Document:

Exhibit 4.1

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is
made as of April 30, 2010, by and among Six Flags Entertainment
Corporation, a Delaware corporation formerly known as Six Flags, Inc.
(the “Company”), and each of the other Persons signatory hereto or that
executes and delivers a joinder agreement pursuant to Section 10
hereof.  Capitalized terms used but not
otherwise defined herein are defined in Section 11  hereof.

 

NOW, THEREFORE, in consideration of the mutual covenants
and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, agree as follows:

 

1.           Demand and Shelf Registrations.

 

(a)           Demand
Registrations.  At any time that the
Company has not effected or is not diligently pursuing a Shelf Registration
pursuant to Section 1(b), after the date that is one hundred and twenty
(120) days after the Effective Date, Holder(s) of at least twenty percent
(20%) of the Registrable Securities then issued and outstanding (the “Initiating
Holders”) may request registration under the Securities Act of all or any
portion of their Registrable Securities in an Underwritten Offering (an “Underwritten
Demand Offering”) on (i) Form S-1 or any similar long-form
registration statement (a “Long-Form Registration”), or, if
available, (ii) Form S-3 or any similar short-form registration
statement (a “Short-Form Registration”) (any registration under this
Section 1(a), a “Demand Registration”).

 

(b)           Shelf
Registration.  The Company shall, as
soon as reasonably practicable, but in any event within thirty (30) days
following the Effective Date, file a registration statement on any permitted
form that qualifies, and is available for, the sale of Registrable Securities,
with the Securities and Exchange Commission in accordance with and pursuant to Rule 415
promulgated under the Securities Act (or any successor rule then in
effect) (the “Shelf Registration”), and shall thereafter, subject to Section 1(c),
use its reasonable best efforts to cause such Registration Statement to be
declared effective as promptly as practicable. If any Registrable Securities
remain issued and outstanding after three (3) years following the initial
effective date of such Shelf Registration (the “Initial Shelf Effective Date”),
the Company shall, prior to the expiration of such Shelf Registration, file a
new Shelf Registration covering such Registrable Securities and shall
thereafter use its best efforts to cause to be declared effective as promptly
as practical, such new Shelf Registration. 
The Company shall use its reasonable best efforts to convert any Shelf
Registration effected as a Long-Form Registration (a “Long-Form Shelf”)
to a Short-Form Registration (a “Short-Form Shelf,” and
together with any Long-Form Shelf, the “Shelf”) as promptly as
reasonably practicable after the Company is eligible to use a Short-Form Registration.

 

(c)           Information
from Holders.  In order to be named
as a selling securityholder in the Shelf Registration as of the Initial Shelf
Effective Date, each Holder must no later than five (5) Business Days
prior to the Initial Shelf Effective Date, which will be at least twenty (20)
days following notice by the Company of the expected Initial Shelf Effective
Date, furnish to the Company in writing such information in writing as may be
reasonably requested by the 

 

 

Company for the purpose of including such Holder’s
Registrable Securities in the Shelf Registration (the “Selling Holder
Information”).  The Company shall
include in the Shelf Registration Selling Holder Information received by the
Company at least five (5) Business Days prior to the Initial Shelf
Effective Date, to the extent necessary and in a manner so that upon Initial
Shelf Effective Date the Holder shall be named as a selling securityholder and
be permitted to deliver (or be deemed to deliver) a prospectus relating to the
Shelf Registration to purchasers of the Registrable Securities in accordance
with applicable law.

 

From and after the Initial Shelf Effective Date
(including with respect to a Shelf that is not the initial Shelf Registration),
upon receipt of Selling Holder Information (including any updated Selling
Holder Information) that the Company may reasonably request in writing
(including any amendments to any prior Selling Holder Information), if any, but
in any event within ten (10) Business Days (in the case of a supplement)
or within thirty (30) calendar days (in the case of an amendment), as
applicable, after the Company receives such requested Selling Holder
Information, if any, the Company shall use its reasonable best efforts to file
any amendments or supplements, as applicable, to the Shelf Registration or a
prospectus relating to the Shelf Registration or the documents incorporated by
reference therein necessary for such Holder to be named as a selling
securityholder and permit such Holder to deliver (or be deemed to deliver) a
prospectus relating to the Shelf Registration to purchasers of the Registrable
Securities (subject to the Company’s rights during any Delay Period or
Suspension Period); provided, however, that the Company shall not
be required to file more than one (1) such amendment.  Holders that do not deliver Selling Holder
Information as provided for in this Section 1(c) shall not be
named as selling securityholders in the prospectus relating to the Shelf
Registration until such Holder delivers such information.  If the Company shall file a post-effective
amendment to the Shelf Registration, it shall use reasonable best efforts to
cause such post-effective amendment to be declared effective under the
Securities Act as promptly as is reasonably practicable and notify such Holder
as promptly as is reasonably practicable after the effectiveness under the
Securities Act of any post-effective amendment. 
If such Selling Holder Information is delivered during a Delay Period or
Suspension Period, the Company shall so inform the Holder delivering such
Selling Holder Information and shall take the actions set forth in this Section 1(c) upon
expiration of the Delay Period or Suspension Period, as applicable, as though
such Holder’s Selling Holder Information had been delivered on the expiration
date of such Delay Period or Suspension Period.

 

(d)           Demand
Notices and Requests for Underwritten Shelf Takedowns.  One or more Holders may request (i) pursuant
and subject to Section 1(a) and the other terms and conditions
hereof, a Demand Registration, or (ii) pursuant and subject to Section 1(b) and
the other terms and conditions hereof, to sell all or any portion of their
Registrable Securities in an Underwritten Offering that is registered pursuant
to the Shelf (an “Underwritten Shelf Takedown”).  Each such request shall be made by giving written
notice (an “Underwritten Offering Notice”) to the Company.  Each Underwritten Offering Notice shall
specify the approximate number of Registrable Securities requested to be
registered, in the case of a Demand Registration, or sold, in the case of an
Underwritten Shelf Takedown, and the anticipated per share price range for such
offering (net of underwriting discounts or commissions).  Within ten (10) days after receipt of
any Underwritten Offering Notice, the Company shall give written notice of such
requested registration or requested Underwritten Shelf Takedown, as applicable,
to all other Holders of Registrable Securities and, subject to the provisions
of Section 1(g) below, shall include in such 

 

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Demand Registration or Underwritten Shelf Takedown, as
applicable, all Registrable Securities with respect to which the Company has
received written requests for inclusion therein within fifteen (15) days after
the receipt of the Company’s notice. 
Following the delivery of an Underwritten Offering Notice in connection
with a Demand Registration, the Company shall use its reasonable best efforts
to make such filing within forty-five (45) days of receipt of such Underwritten
Offering Notice, and use its reasonable best efforts to cause such registration
statement to become effective within one hundred and twenty (120) days after
receipt of an Underwritten Offering Notice.

 

(e)           Registrations;
Takedowns.

 

(i)         A registration shall not count as one of
the permitted Demand Registrations until it has become effective, and any
Demand Registration shall not count as a Demand Registration unless the
Initiating Holder(s) is able to register and sell at least eighty percent
(80%) of the Registrable Securities requested to be registered by such
Initiating Holder(s) in such Demand Registration; provided that the
Company shall in any event pay all Registration Expenses in connection with any
registration initiated as a Demand Registration whether or not it has become
effective and whether or not such registration has counted as one of the
permitted Demand Registrations; provided  further  that a Demand Registration which is
withdrawn at the sole request of the Initiating Holder(s) who demanded such Demand Registration will count as
a Demand Registration unless the Company is reimbursed by such Initiating Holder(s) for all
reasonable out-of-pocket expenses incurred by the Company in connection with
such registration.

 

(ii)        An underwritten sale
of Registrable Securities shall not count as one of the permitted Underwritten
Shelf Takedowns unless the Holder(s) requesting any such Underwritten
Shelf Takedown is able sell at least eighty percent (80%) of the Registrable
Securities requested to be sold in such Underwritten Shelf Takedown; provided
that an Underwritten
Shelf Takedown which is withdrawn at the sole request of such Holder(s) will count as
an Underwritten Shelf
Takedown unless the Company is reimbursed by such Holder(s) for all reasonable
out-of-pocket expenses incurred by the Company in connection with any such Underwritten Shelf Takedown.

 

(f)            Short-Form Registrations.  Demand Registrations shall be Short-Form Registrations
whenever the Company is permitted to use any applicable short form.

 

(g)           Priority
on Demand Registrations and Underwritten Shelf Takedowns.  Subject to Section 1(k), the
Company shall not include in any Demand Registration or Underwritten Shelf
Takedown any securities which are not Registrable Securities without the prior
written consent of the Holder(s) of a majority of the Registrable
Securities included in such registration. 
If any managing underwriter(s) advises the Company in writing that
in its opinion the number of Registrable Securities and, if permitted
hereunder, other securities requested to be included in an Underwritten Demand
Offering or Underwritten Shelf Takedown exceeds the number of Registrable
Securities and other securities, if any, which can be sold in an orderly manner
in such offering within a price range acceptable to the Holder(s) of a
majority of the Registrable Securities requesting such Demand Registration or
requesting to be included in the Underwritten Shelf Takedown, as applicable,
the Company shall include in such Demand Registration or 

 

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Underwritten Shelf Takedown the number which can be so
sold in the following order of priority: 
first, the Registrable Securities requested to be included in
such registration, which in the opinion of such underwriter(s) can be sold
in an orderly manner within the price range of such offering, pro rata among the respective Holder(s) of such
Registrable Securities on the basis of the number of shares of Common Stock
owned by each such Holder(s), second, the securities to be sold for the
account of the Company, and third, any other securities requested to be
included in such registration to the extent permitted hereunder.

 

(h)           Effectiveness
Period.  The Company shall use
commercially reasonable efforts to keep each Registration Statement filed
pursuant to this Section 1 continuously effective and usable for
the resale of the Registrable Securities covered thereby (i) in the case
of a registration that is not a Shelf Registration, for a period of one hundred
twenty (120) days from the date on which the SEC declares such
Registration Statement effective and (ii) in the case of a Shelf
Registration, for a period of three (3) years from the date on which the
SEC declares such Registration Statement effective; provided, however,
that the time period for which the Company is required to maintain the
effectiveness of any Registration Statement relating to a Demand Registration
shall be extended by the aggregate number of days of all applicable Delay
Periods and Suspension Periods occurring with respect to such registration, and
such period and any extension thereof is hereinafter referred to as the “Effectiveness
Period.”  Notwithstanding the
foregoing, the Company shall have no obligation to keep a Registration
Statement effective after the date all securities covered by such Registration
Statement have been sold by the Holder and the Effectiveness Period shall end
on such date.

 

(i)            Restrictions
on Demand Registrations and Underwritten Offerings.  Notwithstanding anything contained herein to
the contrary, the Company shall not be obligated to:

 

(i)         effect in the
aggregate, more than five (5) Underwritten Offerings (whether by Short-Form Registration,
Long-Form Registration or Underwritten Shelf Takedown);

 

(ii)        effect in the
aggregate, more than five (5) Long-Form Demand Registrations;

 

(iii)       file
a registration statement for a Demand Registration within one-hundred eighty
(180) days after the effective date of a previous Demand Registration;

 

(iv)       effect an Underwritten Offering prior to August 31,
2010 unless (x) the Company’s independent registered public accounting
firm agrees to render and does render to the Company and the underwriters for
such offering a standard and customary comfort letter in accordance with
Auditing Standard AU Section 634 — “Letters for Underwriters and Certain
Other Requesting Parties” of the Public Companies Accounting Oversight Board,
and (y) such Underwritten Offering is approved be each member of an audit
committee of the Company that has at least two members and that all members of
such audit committee meet the audit committee independence requirements of the
New York Stock Exchange, Inc.

 

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(v)        effect an Underwritten
Offering within one-hundred eighty (180) days after the later of the closing of
(x) an Underwritten Offering pursuant to Section 1 hereof, or (y) a
Piggyback Registration in which Holders were able to sell at least 80% of the
Registrable Securities requested to be included in such Piggyback Registration;
or

 

(vi)       effect a Demand
Registration  or an Underwritten Shelf Takedown
unless the Fair Value of the amount of Registrable Securities to be registered
and/or sold by the Holders pursuant to such Demand Registration or Underwritten
Shelf Takedown, as applicable, is in excess of $100 million.

 

(j)            Selection
of Underwriters.  The Holder(s) of
a majority of the Registrable Securities included in an Underwritten Demand
Offering or an Underwritten Shelf Takedown, as applicable, shall have the right
to select the investment banker(s) and manager(s), subject to the Company’s
approval (such approval not to be unreasonably withheld, conditioned or
delayed).

 

(k)           Other
Registrations.  The Company
shall not grant to any Person the right (other than as set forth herein and
except to employees and directors of the Company with respect to registrations
on Form S-8 and with respect to registrations on Form S-4 (or any
successor forms thereto)), to request the Company to register any securities of
the Company, except such rights as are (i) not more favorable than or
inconsistent with the rights granted to the Holders, and (ii) that do not
adversely affect the priorities of the Holders set forth herein.

 

(l)            Limitation.  Notwithstanding the foregoing, the Company
shall not be obligated to effect, or take action to effect, any Demand
Registration or Underwritten Shelf Takedown during the period in which the Board of
Directors of the Company determines that in the Board’s reasonable judgment and
in good faith that the registration and distribution of the Registrable
Securities covered or to be covered by such Demand Registration or Underwritten Shelf Takedown, as
applicable, would materially interfere with any pending material
financing, acquisition or corporate reorganization or other material corporate
development involving the Company or any of its subsidiaries or would require
premature disclosure thereof, and such disclosure would be materially adverse
to the Company, and
the Company may, at its option, direct that such request be delayed for a
reasonable period of time (a “Delay Period”) and the Company shall notify the Holder(s) requesting
such Demand Registration or Underwritten Shelf Takedown, as applicable, to such
effect; provided, however, that (i) the aggregate number
of days included in all Delay Periods during any consecutive twelve (12) months
shall not exceed the aggregate of one-hundred twenty (120) days and (ii) a
period of at least thirty (30) days shall elapse between the termination of any
Delay Period and the commencement of the immediately succeeding Delay Period.

 

Furthermore, in the event that the Board of Directors
of the Company determines that in the Board’s reasonable judgment and in
good faith it is
advisable to suspend for a period of time (a “Suspension Period”) the
use of a prospectus included in a Registration Statement because the use of
such prospectus would materially interfere with any pending material
financing, acquisition or corporate reorganization or other material corporate
development involving the Company or any of its subsidiaries or would require
premature disclosure thereof, and such disclosure would be materially adverse
to the Company, the
Company shall, in connection with a prospectus relating to an offering that is
not underwritten, notify the Holders whose securities are 

 

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included
in such prospectus and, if the prospectus relates to an underwritten offering,
notify the managing underwriter(s), to such effect, and, upon receipt of such
notice, such Holders or managing underwriter(s), as applicable, shall
immediately discontinue any sales of Registrable Securities pursuant to such
Registration Statement until:

 

(i)         such Holders or
managing underwriter(s), as applicable, have been advised that the supplemented
or amended prospectus has been filed with the SEC on EDGAR and, if required by
terms of an underwriting agreement relating to Registrable Securities covered
by such Registration Statement, the managing underwriter(s) has received
copies of a supplemented or amended prospectus, or

 

(ii)        such Holders and
managing underwriter(s), as applicable, are advised in writing by the Company
that the then current prospectus may be used and, if required by terms of an
underwriting agreement relating to Registrable Securities covered by such
Registration Statement, the managing underwriter has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated
by reference in such prospectus.

 

Notwithstanding anything to the contrary contained
herein, the Company shall not exercise its rights under the preceding sentence
to suspend sales pursuant to a Suspension Period for a period in excess of forty-five (45)
days consecutively or
one-hundred twenty (120) days in any twelve (12) month period.  In the event of any Delay Period or
Suspension Period, the Holder(s) of Registrable Securities initially
requesting an Underwritten Demand Offering or Underwritten Shelf Takedown that
is delayed or suspended by operation of this Section 1(l) shall have the right (i) in the case
of a delay of the filing or effectiveness of a registration statement in
connection with a Demand Registration, upon the affirmative approval of the
Holders of not less than a majority of the Registrable Securities initially
requesting such Demand Registration, to withdraw such request by giving written
notice to the Company within twenty (20) days after receipt of such notice of delay or, if earlier,
the termination of such Delay Period, and, if such request is withdrawn, such
Demand Registration shall not count as one of the permitted Demand
Registrations hereunder, and the Company shall pay all Registration Expenses in
connection with such registration, (ii) in the case of a suspension of a
prospectus (including the suspension of filing any prospectus supplement) in
connection with an Underwritten Shelf Takedown, upon the affirmative approval
of the Holders of not less than a majority of the Registrable Securities
requesting to be included in such Underwritten Shelf Takedown, to withdraw such
request by giving written notice to the Company within twenty (20) days
after receipt of such
notice of suspension or, if earlier, the termination of such Suspension Period,
and, if such request is withdrawn, such Underwritten Shelf Takedown shall not
count as one of the permitted Underwritten Shelf Takedowns hereunder and (iii) in
the case of a suspension of sales  in
connection with a Demand Registration, to receive an extension of the
registration period equal to the number of days of the Suspension Period.  The Company shall not be
entitled to initiate or continue a Delay Period or a Suspension Period unless
it shall (A) concurrently prohibit sales by all other security holders
under registration statements covering securities held by such other security
holders and (B) in accordance with the Company’s policies from time to
time in effect, if applicable, forbid purchases and sales in the open market by
executive officers of the Company.  The
Company shall not be entitled to suspend sales pursuant to a Suspension Period  

 

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unless it shall have given
notice of the Suspension Period before the commencement of marketing activities
in connection with any Underwritten Offering.

