Document:

Exhibit 10.2

 

GUARANTEE AGREEMENT

 

GUARANTEE AGREEMENT, dated
as of May 15, 2009 (this “Guarantee”),
made by SIX FLAGS, INC., a Delaware corporation (“SFI”),
SIX FLAGS OPERATIONS INC., a Delaware corporation (“SFO”),
and SIX FLAGS THEME PARKS INC., a Delaware corporation (“SFTP”)
(each, a “Guarantor”, and collectively, the “Guarantors”), in favor of TW-SF LLC, a Delaware limited
liability company (the “Lender”), as
lender under the Promissory Note, dated as of the date hereof (as amended,
supplemented or otherwise modified from time to time, the “Note”),
evidencing a loan made to SFOG ACQUISITION A, INC., a Delaware corporation,
SFOG ACQUISITION B, L.L.C., a Delaware limited liability company, SFOT
ACQUISITION I, INC., a Delaware corporation, and SFOT ACQUISITION II,
INC., a Delaware corporation (each, a “Borrower” and
together, the “Borrowers”) in the principal
amount of $52,507,000.00 (the “Loan”).

 

W I T N E S S E T H:

 

WHEREAS, the Lender has
agreed to make the Loan to the Borrowers upon the terms and subject to the
conditions set forth in the Note;

 

WHEREAS, it is a condition
precedent to the obligation of the Lender to make the Loan to the Borrowers
that the Guarantors shall have executed and delivered this Guarantee in favor
of the Lender; and

 

WHEREAS, each Guarantor has
certain obligations pursuant to the 2009 Liquidity Put under the Subordinated
Indemnity Agreement and it is for the benefit of each Guarantor that the Lender
has agreed to make the Loan to enable the Borrowers to satisfy the 2009 Liquidity
Put obligations.

 

NOW, THEREFORE, in
consideration of the premises and to induce the Lender to enter into the Note
and to make the Loan to the Borrowers on the terms and conditions set forth in
the Note, each Guarantor hereby agrees with the Lender, for the benefit of the
Lender as follows:

 

SECTION 1.             Definitions.

 

(a)           Unless otherwise defined herein, terms defined in the Note
and used herein shall have the meanings given to them in the Note.

 

(b)           Unless the context requires otherwise, (i) the words “hereof”,
“herein” and “hereunder” and words of similar import when used in this
Guarantee shall refer to this Guarantee as a whole and not to any particular
provision of this Guarantee, and (ii) all Section, Schedule and Exhibit references
are to this Guarantee unless otherwise specified.

 

(c)           Except as specifically provided herein, the meanings given
to terms defined herein shall be equally applicable to both the singular and
plural forms of 

 

 

such terms. 
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. 
The words, “include,” “includes” and “including” shall be deemed to be
followed by the phrase “without limitation.” 
The word “will” shall be construed to have the same meaning and effect
as the word “shall.”

 

When the payment of any
obligation or the performance of any covenant, duty or obligation is stated to
be due or performance required on a day which is not a Business Day, the date
of such payment or performance shall extend to the immediately succeeding
Business Day.

 

SECTION 2.             Guarantee.

 

(a)           Each Guarantor, jointly and severally, hereby
unconditionally and irrevocably guarantees to the Lender, for the benefit of
the Lender and its successors, endorsees, transferees and assigns, the prompt
and complete payment by the Borrowers as and when due (whether at the stated
maturity, by acceleration or otherwise) of the Guaranteed Obligations.  All Guaranteed Obligations shall be
conclusively presumed to have been created in reliance on this Guarantee.

 

(b)           Anything herein or in any other Loan Document to the
contrary notwithstanding, the maximum liability of each Guarantor hereunder and
under the other Loan Documents shall in no event exceed the amount which
can be guaranteed by such Guarantor, or secured by assets of such Guarantor,
under applicable federal and state laws relating to the insolvency of debtors.

 

(c)           If any of the Guaranteed Obligations, or any part thereof,
are not paid when due, either by its terms or as the result of exercise of any
power to accelerate, each Guarantor shall, on demand therefor by the Lender,
pay the amount due thereon to the Lender, and it shall not be necessary for the
Lender (and each Guarantor expressly waives any rights it might otherwise have
to require the Lender) to proceed against any Borrower, any other Guarantor or
any other Person; provided, however, that no demand shall be
required if such demand is impracticable or otherwise prohibited by a
Requirement of Law (including upon the occurrence of a Borrower Bankruptcy
Event or a Guarantor Bankruptcy Event).

 

(d)           This Guarantee shall remain in full force and effect until
the Guaranteed Obligations are paid in full.

 

(e)           Each Guarantor agrees that whenever, at any time, or from
time to time, it shall make any payment to the Lender on account of its
liability hereunder, it will notify the Lender in writing that such payment is
made under this Guarantee for such purpose.

 

(f)            No payment or payments made by the Borrowers, any
Guarantor or any other Person or received or collected by the Lender from the
Borrowers, any Guarantor or any other Person by virtue of any action or
proceeding or any setoff or appropriation or payment of the Guaranteed
Obligations shall be deemed to modify,

 

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reduce, release or otherwise affect the
liability of any other Guarantor hereunder who shall, notwithstanding any such
payment or payments (other than payments made by any Borrower, such Guarantor
or any other Guarantor in respect of the Guaranteed Obligations or payments
received or collected from any Borrower, such Guarantor or any other Guarantor
in respect of the Guaranteed Obligations), remain liable for the Guaranteed
Obligations, up to the maximum liability of such Guarantor hereunder until the
Guaranteed Obligations are paid in full.

 

(g)           Notwithstanding anything herein or in the Note to the
contrary, the maximum liability of the Guarantors in respect of the Guaranteed
Obligations shall in no event exceed $10,000,000, in the aggregate.

 

SECTION 3.             No Subrogation.  Notwithstanding any payment or payments made
by any Guarantor hereunder, or any setoff or application of funds of any
Guarantor by the Lender, no Guarantor shall be entitled to be subrogated to any
of the rights of the Lender against the Borrowers or any other Guarantor or
against any guarantee or right of setoff held by the Lender for the payment of
the Guaranteed Obligations, nor shall any Guarantor seek or be entitled to seek
any contribution or reimbursement from the Borrowers or any other Guarantor in
respect of payments made by such Guarantor hereunder, until all amounts owing
to the Lender by the Borrowers on account of the Guaranteed Obligations are
paid in full.  Without limiting the
foregoing, if any amount shall be paid to any Guarantor on account of such
subrogation rights or otherwise at any time when all of the Guaranteed
Obligations shall not have been paid in full, such amount shall be held by such
Guarantor in trust for the Lender, segregated from other funds of such
Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over
to the Lender in the exact form received by such Guarantor (duly indorsed by
such Guarantor to the Lender, if required), to be applied against the
Guaranteed Obligations, whether matured or unmatured, in such order as the
Lender may determine.

 

SECTION 4.             Amendments,
etc. with Respect to the Guaranteed Obligations; Waiver of Rights.  Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any
Guarantor, and without notice to or further assent by any Guarantor, (a) any
demand for payment of any of the Guaranteed Obligations made by the Lender may
be rescinded by the Lender, and any of the Guaranteed Obligations continued, (b) the
Guaranteed Obligations, or the liability of any other Person upon or for any
part thereof, or any guarantee therefor or right of offset with respect
thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by
the Lender, (c) the Note may be amended, modified, supplemented or
terminated, in whole or in part, and (d) any guarantee or right of offset
at any time held by the Lender for the payment of the Guaranteed Obligations
may be sold, exchanged, waived, surrendered or released.

 

SECTION 5.             Guarantee Absolute and
Unconditional.  Each Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Guaranteed Obligations and notice of or proof of reliance by the Lender
upon this Guarantee or acceptance of this Guarantee; the Guaranteed
Obligations, and any of them, shall

 

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conclusively
be deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon this Guarantee; and all dealings between
the Borrowers or any Guarantor, on the one hand, and the Lender, on the other,
shall likewise be conclusively presumed to have been had or consummated in
reliance upon this Guarantee.  Each
Guarantor waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon the Borrowers or any Guarantor with respect
to the Guaranteed Obligations.  This
Guarantee shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity, regularity or
enforceability of the Note, any of the Guaranteed Obligations or any guarantee
or right of offset with respect thereto at any time or from time to time held
by the Lender, (b) any defense, setoff or counterclaim (other than a
defense of payment) which may at any time be available to or be asserted by the
Borrowers or any other Person against the Lender, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the
Borrowers or the Guarantors) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrowers from the
Guaranteed Obligations, or of any or all of the Guarantors under this
Guarantee, in bankruptcy or in any other instance.  When making a demand hereunder or otherwise
pursuing its rights and remedies hereunder against any Guarantor, the Lender
may, but shall be under no obligation to, make a similar demand on or otherwise
pursue such rights and remedies as it may have against the Borrowers, any other
Guarantor or any other Person or against any guarantee for the Guaranteed
Obligations or any right of offset with respect thereto, and any failure by the
Lender to make any such demand, to pursue such other rights or remedies or to
collect any payments from the Borrowers or any such other Person or to realize
upon any or guarantee or to exercise any such right of offset, or any release
of the Borrowers or any such other Person or of any guarantee or right of
offset, shall not relieve any Guarantor of any liability hereunder, and shall
not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Lender against any Guarantor.  For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.

 

SECTION 6.             Payments.  Each Guarantor hereby agrees
that payments hereunder will be paid to the Lender without setoff or counterclaim
by wire transfer of immediately available funds to an account or by such other
reasonable means as the Lender may specify.

 

SECTION 7.             Authorization. Each Guarantor
authorizes the Lender, without notice to or further assent by such Guarantor
and without affecting such Guarantor’s liability hereunder (regardless of
whether any subrogation or similar right that such Guarantor may have or any
other right or remedy of such Guarantor is extinguished or impaired), from time
to time to:

 

(a)           terminate, release, compromise, subordinate, extend,
accelerate or otherwise change the amount or time, manner or place of payment
of, or rescind any demand for payment or acceleration of, the Guaranteed
Obligations or any part thereof, or otherwise amend or waive the terms and
conditions of the Note, or any provision thereof;

 

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(b)           exercise, fail to exercise, waive, suspend, terminate or
suffer expiration of any of the remedies or rights of the Lender against any
Borrower or any other Guarantor in respect of any Guaranteed Obligations, as
the Lender may elect in its discretion;

 

(c)            release, partially release, add or settle with any
Borrower or any Guarantor, whether expressly, by operation of law or without
limitation otherwise;

 

(d)           accept partial payments on the Guaranteed Obligations and
apply any and all payments or recoveries from any Borrower or any Guarantor to
such of the Guaranteed Obligations as the Lender may elect in its discretion;

 

(e)           refund at any time, at the discretion of the Lender, any
payments or recoveries received by the Lender in question as the case may be,
in respect of any Guaranteed Obligations; and

 

(f)            otherwise deal with any Borrower and any Guarantor as the
Lender may elect in its or its discretion.

