prevent Executive from retaining copies of personal
diaries, personal notes, personal address books, personal calendars, 

 

4

 

and
any other personal information (including, without limitation, information
relating to Executive’s compensation), but only to the extent such copies do
not contain any Confidential Information.

 

7.             Noncompetition. In
consideration for the compensation payable to Executive under this Agreement,
Executive agrees that Executive will not, during Executive’s employment with
the Company and for a period of one (1) year after any termination of
employment, render services to a competitor of the Company or any affiliate,
regardless of the nature thereof, or engage in any activity which is in direct
conflict with or adverse to the interests of the Company or any affiliate. For
purposes of this Agreement, “Competitor” shall mean any business or enterprise
which operates theme parks or engages in the media or entertainment business or
in any other business that is competitive with the business of the Company. Notwithstanding
the foregoing, Executive’s providing services to an affiliate of a Competitor
that are not competitive with the business activities of the Company shall not
be a violation of the restrictions of this Section 7.

 

8.             Noninterference. During
Executive’s employment with the Company and for a period of one (1) year
following any Termination, Executive agrees not to directly or indirectly
recruit, solicit or induce, any employees, consultants or independent
contractors of the Company, any entity in which the Company has made a
significant investment, or any entity to which Executive renders services
pursuant to the terms of this Agreement (each, a “Restricted Entity”) to terminate,
alter or modify their employment or other relationship with the Company or any
Restricted Entity. During Executive’s employment with the Company and for a
period of one (1) year following any termination thereof, Executive agrees not
to directly or indirectly solicit any customer or business partner of the
Company or any Restricted Entity to terminate, alter or modify its relationship
with the Company or the Restricted Entity or to interfere with the Company’s or
any Restricted Entity’s relationships with any of its customers or business
partners on behalf of any enterprise that directly or indirectly competes with
the Company or the Restricted Entity.

 

9.             Enforcement. Executive
acknowledges and agrees that:  (i) the
purpose of the covenants set forth in Sections 5 through 8 above is to protect
the goodwill, trade secrets and other confidential information of the Company;
(ii) because of the nature of the business in which the Company is engaged and
because of the nature of the Confidential Information to which Executive has
access, it would be impractical and excessively difficult to determine the
actual damages of the Company in the event Executive breached any such
covenants; and (iii) remedies at law (such as monetary damages) for any breach
of Executive’s obligations under Sections 5 through 8 would be inadequate. Executive
therefore agrees and consents that if Executive commits any breach of a
covenant under Sections 5 through 8, the Company shall have the right (in
addition to, and not in lieu of, any other right or remedy that may be
available to it) to temporary and permanent injunctive relief from a court of
competent jurisdiction, without posting any bond or other security and without
the necessity of proof of actual damage. If any portion of Sections 5 through 8
is hereafter determined to be invalid or unenforceable in any respect, such
determination shall not affect the remainder thereof, which shall be given the
maximum effect possible and shall be fully enforced, without regard to the invalid
portions. In particular, without limiting the generality of the foregoing, if
the covenants set forth in Section 7 are found by a court or an arbitrator to
be unreasonable, Executive and the Company agree that 

 

5

 

the maximum period, scope or geographical area that is
found to be reasonable shall be substituted for the stated period, scope or
area, and that the court or arbitrator shall revise the restrictions contained
herein to cover the maximum period, scope and area permitted by law. If any of
the covenants of Sections 5 through 8 are determined to be wholly or partially
unenforceable in any jurisdiction, such determination shall not be a bar to or
in any way diminish the Company’s right to enforce any such covenant in any
other jurisdiction.

 

10.           Indemnification. The Company shall indemnify Executive against any
and all losses, liabilities, damages, expenses (including attorneys’ fees)
judgments, fines and amounts paid in settlement incurred by Executive in
connection with any claim, action, suit or proceeding (whether civil, criminal,
administrative or investigative), including any action by or in the right of
the Company, by reason of any act or omission to act in connection with the
performance of his duties hereunder to the full extent that the Company is
permitted to indemnify a director, officer, employee or agent against the
foregoing under applicable law. The Company shall at all times cause Executive
to be included, in his capacity hereunder, under all liability insurance
coverage (or similar insurance coverage) maintained by the Company from time to
time.

 

11.           Executive’s Representations. Executive
acknowledges that before signing this Agreement, Executive was given the
opportunity to read it, evaluate it and discuss it with Executive’s personal
advisors. Executive further acknowledges that the Company has not provided
Executive with any legal advice regarding this Agreement.

 

12.           Notices. All notices and other
communications required or permitted hereunder shall be in writing and shall be
deemed given when delivered (a) personally, (b) by facsimile with evidence of
completed transmission, or (c) delivered by overnight courier to the Party
concerned at the address indicated below or to such changed address as such
Party may subsequently give such notice of:

 

If to the Company:

 

If to the Executive:

 

Louis Koskovolis

105 North Woods Road

Manhasset, New York  11030

 

13.           Assignment and Successors. This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns. The Company may assign this Agreement to another
corporation, limited liability company, partnership, joint venture or other
business in which the Company has made an investment.

 

14.           Governing Law; Amendment. This
Agreement shall be governed by and construed in accordance with the laws of
Delaware, without reference to principles of conflict of 

 

6

 

laws. This Agreement may not be amended or modified
except by a written agreement executed by Executive and the Company or their respective
successors and legal representatives.

 

15.           Severability. The invalidity
or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement. If any
provision of this Agreement shall be held invalid or unenforceable in part, the
remaining portion of such provision, together with all other provisions of this
Agreement, shall remain valid and enforceable and continue in full force and
effect to the fullest extent consistent with law.

 

16.           Tax Withholding. Notwithstanding
any other provision of this Agreement, the Company may withhold from amounts
payable under this Agreement all federal, state, local and foreign taxes that
are required to be withheld by applicable laws or regulations.

 

17.           No
Waiver. Executive’s or the Company’s failure to insist upon strict
compliance with any provision of, or to assert any right under, this Agreement
shall not be deemed to be a waiver of such provision or right or of any other
provision of or right under this Agreement. Any provision of this Agreement may
be waived by either party; provided that both parties agree to such
waiver in writing.

 

18.           No Mitigation. In no event shall Executive be obligated to seek
other employment or take other action by way of mitigation of the amounts
payable to Executive under any of the provisions of this Agreement and such
amounts shall not be subject to offset or otherwise reduced whether or not
Executive obtains other employment.

 

19.           Headings. The Section headings
contained in this Agreement are for convenience only and in no manner shall be
construed as part of this Agreement.

 

20.           Entire Agreement. This
Agreement constitutes the entire agreement of the parties with respect to the
subject matter hereof and shall supersede all prior agreements, whether written
or oral, with respect thereto.

 

21.           Duration of Terms. The
respective rights and obligations of the parties hereunder shall survive any
termination of Executive’s employment to the extent necessary to give effect to
such rights and obligations.

 

22.           Counterparts. This Agreement
may be executed simultaneously in two or more counterparts, each of which shall
be deemed an original but all of which together shall constitute one and the
same instrument.

 

[The remainder of
this page is intentionally left blank.]

 

7

 

IN WITNESS WHEREOF, the
Executive has hereunto set Executive’s hand and, pursuant to the authorization
of its Board of Directors, the Company has caused this Agreement to be executed
in its name on its behalf, all as of the day and year first above written.

 

 

	
   

  	
  SIX
  FLAGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Shapiro

  	
   

  
	
   

  	
  Name:

  	
  Mark Shapiro

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Lou Koskovolis

  	
   

  
	
   

  	
   

  	
  Lou Koskovolis

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