 

2.           Piggyback Offerings.

 

(a)           Right
to Piggyback.  Whenever the Company
proposes to register any of its equity securities under the Securities Act
(other than pursuant to a Demand Registration and other than pursuant to a
registration statement on Form S-8, Form S-4 or any successor forms
thereto), or otherwise proposes to offer any of its equity securities under the
Securities Act in an Underwritten Offering either for its own account or for the
account of one or more securityholders and the Company is eligible to use a registration
form for such offering that may be used for the registration of Registrable
Securities (a “Piggyback Offering”), the Company shall give prompt
written notice to all Holders of Registrable Securities of its intention to
effect such a registration (which notice shall be given not less than
fifteen (15) days prior to the expected filing date of the Company’s
registration statement; provided, however, that in the case of an
Underwritten Offering under a Shelf Registration, such notice shall be given
not less than five (5) Business Days prior to the date of commencement of
marketing efforts for such offering) and shall, subject to the provisions of Section 2(c) below,
include in such Piggyback Offering all Registrable Securities with respect to
which the Company has received written requests for inclusion therein within
ten (10) days after the receipt of the Company’s notice.  Notwithstanding anything to the contrary
contained herein, the Company may determine not to proceed with a registration
which is the subject of such notice.  A
Piggyback Offering shall not be considered a Demand Registration for purposes
of this Agreement and the rights to Piggyback Offerings may be exercised an
unlimited number of occasions.

 

(b)           Piggyback
Expenses.  The Registration Expenses
of the Holders of Registrable Securities shall be paid by the Company in  all Piggyback Offerings.

 

(c)           Priority
on Registrations.

 

(i)         If a Piggyback Offering is an
Underwritten Offering on behalf of the Company, and the managing underwriter(s) advises
the Company in writing that in its opinion the number of securities requested
to be included in such registration exceeds the number which can be sold in an
orderly manner in such offering within a price range acceptable to the Company,
the Company shall include in such registration the number which can be so sold
in the following order of priority:  first,
the securities to be sold for the account of the Company, second,
the Registrable Securities requested to be included in such registration (pro rata among the Holder(s) of such Registrable
Securities on the basis of the number of shares of Common Stock owned by each
such Holder), and third,
any other securities requested to be included in such registration.

 

(ii)        If a Piggyback Offering
is an Underwritten Offering on behalf of holders of the Company’s equity
securities who are not Holders of Registrable Securities (“Other Holders”),
and the managing underwriter(s) advises the Company in writing that in its
opinion the number of equity securities requested to be included in such
Piggyback Offering exceeds the number which can be sold in an orderly manner in
such offering within a price range acceptable to the Other Holders, the Company
shall include in such 

 

6

 

registration the
number which can be so sold in the following order of priority:  first, the securities requested to be
included therein by the Other Holders requesting such registration, second, the
Registrable Securities requested to be included in such registration (pro rata among the Holder(s) of such Registrable
Securities on the basis of the number of shares of Common Stock owned by each
such Holder) and third, other securities
requested to be included in such registration.

 

(iii)       If, as a result
of the proration provisions of this Section 2(c), any Holder shall
not be entitled to include all Registrable Securities in a Piggyback Offering
that such Holder has requested be included, such Holder may elect to withdraw
its request to include Registrable Securities in such Piggyback Offering or may
reduce the number requested to be included; provided, however,
that (A) such request must be made in writing prior to commencement of
marketing activities in connection with such Piggyback Offering and (B) such
withdrawal shall be irrevocable and, after making such withdrawal, such Holder
shall no longer have any right to include Registrable Securities in the
Piggyback Offering as to which such withdrawal was made.

 

(d)           Selection
of Underwriters.  If any Piggyback
Offering is an Underwritten Offering, the Company will have the right to select
the investment banker(s) and manager(s) for the offering.

 

3.           Holdback Agreements.

 

(a)           Holders
of Registrable Securities.  If requested by the lead managing
underwriter, each
Holder who “beneficially owns” (as such term is defined under and determined
pursuant to Rule 13d-3 promulgated under the Exchange Act) five percent
(5.0%) or more of the issued and outstanding Common Stock of the Company and
each Holder including Registrable Securities in any Underwritten Demand
Offering, Underwritten Shelf Takedown or Piggyback Offering shall not effect
any public sale or distribution (including sales pursuant to Rule 144) of
equity securities of the Company, or any securities convertible into or
exchangeable or exercisable for such securities, during (i) with respect to any Underwritten Demand
Offering, Underwritten Shelf Takedown or Piggyback Offering in which
Registrable Securities are included, the seven (7) days prior to and the
ninety (90)-day period beginning on the effective date of such registration,
and (ii) upon notice from the Company of the commencement of a
distribution in connection with any Underwritten Offering (including, but not
limited to, any distribution in connection with any Shelf Registration) by or
on behalf of the Company, the seven (7) days prior to and the ninety
(90)-day period beginning on the date of commencement of such distribution (in
the case of (i) and (ii), the “Lock-Up Period”), in each case
except as part of such Underwritten Offering, and in each case unless the
underwriters managing such Underwritten Offering otherwise agree; provided, however, that if any
other Holder of Registrable
Securities of the Company shall be subject to a shorter period or receives more
advantageous terms relating to the Lock-Up Period, then the Lock-Up Period
shall be such shorter period and also on such more advantageous terms and
notwithstanding the foregoing, the Holders shall not be subject to the
provisions hereof unless all of the Company’s directors and officers have
signed lock-up agreements with the managing underwriters. The restrictions set
forth in this Section 3(a) shall not be applicable to
Transfers by Holders to Affiliates who agree to be bound by the provisions
hereof, Transfers related to securities owned by Holders as a result of open
market purchases 

 

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made following the closing
of the applicable offerings, and other Transfers to which the underwriters
managing such Underwritten
Offering agree; provided, however, that nothing herein shall prevent a Holder
that is a partnership or corporation from making a distribution of Registrable
Securities to the partners or shareholders thereof that is otherwise in
compliance with applicable securities laws, so long as such distributees agree
to be bound by the terms hereof.  The
provisions of this Section 3(a) will no longer apply to a
Holder once such Holder ceases to hold Registrable Securities.

 

(b)           The
Company.  If requested by the lead
managing underwriter, the
Company (i) shall not effect any public sale or distribution of its equity
securities, or any securities convertible into or exchangeable or exercisable
for such securities (except pursuant to registrations on Form S-8, Form S-4
or any successor forms thereto), with respect to any Underwritten Demand
Offering, Underwritten Shelf Takedown or any Piggyback Offering that is an
Underwritten Offering in which Registrable Securities are included, during the
seven (7) days prior to and the ninety (90)-day period beginning on the
pricing of such Underwritten Offering, and (ii) shall, to the extent
permitted by Regulation FD of the Exchange Act, use its reasonable best efforts
to cause each Person who “beneficially owns” (as such term is defined under and
determined pursuant to Rule 13d-3 promulgated under the Exchange Act) five
percent (5.0%) or more of the issued and outstanding Common Stock, or any
securities convertible into or exchangeable or exercisable for Common Stock,
purchased from the Company at any time after the date of this Agreement (other
than in a registered public offering or pursuant to Rule 144) to agree not
to effect any public sale or distribution (including sales pursuant to Rule 144)
of any such securities during such period, in each case except as part of such
Underwritten Offering, and in each case unless the underwriters managing the
Underwritten Offering otherwise agree.

 

4.             Registration Procedures.  Whenever any Holder(s) of
Registrable Securities has requested that any Registrable Securities be
registered pursuant to this Agreement, the Company shall use its reasonable
best efforts to effect the registration and the sale of such Registrable
Securities in accordance with the intended method of disposition thereof, and
pursuant thereto the Company shall as promptly as practicable:

 

(a)           prepare
and file with the Securities and Exchange Commission a registration statement
with respect to such Registrable Securities in accordance with the provisions
hereof, provided that before filing a registration statement or
prospectus or any amendments or supplements thereto, the Company shall furnish
to one counsel selected by the Holders of a majority of the Registrable
Securities covered by such registration statement (“Counsel to the Holders”)
copies of all such documents proposed to be filed, which documents shall be
subject to the prompt review and comment of such Counsel to the Holders;

 

(b)           notify
each Holder of Registrable Securities of the effectiveness of each registration
statement filed pursuant hereto and prepare and file with the Securities and
Exchange Commission such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective during the Effectiveness Period and comply with
the provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement during such period in
accordance with the intended methods of disposition set forth in such
registration statement;

 

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(c)           furnish to each seller of Registrable
Securities, at such seller’s request, a copy of such registration statement,
each amendment and supplement thereto, and the prospectus included in such
registration statement (including each preliminary prospectus); provided,
however, that the Company shall have no such obligation to furnish
copies of a final prospectus if the conditions of Rule 172(c) under
the Securities Act are satisfied by the Company;

 

(d)           use its reasonable best efforts (i) to
register or qualify such Registrable Securities under such other securities or
blue sky laws of any jurisdictions as any underwriter reasonably requests, (ii) to keep such registration or
qualification in effect for so long as such registration statement remains in
effect, and (iii) to do any and all other acts and things which may be
reasonably necessary or advisable to enable any such underwriter to consummate
the disposition in such jurisdictions of the Registrable Securities (provided
that the Company shall not be required to (x) qualify generally to do
business in any jurisdiction where it would not otherwise be required to
qualify but for this subsection, (y) subject itself to taxation in any
such jurisdiction or (z) consent to general service of process in any such jurisdiction);

 

(e)           notify Counsel to the Holders and
each underwriter (i) at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, as soon as practicable after
(A) discovery that, or after the happening of any event as a result of
which, the prospectus included in such registration statement contains an
untrue statement of a material fact or omits any fact necessary to make the
statements therein not misleading in light of the circumstances in which they
were made, and, at the request of such Holder or any underwriter, the Company
shall promptly prepare a supplement or amendment to such prospectus, furnish
(or make available) a reasonable number of copies of such supplement or
amendment to each seller of such Registrable Securities, Counsel to the Holders
and the underwriters and file such supplement or amendment with the Securities
and Exchange Commission so that, as thereafter delivered (or deemed to be
delivered) to the purchasers of such Registrable Securities, such prospectus
shall not contain an untrue statement of a material fact or omit to state any
fact necessary to make the statements therein not misleading in light of the
circumstances in which they were made, (B) the Company becomes aware of
any request by the Securities and Exchange Commission or any Federal or state
governmental authority for amendments or supplements to a registration
statement or related prospectus covering Registrable Securities or for
additional information relating thereto, (C) the Company becomes aware of the issuance
or threatened issuance by the Securities and Exchange Commission of any stop
order suspending or threatening to suspend the effectiveness of a registration
statement covering the Registrable Securities, or (D) the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any Registrable Security for sale in any
jurisdiction, or the initiation or threatening of any proceeding for such
purpose, and (ii) as soon as reasonably practicable after each
registration statement or any amendment thereto has been filed with the
Securities and Exchange Commission and after each registration statement or any
post-effective amendment thereto has become effective;

 

(f)            for a reasonable period prior to the
filing of any Registration Statement or the commencement of marketing efforts
for an Underwritten Shelf Takedown, as applicable, provide any Participating
Holder holding more than twenty percent (20%) of all participating Registrable
Securities, any underwriter participating in any disposition pursuant to a
registration statement, Counsel to the Holders and counsel to the underwriters
(each, an “Inspector”
and, collectively, 

 

9

 

the “Inspectors”), a reasonable opportunity to
participate (including, but not limited to, reviewing, commenting on and
attending all meetings) in the preparation of such registration statement, each
prospectus included therein or filed with the SEC and each amendment or
supplement thereto;

 

(g)           provide and cause to be maintained a
transfer agent and registrar for all such Registrable Securities registered
pursuant hereto and a CUSIP number for all such Registrable Securities, in each
case, no later than the effective date of such registration;

 

(h)           enter into such customary agreements
(including underwriting agreements in customary form) and take all such other
actions as the underwriter(s) reasonably requests in order to expedite or
facilitate the disposition of such Registrable Securities;

 

(i)            make available for inspection and
copying by the Inspectors all financial and other records, pertinent corporate
documents and properties of the Company, and its subsidiaries and cause the
officers, directors, employees and independent accountants of the Company and
its subsidiaries to respond to such inquiries and to supply all information
reasonably requested by any such Inspector in connection with such registration
statement, provided that recipients of such financial and other records
and pertinent corporate documents agree in writing to keep the confidentiality
thereof pursuant to a written agreement reasonably acceptable to the Company
(which shall contain customary exceptions thereto);

 

(j)            use reasonable best efforts to (i) prevent
the issuance of any stop order by the SEC, and in the event of such issuance,
to obtain the withdrawal of any such stop order and (ii) obtain the
withdrawal of any order suspending or preventing the use of any related
prospectus or suspending the qualification of any Registrable Securities
included in such registration statement for sale in any jurisdiction at the
earliest practicable date;

 

(k)           otherwise use its best efforts to
comply with all applicable rules and regulations of the Securities and
Exchange Commission, obtain all other approvals, consents, exemptions or
authorizations from such governmental agencies or authorities as may be
necessary and required of the Company to enable the Participating Holders and underwriters
to consummate the disposition of Registrable Securities, and make available to
its security holders, as soon as reasonably practicable, an earnings statement
covering the period of at least twelve (12) months beginning with the first day
of the Company’s first full calendar quarter after the effective date of the
registration statement, which earnings statement shall satisfy the provisions
of Section 11(a) of the Securities Act and Rule 158 thereunder;

 

(l)            use reasonable best efforts to
timely file all material required to be filed pursuant to Section 13, 14
or 15(d) of the Exchange Act;

 

(m)          use reasonable best efforts to cause
all such Registrable Securities to be listed on each securities exchange on which similar
securities issued by the Company are then listed;

 

(n)           cause appropriate officers as are
reasonably requested by an managing underwriter to participate in a “road show”
or similar marketing effort being conducted by such underwriter with respect to
an Underwritten Offering;

 

10

 

(o)           with respect to an Underwritten
Demand Offering or an Underwritten Shelf Takedown, use its reasonable best
efforts to obtain and furnish to each Participating Holder a signed counterpart
of (i) a cold comfort letter from the Company’s independent public
accountants addressed to the underwriter(s) and to the Participating
Holders (provided that if such accountants refuse to deliver such letter
to the Participating Holders, then to the Company) and (ii) a legal opinion
of counsel to the Company addressed to the underwriter(s) and to the
Participating Holders, in each case, in customary form and covering such
matters of the type customarily covered by such letters as the holders of a
majority of the Registrable Securities being sold reasonably request;

 

(p)           (i) prepare and file with the
SEC such amendments and supplements to each Registration Statement as may be
necessary to comply with the provisions of the Securities Act, including post
effective amendments to each Registration Statement as may be necessary to keep
such Registration Statement continuously effective for the applicable time
period required hereunder and if applicable, file any Registration Statements
pursuant to Rule 462(b) promulgated under the Securities Act, (ii) cause
the related prospectus to be supplemented by any required prospectus
supplement, and as so supplemented to be filed pursuant to Rule 424 (or
any similar provisions then in force) promulgated under the Securities Act; and
(iii) provide additional information related to each Registration
Statement as requested by, and obtain any required approval necessary from, the
SEC or any Federal or state governmental authority;

 

(q)           if requested by any Participating
Holder or underwriter, promptly include in a prospectus supplement or amendment
such information as the Holder or managing underwriters may reasonably request,
including in order to permit the intended method of distribution of such
securities, and make all required filings of such prospectus supplement or such
amendment as soon as reasonably practicable after the Company has received such
request;

 

(r)            in the case of certificated
Registrable Securities, cooperate with any Participating Holder and the
underwriters to facilitate the timely preparation and delivery of certificates
(not bearing any legends) representing Registrable Securities to be sold after
receiving written representations from each Participating Holder that the
Registrable Securities represented by the certificates so delivered by such
Holder will be transferred in accordance with the Registration Statement, and
enable such Registrable Securities to be in such denominations and registered
in such names as the Participating Holders or underwriters may reasonably
request at least three (3) Business Days prior to any sale of Registrable
Securities;

 

(s)           use reasonable best efforts to assist
a Holder in facilitating private sales of Registrable Securities by, among
other things, providing officers’ certificates and other customary closing
documents; and

 

(t)            use reasonable best efforts to take
all other actions necessary to effect the registration of the Registrable
Securities contemplated hereby.

 

5.             Registration Expenses.

 

(a)           Expenses.  Except as otherwise provided in this Agreement,
all expenses incident to the Company’s performance of or compliance with this
Agreement, including all registration 

 

11

 

and filing fees, fees and expenses of compliance with
securities or blue sky laws, printing expenses, messenger and delivery
expenses, fees and disbursements of custodians, and fees and disbursements of
counsel for the Company and of all independent certified public accountants,
underwriters (excluding discounts and commissions) and other Persons retained
by the Company (all such expenses being herein called “Registration Expenses”),
shall be borne by the Company.  For the
avoidance of doubt, the Company shall, in any event, pay its internal expenses
(including all salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit or quarterly
review, the expense of any liability insurance and the expenses and fees for
listing the securities to be registered on each securities exchange on which
similar securities issued by the Company may then be listed.

 

(b)           Reimbursement of Counsel.  In connection with each Demand Registration,
each Underwritten Shelf Takedown and each Piggyback Offering, the Company shall
reimburse the Holders of Registrable Securities included in such registration
for the reasonable fees and disbursements of Counsel to the Holders.

 

(c)           Payment of Certain Expenses by
Holders of Registrable Securities. 
Underwriting discounts and commissions and transfer taxes relating to
the Registrable Securities included in any registration hereunder, and all fees
and expenses of counsel for any Holders of Registrable Securities (other than
fees and expenses to be reimbursed by the Company as set forth in Section 5(b) above)
shall be borne and paid by all sellers of securities included in such
registration in proportion to the aggregate selling price of the securities to
be so registered.