 

SECTION 8.         Certain Agreements and Waivers by
the Guarantors.  Each Guarantor hereby agrees that neither the
Lender’s rights or remedies nor such Guarantor’s obligations under this
Guarantee shall be released, diminished, impaired, reduced or affected by any
one or more of the following events, actions, facts or circumstances, and the
liability of such Guarantor under this Guarantee shall, be absolute,
unconditional and irrevocable irrespective of:

 

(a)           the insolvency, bankruptcy, dissolution, liquidation,
termination, receivership, reorganization, merger, consolidation, change of
form, structure or ownership, sale of all assets, or lack of corporate,
partnership, limited partnership, limited liability company or other power of
any Borrower, any Guarantor or any other Person at any time liable for the
payment of any or all of the Guaranteed Obligations;

 

(b)           all rights and benefits under applicable law purporting to
reduce a Guarantor’s obligations in proportion to the obligation of the
principal or providing that the obligation of a surety or guarantor must
neither be larger nor in other respects more burdensome than that of the
principal;

 

(c)           except as otherwise specifically provided in this
Guarantee, any requirement of marshaling or any other principle of election of
remedies and all rights and defenses arising out of an election of remedies by
the Lender, even though that election of remedies has destroyed a Guarantor’s rights of subrogation and
reimbursement against any Borrower or any other Guarantor;

 

(d)           any right to assert against the Lender any defense (legal
or equitable), set-off, counterclaim and other right that such Guarantor may
now or any time hereafter have against any Borrower or any other Guarantor;

 

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(e)           presentment, diligence in making demands hereunder, notice
of dishonor or nonperformance, protest, acceptance and notice of acceptance of
this Guarantee; or

 

(f)            any order, ruling or plan of reorganization emanating
from any proceeding under Title 11 of the United States Code (11 U.S.C. Section 101
et seq.), or any successor statute, in each case as amended from time to time
with respect to any Borrower or any other Person, including any extension,
reduction, composition, or other alteration of the Guaranteed Obligations,
whether or not consented to by the Lender.

 

SECTION 9.             Duty
of Inquiry. Each Guarantor assumes the responsibility for being
and keeping itself informed of the financial condition of each Borrower and
each other Guarantor and of all other circumstances bearing upon the risk of
nonpayment of the Guaranteed Obligations that diligent inquiry would reveal,
and agrees that the Lender shall have no duty to advise the Guarantor of
information regarding such condition or any such circumstances.

 

SECTION 10.          Bankruptcy
No Discharge.

 

(a)           This Guarantee shall not be discharged or otherwise
affected, with respect to any Guarantor, by any bankruptcy, reorganization or
similar proceeding commenced by or against any Borrower or any Guarantor,
including (i) any discharge of, or bar or stay against collecting, all or
any part of the Guaranteed Obligations in or as a result of any such
proceeding, whether or not assented to by the Lender, or (ii) any
disallowance of all or any portion of the Lender’s claim for repayment of the
Guaranteed Obligations.  If acceleration
of the time for payment of any Guaranteed Obligations is stayed or delayed as a
result of any such proceeding, all such amounts shall nonetheless be payable by
such Guarantor on demand by the Lender.

 

(b)           If a payment by any Borrower or any other Guarantor is
made and is later determined not to have been indefeasibly made in whole or in
part, such payment by any Borrower or Guarantor to the Lender shall not
constitute a release of any other Guarantor from any liability hereunder and (i) this
Guarantee shall continue to be effective or shall be reinstated notwithstanding
any prior release, surrender or discharge by the Lender of this Guarantee
and/or of the Guarantors, and (ii) this Guarantee shall apply to, any and
all amounts so refunded by the Lender or paid by the Lender to another Person
(including any interest included in such amount), all as though such payment
had not been made or such proceeds had not been received.

 

SECTION 11.          Representations and Warranties.

 

To induce the Lender to
enter into the Note and to induce the Lender to make the Loan to the Borrowers,
each Guarantor hereby jointly and severally represents and warrants to the
Lender that, as of the date hereof:

 

(a)           Existence; Compliance with
Law.  Each of the
Guarantors (i) is duly organized, validly existing and in good standing
under the laws of the jurisdiction of

 

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its organization, (ii) has the corporate
(or equivalent) power and authority, and the legal right, to own and operate
its Property, to lease the Property it operates as lessee and to conduct the
Business in which it is currently engaged, (iii) is duly qualified as a
foreign entity and in good standing under the laws of each jurisdiction where
its ownership, lease or operation of Property or the conduct of its Business
requires such qualification and (iv) is in compliance with all
Requirements of Law, except, in the case of clauses (ii) through (iv), to
the extent that the failure to comply therewith, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Power;
Authorization; Enforceable Obligations.  Each Guarantor has the corporate power and authority,
and the legal right, to make, deliver and perform this Guarantee and the
Guaranteed Obligations.  Each Guarantor
has taken all necessary corporate action to authorize the execution, delivery
and performance of this Guarantee on the terms and conditions herein and the
performance of the Guaranteed Obligations. 
No consent or authorization of, or filing with, any Person is required
in connection with the execution, delivery and performance by each Guarantor of
this Guarantee.  This Guarantee has been
duly executed and delivered on behalf of each Guarantor.  This Guarantee constitutes a legal, valid and
binding obligation of each Guarantor, enforceable against each such Guarantor
in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

 

(c)                                  No
Legal Bar or Conflicts.  The execution, delivery and performance of
this Guarantee by the Guarantors, the payments hereunder, and the performance
of the Guaranteed Obligations do not and will not violate in any material
respect, result in a default (or give rise to a right of termination,
cancellation or acceleration of any obligation or loss of any material benefit)
under, or require a consent or waiver under, any Requirement of Law applicable
to, or any Contractual Obligation of, any Guarantor, and will not result in, or
require, the creation or imposition of any Lien on any of their respective
Properties or revenues pursuant to any such Requirement of Law applicable to
any of the Guarantors or any such Contractual Obligation of any of the
Guarantors.  No Event of Default has
occurred and is continuing.

 

(d)                                 Financial
Condition.

 

(i)              The unaudited
consolidated balance sheets of SFI as at March 31, 2009, and the related
unaudited consolidated statements of income and cash flows for the three-month
period ended on such date (all as included on SFI’s Form 10-Q filed with
the Securities and Exchange Commission), present fairly in all material
respects the consolidated financial condition of SFI as at such date, and the
consolidated results of its operations and its consolidated cash flows for the
three-month period then ended (subject to normal year-end audit adjustments and
the absence of footnote disclosure thereto). 
All such financial statements, including the related schedules and notes
thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved

 

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(except
as approved by the firm of accountants specified herein and disclosed
therein).  SFI and its Subsidiaries do
not have any material guarantee, contingent liabilities and liabilities for
taxes, or any material long-term leases or unusual forward or long-term
commitments, including any interest rate or foreign currency swap or exchange
transaction or other obligation in respect of derivatives, that are not
reflected or disclosed in the notes in the most recent financial statements of
SFI referred to in this paragraph or otherwise permitted by the Six Flags
Credit Agreement.  During the period from
December 31, 2008 to and including the date hereof there has been no sale,
lease, sale and leaseback, assignment, conveyance, transfer or other
disposition thereof by SFI and its Subsidiaries, considered as a whole, of any
material part of its Business or Property or any agreement or commitment
(whether written or otherwise) to take any of the foregoing actions.

 

(ii)             The audited
consolidated balance sheets of SFI as at December 31, 2008 and the related
consolidated statements of income and of cash flows for the fiscal year ended
on such date (all as included on SFI’s Form 10-K filed with the Securities
and Exchange Commission), reported on by KPMG LLP, present fairly in all
material respects the consolidated financial condition of SFI as at such date,
and the consolidated results of its operations and its consolidated cash flows
for the fiscal year then ended.  All such
financial statements, including the related schedules and notes thereto, have
been prepared in accordance with GAAP applied consistently throughout the
periods involved (except as approved by the aforementioned firm of accountants
and disclosed therein).

 

(iii)            The unaudited
consolidated balance sheets of each of the Georgia Park and the Texas Park as
at March 31, 2009, and the related unaudited consolidated statements of income
and cash flows for the three-month period ended on such date, present fairly in
all material respects the consolidated financial condition of the Georgia Park
and the Texas Park, respectively, as at such date, and the consolidated results
of their operations and their consolidated cash flows for the three-month
period then ended (subject to normal year-end audit adjustments and the absence
of footnote disclosure thereto).  All
such financial statements, including the related schedules and notes thereto,
have been prepared in accordance with GAAP applied consistently throughout the
periods involved.  The Georgia Park, the
Texas Park and their respective Subsidiaries do not have any material
guarantee, contingent liabilities and liabilities for taxes, or any material
long-term leases or unusual forward or long-term commitments, including any
interest rate or foreign currency swap or exchange transaction or other
obligation in respect of derivatives, that are not reflected or disclosed in
the notes in the most recent financial statements of the Georgia Park and the
Texas Park referred to in this paragraph or otherwise permitted under this
Guarantee.  During the period from March 31,
2009 to and including the date hereof there has been no sale, lease, sale and
leaseback, assignment, conveyance, transfer or other disposition thereof by the
Georgia Park, the Texas Park or any of their respective Subsidiaries of any
material part of its Business or Property or any agreement or commitment
(whether written or otherwise) to take any of the foregoing actions.

 

8

 

(iv)            The audited
consolidated balance sheets of each of the Georgia Park and the Texas Park as
at December 31, 2008 and the related consolidated statements of income and
of cash flows for the fiscal year end on such date, reported on by and
accompanied by an unqualified report from KPMG LLP, present fairly in all
material respects the consolidated financial condition of each of the Georgia
Park and the Texas Park as at such date, and the consolidated results of its
operations and its consolidated cash flows for the fiscal year then ended.  All such financial statements, including the
related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (except as approved by the
aforementioned firm of accountants and disclosed therein).

 

(e)           Compliance.  Since July 1, 2008, (i) each
Guarantor has complied with the terms and provisions of such Guarantor’s
certificate of incorporation; (ii) GP Holdings Inc. has complied with the
terms and provisions of (x) its certificate of incorporation and (y) the
Subordinated Indemnity Agreement; and (iii) each Guarantor and its
Subsidiaries that are parties thereto have complied with the terms and
provisions of (w) the Subordinated Indemnity Agreement, (x) the
Subordinated Indemnity Escrow Agreement, (y) the GA Overall Agreement and (z) the
TX Overall Agreement.