 

6.             Indemnification; Contribution.

 

(a)           The Company agrees to indemnify, to
the extent permitted by applicable law, each Holder of Registrable Securities,
its officers, directors, employees, agents and Affiliates and each Person that
controls such Holder (within the meaning of the Securities Act) against all
losses, claims, damages, liabilities and expenses (including attorneys’ fees
and expenses, and expenses of investigation), arising out of or resulting from
any untrue or alleged untrue statement of material fact contained in any
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto, any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, or violation or alleged violation by the Company of the Securities
Act, the Exchange Act, any applicable state securities law (or any rule or
regulation promulgated under any applicable state securities law), except
insofar as the same are contained in any information furnished in writing to
the Company by such Holder expressly for use therein or by such Holder’s
failure to deliver a copy of the registration statement or prospectus or any
amendments or supplements thereto after the Company has furnished such Holder
with a sufficient number of copies of the same. 
In connection with an Underwritten Offering, the Company shall indemnify
the underwriters, their officers and directors and each Person who controls
such underwriters (within the meaning of the Securities Act) to the same extent
as provided above with respect to the indemnification of the Holders of
Registrable Securities.

 

(b)           To the extent permitted by applicable law,
each Holder shall indemnify the Company, its directors, officers, employees,
agents and Affiliates and each Person that controls the Company (within the
meaning of the Securities Act) against any losses, claims, damages, 

 

12

 

liabilities and expenses (including attorneys’ fees
and expenses, and expenses of investigation) arising out of or resulting from
any untrue or alleged untrue statement of material fact contained in the
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that such untrue statement or
omission is contained in any information or affidavit so furnished in writing
by such Holder; provided
that the obligation to indemnify shall be individual, not joint and several,
for each Holder and shall be
limited to the net amount of proceeds received by such Holder from the sale of
Registrable Securities pursuant to such registration statement.

 

(c)           Any Person entitled to indemnification
hereunder shall (i) give prompt written notice to the indemnifying party
of any claim with respect to which it seeks indemnification (provided that the
failure to give prompt notice shall not impair any Person’s right to
indemnification hereunder to the extent such failure has not materially
prejudiced the indemnifying party) and (ii) permit such indemnifying party
to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. Notwithstanding the indemnifying party’s rights in the prior
sentence, the indemnified party shall have the right to employ its own counsel
(and one local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would in
the reasonable judgment of the indemnified party present such counsel with a
conflict of interest; (ii) the actual or potential defendants in, or
targets of, any such action include both the indemnified party and the
indemnifying party and, based on advice of counsel to the indemnified party,
the indemnified party shall have legal defenses available to it and/or other
indemnified parties that are inconsistent with or in addition to those
available to the indemnifying party; (iii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after written notice
of the institution of such action has been delivered to the indemnifying party;
or (iv) the indemnifying party shall have requested the indemnified party
to employ separate counsel at the expense of the indemnifying party.  No indemnifying party shall, in connection
with any one action or separate but substantially similar or related actions in
the same jurisdiction arising out of the same general circumstances or
allegations, be liable for the fees and expenses of more than one separate firm
of attorneys (in addition to any local counsel) for all indemnified
parties.  If such defense is assumed, the
indemnifying party shall not be subject to any liability for any settlement
made by the indemnified party without its consent (but such consent shall not
be unreasonably withheld).  No
indemnifying party, in the defense of any such claim or litigation, shall,
except with the consent of each indemnified party, consent to entry of any
judgment or enter into any settlement or compromise that does not include as an
unconditional term thereof the giving by the claimant or plaintiff therein, to
such indemnified party, of a release from all liability in respect of such
claim or litigation.

 

(d)           The indemnification provided for
under this Agreement shall remain in full force and effect regardless of any
investigation made by or on behalf of the indemnified party or any officer,
director or controlling Person of such indemnified party and shall survive the
Transfer of Registrable Securities.

 

13

 

(e)           If the indemnification required by
this Section 6 from the indemnifying party is unavailable to an
indemnified party hereunder in respect of any losses, claims, damages,
liabilities or expenses referred to in this Section 6:

 

(i)         The
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses in such proportion as
is appropriate to reflect the relative fault of the indemnifying party and
indemnified parties in connection with the actions which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations.  The relative
fault of such indemnifying party and indemnified parties shall be determined by
reference to, among other things, whether any violation referred to in this Section 6
has been committed by, or relates to information supplied by, such indemnifying
party or indemnified parties, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such
violation.  The amount paid or payable by
a party as a result of the losses, claims, damages, liabilities and expenses
referred to above shall be deemed to include, subject to the limitations set
forth in Section 6(a) and Section 6(b), any legal
or other fees or expenses reasonably incurred by such party in connection with
any investigation or proceeding.

 

(ii)        The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 6(e) were determined by a pro rata allocation or by any other method of allocation
which does not take into account the equitable considerations referred to in Section 6(e)(i).  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

 

7.             Holders’ Obligations.

 

(a)           It shall be a condition precedent to
the obligations of the Company to include Registrable Securities of any Holder
in any Registration Statement or prospectus, as the case may be, that such
Holder shall timely furnish to the Company (as a condition precedent to such
Holder’s participation in such registration) its Selling Holder Information in
accordance with the terms hereof.  Each
Selling Holder shall timely provide the Company with such information as may be
reasonably requested to enable the Company to prepare a supplement or post-effective
amendment to any Shelf Registration or a supplement to any prospectus relating
to such Shelf Registration.

 

(b)           At the managing underwriter’s
request, no Person may participate in any registration hereunder which is
underwritten unless such Person (i) agrees to sell such Person’s
securities on the basis provided in any underwriting arrangements in customary
form approved by the Person or Persons entitled hereunder to approve such
arrangements and (ii) completes and executes such underwriting agreement
and other documents reasonably required in connection with such underwriting
arrangements, provided that no Holder of Registrable Securities included
in any underwritten registration shall be required to make any representations
or warranties to the Company or the underwriters (other than representations
and warranties regarding such Holder 

 

14

 

(including with respect to such Holder’s ownership of
and title to its Registrable Securities) and such Holder’s intended method of
distribution) or to undertake any indemnification obligations to the Company
with respect thereto, except as otherwise provided in Section 6(b) hereof,
or to the underwriters with respect thereto, except to the extent of the indemnification
being given to the Company and its controlling persons in Section 6(b) hereof.

 

8.             Transfer of Registration Rights.

 

The rights of a Holder hereunder may be Transferred in
connection with a Transfer of Registrable Securities to (i) any Affiliate
of a Holder, (ii) any subsidiary, parent, partner, retired partner,
limited partner, shareholder or member of a Holder or (iii) any family
member or trust for the benefit of any Holder, or (iv) any transferee who,
after such transfer, holds Registrable Securities representing at least one
percent (1.0%) of the Company’s issued and outstanding Common Stock.  Notwithstanding the foregoing, such rights
may only be Transferred provided that all of the following additional
conditions are satisfied:  (a) such
Transfer is effected in accordance with applicable securities laws; (b) such
transferee agrees in writing to become subject to the terms of this Agreement
as a Holder; and (c) the Company is given written notice by such Holder of
such Transfer, stating the name and address of the transferee and identifying
the Registrable Securities with respect to which such rights are being
Transferred.

 

9.             Rule 144 and Rule 144A; Other Exemptions

 

With a view to making available to the Holders of
Registrable Securities the benefits of Rule 144 and Rule 144A
promulgated under the Securities Act (“Rule 144A”), the Company
covenants that it will (i) file in a timely manner all reports and other
documents required, if any, to be filed by it under the Securities Act and the
Exchange Act and the rules and regulations promulgated thereunder and (ii) make
available information necessary to comply with Rule 144 and Rule 144A
(if available with respect to resales of the Registrable Securities under the
Securities Act), at all times, all to the extent required to enable such Holder
to sell Registrable Securities without registration under the Securities Act
within the limitation of the exemptions provided by (x) Rule 144 and Rule 144A
(if available with respect to resales of the Registrable Securities), as such rules may
be amended from time to time or (y) any other similar rules or
regulations hereafter adopted by the SEC. 
Upon the reasonable request of any Holder of Registrable Securities, the Company
will deliver to such Holder a written statement as to whether it has complied
with such information requirements.

 

10.          Joinder

 

Any Person who demonstrates
that it is a Holder as of the Effective Date (or that it is entitled to become
a Holder pursuant to Section 8 hereof) that is not a party hereto
may acquire the rights of a Holder hereunder if it agrees in writing to become subject to the terms of
this Agreement as a Holder by delivering to the Company a duly executed joinder
agreement in form attached hereto as Exhibit A.

 

15

 

11.         Definitions.

 

“Affiliate” of any Person means any other Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, such Person. 
The term “control” (including the terms “controlling,” “controlled by”
and “under common control with”) as used with respect to any Person means the
possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

 

“Agreement” has the meaning specified in the preamble hereto.

 

“Business
Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not
a day on which banking institutions in New York City are generally authorized
or obligated by law or executive order to close.

 

“Common Stock” means the common stock, par
value $0.025 per share, of the Company,  having the rights and preferences set forth
with respect thereto in the Certificate of Incorporation of the Company.

 

“Company” has the meaning specified in the
preamble hereto.

 

“Counsel
to the Holders” has the meaning specified in Section 4(a).

 

“Delay Period” has the meaning specified in
Section 1(l).

 

“Demand Registration” has the meaning
specified in Section 1(a).

 

“Effective Date” has the meaning assigned to
such term in the Plan.

 

“Effectiveness
Period” has the meaning specified in Section 1(h).

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to  time, and the rules and regulations
promulgated thereunder.

 

“Fair
Value” means, with respect to shares of Common Stock, as of any specified
date (i) if any Common Stock is publicly traded on such date, the market
price per share, or (ii) if no Common Stock is publicly traded on such
date, the fair market value thereof determined in good faith by the Board of
Directors of the Company.  For the
purposes hereof, “market price” means as of any specified date the average of
the daily market price of the Common Stock for the twenty (20) consecutive
Business Days immediately preceding such date. 
The “daily market price” for each such Business Day shall be: (a) if
the Common Stock is then listed on a national securities exchange, the last
sale price on such day on the principal stock exchange on which such Common
Stock is then listed or admitted to trading or, if no such sale takes place on
such day, the average of the closing bid and ask prices for the Common Stock on
such day as reported on such stock exchange or (b) if the Common Stock is
not then listed or admitted to trading on any national securities exchange but
is traded over the counter, the average of the reported closing bid and ask
prices for the Common Stock.

 

“Holder”
means (i) any Person (including each Person signatory hereto (other than
the Company)), who together with its Affiliates, holds Registrable Securities
representing at 

 

16

 

least one percent (1.0%) of the Company’s issued and
outstanding Common Stock as of the Effective Date, or (ii) any Person who
becomes a signatory hereto pursuant to Section 10.

 

“Initial
Shelf Effective Date” has the meaning specified in Section 1(b).

 

“Initiating
Holders” has the meaning specified in Section 1(a).

 

“Inspector”
has the meaning specified in Section 4(f).

 

“Lock-Up
Period” has the meaning specified in Section 3(a).

 

“Long-Form Registration” has the meaning
specified in Section 1(a).

 

“Long-Form Shelf” has the meaning
specified in Section 1(b).

 

“Other
Holders” has the meaning specified in Section 2(c)(ii).

 

“Participating
Holders” means Holders participating, or electing to participate, in
an offering of Registrable Securities.

 

“Person” means an individual, a partnership,
a corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

 

“Piggyback Offering” has the meaning
specified in Section 2(a).

 

“Plan” means the Debtors’ Modified Fourth Amended Joint Plan of
Reorganization Under Chapter 11 of the Bankruptcy Code filed on April    ,
2010 in the United States Bankruptcy Court for the District of Delaware (as the
same may be hereafter modified, amended or supplemented).

 

“Registrable Securities” means any Common
Stock issued on or after the Effective Date to Persons who are parties hereto or become a party
hereto, including any Common Stock issued pursuant to the Plan and in the
Offering, the Conversion Purchase, the Direct Equity Purchase or the Additional
Equity Purchase (each as defined in the Plan), and any Common Stock issued or
issuable with respect to any of the foregoing securities by way of a stock
dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization, or upon
conversion or exercise of any such securities; provided that such
securities shall cease to be Registrable Securities when (A) they have
been sold pursuant to
an effective registration statement, (B) they have been
distributed to the public through a broker, dealer or market maker pursuant to Rule 144
or (C) with
respect to any Person and such Person’s Affiliates, the number of Registrable
Securities held by such Persons (x) represents less than five percent (5%)
of the outstanding Common Stock of the Company and (y) such securities may
be sold under Rule 144(b)(1).  For the purposes of this Agreement, a Person
shall be deemed to be a holder of Registrable Securities whenever such Person
has the right to acquire such Registrable Securities (upon conversion or
exercise in 

 

17

 

connection with a Transfer of securities or otherwise,
but disregarding any restrictions or limitation upon the exercise of such
right), whether or not such acquisition has been effected.

 

“Registration Expenses” has the meaning
specified in Section 5(a).

 

“Registration
Notice” has the meaning specified in Section 1(b).

 

“Registration Statement” means each Demand
Registration filed pursuant to Section 1(a) and each Shelf
Registration filed pursuant to Section 1(b).

 

“Rule 144” means Rule 144 promulgated under the
Securities Act.

 

“SEC” or “Securities and Exchange
Commission” means the United States Securities and Exchange Commission or
any successor governmental agency.

 

“Securities Act” means the Securities Act of
1933, as amended from time to time, and the rules and regulations
promulgated thereunder.

 

“Selling
Holder Information” has the meaning specified in Section 1(c).

 

“Shelf” has the meaning specified in Section 1(b).

 

“Shelf Registration” has the meaning
specified in Section 1(b).

 

“Short-Form Registration” has the
meaning specified in Section 1(a).

 

“Short-Form Shelf” has the meaning
specified in Section 1(b).

 

“Suspension Period” has the meaning specified
in Section 1(l).

 

“Transfer”
or “Transferred” means any direct or indirect sale, assignment,
transfer, gift, hypothecation, pledge, encumbrance or other disposition of
Registrable Securities, in a single transaction or a series of related
transactions, whether with or without consideration, whether voluntarily or
involuntarily, or by operation of law.

 

“Underwritten
Demand Offering” has the meaning specified in Section 1(a).

 

“Underwritten
Offering” means an offering in which securities of the Company are sold to
one or more underwriter (as defined in Section 2(a)(11) of the Securities
Act) in a firm commitment underwritten offering for resale to the public.

 

“Underwritten
Offering Notice” has the meaning specified in Section 1(d).

 

“Underwritten
Shelf Takedown” has the meaning specified in Section 1(d).

 

12.         Amendment; Waivers; Further
Assurances.

 

(a)           Amendment.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to or 

 

18

 

departures from the provisions hereof may not be
given, without the written consent of the Company and the Holders holding at
least fifty percent (50%) of the Registrable Securities then issued and
outstanding.

 

(b)           No
Waivers.  No failure or delay by any
party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.  The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

 

(c)           Further
Assurances.  Each of the parties
hereto shall execute all such further instruments and documents and take all
such further action as any other party hereto may reasonably require in order
to effectuate the terms and purposes of this Agreement.

 

13.         Miscellaneous.

 

(a)           Remedies;
Specific Performance.  Any Person
having rights under any provision of this Agreement shall be entitled to
enforce such rights specifically, to recover damages caused by reason of
any breach of any provision of this Agreement and to exercise all other rights
existing in their favor.  The parties
hereto agree and acknowledge that money damages would not be an adequate remedy
for any breach of the provisions of this Agreement and that any party may in
its sole discretion apply to any court of law or equity of competent
jurisdiction for specific performance and/or injunctive relief (without posting
any bond or other security) in order to enforce or prevent violation of the
provisions of this Agreement and shall not be required to prove irreparable
injury to such party or that such party does not have an adequate remedy at law
with respect to any breach of this Agreement (each of which elements the
parties admit).  The parties hereto
further agree and acknowledge that each and every obligation applicable to it
and contained in this Agreement shall be specifically enforceable against it
and hereby waives and agrees not to assert any defenses against an action for
specific performance of their respective obligations hereunder.

 

(b)           Successors
and Assigns.  All provisions of this
Agreement shall bind and inure to the benefit of the respective successors and
permitted assigns of the parties hereto (including any trustee in bankruptcy)
whether so expressed or not.

 

(c)           Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of this Agreement.

 

(d)           Counterparts.  This Agreement may be executed simultaneously
in two or more counterparts, anyone of which need not contain the signatures of
more than one party, but all such counterparts taken together shall constitute
one and the same Agreement.

 

(e)           Descriptive
Headings; Interpretation; No Strict Construction.  The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a substantive part of
this Agreement.  Whenever required by the
context, any pronoun used in this Agreement 

 

19

 

shall include the corresponding masculine, feminine or
neuter forms, and the singular forms of nouns, pronouns, and verbs shall
include the plural and vice versa. 
Reference to any agreement, document, or instrument means such
agreement, document, or instrument as amended or otherwise modified from time to time in accordance with the terms thereof,
and, if applicable, hereof.  The words “include,”
“includes” or “including” in this Agreement shall be deemed to be followed by “without
limitation.”  The use of the words “or,” “either”
or “any” shall not be exclusive.  The
parties hereto have participated jointly in the negotiation and drafting of
this Agreement.  If an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties hereto, and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of
the authorship of any of the provisions of this Agreement.

 

(f)            Governing
Law.  The
internal laws of the State of Delaware shall govern the enforceability and
validity of this Agreement, the construction of its terms and the
interpretation of the rights and duties of the parties, without regard to its
principles of conflicts of laws that would implicate the substantive or
procedural laws of any other jurisdiction.

 

(g)           Jurisdiction.  Any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall
be brought in any federal or state court located in the County and State of New
York, and each party hereby consents to the jurisdiction of such courts (and of
the appropriate appellate courts therefrom) in any such suit, action or
proceeding and irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of any
such suit, action or proceeding in any such court or that any such suit, action
or proceeding which is brought in any such court has been brought in an
inconvenient forum.  Process in any such
suit, action or proceeding may be served on any party anywhere in the world,
whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section 13(i) shall
be deemed effective service of process on such party.

 

(h)           Waiver
of Jury Trial.  Each of the parties
to this Agreement hereby agrees to waive its respective rights to a jury trial
of any claim or cause of action based upon or arising out of this
Agreement.  The scope of this waiver is
intended to be all-encompassing of any and all disputes that may be filed in
any court and that relate to the subject matter of this Agreement, including
contract claims, tort claims and all other common law and statutory
claims.  Each party hereto acknowledges
that this waiver is a material inducement to enter into this Agreement, that
each has already relied on this waiver in entering into this Agreement, and
that each will continue to rely on this waiver in their related future dealings.  Each party hereto further warrants and
represents that it has reviewed this waiver with its legal counsel and that it
knowingly and voluntarily waives its jury trial rights following consultation
with legal counsel.  THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 13(H) AND
EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT.  In the event of litigation, this Agreement
may be filed as a written consent to a trial by the court.

 

20

 

(i)            Notices.  All notices, requests, consents and other
communications required or permitted hereunder shall be in writing and shall be
hand delivered or mailed postage prepaid by registered or certified mail or by
facsimile transmission (with immediate telephone confirmation thereafter) and,
in the case of the Holders, shall also be sent via e-mail,

 

If to the Company, to: 

SIX FLAGS, INC.

1540 Broadway

New York, NY 10036

Attn:    James Coughlin

Telephone:      (212) 652-9380

Facsimile:       (212)
354-3089

 

with copies to (which
copy shall not constitute notice):

 

PAUL, HASTINGS, JANOFSKY & WALKER LLP

191 North Wacker Drive, 30th Floor

Chicago, Illinois 
60606

Telephone:  (312) 499-6000

Facsimile:   (312) 499-6100

Attn:   Paul E. Harner

Steven T. Catlett

 

and

 

PAUL, HASTINGS, JANOFSKY & WALKER LLP

75 East 55th Street

New York, New York 
10022

Telephone:  (212) 318-6000

Facsimile:   (212) 319-4090

Attn:   William
F. Schwitter

Luke P.
Iovine, III

 

If to the Holders to the
address set forth in Exhibit B and if to any transferee of any Holder, to the
address of such transferee set forth in
the Transfer documentation provided to the Company, in each case with copies to
(which copies shall not constitute notice) their respective counsel at the
address set forth in Exhibit B, or at such other address as such
party each may specify by written notice to the others, and each such notice,
request, consent and other communication shall for all purposes of the
Agreement be treated as being effective or having been given when delivered
personally, upon one Business Day after being deposited with a courier if
delivered by courier, upon receipt of facsimile confirmation (if transmitted
during the normal business hours of the recipient, otherwise such notice shall
be deemed to be effective or have been given on the next Business Day), or, if
sent by mail, at the earlier of its receipt or seventy two (72) hours after the
same has been deposited in a regularly maintained receptacle for the deposit of
United States mail, addressed and postage prepaid as aforesaid.

 

21

 

(j)            Delivery by Facsimile.  This
Agreement, the agreements referred to herein, and each other agreement or
instrument entered into in connection herewith or therewith or contemplated
hereby or thereby, and any amendments hereto or thereto, to the extent signed
and delivered by means of a facsimile machine, shall be treated in all manner
and respects as an original agreement or instrument and shall be considered to
have the same binding legal effect as if it were the original signed version
thereof delivered in person.  At the
request of any party hereto or to any such agreement or instrument, each other
party hereto or thereto shall reexecute original forms thereof and deliver them
to all other parties.  No party hereto or
to any such agreement or instrument shall raise the use of a facsimile machine
to deliver a signature or the fact that any signature or
agreement or instrument was transmitted or communicated through the use of a
facsimile machine as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

 

(k)           Entire
Agreement.  This Agreement contains
the entire agreement between the parties hereto with respect to the subject
matter hereof and supersedes and replaces all other prior agreements, written
or oral, among the parties hereto with respect to the subject matter hereof.

 

(l)            Termination.  This Agreement may be terminated at any time
by a written instrument signed by all parties hereto. Unless sooner terminated
in accordance with the preceding sentence, this Agreement (other than Section 6
hereof) shall terminate in its entirety on such date as there shall be no
Registrable Securities issued and outstanding.

 

(m)          No
Third Party Beneficiaries.  Nothing
herein expressed or implied is intended to confer upon any Person, other than
the parties hereto or their respective permitted assigns and successors any
rights, remedies, obligations or liabilities under or by reason of this
Agreement, except as set forth in Section 6 hereof.

 

(n)           Sophisticated
Parties; Advice of Counsel.  Each of
the parties to this Agreement specifically acknowledges that (i) it is a
knowledgeable, informed, sophisticated Person capable of understanding and
evaluating the provisions set forth in this Agreement and (ii) it has been fully advised and represented
by legal counsel of its own independent selection and has relied wholly upon
its independent judgment and the advice of such counsel in negotiating and
entering into this Agreement.

 

[SIGNATURE PAGES FOLLOW]

 

22

 

IN WITNESS WHEREOF, this Agreement has been duly executed by each of the
parties hereto as of the date first above written.

 

	
   

  	
  SIX FLAGS ENTERTAINMENT
  

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James Coughlin

  
	
   

  	
   

  	
  Name: James Coughlin

  
	
   

  	
   

  	
  Title: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Stark Master Fund Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Stark Offshore Management 

  LLC, its investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald T. Bobbs

  
	
   

  	
   

  	
  Name: Donald T. Bobbs

  
	
   

  	
   

  	
  Title: Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Stark Criterion Master Fund
  Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Stark Criterion Management 

  LLC, its investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald T. Bobbs

  
	
   

  	
   

  	
  Name: Donald T. Bobbs

  
	
   

  	
   

  	
  Title: Authorized
  Signatory

  

 

 

	
   

  	
  Kivu Investment Fund Limited

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Marc Nitsch

  
	
   

  	
   

  	
  Name: Marc Nitsch

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CQS Convertible and
  Quantitative 

  Strategies Master Fund Limited

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Kevin Jones

  
	
   

  	
   

  	
  Name: Kevin Jones

  
	
   

  	
   

  	
  Title: Authorised
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CQS Directional Opportunities
  Master

  Fund Limited

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Kevin Jones

  
	
   

  	
   

  	
  Name: Kevin Jones

  
	
   

  	
   

  	
  Title: Authorised
  Signatory

  

 

 

	
   

  	
  Credit Suisse Securities (USA)
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christopher S.
  Campbell

  
	
   

  	
   

  	
  Name: Christopher S. Campbell

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Credit Suisse Candlewood
  Special Situations 

  Master Fund Ltd

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Michael Lau

  
	
   

  	
   

  	
  Name: Michael Lau

  
	
   

  	
   

  	
  Title: Authorized Signatory

  

 

 

	
   

  	
  Capital Ventures International

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Susquehanna Advisors
  Group, Inc., its 

  authorized agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Joel Greenberg

  
	
   

  	
   

  	
   

  	
  Name: Joel Greenberg

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  Mariner Tricadia Credit
  Strategies Master Fund 

  Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Tricadia Capital
  Management, LLC, as 

  Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Barry Monday

  
	
   

  	
   

  	
  Name: Barry Monday

  
	
   

  	
   

  	
  Title: Chief
  Administrative Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tricadia Distressed and Special
  Situations 

  Master Fund Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Tricadia Capital
  Management, LLC, as 

  Investment Manager

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Barry Monday

  
	
   

  	
   

  	
  Name: Barry Monday

  
	
   

  	
   

  	
  Title: Chief
  Administrative Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Structured Credit Opportunities
  Fund II, LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Tricadia Capital
  Management, LLC, as 

  Investment Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Barry Monday

  
	
   

  	
   

  	
  Name: Barry Monday

  
	
   

  	
   

  	
  Title: Chief
  Administrative Officer

  

 

 

	
   

  	
  1798 Relative Value Master
  Fund, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Gary Lehrman

  
	
   

  	
   

  	
  Name: Gary Lehrman

  
	
   

  	
   

  	
  Title: PM

  

 

 

	
   

  	
  Altai Capital Master Fund, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Altai Capital Management,
  L.P., its 

  investment advisor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Toby E. Symonds

  
	
   

  	
   

  	
  Name: Toby E. Symonds

  
	
   

  	
   

  	
  Title: Managing
  Principal

  

 

 

	
   

  	
  H Partners Management LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lloyd Blumberg

  
	
   

  	
   

  	
  Name: Lloyd Blumberg

  
	
   

  	
   

  	
  Title: Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  H Offshore Fund, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: H Partners Management LLC, 

  its investment manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lloyd Blumberg

  
	
   

  	
   

  	
  Name: Lloyd Blumberg

  
	
   

  	
   

  	
  Title: Authorized
  Signatory

  

 

 

	
   

  	
  BHR Master Fund, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Michael Thompson

  
	
   

  	
   

  	
  Name: Michael Thompson

  
	
   

  	
   

  	
  Title: MD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BHCO Master, Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Michael Thompson

  
	
   

  	
   

  	
  Name: Michael Thompson

  
	
   

  	
   

  	
  Title: MD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Eternity Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Michael Thompson

  
	
   

  	
   

  	
  Name: Michael Thompson

  
	
   

  	
   

  	
  Title: MD

  

 

 

	
   

  	
  Pentwater Growth Fund Ltd.

  
	
   

  	
   

  
	
   

  	
   

  	
  By: Pentwater Capital Management LP, its investment manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Name: Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Pentwater Equity Opportunities Master Fund 

  Ltd.

  
	
   

  	
   

  
	
   

  	
   

  	
  By: Pentwater Capital Management LP, its 

  investment manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Name: Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Oceana Master Fund Ltd.

  
	
   

  	
   

  
	
   

  	
   

  	
  By: Pentwater Capital Management LP, its investment manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Name: Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LMA SPC on behalf of MAP 98 Segregated 

  Portfolio

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By: Pentwater Capital Management LP, its 

  investment manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Name: Neil Nenadovic

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer

  

 

 

	
   

  	
  Fortelus Capital Management LLP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

 

Form of Joinder
Agreement

 

Attention: President

 

Ladies and Gentlemen:

 

Reference is made to the
Registration Rights Agreement, dated as of                        
        , 2010 (as such
agreement may have been or may be amended from time to time) (the “Registration Rights Agreement”),
by and among Six Flags, Inc., a Delaware
corporation (the “Company”), each of the other parties signatory thereto
and any other parties
identified on the signature pages of any joinder agreements substantially
similar to this joinder agreement executed and delivered pursuant to Section 10
of the Registration Rights Agreement.  Capitalized terms used but not otherwise
defined herein have the meanings set forth in the Registration Rights
Agreement.

 

In consideration of the transfer to the undersigned of Registrable
Securities of the Company, the undersigned represents that it is a transferee
of [insert name of transferor] and agrees that, as of the date written below,
the undersigned shall become a party to the Registration Rights Agreement, and
shall be fully bound by, and subject to, all of the covenants, terms and
conditions of the Registration Rights Agreement as though an original party
thereto.

 

[SIGNATURE PAGE
FOLLOWS]

 

 

 

 

Executed as of the                
day of                              ,
           .

 

TRANSFEREE: [insert name of transferee]

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

Address:

 

 

 

Acknowledged and agreed by:

 

 

SIX FLAGS ENTERTAINMENT
CORPORATION

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:
  PresidentExhibit 10.1

 

SIX FLAGS
ENTERTAINMENT CORPORATION

LONG-TERM
INCENTIVE PLAN

 

1.                                       Introduction.

 

(a)                                  Purpose.  Six
Flags Entertainment Corporation, a Delaware corporation (the “Company”) hereby
establishes this equity-based incentive compensation plan to be known as the “Six
Flags Entertainment Corporation Long-Term Incentive Plan” (the “Plan”),
for the following purposes: (i) to enhance the Company’s ability to
attract highly qualified personnel; (ii) to strengthen its retention
capabilities; (iii) to enhance the long-term performance and competitiveness of the Company; and (iv) to align the interests of Plan
participants with those of the Company’s shareholders.

 

(b)                                 Effective Date.  This
Plan shall become effective on the effective date of the Company’s Modified Fourth Amended Joint Plan of Reorganization Under
Chapter 11 of the Bankruptcy Code (“Plan of Reorganization”), dated as of April 1,
2010, as the same may be further amended or modified (“Effective Date”).

 

(c)                                  Definitions. 
Terms in the Plan and any Appendix that begin with an initial capital
letter have the defined meaning set forth in Appendix I
or elsewhere in this Plan, in either case unless the context of their use
clearly indicates a different meaning.

 

(d)                                 Effect on Other Plans, Awards,
and Arrangements.  This Plan is not intended to affect and shall
not affect any stock options, equity-based compensation, or other benefits that
the Company or its Affiliates may have provided, or may separately provide in
the future, pursuant to any agreement, plan, or program that is independent of
this Plan.

 

(e)                                  Appendices. 
Incorporated by reference and thereby part of the Plan are the terms set
forth in the following appendices:

 

	
  Appendix I

  	
  Definitions

  

 

2.                                       Types of Awards.  The Plan permits the granting of the following types
of Awards according to the Sections of the Plan listed here:

 

	
  Section 5

  	
  Stock Options

  
	
  Section 6

  	
  Share Appreciation
  Rights (SARs)

  
	
  Section 7

  	
  Restricted Shares,
  Restricted Share Units (RSUs), and Unrestricted Shares

  
	
  Section 8

  	
  Deferred Share Units
  (DSUs)

  
	
  Section 9

  	
  Performance and
  Cash-settled Awards

  
	
  Section 10

  	
  Dividend Equivalent
  Rights

  

 

3.                                       Shares Available for
Awards.

 

(a)                                  Generally, subject to Section 13 below, a
total of 4,833,333 Shares shall be available for issuance under the Plan as of
the Effective Date, and if and to the extent the Delayed Draw

 

 

Equity Purchase (as defined in the Plan of
Reorganization) is consummated, up to 149,956 additional Shares shall be
available for issuance under the Plan.  At
least one-third of the total Shares available for issuance under the Plan shall
be subject to grants of Restricted Shares or Restricted Share Units and the
remainder of the Shares available for issuance under the Plan shall be subject
to Awards other than Restricted Shares or Restricted Share Units.  The Shares deliverable pursuant to Awards shall
be authorized but unissued Shares, or Shares that the Company otherwise holds
in treasury or in trust.

 

(b)                                 Replenishment; Counting of
Shares.  Any Shares reserved for Plan Awards will again
be available for future Awards if the Shares for any reason will never be
issued to a Participant or Beneficiary pursuant to an Award (for example, due
to its settlement in cash rather than in Shares, or the Award’s forfeiture,
cancellation, expiration, or net settlement without the issuance of Shares).  Further, and to the extent permitted under
Applicable Law, the maximum number of Shares available for delivery under the
Plan shall not be reduced by any Shares issued under the Plan through the settlement,
assumption, or substitution of outstanding awards or obligations to grant
future awards as a condition of the Company’s or an Affiliate’s acquiring
another entity.  On the other
hand, Shares that a Person owns and tenders in payment of all or part of the
exercise price of an Award or in satisfaction of applicable Withholding Taxes shall
not increase the number of Shares available for future issuance under the Plan.  Awards settled in cash will not count against
the maximum number of Shares issuable under the Plan.

 

(c)                                  ISO Share Reserve.  The number of Shares that are available for ISO Awards shall
not exceed 3,000,000 Shares (as adjusted pursuant to Section 13 of the
Plan, and as determined in accordance with Code Section 422).

 

4.                                       Eligibility.

 

(a)                                  General Rule.  Subject
to the express provisions of the Plan, the Committee shall determine from the
class of Eligible Persons those Persons to whom Awards may be granted.  Each Award shall be evidenced by an Award
Agreement that sets forth its Grant Date and all other terms and conditions of
the Award, that is signed on behalf of the Company (or delivered by an
authorized agent through an electronic medium), and that, if required by the
Committee, is signed by the Eligible Person as an acceptance of the Award.  The grant of an Award shall not obligate the Company or
any Affiliate to continue the employment or service of any Eligible Person, or
to provide any future Awards or other remuneration at any time thereafter.

 

(b)                                 Option and SAR Limits per Person.  During
the term of the Plan, no Participant may receive Options and SARs that relate
to more than 50% of the maximum number of Shares issuable under the Plan as of
its Effective Date, as such number may be adjusted pursuant to Section 13(a) below.

 

(c)                                  Replacement Awards. 
Subject to Applicable Law (including any associated shareholder approval
requirements), the Committee may, in its sole discretion and upon such terms as
it deems appropriate, require as a condition of the grant of an Award to a
Participant that the Participant, with the Participant’s consent, surrender for
cancellation some or all of the Awards or other grants that the Participant has
received under this Plan or otherwise. 
An Award conditioned upon such surrender may or may not be the same type
of Award, may cover the same (or a lesser or greater) number of Shares as such
surrendered Award, may have other terms that are determined without

 

2

 

regard to the terms or conditions of such surrendered
Award, and may contain any other terms that the Committee deems
appropriate.  However, neither the Company
nor the Committee shall, without shareholder approval, either (a) allow
for a “repricing” within the meaning of federal securities laws applicable to
proxy statement disclosures, or (b) cancel an outstanding Option or SAR whose
exercise price is greater than Fair Market Value at the time of cancellation
for the purpose of reissuing the Option or SAR to the Participant at a lower
exercise price or granting a replacement award of a different type.

 

5.                                       Stock Options.

 

(a)                                  Grants.  Subject to the special rules for ISOs set forth
in the next paragraph, the Committee may grant Options to Eligible Persons
pursuant to Award Agreements setting forth terms and conditions that are not
inconsistent with the Plan, that may be immediately exercisable or that may
become exercisable in whole or in part based on future events or conditions, that
may include vesting or other requirements for the right to exercise the Option,
and that may differ for any reason between Eligible Persons or classes of
Eligible Persons, provided in all instances
that:

 

(i)                                     the exercise price for Shares subject to
purchase through exercise of an Option shall not be less than 100%  of the Fair Market Value of the underlying Shares on the Grant
Date; and

 

(ii)                                  no Option shall be exercisable for a term
ending more than ten years after its Grant Date.