 

(f)            Exchange Offer.  Except as set forth on Schedule 7(e) of
the Note, the Exchange Offer has not been terminated, extended, amended or
modified in any manner.

 

(g)           SFI Indentures.  On May 14, 2009, SFI shall have
irrevocably deposited in immediately available funds with the Paying Agent (as
such term is defined in the SFI Indenture for the SFI 2013 Notes) the
semi-annual interest payment due on April 15, 2009 under the SFI 2013
Notes (as defined in the Exchange Offer) in full.

 

(h)           Litigation.  No litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or, to the
knowledge of any Guarantor, threatened by or against any Guarantor or any of
its Subsidiaries or against any of their respective Properties or revenues (i) with
respect to any of the Loan Documents or any of the Transactions, or (ii) that,
either individually or in the aggregate, has had or could reasonably be
expected to have a Material Adverse Effect.

 

(i)            Additional Representations
and Warranties.  The
representations and warranties set forth in Sections 6.8, 6.9, 6.10, 6.12,
6.13, and 6.17 of the Six Flags Credit Agreement as they relate to such
Guarantor, each of which is hereby incorporated herein by reference to the
benefit of the Lender, are true and correct in all respects as of the date
hereof as though made on the date hereof (or if they relate to an earlier date,
as of such earlier date), and the Lender shall be entitled to rely on each of
them as if they were fully set forth herein.

 

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SECTION 12.          Affirmative Covenants.

 

So long as this Guarantee
remains in effect and the principal of and interest on the Loan and all
Expenses have not been paid in full in cash, each Guarantor hereby jointly and
severally shall, and shall cause each of their respective Subsidiaries to:

 

(a)                                  Subordinated
Indemnity Agreement.  From
time to time execute and deliver, or cause to be executed and delivered, such
additional amendments, instruments, certificates or documents, and take all
such actions with respect to the Subordinated Indemnity Agreement and Related
Indemnity Agreements, in each case, as mutually agreed by the parties thereto;

 

(b)                                 Ratification.  Reaffirm, ratify and assume, as applicable,
its obligations under the License Agreements, this Guarantee, the Subordinated
Indemnity Agreement, the Related Indemnity Agreements and the Six Flags
Guarantees in connection with any bankruptcy case of SFI and its applicable
Subsidiaries or the assumption of the License Agreements or the Beneficial
Share Assignment Agreement;

 

(c)                                  Financial
Statement and Other Information.  Deliver the following financial statements,
reports, notices and other information:

 

(i)              as soon as
available and in any event within 45 days after the end of each of the first
three quarterly fiscal periods of each fiscal year of SFI, interim condensed
consolidated statements of operations, shareholders’ equity and cash flows of
SFI and its Subsidiaries for such period, and the related consolidated balance
sheets of SFI and its Subsidiaries;

 

(ii)             as soon as
available and in any event no later than 75 days after the end of each fiscal
year of SFI, a consolidated annual budget projection of SFI and its
Subsidiaries broken down on a month-by-month basis and with reasonable detail;

 

(iii)            as soon as
available and in any event within two (2) Business Days after the end of
each monthly fiscal period of SFI, the daily operating report of each of the
Georgia Park and the Texas Park for the last day of such monthly fiscal period;

 

(iv)            as soon as available
and in any event within 30 days after the end of each monthly fiscal period of
SFI, interim statements of operations, shareholders’ equity and cash flows of
each of the Georgia Park and the Texas Park for such period, and the related
balance sheets of each of the Georgia Park and the Texas Park;

 

(v)             as soon as
available, and in any event no later than 75 days after the end of each fiscal
year of SFI, a detailed annual budget projection of each of the Georgia Park
and the Texas Park broken down on a month-by-month basis;

 

10

 

(vi)            as soon as
available and in any event within 90 days after the end of each fiscal year of
SFI, the information required by clauses (i) and (iv) hereof on
a year-end basis;

 

(vii)           to the extent
requested by the Lender, any updated budgets or any internal updates of the
information required by clauses (i) through (v) hereof to the extent
related to the periods for which such financial information was provided
promptly after such updates are produced; and

 

(viii)          any other
documents or information as may be reasonably requested by the Lender from time
to time;

 

provided, that the obligations in clauses (c)(i) and
(c)(vi) of this Section 12 may be satisfied with respect to financial
information of the Guarantors by furnishing SFI’s Form 10-K or 10-Q, as
applicable, filed with the Securities and Exchange Commission; provided,
further that such documents required to be delivered pursuant to clauses
(c)(i) and (c)(vi) of this Section 12 may be delivered
electronically and if so delivered, shall be deemed to have been delivered on
the date on which SFI posts such documents, or provides a link thereto on
SFI’s website on the Internet.

 

(d)                                 Notices
of Material Events. 
Furnish the following to the Lender in writing:

 

(i)              promptly after
any executive officer of a Guarantor has actual knowledge of facts that would
give him or her reason to believe that any Event of Default has occurred,
notice of such Event of Default;

 

(ii)             simultaneously
with the delivery thereof, a copy of any notice delivered to the Administrative
Agent (as defined in the Six Flags Credit Agreement) pursuant to Section 8.2
of the Six Flags Credit Agreement; and

 

(iii)          promptly after
receipt thereof, a copy of any notice of Default, Event of Default (each as
defined in the Six Flags Credit Agreement) or acceleration received from the
Administrative Agent or any Lender (as defined in the Six Flags Credit
Agreement) under the Six Flags Credit Agreement.

 

Each notice delivered under this Section 12(d) shall
be accompanied by a statement of a Responsible Officer of the applicable
Guarantor setting forth in reasonable detail the facts and circumstances of the
event or development requiring such notice and any action taken or proposed to
be taken with respect thereto;

 

(e)                                  Existence,
Etc.

 

(i)              (A) Preserve,
renew and maintain in full force and effect its legal existence under the laws
of the jurisdiction of its organization (other than with respect to any
Subsidiary that (x) has aggregate assets with a value not in excess of
$100,000, (y) conducts no Business and (z) does not Guarantee any
Guarantor Indebtedness under any Indenture or is not a loan party to the Six
Flags

 

11

 

Credit
Agreement) and (B) take all reasonable action to maintain all rights,
privileges (including its good standing), permits, licenses and franchises
necessary or desirable in the normal conduct of its business, except in the
case of clause (B) above, to the extent that failure to do so, either
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect or other than as a consequence of the Bankruptcy Case;

 

(ii)             Pay and discharge
all Federal income taxes and all other material taxes, assessments and
governmental charges or levies imposed on it or on its income or profits or on
any of its Property prior to the date on which penalties attach thereto, except
for any such obligation, tax, assessment, charge or levy the payment of which
is being contested in good faith and by proper proceedings and against which
adequate reserves are being maintained to the extent required by GAAP; provided
that, with respect to taxes assessed against Real Properties, such taxes can be
contested without payment under applicable law;

 

(iii)            Maintain and
preserve all of its Properties material to the conduct of the Business of SFI
and its Subsidiaries (taken as a whole) in good working order and condition,
except for failures that, either individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect;

 

(iv)            Keep adequate
records and books of account, in which complete entries will be made in
accordance with GAAP consistently applied; and

 

(v)             Permit representatives
of the Lender, upon reasonable notice and during normal business hours (and,
except if an Event of Default shall have occurred and be continuing, not more
frequently than once each calendar quarter), to examine, copy and make extracts
from its books and records, to visit and inspect any of its Properties, and to
discuss its business, finances, condition and affairs with its officers and
independent accountants and the general managers of its Parks, all to the
extent reasonably requested by the Lender. 
The Lender shall give the Guarantors the opportunity to participate in
any discussions with the Guarantors’ independent public accountants and the
general managers of its Parks (as such term is defined in the Six Flags Credit
Agreement).  Notwithstanding anything to
the contrary in this Section 12(e)(v), none of SFI or any Subsidiary will
be required to disclose, permit the inspection, examination or making copies or
abstracts of, or discussion of, any document, information or other matter that (A) constitutes
non-financial trade secrets or non-financial proprietary information or (B) in
respect of which disclosure to the Lender (or their respective representatives
or contractors) is prohibited by law or any binding agreement;

 

(f)                                    Insurance.  Maintain with
financially sound and reputable insurance companies, insurance with respect to
its properties and business against loss or damage of the kinds customarily
insured against by Persons engaged in the same or

 

12

 

similar business, of such types and in such
amounts (after giving effect to any self-insurance reasonable and customary for
similarly situated Persons engaged in the same or similar businesses as SFI and
its Subsidiaries) as are customarily carried under similar circumstances by
such other Persons;

 

(g)           Compliance with
Contractual Obligations and Requirements of Law.  (i) Comply in all material respects with
the License Agreements and (ii) except as a consequence of the
commencement of the Bankruptcy Case, comply with all other Contractual
Obligations and Requirements of Law unless failure to comply with such other
Contractual Obligations or Requirements of Law, either individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect; provided,
that any noncompliance that does or could be reasonably expected to have (A) an
impairment on the ability of a Guarantor to perform the Guaranteed Obligations
or (B) an adverse effect upon the legality, validity, binding effect or
enforceability against a Guarantor of this Guarantee shall be deemed to be
material; and

 

(h)           Further Assurances.  From time to time execute and deliver, or
cause to be executed and delivered, such additional instruments, certificates
or documents, and take all such actions, as the Lender may reasonably request
for the purposes of implementing or effectuating the provisions of this
Guarantee.  Upon the exercise by the
Lender of any power, right, privilege or remedy pursuant to this Guarantee
which requires any consent, approval, recording, qualification or authorization
of any Governmental Authority, SFI will execute and deliver, or will cause the
execution and delivery of, all applications, certifications, instruments and
other documents and papers that the Lender may be required to obtain from SFI
or any of its Subsidiaries for such governmental consent, approval, recording,
qualification or authorization.

 

SECTION 13.          Negative Covenants.   (a) To induce the
Lender to enter into the Note and to make the Loan to the Borrowers, each
Guarantor shall, and shall cause its Subsidiaries to, comply with the terms and
provisions of (i) Sections 9.2, 9.3 and 9.5 of the Six Flags Credit
Agreement (whether or not the Six Flags Credit Agreement is in effect) and (ii) so
long as the SFI Indentures are in effect, Sections 4.09 and 4.12 of the SFI
Indentures, in each case, as in effect on the date hereof or as amended in
accordance with Section 13(b), and to the extent such Guarantor is subject
to such covenants as of the date hereof, each of which is hereby incorporated
herein by reference;

 

(b)           The Guarantors shall not amend,
supplement, restate or otherwise modify the Six Flags Credit Agreement, any SFI
Indenture or the SFI Convertible Indenture in any manner that directly or
indirectly (i) restricts the ability of the Guarantors to pay the Lender
under this Guarantee in accordance with the terms hereof, (ii) restricts
the ability of the Borrowers to pay the Lender under the Note in accordance
with the terms thereof, (iii) restricts the ability of the Loan Parties
and their Subsidiaries to make loans to, or other investments (to a greater
extent than it is restricted on the date hereof) in, the Borrowers or (iv) restricts
the ability of the Loan Parties and their Subsidiaries to perform their
obligations under the License Agreements, the Partnership Parks Agreements, the
Subordinated Indemnity Agreement or the Related Indemnity Agreements in
accordance with the terms thereof; and

 

13

 

(c)           The Guarantors shall not amend,
restate or otherwise modify their respective Certificates of Incorporation or
By-Laws in any manner that directly or indirectly (i) restricts the
ability of the Guarantors to pay the Lender under this Guarantee in accordance
with the terms hereof, (ii) restricts the ability of the Borrowers to pay
the Lender under the Note in accordance with the terms thereof, (iii) restricts
the ability of the Loan Parties and their Subsidiaries to make loans to, or
other investments in, the Borrowers, or (iv) restricts the ability of the
Loan Parties and their Subsidiaries to perform their obligations under the
License Agreements in accordance with the terms thereof.

 

SECTION 14.          Notices.  All notices, requests and demands to or upon
the Lender or any Guarantor shall be effected in the manner provided in Section 17
of the Note; any such notice, request or demand to or upon any Guarantor shall
be addressed to such Guarantor at its notice address set forth on Schedule 1
hereto.

 

SECTION 15.          Severability.  Any provision of this Guarantee which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

SECTION 16.          Section Headings.  The section headings used in this Guarantee
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

 

SECTION 17.          No Offset; Interest.  No Guarantor may offset against amounts it is
to pay to the Lender under this Guarantee any amounts it claims are owed to it
by the Lender or any other Person.

 

SECTION 18.          Enforcement
Expenses.  Each
Guarantor agrees, jointly and severally, to pay or reimburse the Lender for all
its costs and expenses incurred in collecting against such Guarantor under this
Guarantee or otherwise enforcing or protecting any rights under the Loan
Documents, the Subordinated Indemnity Agreement and the Related Indemnity Agreements,
to which such Guarantor is a party and applicable law, including the fees and
disbursements of counsel to the Lender.

 

SECTION 19.          Acknowledgements.

 

Each Guarantor hereby
acknowledges that:

 

(a)           it has been advised by counsel in the negotiation,
execution and delivery of this Guarantee;

 

(b)           the Lender does not have any fiduciary relationship with
or fiduciary duty to such Guarantor arising out of or in connection with this
Guarantee or the Note, and the relationship between any or all of the
Guarantors, on the one hand, and

 

14

 

the Lender, on the other hand, in connection
herewith or therewith is solely that of debtor and creditor; and

 

(c)           no joint venture is
created hereby or by the Note or otherwise exists by virtue of the transactions
contemplated hereby among the Guarantors and the Lender.

 

SECTION 20.          No Waiver.  The Lender shall not by any act (except by a
written instrument signed by the Lender), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Event of Default.  No
failure to exercise, nor any delay in exercising, on the part of the Lender,
any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder.  A waiver by the Lender of any right or remedy
hereunder on any one occasion shall not be construed as a bar to any right or
remedy which the Lender would otherwise have hereunder on any future occasion.

 

SECTION 21.          Assignment,
Etc.  This Guarantee shall be binding upon the Guarantors
and shall inure to the benefit of the Lender and its successors and permitted
assigns; provided, however, no Guarantor may assign this Guarantee or otherwise
transfer any rights or obligations hereunder, and the Lender may assign its
benefits hereunder (a) to an Affiliate thereof or (b) with the prior
written consent of the Guarantors (such consent not to be unreasonably
withheld), to any other Person.

 

SECTION 22.          Entire
Agreement.  This
Guarantee constitutes the entire agreement among the parties with respect to
the subject matter hereof and supersedes all other prior letters and
understandings, both written and verbal, among the parties or any of them with
respect to the subject matter hereof; provided, however, that nothing
contained herein shall limit, affect, alter, amend or otherwise modify the
rights and obligations of the parties hereto and their respective Affiliates
under the Subordinated Indemnity Agreement, the Related Indemnity Agreements,
the Acquisition Company Liquidity Agreement or the Partnership Parks
Agreements.

 

SECTION 23.          Governing Law.  This Guarantee and the rights and obligations
of the Guarantors and the Lender under this Guarantee shall be governed by, and
construed and enforced in accordance with, the laws of the State of
New York, excluding any conflict-of-laws rule or principle that might
refer the governance or the construction of this Guarantee to the law of
another jurisdiction.

 

SECTION 24.          Waivers
of Jury Trial; Judicial Proceedings.

 

(a)           EACH GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
GUARANTEE OR ANY OTHER DOCUMENTS RELATED HERETO AND FOR ANY COUNTERCLAIM
THEREIN.

 

15

 

(b)           EACH GUARANTOR AGREES THAT ANY ACTION, SUIT OR PROCEEDING
AGAINST ANY OF THE PARTIES HERETO ARISING UNDER OR RELATING IN ANY WAY TO THIS
GUARANTEE OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY ONLY BE BROUGHT OR
ENFORCED IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND EACH OF THE PARTIES HERETO IRREVOCABLY
CONSENTS TO THE EXCLUSIVE JURISDICTION OF EACH SUCH COURT IN RESPECT OF ANY
SUCH ACTION, SUIT OR PROCEEDING. EACH OF THE PARTIES HERETO FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS IN ANY SUCH ACTION, SUIT OR PROCEEDING BY
THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE
PRE-PAID, RETURN RECEIPT REQUESTED, PROPERLY ADDRESSED TO SUCH PARTY AT ITS
ADDRESSES PROVIDED FOR NOTICES HEREUNDER.

 

(c)           EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE THE LAYING OF VENUE OF ANY ACTION, SUIT
OR PROCEEDING ARISING UNDER OR RELATING IN ANY WAY TO DISAGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY IN ANY COURT LOCATED IN THE STATE OF NEW YORK
AND HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT A COURT LOCATED IN THE
STATE OF NEW YORK IS NOT A CONVENIENT FORUM FOR ANY SUCH ACTION, SUIT OR
PROCEEDING.

 

SECTION 25.          Confidentiality.  The Lender agrees to keep confidential all
non-public information provided to it by any Guarantor pursuant to this
Guarantee that is designated by such Guarantor as confidential; provided,  that nothing herein shall prevent the Lender
from disclosing any such information (a) to any Affiliate of the Lender, (b) to
any of the Lender’s or its Affiliate’s employees, directors, agents, attorneys,
accountants and other professional advisors, (c) upon the request or
demand of any Governmental Authority having jurisdiction over the Lender, (d) in
response to any order of any court or other Governmental Authority or as may
otherwise be required pursuant to any Requirement of Law, (e) in
connection with any litigation or similar proceeding, (f) that has been
publicly disclosed other than in breach of this Section 25, or (g) in
connection with the exercise of any remedy hereunder or under the Note.

 

[Remainder of Page Intentionally Left Blank]

 

16

 

IN WITNESS WHEREOF, the
undersigned has caused this Guarantee to be duly executed and delivered by its
duly authorized officer as of the day and year first above written.

 

 

	
   

  	
  SIX
  FLAGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey R. Speed

  
	
   

  	
   

  	
  Name:

  	
  Jeffrey
  R. Speed

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SIX
  FLAGS OPERATIONS INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey R. Speed

  
	
   

  	
   

  	
  Name:

  	
  Jeffrey
  R. Speed

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SIX
  FLAGS THEME PARKS INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeffrey R. Speed

  
	
   

  	
   

  	
  Name:

  	
  Jeffrey
  R. Speed

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED
  AND AGREED TO

  this 15th day of May, 2009

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TW-SF
  LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Edward B. Ruggiero

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:  Edward B. Ruggiero 

  	
   

  	
   

  	
   

  
	
   

  	
  Title:    Senior Vice President &
  Treasurer

  	
   

  	
   

  	
   

  
						

 

[Signature Page to Guarantee]

 

 

SCHEDULE 1

 

Address for Notices

 

Guarantors:

 

c/o Six Flags, Inc.

1540 Broadway, 15th Floor

New York, New York
10036

Attention:  James M. Coughlin

Facsimile:  (212) 354-3089

 

With a copy to:

 

Paul, Hastings, Janofsky &
Walker LLP.

75 E. 55th Street, First
Floor

New York, New York
10022

Attention:  Michele J. Cohen

Facsimile:  (212) 230-7862Exhibit 10.3

 

SIX
FLAGS, INC.

1540 Broadway, 15th Floor

New York, NY 10036

 

June 13, 2009

 

To the Holders of Lender Claims 

Referred to Below

 

Ladies and Gentlemen:

 

This
letter agreement (the “Agreement”) sets forth certain terms and
conditions pursuant to which Six Flags, Inc. (“SFI”), Six Flags
Operations Inc. (“SFO”) and Six Flags Theme Parks Inc. (“SFTP”)
and certain of SFTP’s domestic subsidiaries (collectively the “Debtors”)
will propose their jointly filed chapter 11 plan of reorganization (the “Plan”)
on a consensual basis with the support of the lenders (the “Lenders”)
party to the Second Amended and Restated Credit Agreement dated as of May 25,
2007 (as amended, modified or otherwise supplemented from time to time, the “Credit
Agreement”), among SFI, SFO, SFTP (as the primary borrower), certain of
SFTP’s foreign subsidiaries party thereto, the Lenders, the agent banks party
thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (in such
capacity, the “Administrative Agent”) signatory hereto.

 

Capitalized
terms not defined herein shall have the meaning ascribed to such terms in the
Restructuring Term Sheet (as defined below).

 

1.                                       Proposed Plan of Reorganization

 

Each
of the Debtors proposes to commence cases (collectively, the “Chapter 11 Cases”)
under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”)
in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy
Court”) to be jointly administered. 
As part of the Chapter 11 Cases, the Debtors intend to file a
disclosure statement and related Plan, which will provide for, among other
things, certain distributions on account of the claims of the Lenders under the
Credit Agreement (the “Lender Claims”).

 

2.                                       Due Authority

 

Each
holder of Lender Claims identified as such on the signature page hereto
(such Lenders, the “Participating Lenders”) represents and warrants to
the Debtors that, as of the date hereof, (i) such Participating Lender
either (A) is the beneficial owner of the principal amount of Lender
Claims set forth below under its signature hereto, or (B) has investment
or voting discretion with respect to the principal amount of Lender Claims set
forth below under its signature and has the power and authority to bind the
beneficial owner(s) of such Lender Claims to the terms of this Agreement
and (ii) such Participating Lender has full power and authority to vote
and consent to matters concerning such Lender Claims and to exchange, assign
and transfer such Lender Claims.