 

(b)                                 Special ISO Provisions. 
The following provisions shall control any grants of Options that are
denominated as ISOs.

 

(i)                                     Eligibility. 
The Committee may grant ISOs only to Employees (including officers who
are Employees) of the Company or an Affiliate that is a “parent corporation” or
“subsidiary corporation” within the meaning of Code Section 424.

 

(ii)                                  Documentation.  Each
Option that is intended to be an ISO must be designated in the Award Agreement
as an ISO, provided that any Option
designated as an ISO will be a Non-ISO to the extent the Option fails to meet
the requirements of Code Section 422. 
In the case of an ISO, the Committee shall determine on the Date of
Grant the acceptable methods of paying the exercise price for Shares, and it
shall be included in the applicable Award Agreement.

 

(iii)                               $100,000 Limit. 
To the extent that the aggregate Fair Market Value of Shares with
respect to which ISOs first become exercisable by a Participant in any calendar
year (under this Plan and any other plan of the Company or any Affiliate)
exceeds U.S. $100,000, such excess Options shall be treated as Non-ISOs.  For purposes of determining whether the U.S.
$100,000 limit is exceeded, the Fair Market Value of the Shares subject to an
ISO shall be determined as of the Grant Date. 
In reducing the number of Options treated as ISOs to meet the U.S.
$100,000 limit, the most recently granted

 

3

 

Options shall be
reduced first.  In the event that Code Section 422
is amended to alter the limitation set forth therein, the limitation of this
paragraph shall be automatically adjusted accordingly.

 

(iv)                              Grants to 10% Holders. 
In the case of an ISO granted to an Employee who is a Ten Percent Holder
on the Grant Date, the ISO’s term shall not exceed five years from the Grant
Date, and the exercise price shall be at least 110% of the Fair Market Value of
the underlying Shares on the Grant Date. 
In the event that Code Section 422 is amended to alter the
limitations set forth therein, the limitation of this paragraph shall be
automatically adjusted accordingly.

 

(v)                                 Substitution of Options.  In
the event the Company or an Affiliate acquires (whether by purchase, merger, or
otherwise) all or substantially all of outstanding capital stock or assets of
another corporation or in the event of any reorganization or other transaction
qualifying under Code Section 424, the Committee may, in accordance with
the provisions of that Section, substitute ISOs for ISOs previously granted under
the plan of the acquired company provided (A) the excess of the aggregate
Fair Market Value of the Shares subject to an ISO immediately after the
substitution over the aggregate exercise price of such shares is not more than
the similar excess immediately before such substitution, and (B) the new
ISO does not give additional benefits to the Participant, including any
extension of the exercise period.

 

(vi)                              Notice of Disqualifying Dispositions. 
By executing an ISO Award Agreement, each Participant agrees to notify
the Company in writing immediately after the Participant sells, transfers or
otherwise disposes of any Shares acquired through exercise of the ISO, if such
disposition occurs within the earlier of (A) two years of the Grant Date,
or (B) one year after the exercise of the ISO being exercised.  Each Participant further agrees to provide
any information about a disposition of Shares as may be requested by the
Company to assist it in complying with any applicable tax laws.

 

(c)                                  Method of Exercise.  Each
Option may be exercised, in whole or in part (provided
that the Company shall not be required to issue fractional shares) at any time
and from time to time prior to its expiration, but only pursuant to the terms
of the applicable Award Agreement, and subject to the times, circumstances and
conditions for exercise contained in the applicable Award Agreement.  Exercise shall occur by delivery of both written
notice of exercise to the secretary of the Company, and payment of the full
exercise price for the Shares being purchased. 
The methods of payment that the Committee may in its discretion accept
or commit to accept in an Award Agreement include:

 

(i)                                     cash or check payable to the Company (in
U.S. dollars);

 

(ii)                                  other Shares that (A) are owned by
the Participant who is purchasing Shares pursuant to an Option, (B) have a Fair
Market Value on the date of surrender equal to the aggregate exercise price of
the Shares as to which the Option is being exercised, (C) are all, at

 

4

 

the time of such
surrender, free and clear of any and all claims, pledges, liens and
encumbrances, or any restrictions which would in any manner restrict the
transfer of such shares to or by the Company (other than such restrictions as
may have existed prior to an issuance of such Shares by the Company to such
Participant), and (D) are duly endorsed for transfer to the Company;

 

(iii)                               a net exercise by surrendering to the Company Shares otherwise receivable
upon exercise of the Option;

 

(iv)                              a cashless exercise program, pursuant to
which a Participant may elect to concurrently provide irrevocable instructions (A) to
such Participant’s broker or dealer to effect the immediate sale of the
purchased Shares and remit to the Company, out of the sale proceeds available
on the settlement date, sufficient funds to cover the exercise price of the
Option plus all applicable taxes required to be withheld by the Company by
reason of such exercise, and (B) to the Company to deliver the
certificates for the purchased Shares directly to such broker or dealer in
order to complete the sale; or

 

(v)                                 any combination of the foregoing methods
of payment.

 

The
Company shall not be required to deliver Shares pursuant to the exercise of an
Option until the Company has received sufficient funds to cover the full
exercise price due and all applicable Withholding Taxes required by reason of
such exercise.

 

Notwithstanding any other
provision of the Plan to the contrary, no Participant who is a Director or an “executive
officer” of the Company within the meaning of Section 13(k) of the
Exchange Act shall be permitted to make payment with respect to any Awards
granted under the Plan, or continue any extension of credit with respect to
such payment with a loan from the Company or a loan arranged by the Company in
violation of Section 13(k) of the Exchange Act.

 

(d)                                 Exercise of an Unvested Option.  The
Committee in its sole discretion may allow a Participant to exercise an unvested
Option, in which case the Shares then issued shall be Restricted Shares having
analogous vesting restrictions to the unvested Option.

 

(e)                                  Termination of Continuous Service.  The
Committee may establish and set forth in the applicable Award Agreement the
terms and conditions on which an Option shall remain exercisable, if at all,
following termination of a Participant’s Continuous Service.  The Committee may waive or modify these
provisions at any time.  To the extent
that a Participant is not entitled to exercise an Option at the date of his or
her termination of Continuous Service, or if the Participant (or other person
entitled to exercise the Option) does not exercise the Option to the extent so
entitled within the time specified in the Award Agreement or below (as
applicable), the Option shall terminate and the Shares underlying the
unexercised portion of the Option shall revert to the Plan and become available
for future Awards.

 

The
following provisions shall apply to the extent an Award Agreement does not
specify the terms and conditions upon which an Option shall terminate when
there is a termination of a Participant’s Continuous Service:

 

5

 

	
  Reason
  for terminating Continuous Service

  	
   

  	
  Option Termination Date

  
	
  (I) By the Company
  for Cause, or what would have been Cause if the Company had known all of the
  relevant facts.

  	
   

  	
  Termination of the Participant’s
  Continuous Service, or when Cause first existed if earlier.

  
	
  (II) Disability of
  the Participant.

  	
   

  	
  Within one  year after termination of the Participant’s Continuous
  Service.

  
	
  (III) Retirement
  of the Participant after age 60  with five
  years or more of Continuous Service.

  	
   

  	
  Within one  year after termination of the Participant’s Continuous
  Service.

  
	
  (IV) Death of the
  Participant during Continuous Service or within 90  days
  thereafter.

  	
   

  	
  Within one  year after termination of the Participant’s Continuous Service.

  
	
  (V) Other than due
  to Cause or the Participant’s Disability, Retirement, or Death.

  	
   

  	
  Within 90 days after
  termination of the Participant’s Continuous Service.

  

 

If there is a Securities and Exchange Commission
blackout period (or a Committee-imposed blackout period) that prohibits the
buying or selling of Shares during any part of the ten day period before the
expiration of any Option based on the termination of a Participant’s Continuous
Service (as described above), the period for exercising the Options shall be
extended until ten days beyond when such blackout period ends.  Notwithstanding any provision hereof or
within an Award Agreement, no Option shall ever be exercisable after the
expiration date of its original term as set forth in the Award Agreement.

 

6.                                       SARs.

 

(a)                                  Grants.  The Committee may grant SARs to Eligible Persons
pursuant to Award Agreements setting forth terms and conditions that are not
inconsistent with the Plan; provided
that:

 

(i)                                   the exercise price for the Shares subject
to each SAR shall not be less than 100%of the Fair Market Value of the underlying
Shares on the Grant Date;

 

(ii)                                no SAR shall be exercisable for a term
ending more than ten years after its Grant Date; and

 

(iii)                             each SAR shall, except to the extent an
SAR Award Agreement provides otherwise, be subject to the provisions of Section 5(e) relating
to the effect of a termination of Participant’s Continuous Service with “SAR”
being substituted for “Option.”

 

(b)                                 Settlement.  Subject to the Plan’s terms, an SAR shall entitle the
Participant, upon exercise of the SAR, to receive Shares having a Fair Market
Value on the date of exercise equal to the product of the number of Share as to
which the SAR is being exercised, and the excess of (i) the Fair Market
Value, on such date, of the Shares covered by the exercised SAR, over (ii) an
exercise price designated in the SAR Award Agreement.  Notwithstanding the foregoing, an SAR Award
Agreement may limit the total settlement value that the Participant will be
entitled to receive upon the SAR’s exercise, and may provide for settlement
either in cash or in any combination of cash or

 

6

 

Shares that the Committee may authorize pursuant to an
Award Agreement.  If, on the date on
which an SAR or portion thereof is to expire, the Fair Market Value exceeds the
per Share exercise price of such SAR, then the SAR shall be deemed exercised
and the Participant will be entitled to receive the settlement proceeds
otherwise payable had the Participant affirmatively exercised the SAR on that
date.

 

(c)                                  SARs related to Options. 
The Committee may grant SARs either concurrently with the grant of an
Option or with respect to an outstanding Option, in which case the SAR shall
extend to all or a portion of the Shares covered by the related Option, and
shall have an exercise price that is not less than the exercise price of the
related Option.  An SAR shall entitle the
Participant who holds the related Option, upon exercise of the SAR and
surrender of the related Option, or portion thereof, to the extent the SAR and
related Option each were previously unexercised, to receive payment of an
amount determined pursuant to Section 6(b) above.  Any SAR granted in tandem with an ISO will
contain such terms as may be required to comply with the provisions of Code Section 422.

 

(d)                                 Effect on Available Shares.  At each time of a exercise of an SAR that is settled
in Shares, only those Shares that are issued or delivered in settlement of the
exercise shall be counted against the number of Shares available for Awards
under the Plan; provided that the number of
Shares that are issued or delivered pursuant to the exercise of an SAR shall
not exceed the number of Shares specified in the Award Agreement as being
subject to the SAR Award.

 

7.                                       Restricted Shares, RSUs,
and Unrestricted Share Awards.

 

(a)                                  Grant.  The Committee may grant Restricted Share, RSU, or
Unrestricted Share Awards to Eligible Persons, in all cases pursuant to Award
Agreements setting forth terms and conditions that are not inconsistent with
the Plan.  The Committee shall establish
as to each Restricted Share or RSU Award the number of Shares deliverable or
subject to the Award (which number may be determined by a written formula), and
the period or periods of time (the “Restriction Period”)
at the end of which all or some restrictions specified in the Award Agreement shall
lapse, and the Participant shall receive unrestricted Shares (or cash to the
extent provided in the Award Agreement) in settlement of the Award.   Such
restrictions may include, without limitation, restrictions concerning voting
rights and transferability, and such restrictions may lapse separately or in
combination at such times and pursuant to such circumstances or based on such
criteria as selected by the Committee, including, without limitation, criteria
based on the Participant’s duration of employment, directorship or consultancy
with the Company, individual, group, or divisional performance criteria,
Company performance, or other criteria selection by the Committee. The
Committee may make Restricted Share and RSU Awards with or without the
requirement for payment of cash or other consideration.  In addition, the Committee may grant Awards
hereunder in the form of Unrestricted Shares which shall vest in full upon the Grant
Date or such other date as the Committee may determine or which the Committee
may issue pursuant to any program under which one or more Eligible Persons
(selected by the Committee in its sole discretion) elect to pay for such Shares
or to receive Unrestricted Shares in lieu of cash bonuses that would otherwise
be paid.

 

(b)                                 Vesting and Forfeiture.  The Committee shall set forth, in an Award Agreement
granting Restricted Shares or RSUs, the terms and conditions under which the
Participant’s interest in the Restricted Shares or the Shares subject to RSUs
will become vested and non-forfeitable.

 

7

 

Except as set forth in the applicable Award Agreement
or as the Committee otherwise determines, upon termination of a Participant’s Continuous
Service for any reason, the Participant shall forfeit his or her Restricted
Shares and RSUs to the extent the Participant’s interest therein has not vested
on or before such termination date; provided
that if a Participant purchases Restricted Shares and forfeits them for any
reason, the Company shall return the purchase price to the Participant to the
extent either set forth in an Award Agreement or required by Applicable Laws.

 

(c)                                  Certificates for Restricted
Shares.  Unless otherwise provided in an Award Agreement, the
Company shall hold certificates representing Restricted Shares and dividends (whether
in Shares or cash) that accrue with respect to them until the restrictions
lapse, and the Participant shall provide the Company with appropriate stock
powers endorsed in blank. The Participant’s failure to provide such stock
powers within ten days after a written request from the Company shall entitle
the Committee to unilaterally declare a forfeiture of all or some of the
Participant’s Restricted Shares.

 

(d)                                 Section 83(b) Elections. 
A Participant may make an election under Code Section 83(b) (the
“Section 83(b) Election”) with
respect to Restricted Shares.  A
Participant who has received RSUs may, within ten days after receiving the RSU
Award, provide the Committee with a written notice of his or her desire to make
Section 83(b) Election with respect to the Shares subject to such
RSUs.  The Committee may in its
discretion convert the Participant’s RSUs into Restricted Shares, on a
one-for-one basis, in full satisfaction of the Participant’s RSU Award.  The Participant may then make a Section 83(b) Election
with respect to those Restricted Shares; provided that the Participant’s Section 83(b) Election
will be invalid if not filed with the Company and the appropriate U.S. tax
authorities within 30 days after the Grant Date of the RSUs replaced by the
Restricted Shares.

 

(e)                                  Deferral Elections for RSUs.  To
the extent specifically provided in an Award Agreement, a Participant may
irrevocably elect, in accordance with Section 8 below, to defer the
receipt of all or a percentage of the Shares that would otherwise be
transferred to the Participant upon the vesting of an RSU Award provided the
election is made on or before the 30th day following the Grant Date of the RSU
Award and at least 12 months in advance of the earliest date the RSU Award
could vest.  If the Participant makes
this election, the Company shall credit the Shares subject to the election, and
any associated Shares attributable to Dividend Equivalent Rights attached to
the Award, to a DSU account established pursuant to Section 8 below on the
date such Shares would otherwise have been delivered to the Participant
pursuant to this Section.

 

(f)                                    Issuance of Shares upon Vesting. 
As soon as practicable after vesting of a Participant’s Restricted
Shares (or of the right to receive Shares underlying RSUs), the Company shall
deliver to the Participant, free from vesting restrictions, one Share for each
surrendered and vested Restricted Share (or deliver one Share free of the
vesting restriction for each vested RSU), unless an Award Agreement provides
otherwise and subject to Section 11 regarding Withholding Taxes.  No fractional Shares shall be distributed,
and cash shall be paid in lieu thereof.

 

8.                                       DSUs.

 

(a)                                  Elections to Defer. 
The Committee may make DSU awards to Eligible Persons who are Directors,
Consultants, or members of a select group of management or highly compensated
Employees (within the meaning of ERISA) pursuant to Award Agreements
(regardless of whether or not there is a deferral of the Eligible Person’s
compensation), and may permit select Eligible 

 

8

 

Persons to irrevocably elect, on a form provided by
and acceptable to the Committee (the “Election Form”),
to forego the receipt of cash or other compensation (including the Shares
deliverable pursuant to any RSU Award) and in lieu thereof to have the Company
credit to an internal Plan account a number of DSUs having a Fair Market Value
equal to the Shares and other compensation deferred.  These credits will be made at the end of each
calendar quarter (or other period determined by the Committee) during which
compensation is deferred.  In general,
subject to Section 7(e) regarding deferral of Restricted Shares and
Restricted Share Units and to Section 9(e) regarding deferral of
Performance Awards, Election Forms must be submitted to the Committee no later
than December 31st of the calendar year preceding the calendar year in
which the Eligible Person first performs the services that are attributable to
the compensation being deferred. 
Notwithstanding the foregoing, any Eligible Person who first becomes
eligible to defer compensation under the Plan and is not eligible to defer or
otherwise accrue an amount of deferred compensation under any other plan or
arrangement that (i) is maintained by the Company or any other Affiliate
that would be considered a single employer with the Company pursuant to Code
Sections 414(b) or 414(c) and (ii) constitutes a single plan
under Treasury Regulation §1.409A-1(c)(2)(A), may submit his or her Election Form to
the Committee no later than 30 days after the date the Eligible Person first
becomes eligible to defer compensation under the Plan; however, the Election Form may
relate only to compensation that is to be paid for services performed after the
date the Election Form is submitted to the Committee.  The Committee may reject any Election Form that
it determines in its sole discretion does not satisfy the requirements of this
paragraph.  The Committee may
unilaterally make Awards in the form of Deferred Share Units, regardless of
whether or not the Participant foregoes other compensation.

 

(b)                                 Vesting. 
Unless an Award Agreement expressly provides otherwise, each Participant
shall be 100% vested at all times in any Shares subject to DSUs.