 

 

3.                                       Support for a Qualified Plan

 

Subject
to the terms and conditions hereof and for so long as its obligations hereunder
have not terminated as provided herein, each Participating Lender and, in the
case of the following clauses (a), (b) and (c), its affiliates,
subsidiaries, representatives, agents and employees (a) shall support and
take all reasonable actions to facilitate the solicitation, confirmation and
consummation of a Plan incorporating the terms and conditions set forth on Exhibit 1
annexed hereto (the “Restructuring Term Sheet”) and consistent in all
material respects with the Restructuring Term Sheet, as may be modified in
accordance with Section 9 hereof, and in form and substance reasonably
satisfactory to the Supermajority Participating Lenders(1) (a “Qualified
Plan”), including, as applicable, provided that such Participating Lender
has been properly solicited pursuant to Bankruptcy Code sections 1125 and 1126,
timely voting its Lender Claims to accept such plan, (b) will not object
to confirmation of, or vote its Lender Claims to reject, a Qualified Plan or
otherwise take any action or commence any proceeding to oppose or to seek any
modification of a Qualified Plan, the Disclosure Statement (as defined below)
related to a Qualified Plan, or any other reorganization documents containing
terms and conditions consistent in all material respects with the Restructuring
Term Sheet and this Agreement and (c) will not directly or indirectly
seek, solicit, support, encourage, vote its Lender Claims for, consent to, or
participate in the negotiation or formulation of (i) any plan of
reorganization, proposal, offer, dissolution, winding up, liquidation,
reorganization, merger, consolidation, business combination, joint venture,
partnership, sale of assets or restructuring for any of the Debtors (each, an “Alternative
Proposal”) other than a Qualified Plan or (ii) any other action that
is inconsistent with, or that would delay or obstruct the proposal,
solicitation, confirmation, or consummation of, a Qualified Plan.  Notwithstanding the foregoing, nothing in
this Agreement shall limit any Participating Lender’s rights under any
applicable bankruptcy, insolvency or similar proceeding (including, without
limitation, appearing as a party in interest in any matter to be adjudicated in
any case under the Bankruptcy Code concerning the Debtors) so long as the
exercise of such rights are not inconsistent with the Qualified Plan and are
not for the purpose of hindering, delaying or preventing the consummation of
the Qualified Plan.

 

Each Participating
Lender agrees to permit disclosure in the Disclosure Statement and any filings
by the Debtors with the Securities and Exchange Commission and any other
regulatory agency to which the Debtors may be subject of the contents of this
Agreement, including, but not limited to, the aggregate Lender Claims held by
all Lenders; provided that (i) the Debtors shall provide a draft of such
disclosure to the Participating Lenders and a reasonable amount of time to
review such draft prior to such disclosure being made and (ii) the Debtors
shall not disclose the amount of any individual Lender Claim, except as
otherwise required by applicable law.

 

4.                                       Transfer of Lender Claims

 

Each
Participating Lender agrees that so long as this Agreement has not been terminated
it shall not (a) grant any proxies to any person in connection with its
Lender Claims 

 

(1) For this Agreement “Supermajority
Participating Lenders” shall mean the Participating Lenders holding more than
60% of the Lender Claims bound under this Agreement.

 

2

 

to vote on the Plan except as is consistent with the
intention of the Participating Lenders as set forth in this Agreement, or (b) sell,
transfer or otherwise dispose of its Lender Claims except in accordance with
the terms of the Credit Agreement and to a party that agrees in writing to be
subject to the terms and conditions of this Agreement as a “Participating
Lender”, which writing shall be in form and substance reasonably satisfactory
to the Administrative Agent and the Debtors. 
Each Participating Lender agrees to notify the Debtors in writing before
the close of two (2) business days after such transfer, sale or assignment
of its Lender Claims and to provide the Debtors with a signed agreement of the
transferee agreeing to be subject to the terms and conditions of this Agreement
before the close of two (2) business days after such transfer, sale or
assignment.  This Agreement shall in no
way be construed to preclude any Lender from acquiring additional Lender
Claims, which Lender Claims shall become subject to the terms hereof.  This Agreement shall in no way be construed
to (x) preclude any Lender from acquiring any other claims against the
Debtors or (y) restrict any Lender with respect to the voting of such
other claims either in connection with these Chapter 11 cases or otherwise.

 

5.                                       The Debtors’ Covenants

 

As
long as a Termination Event (as defined below) has not occurred, or has
occurred but has been duly waived in accordance with the terms hereof, the
Debtors, subject to Section 6(b) herein, shall use their commercially
reasonable efforts to:

 

(a)                                  file a disclosure statement in form and
substance reasonably satisfactory to the Supermajority Participating Lenders
(the “Disclosure Statement”) and prosecute its approval by the
Bankruptcy Court within the timeframe set forth herein;

 

(b)                                 implement all steps necessary or
appropriate to obtain from the Bankruptcy Court an order confirming a Qualified
Plan (the “Confirmation Order”) within the time frame set forth herein,
which Confirmation Order shall be in form and substance reasonably satisfactory
to the Supermajority Participating Lenders;

 

(c)                                  effectuate and consummate a Qualified
Plan within the timeframe set forth herein; and

 

(d)                                 take no action (directly or indirectly)
that is inconsistent with, or that would delay or otherwise impede approval of
the Disclosure Statement or a Qualified Plan or the expeditious confirmation
and consummation of a Qualified Plan.

 

(e)                                  None of the materials and information
provided by or on behalf of the Debtors to the Lenders or the Administrative
Agent in connection with the restructuring contemplated by this Agreement, when
read or considered together, contained or will contain any untrue statement of
a material fact or omitted or will omit to state a material fact necessary in
order to prevent the statements made therein from being materially misleading.

 

6.                                       Termination of Obligations

 

(a)                                  The obligations of a Participating Lender
under this Agreement shall immediately terminate and be of no further force and
effect on the date that is three business days following the occurrence of any
of the events listed below (each, a “Termination Event”)  

 

3

 

unless no later than three business days following the
Termination Event the occurrence of such Termination Event is waived by the
Participating Lenders:

 

(i)                           the bankruptcy cases of the Debtors shall
not have been filed by June 17, 2009;

 

(ii)                        a Qualified Plan and the Disclosure
Statement shall not have been filed by August 15, 2009;

 

(iii)                     the Disclosure Statement shall not have
been approved by the Bankruptcy Court by October 15, 2009;

 

(iv)                    the Bankruptcy Court shall not have
entered the Confirmation Order by December 31, 2009;

 

(v)                       a Qualified Plan shall not have been
consummated by February 15, 2010;

 

(vi)                    the Debtors shall take any action
inconsistent with the Debtors’ covenants set forth in Section 5 above,
including without limitation (A) publicly announcing their intention not
to pursue a Qualified Plan or (B) proposing, accepting or filing a motion
with the Bankruptcy Court seeking approval of an Alternative Proposal;

 

(vii)                 (A) an examiner with expanded powers
or a trustee shall have been appointed in any of the Chapter 11 Cases, or (B) any
of the Chapter 11 Cases shall have been converted to a case under Chapter 7;

 

(viii)              any of the Chapter 11 Cases is dismissed;

 

(ix)                      a Confirmation Order is reversed on
appeal or vacated;

 

(x)                         the Bankruptcy Court does not enter, (i) within
five business days after the Petition Date, an interim order and, (ii) within
thirty days after the Petition Date, a final order, governing the use by the
Debtors of the Lenders’ cash collateral and granting adequate protection to the
Lenders, in form and substance reasonably satisfactory to the Administrative
Agent (collectively, the “Cash Collateral Orders”);

 

(xi)                      the occurrence of a termination event
under the Cash Collateral Orders, unless no later than three business days
following the termination event such termination event is waived pursuant to
the terms thereunder; or

 

(xii)                   there shall have occurred any event,
development or circumstance since the Petition Date (other than any event,
claim, or circumstance relating to the Chapter 11 Cases or the commencement
thereof) that shall have resulted or could reasonably be expected to result in
a material adverse change in the business, condition (financial or otherwise),
income, operations or prospects of the Debtors.

 

4

 

(b)                                 Notwithstanding anything to the contrary
contained in this Agreement, (i) the Debtors may furnish or cause to be
furnished information concerning SFI and its subsidiaries and affiliates to a
party (an “Alternative Proposal Proponent”) that SFI’s board of
directors (the “Board”) believes in good faith has expressed an
unsolicited legitimate interest in, and has the financial wherewithal to
consummate, an Alternative Proposal on terms, including confidentiality terms,
approved by the Board, (ii) the Debtors shall deliver to the
Administrative Agent any proposal or offer for an Alternative Proposal received
from an Alternative Proposal Proponent promptly following receipt thereof and (iii) promptly
following the good faith determination by SFI and the Board that such a
proposal or offer for an Alternative Proposal is likely to be more favorable to
the Debtors’ estates and their creditors and other parties to whom the Debtors
owe fiduciary duties than is proposed under the Restructuring Term Sheet,
taking into account, among other factors, the identity of the Alternative
Proposal Proponent, the likelihood that any such Alternative Proposal will be
negotiated to finality within a reasonable time, the litigation risks
associated with obtaining Bankruptcy Court approval of the Alternative Proposal
and the potential loss to the Debtors’ estates and their creditors and other
parties to whom the Debtors owe fiduciary duties if any such Alternative
Proposal is not consummated, the Debtors shall notify the Participating Lenders
of such determination and, unless within ten (10) business days of such
notification the Participating Lenders have agreed to a modification of the
Restructuring Term Sheet that would provide comparable treatment to the Debtors’
estates and their creditors and other parties to whom the Debtors owe fiduciary
duties as provided by the Alternative Proposal, either of the Debtors or any
Participating Lender may terminate its obligations under this Agreement by
written notice to the Administrative Agent. 
Nothing in this Section 6(b) shall obligate any Participating
Lender to agree to any Alternative Proposal or to any modification of the
Restructuring Term Sheet.

 

(c)                                  Upon termination of this Agreement, each
Participating Lender shall be released from its commitments, undertakings and
agreements under or related to this Agreement and shall have the rights and
remedies that it would have had and shall be entitled to take all actions that
it would have been entitled to take had it not entered into this
Agreement.  Upon the occurrence of any
termination of this Agreement any and all votes delivered by a Participating
Lender prior to such termination shall be deemed, for all purposes, to be null
and void from the first instance and shall not be considered or otherwise used
in any manner by the Debtors.

 

7.                                       Specific Performance

 

It is
understood and agreed by the parties that money damages would not be a
sufficient remedy for any breach of this Agreement by any party and each non-breaching
party shall be entitled to seek specific performance and injunctive or other
equitable relief, including attorneys fees and costs, as a remedy of any such
breach, and each party agrees to waive any requirement for the securing or
posting of a bond in connection with such remedy.

 

8.                                       Prior Negotiations

 

This
Agreement supersedes all prior negotiations, and documents reflecting such
prior negotiations, between and among the Debtors and the Lenders (and their
respective advisors), with respect to the subject matter hereof.

 

5

 

9.                                       Amendments

 

No
amendment, modification, waiver or other supplement of the terms of this
Agreement or the Restructuring Term Sheet shall be valid unless such amendment,
modification, waiver or other supplement is in writing and has been signed by
the Debtors and the Supermajority Participating Lenders, provided, however,
(a) the written consent of each Participating Lender shall be required for
any amendment, modification, waiver or other supplement of this Agreement or
the Restructuring Term Sheet, as the case may be, that (i) effects
non-ratable or otherwise disparate treatment of funded Lender Claims, (ii) amends
or modifies in any way the definition of Conflicted Lender (as defined below)
as used in this Agreement or (iii) effects a material and adverse change
to the treatment of the Lender Claims from that reflected in the Restructuring
Term Sheet as of the date hereof and (b) a Conflicted Lender shall have no
vote on any matter herein and its Lender Claims will not count for any purposes
in calculating Supermajority Participating Lenders or whether all Participating
Lenders have consented as required by the preceding clause (a).

 

“Conflicted
Lender” shall be any Lender that, as of any date of determination, holds
nominal claims against (i) SFI, and/or (ii) SFO that (determined on a
percentage basis of the total bond claims against SFI or SFO, as applicable),
individually or in the aggregate, exceed 50% of its nominal Lender Claims
(determined on a percentage basis of the total Lender Claims of all
Lenders).  By way of example, if a Lender
held 30% of the aggregate Lender Claims, it would be a Conflicted Lender if it
held more than 15% of either the bond claims against SFI or SFO or the combined
bond claims against SFI and SFO.

 

For
the purposes hereof, immaterial changes to the Restructuring Term Sheet shall
not constitute a modification or amendment thereof or of this Agreement.

 

10.                                 Independent Analysis

 

Each
Participating Lender hereby confirms that it has made its own decision to
execute this Agreement based upon its own independent assessment of documents
and information available to it, as it deemed appropriate.

 

11.                                 Governing Law

 

This
Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of New York.  By its
execution and delivery of this Agreement, each of the parties hereto hereby
irrevocably and unconditionally agrees for itself that any legal action, suit
or proceeding against it with respect to any matter under or arising out of or
in connection with this Agreement or for recognition or enforcement of any
judgment rendered in any such action, suit or proceeding, may be brought in
either a state or federal court of competent jurisdiction in the State of New
York.  By execution and delivery of this
Agreement, each of the parties hereto hereby irrevocably accepts and submits
itself to the nonexclusive jurisdiction of each such court, generally and
unconditionally, with respect to any such action, suit or proceeding.  Notwithstanding the foregoing consent to
jurisdiction in either a state or federal court of competent jurisdiction in
the State of New York, upon the commencement of the Chapter 11 Cases, each of
the parties hereto hereby agrees that, if the petitions have been filed 

 

6

 

and the Chapter 11 Cases are pending, the Bankruptcy
Court shall have exclusive jurisdiction of all matters arising out of or in
connection with this Agreement.

 

12.                                 Effective Date

 

This
Agreement shall become effective when the Debtors have received counterparts
hereof duly executed and delivered by the Debtors and each member of the
steering committee of Lenders party to the Credit Agreement (the “Effective
Date”).

 

Upon
the Effective Date, the Restructuring Term Sheet shall be deemed effective for
purposes of this Agreement and thereafter the terms and conditions therein may
only be amended, modified, waived or otherwise supplemented as set forth in Section 9
above.

 

13.                                 Third-Party Beneficiary

 

This
Agreement is intended for the benefit of the parties hereto and no other person
shall have any rights hereunder.

 

14.                                 Counterparts

 

This
Agreement may be executed in several counterparts, each of which shall be
deemed to be an original, and all of which together shall be deemed to be one
and the same agreement.  Execution copies
of this agreement may be delivered by facsimile or otherwise, which shall be
deemed to be an original for the purposes of this paragraph.

 

15.                                 Headings

 

The
section headings of this Agreement are for convenience of reference only and
shall not, for any purpose, be deemed a part of this Agreement.

 

16.                                 Acknowledgment

 

This
Agreement is not and shall not be deemed to be a solicitation of consents to
the Plan.  The acceptance of the Lenders
will not be solicited until the Lenders have received the Disclosure Statement
and related ballot, as approved by the Bankruptcy Court.

 

17.                                 Settlement Discussions

 

This
Agreement and the Restructuring Term Sheet are part of a proposed settlement of
matters that could otherwise be the subject of litigation among the parties
hereto. Nothing herein shall be deemed an admission of any kind.  Pursuant to Federal Rule of Evidence 408
and any applicable state rules of evidence, this Agreement and all
negotiations relating thereto shall not be admissible into evidence in any
proceeding other than a proceeding to enforce the terms of this Agreement.

 

7

 

18.                                 No Waiver of Participation and
Preservation of Rights

 

Except
as expressly provided in this Agreement, nothing herein is intended to, does or
shall be deemed in any manner to waive, limit, impair or restrict the ability
of each of the Lenders to protect and preserve its rights, remedies and
interests, including, but not limited to, its claims against any of the
Debtors, any liens or security interests it may have in any assets of any of
the Debtors, or its full participation in the Chapter 11 Cases.  Without limiting the foregoing sentence in any way, if the transactions contemplated
by this Agreement or otherwise set forth in a Qualified Plan are not
consummated as provided herein, if a Termination Event occurs, or if this
Agreement is otherwise terminated for any reason, the parties hereto each fully
reserve any and all of their respective rights, remedies and interests.

 

8

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered by their respective duly authorized officers, solely in their
respective capacity as officers of the undersigned and not in any other
capacity, as of the date first set forth above.

 

	
   

  	
  SIX FLAGS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jeffrey R. Speed

  
	
   

  	
   

  	
  Name:
  Jeffrey R. Speed

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  SIX FLAGS OPERATIONS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jeffrey R. Speed

  
	
   

  	
   

  	
  Name:
  Jeffrey R. Speed

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  SIX FLAGS THEME PARKS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jeffrey R. Speed

  
	
   

  	
   

  	
  Name:
  Jeffrey R. Speed

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Astroworld GP  LLC 

  
	
   

  	
  Astroworld
  LP 

  
	
   

  	
  Astroworld
  LP LLC 

  
	
   

  	
  Fiesta
  Texas Inc.

  
	
   

  	
  Funtime, Inc.

  
	
   

  	
  Funtime
  Parks, Inc.

  
	
   

  	
  Great
  America LLC

  
	
   

  	
  Great
  Escape Holding Inc. 

  
	
   

  	
  Great
  Escape Rides L.P.

  
	
   

  	
  Great
  Escape Theme Park L.P.  

  
	
   

  	
  Hurricane
  Harbor GP LLC 

  
	
   

  	
  Hurricane
  Harbor LP 

  
	
   

  	
  Hurricane
  Harbor LP LLC 

  
	
   

  	
  KKI,
  LLC

  
	
   

  	
  Magic
  Mountain LLC 

  
	
   

  	
  Park
  Management Corp.

  
	
   

  	
  PP
  Data Services Inc.

  
	
   

  	
  Premier
  International Holdings Inc. 

  
	
   

  	
  Premier
  Parks of Colorado Inc.

  
	
   

  	
   

  

 

[Signature Page Plan Support Agreement]

 

 

	
   

  	
  Premier
  Parks Holdings Inc.

  
	
   

  	
  Premier
  Waterworld Sacramento Inc. 

  
	
   

  	
  Riverside
  Park Enterprises Inc.

  
	
   

  	
  SF HWP
  Management LLC

  
	
   

  	
  SFJ
  Management Inc. 

  
	
   

  	
  SFRCC
  Corp.

  
	
   

  	
  Six
  Flags Inc.

  
	
   

  	
  Six
  Flags America LP 

  
	
   

  	
  Six
  Flags America Property Corporation 

  
	
   

  	
  Six
  Flags Great Adventure LLC 

  
	
   

  	
  Six
  Flags Great Escape L.P.

  
	
   

  	
  Six
  Flags Operations Inc. 

  
	
   

  	
  Six
  Flags Services Inc.

  
	
   

  	
  Six
  Flags Services of Illinois, Inc.

  
	
   

  	
  Six Flags St. Louis LLC 

  
	
   

  	
  Six
  Flags Theme Parks Inc.

  
	
   

  	
  South
  Street Holdings LLC

  
	
   

  	
  Stuart
  Amusement Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jeffrey R. Speed

  
	
   

  	
   

  	
  Name:
  Jeffrey R. Speed

  
	
   

  	
   

  	
  Title:
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGREED BY EACH OF THE FOLLOWING LENDERS

  	
   

  	
   

  

 

 

JPMORGAN CHASE BANK, N.A.

 

	
  Claims under the Credit
  Agreement:

  	
  $47,500,000

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  4.279%

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Alex Goldenberg

  	
   

  	
   

  
	
   

  	
  Name:  Alex Goldenberg

  	
   

  
	
   

  	
  Title:  Vice President

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

BEACH
POINT CAPITAL MANAGEMENT LP 

 

on behalf of each of the
funds and accounts it manages or advises,

 

on a several but not
joint basis, that are beneficial owners of the

 

amount of Lender Claims
set forth below (“Beach Point”)

 

	
  Principal
  amount of Lender Claims under the Credit Agreement:

  	
  $58,607,384.79
  (*)

  
	
   

  	
   

  
	
  Pro
  Rata Percentage:

  	
  5.279%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Scott M. Klein

  	
   

  	
   

  
	
   

  	
  Name:  Scott M. Klein

  	
   

  
	
   

  	
  Title:  Managing Partner

  	
   

  
				

 

(*)
The amount set forth above excludes $15,000,000 of Lender Claims that may be
listed as being beneficially owned by Beach Point but that are subject to
assignment agreements entered into prior to the date hereof that have yet to
settle.  Such $15,000,000 and the
assignee(s) are not subject to this agreement.

 

[Signature Page Plan Support Agreement]

 

 

	
  DK Acquisition Partners, L.P.