 

(c)                                  Issuances of Shares.  Unless
an Award Agreement expressly provides otherwise, the Company shall settle a
Participant’s DSU Award, by delivering one Share for each DSU, in five
substantially equal annual installments that are issued before the last day of
each of the five calendar years that end after the date on which the
Participant incurs a “separation from service” within the meaning of Treasury
Regulations §1.409A-1(h) and as further described in Section 8(e) hereof
(“Separation from Service”), subject to —

 

(i)                                     the Participant’s right to elect a
different form of distribution, only on a form provided by and acceptable to the
Committee, that permits the Participant to select any combination of a lump sum
and annual installments that are triggered by, and completed within ten years
following, the last day of the Participant’s Separation from Service, and

 

(ii)                                  the Company’s acceptance of the
Participant’s distribution election form executed at the time the Participant
elects to defer the receipt of cash or other compensation pursuant to Section 8(a),
provided that the Participant may
change a distribution election through any subsequent election that (A) the
Participant delivers to the Company at least one year before the date on which
distributions are otherwise scheduled to commence pursuant to the Participant’s
initial distribution election, and (B) defers the commencement of
distributions by at least five years from the originally scheduled distribution
commencement date.

 

Fractional shares shall
not be issued, and instead shall be paid out in cash

 

9

 

Notwithstanding anything
in this Plan or an Award Agreement to the contrary, if, at the time of the
Participant’s Separation from Service, the Participant is a “specified employee”
(within the meaning of Section 409A of the Code and Treasury Regulation Section 1.409A-1(i)),
the Company will not pay or provide any “Specified Benefits” (as defined
herein) during the six-month period beginning after the date of the Participant’s
Separation from Service (the “409A Suspension Period”).  In the event of a Participant’s death, however,
the Specified Benefits shall be paid to the Participant’s Beneficiary without
regard to the 409A Suspension Period. 
For purposes of this Plan, “Specified Benefits” are any portion of the
Participant’s DSU Award that would be subject to Section 409A additional
taxes if the Company were to pay it on account of the Participant’s Separation
from Service.  Within 14 calendar days
after the end of the 409A Suspension Period, the Participant shall be paid a
lump-sum payment equal to any Specified Benefits delayed during the 409A
Suspension Period.

 

(d)                                 Emergency Withdrawals. 
In the event that a Participant suffers an unforeseeable emergency
within the contemplation of this Section, the Participant may apply to the Committee
for an immediate distribution of all or a portion of the Participant’s DSUs.  The unforeseeable emergency must result from
a sudden and unexpected illness or accident of the Participant, the Participant’s
spouse, or a dependent (within the meaning of Code Section 152) of the
Participant, casualty loss of the Participant’s property, or other similar
extraordinary and unforeseeable conditions beyond the control of the
Participant.  The Committee shall, in its
sole and absolute discretion, determine whether a Participant has a qualifying
unforeseeable emergency, may require independent verification of the emergency,
and may determine whether or not to provide the Participant with cash or
Shares.  Examples of purposes which are
not considered unforeseeable emergencies include post-secondary school expenses
or the desire to purchase a residence. 
In no event will a distribution be made to the extent the unforeseeable
emergency could be relieved through reimbursement or compensation by insurance
or otherwise, or by liquidation of the Participant’s nonessential assets to the
extent such liquidation would not itself cause a severe financial
hardship.  The amount of any distribution
hereunder shall be limited to the amount necessary to relieve the Participant’s
unforeseeable emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution. 
The number of Shares subject to the Participant’s DSU Award shall be
reduced by any Shares distributed to the Participant and by a number of Shares
having a Fair Market Value on the date of the distribution equal to any cash
paid to the Participant pursuant to this Section.  For all DSUs granted to Participants who are
U.S. taxpayers, the term “unforeseeable emergency” shall be interpreted in
accordance with Code Section 409A.

 

(e)                                  Separation from Service. 
For purposes of this Section 8, a Participant incurs a Separation
from Service when the Participant ceases to perform services for the Company
and any entity that would be considered a single employer with the Company
under Code section 414(b) or 414(c) (but modified by substituting 50
percent for 80 percent each place it appears in Code section 1563(a)(1), (2) and
(3), for purposes of Code section 414(b), and each plan it appears in Treas.
Reg. § 1.414(c)-2, for purposes of Code section 414(c)) (collectively “Employer”)
for any reason.  A Separation from
Service will be deemed to occur if the Employer and the Participant reasonably
anticipate that the Participant shall perform no further services (whether as
an employee or an independent contractor) or that the level of bona fide services the Participant will perform in the
future (whether as an employee or an independent contractor) will permanently
decrease to no more than 20 percent of the average level of bona fide services performed (whether as an employee or
independent contractor) over the immediately preceding 36-month period.  A Participant on an

 

10

 

authorized, bona fide leave
of absence shall experience a Separation from Service on the first day of the
seventh (7th) month of such leave, unless the Participant’s right to
reemployment with an Employer is provided either by statute or contract.  A leave of absence constitutes a bona fide leave of absence only if there is a reasonable
expectation that the Participant will return to perform services for the
Employer.  For purposes of the 36-month
period described above, (a) a Participant who is on a paid bona fide leave of absence is treated as providing bona fide services at a level of equal to the level of
services that the Participant would have been required to perform to receive
the compensation paid during the leave of absence, and (b) unpaid bona fide leaves of absence are disregarded.

 

9.                                       Performance and
Cash-Settled Awards.

 

(a)                                  Performance Units. 
Subject to the limitations set forth in paragraph (b) hereof, the
Committee may in its discretion grant Performance Awards, including Performance
Units to any Eligible Person, including Performance Unit Awards that (i) have
substantially the same financial benefits and other terms and conditions as
Options, SARs, RSUs, or DSUs, but (ii) are settled only in cash.  All Awards hereunder shall be made pursuant
to Award Agreements setting forth terms and conditions that are not inconsistent
with the Plan.

 

(b)                                 Performance
Compensation Awards.  Subject to the limitations set forth in this Section,
the Committee may, at the time of grant of a Performance Unit, designate such
Award as a “Performance Compensation Award”
(payable in cash or Shares) in order that such Award constitutes, and has terms
and conditions that are designed to qualify as, “qualified performance-based
compensation” under Code Section 162(m). 
With respect to each such Performance Compensation Award, the Committee
shall establish, in writing within the time required under Code Section 162(m),
a “Performance Period,” “Performance Measure(s)”, and “Performance Formula(e)” (each such
term being defined below).  Once
established for a Performance Period, the Performance Measure(s) and
Performance Formula(e) shall not be amended or otherwise modified to the
extent such amendment or modification would cause the compensation payable
pursuant to the Award to fail to constitute qualified performance-based
compensation under Code Section 162(m).

 

A Participant shall be eligible to receive payment in
respect of a Performance Compensation Award only to the extent that the
Performance Measure(s) for such Award is achieved and the Performance
Formula(e) as applied against such Performance Measure(s) determines
that all or some portion of such Participant’s Award has been earned for the
Performance Period.  As soon as
practicable after the close of each Performance Period, the Committee shall
review and certify in writing whether, and to what extent, the Performance
Measure(s) for the Performance Period have been achieved and, if so,
determine and certify in writing the amount of the Performance Compensation
Award to be paid to the Participant and, in so doing, may use negative
discretion to decrease, but not increase, the amount of the Award otherwise
payable to the Participant based upon such performance

 

(c)                                  Limitations on Awards. 
The maximum Performance Award and the maximum Performance Compensation
Award that any one Participant may receive for any one Performance Period,
without regard to time of vesting or exercisability, shall not together exceed 750,000
Shares, as adjusted pursuant to Section 13 below (or, for Performance
Units to be settled in cash, U.S. $5,000,000). 
Any amounts earned in excess of these limitations, if any, will be
deferred until the first

 

11

 

taxable year in which the Committee reasonably
anticipates that the Company’s tax deduction for such amounts will not be disallowed
under Code Section 162(m).

 

(d)                                 Definitions.

 

(i)                                     “Performance Formula”
means, for a Performance Period, one or more objective formulas or standards
established by the Committee for purposes of determining whether or the extent
to which an Award has been earned based on the level of performance attained or
to be attained with respect to one or more Performance Measure(s).  Performance Formulae may vary from
Performance Period to Performance Period and from Participant to Participant
and may be established on a stand-alone basis, in tandem or in the alternative.

 

(ii)                                  “Performance Measure”
means one or more of the following selected by the Committee to measure the
performance of the individual Participant, the Company or of an Affiliate or a
division, department, park, region or function of the Company or any Affiliate
in which the Participant is employed for a Performance Period, whether in
absolute or relative terms (including, without limitation, terms relative to a
peer group or index):  basic, diluted, or
adjusted earnings per share; sales or revenue; earnings before interest, taxes,
and other adjustments (in total or on a per share basis); basic or adjusted net
income; returns on equity, assets, capital, revenue or similar measure;
economic value added; working capital; total shareholder return; expenses, cash
flow, margin, attendance, and product development, product market share,
licensing, mergers, acquisitions, sales of assets of Affiliates or business
units.  Each such measure shall be, to
the extent applicable, determined in accordance with generally accepted
accounting principles as consistently applied by the Company (or such other
standard applied by the Committee) and, if so determined by the Committee, and
in the case of a Performance Compensation Award, to the extent permitted under
Code Section 162(m), adjusted to omit the effects of extraordinary items,
gain or loss on the disposal of a business segment, unusual or infrequently
occurring events and transactions and cumulative effects of changes in
accounting principles, or other events or circumstances that render the
Performance Measures unsuitable. 
Performance Measures may vary from Performance Period to Performance
Period and from Participant to Participant, and may be established on a
stand-alone basis, in tandem or in the alternative.

 

(iii)                               “Performance Period”
means one or more periods of time (of not less than one fiscal year of the
Company), as the Committee may designate, over which the attainment of one or
more Performance Measure(s) will be measured for the purpose of
determining a Participant’s rights in respect of an Award.

 

(e)                                  Deferral Elections.  At
any time prior to the date that is both at least six months before the close of
a Performance Period with respect to a Performance Award and at which time
vesting or payment is substantially uncertain to occur, the Committee may
permit a Participant who is a member of a select group of management or highly
compensated employees (within the meaning of ERISA) to irrevocably elect, on a
form provided by and acceptable to the Committee, to defer the receipt of all
or a percentage of the cash or Shares that would otherwise be transferred to
the Participant upon the vesting of such Award. 
If the Participant makes this election, the cash or

 

12

 

Shares subject to the election, and any associated
interest and dividends, shall be credited to an account established pursuant to
Section 8 hereof on the date such cash or Shares would otherwise have been
released or issued to the Participant pursuant to this Section.

 

10.                                 Dividend Equivalent Rights.  The
Committee may grant Dividend Equivalent Rights to any Eligible Person, and may
do either pursuant to an Award Agreement that is independent of any other
Award, or through a provision in another Award (other than an Option or SAR)
that Dividend Equivalent Rights attach to the Shares underlying the Award.  For example, and without limitation, the
Committee may grant a Dividend Equivalent Right in respect of each Share
subject to a Restricted Stock Award, Restricted Stock Unit Award, Deferred
Stock Unit, or Performance Share Award.

 

(a)                                  Nature of Right.  Each
Dividend Equivalent Right shall represent the right to receive amounts based on
the dividends declared on Shares as of all dividend payment dates during the
term of the Dividend Equivalent Right as determined by the Committee.  Unless otherwise determined by the Committee,
a Dividend Equivalent Right shall expire upon termination of the Participant’s
Continuous Service, provided that a Dividend Equivalent Right that is granted
as part of another Award shall expire only when the Award is settled or
otherwise forfeited.

 

(b)                                 Settlement.  Unless
otherwise provided in an Award Agreement, Dividend Equivalent Rights shall be paid
out on the (i) on the date dividends are paid to the Company’s
shareholders if the Award occurs on a stand-alone basis, and (ii) on the
vesting or later settlement date for another Award if the Dividend Equivalent
Right is granted as part of it.  Payment
of all amounts determined in accordance with this Section shall be in
Shares, with cash paid in lieu of fractional Shares, provided that the
Committee may instead provide in an Award Agreement for cash settlement of all
or part of the Dividend Equivalent Rights.  Only the Shares actually issued pursuant to
Dividend Equivalent Rights shall count against the limits set forth in Section 3
above.

 

(c)                                  Other Terns.  The
Committee may impose such other terms and conditions on the grant of a Dividend
Equivalent Right as it deems appropriate in its discretion as reflected by the
terms of the Award Agreement. The Committee may establish a program under which
Dividend Equivalent Rights may be granted in conjunction with other Awards.  The Committee may also authorize, for any
Participant or group of Participants, a program under which the payments with
respect to Dividend Equivalent Rights may be deferred pursuant to the terms and
conditions determined under Section 9 above.

 

13

 

11.           Taxes; Withholding.

 

(a)           General Rule. 
Participants are solely responsible and liable for the satisfaction of
all taxes and penalties that may arise in connection with Awards including
without limitation any taxes or penalties arising under Code Section 409A, and
neither the Company, any Affiliate, nor any of their employees, directors, or
agents shall have any obligation to mitigate, indemnify, or to otherwise hold
any Participant harmless from any or all of such taxes.  The Company’s obligation to deliver Shares
(or to pay cash) to Participants pursuant to Awards is at all times subject to
their prior or coincident satisfaction of all required Withholding Taxes.  Except to the extent otherwise either
provided in an Award Agreement or thereafter authorized by the Committee, the
Company or any Affiliate will satisfy required Withholding Taxes that the
Participant has not otherwise arranged to settle before the due date thereof —

 

(i)         first from withholding the cash otherwise
payable to the Participant pursuant to the Award;

 

(ii)        then by withholding and cancelling the
Participant’s rights with respect to a number of Shares that (A) would
otherwise have been delivered to the Participant pursuant to the Award, and (B)
have an aggregate Fair Market Value equal to the Withholding Taxes (such
withheld Shares to be valued on the basis of the aggregate Fair Market Value
thereof on the date of the withholding); and

 

(iii)       finally, withholding the cash otherwise
payable to the Participant by the Company.

 

The
number of Shares withheld and cancelled to pay a Participant’s Withholding
Taxes will be rounded up to the nearest whole Share sufficient to satisfy such
taxes, with cash being paid to the Participant in an amount equal to the amount
by which the Fair Market Value of such Shares exceeds the Withholding Taxes.

 

(b)           U.S. Code Section 409A.   To the extent that the Committee determines
that any Award granted under the Plan is subject to Code Section 409A, the
Award Agreement evidencing such Award shall incorporate the terms and
conditions required by Code Section 409A. 
To the extent applicable, the Plan and Award Agreements shall be
interpreted in accordance with Code Section 409A and 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. 
Notwithstanding any provision of the Plan to the contrary, the Committee
may adopt such amendments to the Plan and the applicable Award Agreement or
adopt other policies and procedures (including amendments, policies and
procedures with retroactive effect), or take any other actions, that the
Administrator determines are necessary or appropriate (i) to exempt the Award
from Code Section 409A and/or preserve the intended tax treatment of the
benefits provided with respect to the Award, or (ii) to comply with the
requirements of Code Section 409A and related Department of Treasury guidance
and thereby avoid the application of any penalty taxes under such Section.

 

(b)           U.S. Code Section 280G. 
If any accelerated vesting, benefits or payments received or realized by
a Participant pursuant to an Award either alone or together with other
accelerated

 

14

 

vesting, benefits or payments that the Participant
receives or realizes or is then entitled to receive or realize from the Company
or any of its affiliates would constitute an “excess parachute payment” within
the meaning of Section 280G of the Code, the accelerated vesting, benefits or
payments provided to the Participant under the Award will be reduced by
reducing the amount of accelerated vesting, benefits or payments payable to the
Participant to the extent necessary so  that no
portion of the Participant’s accelerated vesting, benefits or payments will be
subject to the excise tax imposed by Section 4999 of the Code and any
corresponding and/or applicable state law provision.  Notwithstanding the foregoing, a reduction
will be made under the previous sentence only if, by reason of that reduction,
the Participant’s net after tax benefit exceeds the net after tax benefit he or
she would realize if the reduction were not made.  For purposes of this paragraph, “net after
tax benefit” means the sum of (i) the total amount received or realized by the
Participant pursuant to the Award that would constitute a “parachute payment”
within the meaning of Section 280G of the Code, plus (ii) all other accelerated
vesting, payments or benefits that the Participant receives or realizes or is
then entitled to receive or realize from the Company and any of its affiliates
that would constitute a “parachute payment” within the meaning of Section 280G
of the Code and any corresponding and applicable state law provision, less (iii)
the amount of federal and state income taxes payable with respect to the
payments or benefits described in (i) and (ii) above calculated at the maximum
marginal individual income tax rate for each year in which payments or benefits
are realized by the Participant (based upon the rate in effect for that year as
set forth in the Code at the time of the first receipt or realization of the
foregoing), less (iv) the amount of excise taxes imposed with respect to the
payments or benefits described in (i) and (ii) above by Section 4999 of the
Code and any corresponding and applicable state law provision.

 

(d)           Unfunded Tax Status. 
The Plan is intended to be an “unfunded” plan for incentive
compensation.  With respect to any
payments not yet made to a Person pursuant to an Award, nothing contained in
the Plan or any Award Agreement shall give the Person any rights that are
greater than those of a general creditor of the Company or any Affiliate, and a
Participant’s rights under the Plan at all times constitute an unsecured claim
against the general assets of the Company for the collection of benefits as
they come due.  Neither the Participant
nor the Participant’s duly-authorized transferee or Beneficiaries shall have
any claim against or rights in any specific assets, Shares, or other funds of
the Company.

 

12.           Non-Transferability of
Awards.

 

(a)           General. 
Except as set forth in this Section, or as otherwise approved by the
Committee, Awards may not be sold, pledged, assigned, hypothecated, transferred
or disposed of in any manner other than by will or by the laws of descent or
distribution.  The designation of a death
Beneficiary by a Participant will not constitute a transfer.  An Award may be exercised, during the
lifetime of the holder of an Award, only by such holder, by the duly-authorized
legal representative of a holder who is Disabled, or by a transferee permitted
by this Section.