  	
   

  
	
   

  	
   

  
	
  Claims
  under the Credit Agreement:

  	
  $108mm

  
	
   

  	
   

  
	
  Pro
  Rata Percentage:

  	
  10%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Conor Bastable

  	
   

  	
   

  
	
  Name:  Conor Bastable

  	
   

  
	
  Title:  Managing Member

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  Eaton
  Vance Management &

  	
   

  
	
  Boston
  Management and Research 

  	
   

  
	
  As
  investment Advisor 

  	
   

  
	
   

  	
   

  
	
  Claims
  under the Credit Agreement:

  	
    $50,178,986.51

  
	
   

  	
   

  
	
  Pro Rata percentage: 

  	
    .06008860

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
  On behalf of:

  
	
   

  	
  The Norinchukin Bank, New York
  Branch

  
	
   

  	
  Big Sky III Senior Loan Trust

  
	
  By:

  	
  /s/
  Craig P. Russ

  	
   

  	
  Eaton Vance CDO IX Ltd.

  
	
  Name:  Craig P. Russ

  	
  Eaton
  Vance Senior Floating-Rate Trust

  
	
  Title:  Vice President

  	
  Eaton
  Vance Floating-Rate Income Trust

  
	
   

  	
   

  	
  Eaton Vance Loan Opportunities
  Fund

  
	
   

  	
   

  	
  Eaton Vance Medallion
  Floating-Rate Income Portfolio 

  
	
   

  	
   

  	
  Eaton
  Vance Senior Income Trust

  
	
   

  	
   

  	
  Eaton
  Vance Short Duration Diversified Income Fund

  
	
   

  	
   

  	
  Eaton
  Vance Institutional Senior Loan Fund

  
	
   

  	
   

  	
  Eaton
  Vance Limited Duration Income Fund

  
	
   

  	
   

  	
  Grayson &
  Co

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Senior
  Debt Portfolio

  
	
   

  	
   

  	
  Eaton
  Vance VT Floating-Rate Income Fund

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  SANKATY ADVISORS, LLC

  	
   

  
	
   

  	
   

  
	
  Claims under the Credit
  Agreement:

  	
  $12.91mm

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  1.2%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Jeff Hawkins

  	
   

  	
   

  
	
  Name:  Jeff Hawkins

  	
   

  
	
  Title:  Managing Director

  	
   

  
	
   

  	
   

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  SPCP GROUP, LLC

  	
   

  
	
   

  	
   

  
	
  Claims under the Credit
  Agreement:

  	
  $118,333,333.33

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  10.66%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Michael A. Gatto

  	
   

  	
   

  
	
  Name:  Michael A. Gatto

  	
   

  
	
  Title:  Authorized Signatory

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  Grand Central Asset Trust, SIL
  Series

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Claims under the Credit
  Agreement:

  	
  $63,166,666.67

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  5.69%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Malia Baynes

  	
   

  	
   

  
	
  Name:  Malia Baynes

  	
   

  
	
  Title:  Attorney-in-Fact

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  TACONIC MARKET DISLOCATION
  MASTER FUND II L.P.

  	
   

  
	
  By:  Taconic Capital Advisors L.P., its
  investment advisor

  	
   

  
	
   

  	
   

  
	
  Claims under the Credit
  Agreement:

  	
  $676,691.00

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  0.08%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Josh Miller

  	
   

  	
   

  
	
  Name:  Josh Miller

  	
   

  
	
  Title:  Principal

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  TACONIC MARKET DISLOCATION FUND
  II L.P.

  	
   

  
	
  By:  Taconic Capital Advisors L.P., its
  investment advisor

  	
   

  
	
   

  	
   

  
	
  Claims under the Credit
  Agreement:

  	
  $2,909,375.00

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  0.35%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Josh Miller

  	
   

  	
   

  
	
  Name:  Josh Miller

  	
   

  
	
  Title:  Principal

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  TACONIC CAPITAL PARTNERS 1.5
  L.P.

  	
   

  
	
  By:  Taconic Capital Advisors L.P., its
  investment advisor

  	
   

  
	
   

  	
   

  
	
  Claims under the Credit
  Agreement:

  	
  $28,426,697.00

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  3.40%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Josh Miller

  	
   

  	
   

  
	
  Name:  Josh Miller

  	
   

  
	
  Title:  Principal

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

	
  TACONIC OPPORTUNITY FUND L.P.

  	
   

  
	
  By:  Taconic Capital Advisors L.P., its
  investment advisor

  	
   

  
	
   

  	
   

  
	
  Claims under the Credit
  Agreement:

  	
  $36,775,469.00

  
	
   

  	
   

  
	
  Pro Rata Percentage:

  	
  4.40%

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signatory:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Josh Miller

  	
   

  	
   

  
	
  Name:  Josh Miller

  	
   

  
	
  Title:  Principal

  	
   

  
				

 

[Signature Page Plan Support Agreement]

 

 

EXHIBIT 1

 

 

SIX
FLAGS INC.

SIX FLAGS OPERATIONS, INC. 

SIX FLAGS THEME PARKS, INC.

 

RESTRUCTURING
TERM SHEET

 

THIS TERM SHEET IS NOT AN OFFER OR A SOLICITATION WITH RESPECT TO ANY
SECURITIES OF SIX FLAGS OR ITS SUBSIDIARIES OR A SOLICITATION OF ACCEPTANCES OF
A CHAPTER 11 PLAN.  ANY SUCH OFFER OR
SOLICITATION SHALL COMPLY WITH ALL APPLICABLE SECURITIES LAWS AND/OR PROVISIONS
OF THE BANKRUPTCY CODE.

 

THIS TERM SHEET IS PROVIDED IN CONFIDENCE AND
MAY NOT BE DISTRIBUTED WITHOUT THE EXPRESS WRITTEN CONSENT OF THE STEERING
COMMITTEE LENDERS (AS DEFINED BELOW). 
THIS TERM SHEET IS A SETTLEMENT PROPOSAL IN FURTHERANCE OF SETTLEMENT
DISCUSSIONS AND IS PROTECTED BY RULE 408 OF THE FEDERAL RULES OF EVIDENCE AND
ANY OTHER APPLICABLE STATUTES OR DOCTRINES PROTECTING THE USE OR DISCLOSURE OF
CONFIDENTIAL SETTLEMENT DISCUSSIONS.

 

THIS TERM SHEET IS SUBJECT TO ONGOING REVIEW AND APPROVAL BY, AND IS
NOT BINDING UPON, THE PREPETITION CREDIT AGREEMENT LENDERS AND THE PREPETITION
ADMINISTRATIVE AGENT, IS SUBJECT TO MATERIAL CHANGE AND IS BEING DISTRIBUTED
FOR DISCUSSION PURPOSES ONLY.

 

1.                                       Summary of Transaction.  This term sheet (this “Term Sheet”)
describes a proposed
restructuring (the “Restructuring”) for Six Flags, Inc. (“SFI”), Six Flags
Operations, Inc. (“SFO”) and Six Flags Theme Parks, Inc. (“SFTP”)
and certain of SFTP’s domestic subsidiaries (the “SFTP Subsidiaries”; together with SFI, SFO and SFTP, the “Debtors”) pursuant to joint plans of reorganization
(collectively, the “Plan”) which would be filed by the Debtors in connection
with a contemplated chapter 11 filing. 
Subject to the satisfaction or waiver of the conditions described below,
the Restructuring described herein is supported by the steering committee of
lenders (the “Steering Committee Lenders”)(1) party to the Second Amended and Restated
Credit Agreement dated as of May 25, 2007 (as amended, the “Credit
Agreement”) among
SFI, SFO and SFTP, JPMorgan Chase Bank N.A., as administrative agent (the “Agent”), the Steering Committee Lenders and the
other lenders parties thereto (collectively, the “Lenders”).  This Term Sheet does not include a
description of all of the terms, conditions 

 

(1) The Steering Committee Lenders are JPMorgan, Beach Point Capital,
Davidson Kempner Capital Management LLC, Eaton Vance Management, Sankaty
Advisors LLC, Taconic Capital Advisors and Silver Point Capital, L.P.

 

 

and other provisions that are to be contained in the
Plan and the related definitive documentation governing the Restructuring.

 

The
Plan will provide for the restructuring of the Debtors’ balance sheets.  Except for the Credit Agreement obligations
(and swap obligations secured ratably therewith, collectively the “Credit
Agreement Obligations”), all claims against or interests in SFTP and the
SFTP Subsidiaries (collectively, the “SFTP Debtors”) will be unimpaired.  The Credit Agreement Obligations will be
impaired and each holder thereof will receive distributions equal to its Credit
Agreement Obligations claims comprised of its ratable share of the New Term
Loans (as defined below) and shares of New Common Stock (as defined below) for
the balance of such claims.  SFO will
retain its equity in SFTP and the holders of SFO general unsecured claims, including
the SFO Notes,(2) shall receive, in the aggregate, shares of New Common
Stock having a value equal to the residual enterprise value of the SFTP Debtors
after satisfaction in full of the claims against them (including the Credit
Agreement Obligations).  SFI shall retain
its equity interests in SFO and holders of general unsecured claims against
SFI, including the SFI Notes(3) and the SFO Notes (on account of their
guarantee claim), shall receive, in the aggregate, shares of New Common Stock
having a value equal to the residual enterprise value of SFI’s direct and
indirect interests in Six Flags Over Georgia and Six Flags Over Texas
(collectively the “Partnership Parks”).

 

2.                                       Chapter 11 Financing

 

(a)                                  Use of
Cash Collateral.  The Debtors shall be permitted to use the
Lenders’ cash collateral on a consensual basis on the following key terms:

 

(i)                                     Provision of adequate protection to the
Lenders in the form of (i) to the extent of any diminution in value, superpriority
claims under Bankruptcy Code section 364(c)(1) and 507(b), with priority
over all other administrative claims, and replacement liens on all  property
of SFO and the SFTP Debtors with a first priority on any unencumbered property
and priming the collateral securing the Credit Agreement Obligations, (ii) monthly
payment of an amount equal to interest accrued on the Credit Agreement
Obligations at the non-default LIBOR-based rates set forth in the Credit 

 

(2) “SFO Notes” refers to the $400 million
aggregate principal amount of senior unsecured notes (plus accrued and unpaid
interest) comprising of the unsecured 12.25% senior notes due 2016 issued
pursuant to that certain Indenture dated as of June 16, 2008, among SFO,
SFI and HSBC Bank USA, National Association.

 

(3) “SFI Notes” refers to the approximately
$868 million aggregate principal amount (plus accrued and unpaid interest) of
the following senior unsecured notes: (a) the unsecured 8.875% senior
notes due 2010 issued pursuant to that certain Indenture dated as of February 11,
2002, between SFI and The Bank of New York (“BONY”), (b) the unsecured
9.75% senior notes due 2013 issued pursuant to that certain Indenture dated as
of April 13, 2003, between SFI and BONY, (c) the unsecured 9.625%
senior notes due 2014 issued pursuant to that certain Indenture dated as of December 5,
2008, between SFI and BONY, and (d) the unsecured 4.5% convertible senior
notes due 2015 issued pursuant to that certain Indenture dated as of November 19,
2004, between SFI and BONY.