 

(b)           Limited Transferability Rights. 
The
Committee may in its discretion provide in an Award Agreement that an Award in
the form of a Non-ISO, Share-settled SAR, Restricted Shares, or Performance
Shares may be transferred to a Permitted Transferee (as defined below), subject
to the following terms and conditions and such other terms and conditions as
the Committee may provide in the Award Agreement:  (i) an Award transferred to a Permitted
Transferee shall not be assignable or transferable by the Permitted Transferee
other than by will or the laws of descent and distribution; (ii) an Award
transferred to a Permitted Transferee shall continue to be subject to all

 

15

 

the terms and conditions of the Award as applicable to
the Participant (other than the ability to further transfer the Award); and (iii)
the Participant and the Permitted Transferee shall execute any and all documents
requested by the Committee, including, without limitation documents to (A) confirm
the status of the transferee as a Permitted Transferee, (B) satisfy any
requirements for an exemption for the transfer under applicable federal, state
and foreign securities laws, (C) satisfy any tax withholding and reporting
requirements associated with the Award and (D) evidence the transfer.  For purposes of this Section 12(b), “Permitted
Transferee” shall mean, with respect to a Participant, any “family member”
of the Participant, as defined under the instructions to use of the Form S-8
Registration Statement under the Securities Act, or any other transferee
specifically approved by the Committee after taking into account any state,
federal, local or foreign tax and securities laws applicable to transferable
Awards.

 

(c)           Death.  In the event of the death of a Participant,
any outstanding Awards issued to the Participant shall automatically be
transferred to the Participant’s Beneficiary (or, if no Beneficiary is
designated or surviving, to the person or persons to whom the Participant’s rights
under the Award pass by will or the laws of descent and distribution).

 

13.           Change in Capital Structure; Change in Control; Etc.

 

(a)           Changes in Capitalization.  The Committee shall equitably adjust the number of
Shares covered by each outstanding Award, and the number of Shares that have
been authorized for issuance under the Plan but as to which no Awards have yet
been granted or that have been returned to the Plan upon cancellation,
forfeiture, or expiration of an Award, as well as the exercise or other price
per Share covered by each such outstanding Award, to reflect any increase or
decrease in the number of issued Shares resulting from a stock-split, reverse
stock-split, stock dividend, combination, recapitalization or reclassification
of the Shares, merger, consolidation, change in form of organization, or any
other increase or decrease in the number of issued Shares effected without
receipt of consideration by the Company. 
In the event of any such transaction or event, the Committee may (and
shall if the Company is not the surviving entity or the Shares are otherwise no
longer outstanding) provide in substitution for any or all outstanding Awards
under the Plan such alternative consideration (including cash or securities of
any surviving entity) as it may in good faith determine to be equitable under
the circumstances and may require in connection therewith the surrender of all
Awards so replaced.  In any case, such
substitution of cash or securities shall not require the consent of any person
who is granted Awards pursuant to the Plan. 
Except as expressly provided herein, or in an Award Agreement, if the
Company issues for consideration shares of stock of any class or securities
convertible into shares of stock of any class, the issuance shall not affect,
and no adjustment by reason thereof shall be required to be made with respect
to the number or price of Shares subject to any Award.

 

(b)           Dissolution or Liquidation. In the event of the dissolution or
liquidation of the Company other than as part of a Change of Control, each
Award will terminate immediately prior to the consummation of such dissolution
or liquidation, subject to the ability of the Committee to exercise any
discretion authorized in the case of a Change in Control.

 

(c)           Change in Control.  In the event of a Change in Control but subject to the
terms of any Award Agreements or employment-related agreements between the
Company or any Affiliates and any Participant, each outstanding Award shall be
assumed or a substantially equivalent award shall be substituted by the
surviving or successor company or a parent or subsidiary of such successor

 

16

 

company (in each case, the “Successor
Company”) upon consummation of the transaction.  Notwithstanding the foregoing, instead of
having outstanding Awards be assumed or replaced with equivalent awards by the
Successor Company, the Committee may in its sole and absolute discretion and
authority (and where so stated shall), without obtaining the approval or
consent of the Company’s shareholders or any Participant with respect to his or
her outstanding Awards, take one or more of the following actions (with respect
to any or all of the Awards, and with discretion to differentiate between
individual Participants and Awards for any reason):

 

(i)            (A) to the extent required pursuant to
the terms of an employment agreement between the Company and a Participant that
was in effect on or as of the Effective Date, or (B) if an Award is not assumed
or substituted by the Successor Company or the stock or securities to be subject
to any Award that would be so assumed or substituted is not publicly traded on
an established securities market (excluding any transaction where the Successor
Company is a subsidiary of a parent corporation whose shares or securities are publicly
traded on an established securities market and the assumed or substituted Awards
are subject to such shares or securities in the parent corporation), the
Committee may (and shall with respect to Awards granted pursuant to any
employment agreement that was filed in connection with the Plan of
Reorganization)  accelerate the vesting
of such Awards so that Awards shall fully vest (and, to the extent applicable,
become fully exercisable) immediately prior to consummation of the Change in
Control (or, if earlier and applicable, a record date necessary for the Company’s
shareholders of record to receive the consideration payable in connection with
the Change in Control) as to the Shares that otherwise would have been unvested
and provide that repurchase rights of the Company with respect to Shares issued
pursuant to an Award shall lapse as to the Shares subject to such repurchase
right;

 

(ii)           arrange or otherwise provide for the
payment of cash or other consideration to Participants in exchange for the
satisfaction and cancellation of outstanding vested Awards (with the Committee
determining the amount payable to each Participant based on the fair market
value, on the date of the Change in Control, of the Award being cancelled, based
on any reasonable valuation method selected by the Committee and, if the
consideration payable to the Company or its shareholders in connection with the
Change in Control is all cash, vested Options and SARs that have a per Share
exercise price greater than the Fair Market Value per Share immediately prior
to the consummation of the Change in Control may be cancelled for zero
consideration);

 

(iii)          except as forth in clause (i) of Section 13(c),
terminate all or some unvested Awards upon the consummation of the
transaction.  To the extent that an Award
is not exercised prior to consummation of a transaction in which the Award is
not being assumed or substituted, such Award shall terminate upon such
consummation;

 

(iv)          make such other modifications,
adjustments or amendments to outstanding Awards or this Plan as the Committee
deems necessary or appropriate, subject however to the terms of Section 13
above.

 

Notwithstanding the above and unless provided otherwise
in an Award Agreement or in an employment agreement with the Participant, in
the event a Participant is Involuntarily Terminated on or within 12 months (or other
period set forth in an Award Agreement) following a Change in

 

17

 

Control, then any Award that is assumed or substituted
pursuant to this Section above shall accelerate and become fully vested (and
become exercisable in full in the case of Options and SARs), and any repurchase
right applicable to any Shares shall lapse in full.  The acceleration of vesting and lapse of
repurchase rights provided for in the previous sentence shall occur immediately
prior to the effective date of the Participant’s Involuntary Termination,
unless an Award Agreement provides otherwise.

 

14.           Termination, Rescission
and Recapture of Awards.

 

(a)           Each Award under the Plan is intended to
align the Participant’s long-term interests with those of the Company.  Accordingly, the Company may terminate any
outstanding, unexercised, unexpired, unpaid, or deferred Awards (“Termination”), rescind any
exercise, payment or delivery pursuant to the Award (“Rescission”),
or recapture any Shares (whether restricted or unrestricted) or proceeds from
the Participant’s sale of Shares issued pursuant to the Award (“Recapture”),
if the Participant does not comply with the conditions of subsections (b), (c),
and (e) hereof (collectively, the “Conditions”).

 

(b)           A Participant shall not, without the
Company’s prior written authorization, disclose to anyone outside the Company,
or use in other than the Company’s business, any proprietary or confidential
information or material, as those or other similar terms are used in any
applicable patent, confidentiality, inventions, secrecy, or other agreement
between the Participant and the Company with regard to any such proprietary or
confidential information or material.

 

(c)           Pursuant to any agreement between the
Participant and the Company with regard to intellectual property (including but
not limited to patents, trademarks, copyrights, trade secrets, inventions,
developments, improvements, proprietary information, confidential business and
personnel information), a Participant shall promptly disclose and assign to the
Company or its designee all right, title, and interest in such intellectual
property, and shall take all reasonable steps necessary to enable the Company
to secure all right, title and interest in such intellectual property in the
United States and in any foreign country.

 

(d)           Upon exercise, payment, or delivery of
cash or Common Stock pursuant to an Award, the Participant shall certify on a
form acceptable to the Company that he or she is in compliance with the terms
and conditions of the Plan and, if a severance of Continuous Service has
occurred for any reason, shall state the name and address of the Participant’s
then-current employer or any entity for which the Participant performs business
services and the Participant’s title, and shall identify any organization or
business in which the Participant owns a greater-than-five-percent equity
interest.

 

(e)           If the Company determines, in its sole
and absolute discretion, that (i) a Participant has violated any of the
Conditions, (ii) a Participant has breached any non-competition, non-solicitation,
conflict of interest or duty of loyalty covenant in any written employment-related
agreement between the Participant and the Company, or (iii) to the extent a
Participant does not have an employment-related agreement with the Company with
the covenants described in clause (ii) and the Participant during his or her
Continuous Service, or within one  year after its
termination for any reason (x) has rendered services to or otherwise directly
or indirectly engaged in or assisted, any organization or business that, in the
judgment of the Company in its sole and absolute discretion, is or is working
to become competitive with the Company; (y) has solicited any non-

 

18

 

administrative employee of the Company to terminate
employment with the Company; or (z) has engaged in activities which are
materially prejudicial to or in conflict with the interests of the Company, including
any breaches of fiduciary duty or the duty of loyalty, then the Company may, in
its sole and absolute discretion, impose a Termination, Rescission, and/or
Recapture with respect to any or all of the Participant’s relevant Awards,
Shares, and the proceeds thereof.

 

(f)            Within ten days after receiving notice
from the Company of any such activity described in Section 14(e) above, the
Participant shall deliver to the Company the Shares acquired pursuant to the
Award, or, if Participant has sold the Shares, the gain realized, or payment
received as a result of the rescinded exercise, payment, or delivery; provided, that if the Participant
returns Shares that the Participant purchased pursuant to the exercise of an
Option (or the gains realized from the sale of such Common Stock), the Company
shall promptly refund the exercise price, without earnings, that the
Participant paid for the Shares.  Any
payment by the Participant to the Company pursuant to this Section shall be
made either in cash or by returning to the Company the number of Shares that
the Participant received in connection with the rescinded exercise, payment, or
delivery.  It shall not be a basis for
Termination, Rescission or Recapture if after termination of a Participant’s
Continuous Service, the Participant purchases, as an investment or otherwise,
stock or other securities of such an organization or business, so long as (i) such
stock or other securities are listed upon a recognized securities exchange or
traded over-the-counter, and (ii) such investment does not represent more than
a five percent (5%) equity interest in the organization or business.

 

(g)           Notwithstanding the foregoing provisions
of this Section, the Company has sole and absolute discretion not to require
Termination, Rescission and/or Recapture, and its determination not to require
Termination, Rescission and/or Recapture with respect to any particular act by
a particular Participant or Award shall not in any way reduce or eliminate the
Company’s authority to require Termination, Rescission and/or Recapture with
respect to any other act or Participant or Award.  Nothing in this Section shall be construed to
impose obligations on the Participant to refrain from engaging in lawful
competition with the Company after the termination of employment that does not
violate subsections (b), (c), or (e) of this Section, other than any
obligations that are part of any separate agreement between the Company and the
Participant or that arise under Applicable Law.

 

(h)           All administrative and discretionary
authority given to the Company under this Section shall be exercised by the
most senior human resources executive of the Company or such other person or
committee (including without limitation the Committee) as the Committee may
designate from time to time.

 

(i)            If any provision within this Section is
determined to be unenforceable or invalid under any Applicable Law, such
provision will be applied to the maximum extent permitted by Applicable Law,
and shall automatically be deemed amended in a manner consistent with its
objectives and any limitations required under Applicable Law.

 

15.           Recoupment of Awards.  Unless otherwise specifically provided in an Award
Agreement, and to the extent permitted by Applicable Law, the Committee may in
its sole and absolute discretion, without obtaining the approval or consent of
the Company’s shareholders or of any Participant, require that any Participant
reimburse the Company for all or any portion of any Awards granted under this
Plan (“Reimbursement”), or the Committee
may require the Termination or Rescission of, or the Recapture associated with,
any Award, if and to the extent—

 

19

 

(a)           the granting, vesting, or payment of such
Award was predicated upon the achievement of certain financial results that
were subsequently the subject of a material financial restatement;

 

(b)           in the Committee’s view the Participant either
benefited from a calculation that later proves to be materially inaccurate, or engaged
in fraud or misconduct that caused or partially caused the need for a material
financial restatement by the Company or any Affiliate; and

 

(c)           a lower granting, vesting, or payment of
such Award would have occurred based upon the conduct described in clause (b) of
this Section.

 

In each instance, the Committee will,
to the extent practicable and allowable under Applicable Laws, require
Reimbursement, Termination or Rescission of, or Recapture relating to, any such
Award granted to a Participant; provided that the Company will not seek
Reimbursement, Termination or Rescission of, or Recapture relating to, any such
Awards that were paid or vested more than three years prior to the first date of
the applicable restatement period.

 

16.           Relationship to other
Benefits.  No payment pursuant to the Plan shall be
taken into account in determining any benefits under any pension, retirement,
savings, profit sharing, group insurance, welfare or other benefit plan of the
Company or any Affiliate except to the extent otherwise expressly provided in
writing in such other plan or an agreement thereunder.

 

17.           Administration of the Plan. 
The Committee shall administer the Plan in accordance with its terms,
provided that the Board may act in lieu of the Committee on any matter.  The Committee shall hold meetings at such
times and places as it may determine and shall make such rules and regulations
for the conduct of its business as it deems advisable.  In the absence of a duly appointed Committee,
the Board shall function as the Committee for all purposes of the Plan.

 

(a)           Committee Composition. 
The Board shall appoint the members of the Committee. If and to the
extent permitted by Applicable Law, the Committee may authorize one or more
executive officers to make Awards to Eligible Persons other than
themselves.  The Board may at any time
appoint additional members to the Committee, remove and replace members of the
Committee with or without Cause, and fill vacancies on the Committee however caused.

 

(b)           Powers of the Committee. 
Subject to the provisions of the Plan, the Committee shall have the
authority, in its sole discretion:

 

(i)            to grant Awards and to determine Eligible
Persons to whom Awards shall be granted from time to time, and the number of
Shares, units, or dollars to be covered by each Award;

 

(ii)           to determine, from time to time, the Fair
Market Value of Shares;

 

(iii)          to determine, and to set forth in Award
Agreements, the terms and conditions of all Awards, including any applicable
exercise or purchase price, the installments and conditions under which an
Award shall become vested (which may be based on performance), terminated,
expired, cancelled, or replaced, and the circumstances for vesting acceleration
or waiver of forfeiture restrictions, and other restrictions and limitations;

 

20

 

(iv)          to approve the forms of Award Agreements
and all other documents, notices and certificates in connection therewith which
need not be identical either as to type of Award or among Participants;

 

(v)           to construe and interpret the terms of
the Plan and any Award Agreement, to determine the meaning of their terms, and
to prescribe, amend, and rescind rules and procedures relating to the Plan and
its administration;

 

(vi)          to the extent consistent with the
purposes of the Plan and without amending the Plan, to modify, to cancel, or to
waive the Company’s rights with respect to any Awards, to adjust or to modify
Award Agreements for changes in Applicable Law, and to recognize differences in
foreign law, tax policies, or customs;

 

(vii)         in the event that the Company
establishes, for itself or using the services of a third party, an automated
system for the documentation, granting, settlement, or exercise of Award, such
as a system using an internet website or interactive voice response, to
implement paperless documentation, granting, settlement, or exercise of Awards
by a Participant may be permitted through the use of such an automated system;
and

 

(viii)        to make all interpretations and to take
all other actions that the Committee may consider necessary or advisable to
administer the Plan or to effectuate its purposes.

 

Subject to Applicable Law
and the restrictions set forth in the Plan, the Committee may delegate
administrative functions to individuals who are Directors or Employees.

 

(d)           Local Law Adjustments and
Sub-plans.  To facilitate the making of any grant of an
Award under this Plan, the Committee may adopt rules and provide for such
special terms for Awards to Participants who are located within the United
States, foreign nationals, or who are employed by the Company or any Affiliate
outside of the United States of America as the Committee may consider necessary
or appropriate to accommodate differences in local law, tax policy or custom.  Without limiting the foregoing, the Company
is specifically authorized to adopt rules and procedures regarding the
conversion of local currency, taxes, withholding procedures and handling of
stock certificates which vary with the customs and requirements of particular
countries.  The Company may adopt
sub-plans and establish escrow accounts and trusts, and settle Awards in cash
in lieu of shares, as may be appropriate, required or applicable to particular
locations and countries.

 

(c)           Action
by Committee.  Unless
otherwise established by the Board or in any charter of the Committee, a
majority of the Committee shall constitute a quorum and the acts of a majority
of the members present at any meeting at which a quorum is present, and acts
approved in writing by all members of the Committee in lieu of a meeting, shall
be deemed the acts of the Committee. 
Each member of the Committee is entitled to, in good faith, rely or act
upon any report or other information furnished to that member by an officer or
other employee of the Company or any Affiliate, the Company’s independent
certified public accounts, or any executive compensation consultant or other
professional retained by the Company to assist in the administration of the
Plan.

 

(d)           Deference to Committee
Determinations.  The Committee shall have the discretion to
interpret or construe ambiguous, unclear, or implied (but omitted) terms in any
fashion it deems to

 

21

 

be appropriate in its sole discretion, and to make any
findings of fact needed in the administration of the Plan or Award
Agreements.  The Committee’s prior
exercise of its discretionary authority shall not obligate it to exercise its
authority in a like fashion thereafter. 
The Committee’s interpretation and construction of any provision of the
Plan, or of any Award or Award Agreement, and all determination the Committee
makes pursuant to the Plan shall be final, binding, and conclusive.   The validity of any such interpretation,
construction, decision or finding of fact shall not be given de novo review if
challenged in court, by arbitration, or in any other forum, and shall be upheld
unless clearly made in bad faith or materially affected by fraud.

 

(e)           No Liability; Indemnification. 
Neither the Board nor any Committee member, nor any Person acting at the
direction of the Board or the Committee, shall be liable for any act, omission,
interpretation, construction or determination made in good faith with respect
to the Plan, any Award or any Award Agreement. 
The Company and its Affiliates shall pay or reimburse any member of the
Committee, as well as any Director, Employee, or Consultant who in good faith
takes action on behalf of the Plan, for all expenses incurred with respect to
the Plan, and to the full extent allowable under Applicable Law shall indemnify
each and every one of them for any claims, liabilities, and costs (including
reasonable attorney’s fees) arising out of their good faith performance of
duties on behalf of the Plan.  The
Company and its Affiliates may, but shall not be required to, obtain liability
insurance for this purpose.

 

(f)            Expenses. 
The
expenses of administering the Plan shall be borne jointly and severally by the
Company and its Affiliates.

 

18.          Modification of Awards and
Substitution of Options.  Within the limitations of the Plan, the
Committee may modify an Award to accelerate the rate at which an Option or SAR
may be exercised, to accelerate the vesting of any Award, to extend or renew
outstanding Awards, to accept the cancellation of outstanding Awards to the
extent not previously exercised, or to make any change that the Plan would
permit for a new Award.  However,
neither the Company nor the Committee shall, without shareholder approval,
either (a) allow for a “repricing” within the meaning of federal securities
laws applicable to proxy statement disclosures, or (b) cancel an outstanding
Option or SAR whose exercise price is greater than Fair Market Value at the
time of cancellation for the purpose of reissuing the Option or SAR to the
Participant at a lower exercise price or granting a replacement award of a
different type.  Notwithstanding the foregoing, no modification
of an outstanding Award may materially and adversely affect a Participant’s
rights thereunder unless either (i) the Participant provides written consent to
the modification, (ii) the amendment is required by Applicable Law or (iii) before
a Change in Control, the Committee determines in good faith that the
modification is not materially adverse to the Participant.

 

19.          Plan Amendment and
Termination.  The Board may amend or terminate the Plan as
it shall deem advisable; plan amendments shall be subject to approval of the
Company’s shareholders to the extent the Board determines such approval is
required by Applicable Laws.  A
termination or amendment of the Plan shall not materially and adversely affect
a Participant’s rights under an Award previously granted to him or her, unless
the Participant consents in writing to such termination or amendment or, the
case of an amendment, the amendment is required by Applicable Law.  Furthermore, neither the Company nor the
Committee shall, without shareholder approval, either (a) allow for a
“repricing” within the meaning of federal securities laws applicable to proxy
statement disclosures, or (b) cancel an outstanding Option or SAR whose
exercise price is greater 

 

22

 

than Fair Market Value at the time of
cancellation for the purpose of reissuing the Option or SAR to the Participant
at a lower exercise price or granting a replacement award of a different type.

 

20.          Term of Plan. 
If not sooner terminated by the Board, this Plan shall terminate at the
close of business on the date ten years after its effective date as determined
under Section 1(b) above.  No Awards
shall be made under the Plan after its termination.

 

21.          Governing Law. 
The terms of this Plan shall be governed by the laws of the State of
Delaware, within the United States of America, without regard to the State’s
conflict of laws rules.

 

22.          Laws and Regulations.

 

(a)           General Rules.     This Plan, the granting of Awards, the exercise of
Options and SARs, and the obligations of the Company hereunder (including those
to pay cash or to deliver, sell or accept the surrender of any of its Shares or
other securities) shall be subject to all Applicable Law.  In the event that any Shares are not
registered under any Applicable Law prior to the required delivery of them
pursuant to Awards, the Company may require, as a condition to their issuance
or delivery, that the persons to whom the Shares are to be issued or delivered
make any written representations and warranties (such as that such Shares are
being acquired by the Participant for investment for the Participant’s own
account and not with a view to, for resale in connection with, or with an
intent of participating directly or indirectly in, any distribution of such
Shares) that the Committee may reasonably require, and the Committee may in its
sole discretion include a legend to such effect on the certificates
representing any Shares issued or delivered pursuant to the Plan.

 

(b)           Black-out Periods.  Notwithstanding any contrary terms within the Plan or
any Award Agreement, the Committee shall have the absolute discretion to impose
a “blackout” period on the exercise of any Option or SAR, as well as the
settlement of any Award, with respect to any or all Participants (including
those whose Continuous Service has ended) to the extent that the Committee
determines that doing so is either desirable or required in order to comply with
applicable securities laws.

 

23.          No Shareholder Rights. 
Neither a Participant nor any transferee or Beneficiary of a Participant
shall have any rights as a shareholder of the Company with respect to any
Shares underlying any Award until the date of issuance of a share certificate
to such Participant, transferee, or Beneficiary for such Shares in accordance
with the Company’s governing instruments and Applicable Law.  Prior to the issuance of Shares or Restricted
Shares pursuant to an Award, a Participant shall not have the right to vote or
to receive dividends or any other rights as a shareholder with respect to the
Shares underlying the Award (unless otherwise provided in the Award Agreement
for Restricted Shares), notwithstanding its exercise in the case of Options and
SARs.  No adjustment will be made for a
dividend or other right that is determined based on a record date prior to the
date the stock certificate is issued, except as otherwise specifically provided
for in this Plan or an Award Agreement.

 

23

 

 

Appendix
I: Definitions

 

 

As used in the Plan, the following terms have the
meanings indicated when they begin with initial capital letters within the Plan:

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly
controls or is controlled by or under common control with such Person.  For the purposes of this definition, “control,”
when used with respect to any Person, means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of
such Person or the power to elect directors, whether through the ownership of
voting securities, by contract or otherwise; and the terms “affiliated,” “controlling”
and “controlled” have meanings correlative to the foregoing.

 

“Applicable Law” means the legal
requirements relating to the administration of options and share-based plans
under any applicable laws of the United States, any other country, and any
provincial, state, or local subdivision, any applicable stock exchange or
automated quotation system rules or regulations, as such laws, rules,
regulations and requirements shall be in place from time to time.

 

“Award”
means any award made pursuant to the Plan, including awards made in the form of
an Option, an SAR, a Restricted Share, a RSU, an Unrestricted Share, a DSU, a Performance
Award, or Dividend Equivalent Rights, or any combination thereof, whether alternative
or cumulative.

 

“Award
Agreement” means any written document setting forth the terms of
an Award that has been authorized by the Committee. The Committee shall
determine the form or forms of documents to be used, and may change them from
time to time for any reason.

 

“Beneficiary” means the person or
entity designated by the Participant, in a form approved by the Company, to
exercise the Participant’s rights with respect to an Award or receive payment or
settlement under an Award after the Participant’s death.

 

“Board” means the Board of Directors
of the Company.

 

“Cause”
means (unless a different meaning is set forth in the Participant’s Award
Agreement or employment agreement with the Company in which case that
definition shall apply)   (A) a Participant’s willful
and continuing failure (except where due to physical or mental incapacity) to
substantially perform his or her duties, which is not remedied within fifteen
(15) days after receipt of written notice from the Company specifying such
failure; (B) a Participant’s willful malfeasance or gross neglect in the
performance of his or her duties resulting in material harm to the Company; (C)
a Participant’s conviction of, or plea of guilty or nolo contendere to,
a felony or a misdemeanor involving moral turpitude; (D) the commission by a
Participant of an act of fraud or embezzlement against the Company or any
Affiliate; or (E) a Participant’s willful material breach of any material
provision of the Participant’s employment agreement with the Company, if any,
(as determined in good faith by the Board) which is not remedied within fifteen
(15) days after (I) receipt of written 

 

24

 

notice
from the Company specifying such breach and (II) the opportunity to appear
before the Board.  For purposes of the
preceding sentence, no act or failure to act by the Participant shall be
considered “willful” unless done or omitted to be done by the Participant in
bad faith or without reasonable belief that the Participant’s action or
omission was in the best interests of the Company.

 

“Change in Control” means: (A) any “person”
(as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act, but
excluding (x) any employee benefit plan of the Company and (y) any Permitted
Holder), is or becomes the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act, except that a person shall be deemed to have “beneficial
ownership” of all shares that any such person has the right to acquire, whether
such right is exercisable immediately or only through the passage of time),
directly or indirectly, of more than thirty-five percent (35%) of the voting
stock of the Company; (B) any
transaction, including without limitation any merger, consolidation, tender
offer or other transaction (whether effected by the Company or by any other
person) or any action (such as a deregistration or delisting of the securities
of the Company) taken by the Company or any of its affiliates, the result of
which is, in either case, that (1) the Company is no longer a reporting company
under the Exchange Act, or (2) the Company Stock is no longer listed on a
national securities exchange;  (C) at any time, the
Continuing Directors (as defined below) cease for any reason to constitute at
least a majority of the Board; (D) a direct or indirect sale or other transfer
of all or substantially all of the assets of the Company and its Subsidiaries,
taken as a whole, or (E) any merger, consolidation or like business combination
or reorganization of the Company, the consummation of which would result in
either (x) the occurrence of any event described in clause (A) above, or (y) the
voting securities of the Company outstanding immediately prior to the consummation
of such merger, consolidation or like business combination or reorganization
not representing (either by remaining outstanding or by being converted into
voting securities of the applicable surviving or other entity) more than fifty
percent (50%) of the combined voting power of the voting securities of the
Company or such surviving or other entity outstanding immediately after such
merger, consolidation or like business combination or reorganization; provided,
however, that the consummation of the transactions contemplated by the Plan of
Reorganization shall not be deemed to constitute a “Change in Control” as of
the Effective Date.

 

“Code” means the Internal Revenue
Code of 1986, as amended.

 

“Committee” means the Compensation Committee of the Board
or its successor, provided that the term “Committee”
means  (i)
the Board when acting at any time in lieu of the Committee, (ii) with respect to
any decision involving an Award intended to satisfy the requirements of Code Section
162(m), a committee consisting of two or more Directors of the Company who are “outside
directors” within the meaning of Code Section 162(m), and (iii) with respect to
any decision relating to a Reporting Person, a committee consisting of solely
of two or more Directors who are disinterested within the meaning of Rule 16b-3.

 

“Company”
means Six Flags Entertainment Corporation, a Delaware corporation; provided that in the event the
Company reincorporates to another jurisdiction, all references to the term “Company”
shall refer to the Company in such new jurisdiction.

 

“Company Stock” means common stock, $0.025
par value, of the Company.  In the event
of a change in the capital structure of the Company affecting the common stock
(as provided in 

 

25

 

Section 13), the Shares resulting from such a change
in the common stock shall be deemed to be Company Stock within the meaning of
the Plan.

 

“Consultant”
means any person (other than an Employee or Director), including an advisor,
who is engaged by the Company or any Affiliate to render services and is
compensated for such services.

 

“Continuing Directors” shall mean, as of any date
of determination, any member of the Board who (i) was a member of the Board on the
Effective Date  or (ii) was nominated for
election or elected to the Board with the approval of a majority of the
Continuing Directors who were members of the Board at the time of such
nomination or election.

 

“Continuous
Service” means a Participant’s period of service in the absence
of any interruption or termination, as an Employee, Director, or
Consultant.  Continuous Service shall not
be considered interrupted in the case of: 
(i) sick leave; (ii) military leave; (iii) any other leave of absence
approved by the Committee, provided
that such leave is for a period of not more than 90 days, unless reemployment
upon the expiration of such leave is guaranteed by contract or statute, or
unless provided otherwise pursuant to Company policy adopted from time to time;
(iv) changes in status from Director to advisory director or emeritus status;
or (iv) transfers between locations of the Company or between the Company and
its Affiliates.  Changes in status
between service as an Employee, Director, and a Consultant will not constitute
an interruption of Continuous Service if the individual continues to perform
bona fide services for the Company.  The Committee shall have the discretion
to determine whether and to what extent the vesting of any Awards shall be
tolled during any paid or unpaid leave of absence; provided, however, that in
the absence of such determination, vesting for all Awards shall be tolled
during any such unpaid leave (but not for a paid leave).

 

“Deferred
Share Units” or “DSUs” mean
Awards pursuant to Section 8 of the Plan.

 

“Director”
means a member of the Board, or a member of the board of directors of an
Affiliate.

 

“Disabled” means for an ISO, the
Participant is disabled within the meaning of Code section 22(e)(3) and for any
other Award means a condition under which a Participant —

 

(a)           is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or

 

(b)           is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three
months under an accident or health plan covering employees of the Company.

 

“Dividend
Equivalent Rights” means Awards pursuant to Section 10 of the
Plan, which may be attached to other Awards.

 

26

 

“Eligible
Person” means any Consultant, Director, or Employee and includes
non-Employees to whom an offer of employment has been or is being extended.

 

“Employee”
means any person whom the Company or any Affiliate classifies as an employee
(including an officer) for employment tax purposes, whether or not that
classification is correct.  The payment
by the Company of a director’s fee to a Director shall not be sufficient to
constitute “employment” of such Director by the Company.

 

“Employer” means the Company and
each Subsidiary and Affiliate that employs one or more Participants.

 

“Exchange
Act” means
the Securities Exchange Act of 1934, as amended.

 

“Fair Market Value” means the fair
market value of the Company Stock as of such date based on the then prevailing
prices of the Company Stock on the New York Stock Exchange, the American Stock
Exchange, NASDAQ or such other stocks exchange as the Company Stock is then
listed for trading (and, if none, as determined by the Committee in good faith
based on relevant facts and circumstances).

 

“Grant Date” means the later of (i) the
date designated as the “Grant Date” within an Award Agreement, and (ii) date on
which the Committee determines the key terms of an Award, provided
that as soon as reasonably practical thereafter the Committee or its authorized
delegate both notifies the Eligible Person of the Award and enters into an
Award Agreement with the Eligible Person. 
For Awards granted on or immediately after the Effective Date, the order
of the Bankruptcy court confirming the Company’s Plan of Reorganization shall be
deemed to constitute the date on which the Committee determines the key terms
of such Awards.

 

“Incentive
Stock Option” (or “ISO”)
means, an Option that qualifies for favorable income tax treatment under Code Section
422.

 

“Involuntary
Termination” means
termination of a Participant’s Continuous Service under the following
circumstances occurring on or after a Change in Control:  (i) termination without Cause by the Company
or an Affiliate or successor thereto, as appropriate; or (ii) voluntary
termination by the Participant within one year following (A) a material
reduction in the Participant’s job responsibilities, provided
that neither a mere change in title alone nor reassignment to a
substantially similar position shall constitute a material reduction in job
responsibilities; (B) an involuntary relocation of the Participant’s work site
to a facility or location more than 60 miles from the Participant’s principal
work site at the time of the Change in Control; or (C) a material reduction in
Participant’s total cash compensation, other than as part of an reduction by a
substantially similar percentage in the total cash compensation of all other
similarly-situated Employees or Directors, as applicable.

 

“Non-ISO” means an Option not intended to qualify
as an Incentive Stock Option, as designated in the applicable Award Agreement.

 

“Option” means a right to purchase
Company Stock granted under the Plan, at a price determined in accordance with
the Plan.

 

27

 

“Participant” means any Eligible
Person who holds an outstanding Award.

 

“Performance
Awards” mean Awards granted pursuant to Section 9.

 

“Performance
Unit” means an Award granted pursuant to Section 9(a) of the
Plan which may be paid in cash, in Shares, or such combination of cash and
Shares as the Committee in its sole discretion shall determine.

 

“Permitted Holders” shall have the meaning set
forth in the Exit Facility (as defined in the Plan of Reorganization) as in
effect on the Effective Date.

 

“Person”
means any natural person, association, trust, business trust, cooperative,
corporation, general partnership, joint venture, joint-stock company, limited
partnership, limited liability company, real estate investment trust,
regulatory body, governmental agency or instrumentality, unincorporated
organization or organizational entity.

 

“Plan”
means this Six Flags Entertainment Corporation Long-Term Incentive Plan.

 

“Recapture”
and “Rescission” have the meaning set
forth in Section 14 of the Plan.

 

“Reimbursement”
has the meaning set forth in Section 15 of the Plan.

 

“Reporting
Person” means
an Employee, Director, or Consultant who is subject to the reporting
requirements set forth under Rule 16b-3.

 

“Restricted Share” means a Share of Company
Stock awarded with restrictions imposed under Section 7.

 

“Restricted Share Unit” or “RSU” means a right granted to a
Participant to receive Shares or cash upon the lapse of restrictions imposed
under Section 7.

 

“Retirement” means a Participant’s
termination of employment after age 60.

 

“Rule 16b-3” means Rule 16b-3 promulgated under the
Exchange Act, as amended from time to time, or any successor provision.

 

“SAR” or “Share
Appreciation Right” means a right to receive amounts awarded
under Section 6.

 

“Share”
means a share of Common Stock of the Company, as adjusted in accordance with Section
13 of the Plan.

 

“Subsidiary” of the Company shall mean:
any corporation of which the Company owns, directly or indirectly, more than
fifty percent (50%) of the voting stock

 

28

 

“Ten
Percent Holder” means a person who owns (within the meaning of
Code Section 422) stock representing more than ten percent (10%) of the
combined voting power of all classes of stock of the Company.

 

“Unrestricted
Shares” mean Shares (without restrictions) awarded pursuant to Section
7 of the Plan.

 

“Withholding
Taxes” means the aggregate minimum amount of federal, state,
local and foreign income, payroll and other taxes that the Company and any
Affiliates are required to withhold in connection with any Award.

 

29

 

SIX FLAGS ENTERTAINMENT
CORPORATION

 

LONG-TERM INCENTIVE PLAN

 

 

 

	
   

  	
  As approved by the
  Bankruptcy

  
	
   

  	
  Court on April 30,

  
	
   

  	
  2010.

  

 

30

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