 

 

2

 

Agreement (with an
additional 2% in respect of default interest accruing) and (iii) the
prompt payment, following submission of invoices, of agency fees, letter of
credit fees, and fees and expenses of counsel and financial advisors to the
Agent

 

(ii)                                  The Debtors’ diligent prosecution of the
Restructuring described herein (and not supporting an alternative
restructuring)

 

(iii)                               Additional reasonable covenants regarding
use of cash collateral outside the ordinary course of business acceptable to
the Lender Steering Committee.

 

(b)                                  Letters
of Credit; New Money LC Facility/DIP Financing. 
Subject to approval of the Required Lenders, the Debtors shall have the
ability to renew and/or extend the maturity date of existing letters
of credit prior to the Effective Date (as defined below) without any increase
in the amount available to be drawn thereunder. 
Debtors shall have the ability to obtain a post-petition bilateral
letter of credit facility in an amount to be agreed (secured solely by cash collateral)
to address post-filing incremental letter of credit requirements.

 

3.                                       Reorganized Company
Capital Structure.

 

(a)                                  Post-Emergence
Working Capital Facility.  On the
effective date of the Plan (the “Effective Date”), the Debtors shall
obtain a new four-year secured revolving or  multi-draw term
credit facility in an amount of $150 million (the “New Revolver”).  The New Revolver shall be secured by first
liens on substantially all of the assets of the Debtors, with such liens being
pari passu with the liens securing the New Term Loans but with the New Revolver
ranking as “first out” in the payment waterfall relative to the New Term Loans,
including without limitation, the right to receive upon the occurrence and
continuation of an event of default, 100% of all cash flows until the New
Revolver is paid in full.  The New
Revolver shall otherwise have terms acceptable to the Debtors, the Steering
Committee Lenders and the providers of such New Revolver, including an annual
clean-up requirement.  In addition the
New Revolver shall have the following material terms:

 

·                                     4 year maturity

·                                     Interest at LIBOR + 5.00%, with a LIBOR
floor of 2.50%

·                                     5.00% upfront fee, payable in cash on the
closing date

 

3

 

·                                     Undrawn line fee of 1.50%

·                                     Usual and
customary affirmative and negative covenants to be negotiated

 

(b)                                  New Term
Loans.  Reorganized SFTP shall enter into a new
$600 million secured term loan agreement (the “New Term Loans”), which
shall be guaranteed by SFI, SFO and the SFTP Subsidiaries and have the
following material terms and conditions:

 

·                                     5 year maturity

·                                     Interest at LIBOR + 7.00%, with a
LIBOR floor of 2.50%; provided that prior to the second anniversary of
the Effective Date, 1.50% of such interest may, at the Debtors’ option, be paid
in kind with any such paid in kind interest to be added to principal and deemed
additional New Term Loans

·                                     Call protection as follows: year 1 —
103%; year 2 — 101.5%; thereafter — par

·                                     Secured by
first liens on substantially all assets, with such liens being pari passu with
the New Revolver but with the New Term Loans ranking “last out” relative to the
New Revolver in payment waterfall(4)

·                                     Usual and
customary financial covenants, including leverage covenants to be negotiated by
the parties, minimum interest coverage and maximum capital expenditures, in
each case, measured from SFI down

·                                     Usual and
customary affirmative and negative covenants (that would be binding on SFI),
including, without limitation, limitations on indebtedness, liens, restricted
payments, asset dispositions and investments, in each case with baskets and
allowances to be negotiated, including permission for SFI to incur up to $150
million in unsecured indebtedness to finance future Partnership Park “liquidity
put” obligations on terms and conditions acceptable to the Lender Steering
Committee.  The amount of SFTP cash flow
available for all Partnership Park-related obligations, including “liquidity
put” obligations, debt service and amortization, will be subject to a cap to be
agreed.

 

(4) Traditional first lien/second lien structure could be
considered if necessary to raise New Revolver.

 

4

 

(c)                                  New
Common Stock.  Subject to the right of the stockholders to amend
the certificate of incorporation, reorganized SFI shall issue a single class of
common stock (the “New Common Stock”) on the Effective Date of the Plan
of Reorganization (the “Effective Date”), which stock shall be deemed
fully paid and non-assessable.  All New
Common Stock issued will be subject to dilution from the exercises of options
and/or the granting of restricted stock in connection with the Long Term
Incentive Plan (as
defined below).

 

(d)                                  Options / Restricted Stock.  There shall be allocated sufficient shares of New
Common Stock to provide the Long Term Incentive Plan (as defined below).

 

4.                                       Plan
Distributions/Treatment.

 

(a)                                  SFTP Debtors.

 

(i)                                     The Credit Agreement Obligations shall be
paid in full by distribution of New Term Loans and shares of New Common Stock
having a value equal to the balance of such claim and representing 92% of the
issued and outstanding New Common Stock.

 

(ii)                                  All other creditors and interest holders
of the SFTP Debtors shall be unimpaired and the Plan shall not alter such
creditors and interest holders’ legal, equitable or contractual rights.  Each such claim shall be paid in full in cash
on the later to occur of the Effective Date and the date on which such claim
becomes due and payable.

 

(b)                                  SFO.  Each holder of a claim against SFO (other than the
claim on account of SFO’s guarantee of the Credit Agreement Obligations) shall
receive shares of New Common Stock having a value equal to the residual
enterprise value of the SFTP Debtors after satisfaction in full of the claims
against them (including the Credit Agreement Obligations) and representing 7%
of issued and outstanding New Common Stock.

 

(c)                                  SFI.  Holders of general unsecured claims against SFI,
including the SFI Notes and the SFO Notes (on account of their guarantee claim)
shall receive, in the aggregate, shares of New Common Stock having a value
equal to the residual enterprise value of SFI’s direct and indirect interests
in the Partnership Parks and representing 1% of issued and outstanding New
Common Stock.

 

5

 

(d)                                  Other Distributions.

 

(i)                                   Each holder of an allowed administrative
claim, including claims of the type described in section 503(b)(9) of the
Bankruptcy Code, shall receive payment in full (in cash) of the unpaid portion
of its allowed administrative claim on the Effective Date or as soon thereafter
as practicable (or, if payment is not then due, shall be paid in
accordance with its terms) or pursuant to such other terms as may be agreed to
by the holder of such claim and the Debtors.

 

(ii)                                Allowed secured tax claims and allowed
other secured claims shall be unimpaired.

 

(iii)                             Intercompany claims will be (at the
election of the Debtor or Reorganized Debtor holding such claim and with the
consent of the Steering Committee Lenders) (1) released, waived and
discharged as of the Effective Date, (2) contributed to the capital of the
obligor corporation, (3) dividended or (4) remain unimpaired.

 

(iv)                              Holders of the existing equity interests
in SFI (both preferred and common) (collectively, “Old Interests”) shall
receive no recovery.  Such Old Interests
shall include any options, warrants or other agreements to acquire or be issued
any Old Interests (whether or not arising under or in connection with any
employment agreement), including without limitation, any claim against the
Debtors that is subordinated pursuant to section 510(b) of the Bankruptcy
Code, which shall include any claim arising from the rescission of a purchase
or sale of any equity interest, any claim for damages arising from the purchase
or sale of any equity interest, or any claim for reimbursement, contribution or
indemnification for such claim.

 

5.                                       Other Plan Provisions/Means for
Implementation.

 

(a)                                  Board of Directors of Reorganized SFI.  Reorganized Six Flags shall have an eleven-person
board of directors (the “Board”), seven of whom shall be selected by the
Steering Committee Lenders (it being understood that the Steering
Committee Lenders shall consider Robert McGuire and Perry Rogers among the candidates
for such Board seats), one of whom shall be the CEO and three of whom shall be
the following three current directors: Daniel M. Snyder, Mark Jennings and
Dwight Schar.  Mr. Snyder will be
designated Chairman.  All directors shall
stand for election annually.

 

6

 

(b)                                  Retention
of Senior Management.  The Steering Committee Lenders support
the retention of the following executives (“Management”):  (i) Mark Shapiro, President and Chief
Executive Officer; (ii) Jeffrey R. Speed, Executive Vice President and
Chief Financial Officer; (iii) Louis Koskovolis, Executive Vice President,
Corporate Alliances-Sponsorship; (iv) Mark Quenzel, Executive Vice
President, Park Strategy and Management; (v) Andrew M. Schleimer,
Executive Vice President, Strategic Development and In-Park Services; (vi) Michael
Antinoro, Executive Vice President, Entertainment and Marketing and (vii) James
Coughlin, General Counsel.  All existing
executive employment agreements for Management will be assumed in accordance
with their terms; provided that any provisions in such employment agreements
providing for Old Interests in SFI shall not be assumed and shall be treated
under Section 4(d)(iv) above; provided  further that the
provisions regarding a
change of control in Mr. Shapiro’s employment agreement shall be clarified
so as to (i) exclude from the definition of “Change in Control”:  (a) the Chapter 11 cases and the
occurrence of the Effective Date and (b) the replacement of any current directors
with directors appointed by the Steering Committee Lenders, (ii) modify
the definition of “Significant Change in Board Composition” so that it is
triggered only by the failure of more than one of Mark Shapiro, Daniel M.
Snyder, Mark Jennings and Dwight Schar, or their respective successors, to be a
“Continuing Director” and (iii) exclude the Lenders from the definition of “person” to the extent that the Lenders, as a
collective, could be deemed to be acting as a “group” for the purposes of the
Securities Exchange Act of 1934;  provided  further that cash severance for Mr. Shapiro
shall be limited to three years base salary plus bonus.

 

(c)                                  Long
Term Incentive Plan.  The Reorganized Debtors shall implement a
management incentive plan for Management, selected employees and directors of
Reorganized SFI, providing incentive compensation in the form of stock options
and/or restricted stock in the Reorganized Company equal to 10% of the equity
in SFI, on a fully diluted basis (the “Long Term Incentive Plan”).  The Long Term Incentive Plan shall be
effective as of the Effective Date and shall be subject to such terms and
conditions as the Debtors and the Steering Committee Lenders shall mutually
agree.  Immediately following the
Effective Date, the aggregate allocations to Management under the Long Term
Incentive Plan shall consist of 3.75% of the equity of SFI on a fully diluted
basis in the form of restricted stock and 3.75% of the equity of SFI on a fully
diluted basis in the form of options. 
Such stock and options shall be allocated to the members of Management
consistent with their respective employment agreements.  Any additional allocations 

 

7

 

following the
Effective Date shall be determined by the Board, provided  that Management shall not be able
to participate therein for the year following the Effective Date absent full
Board approval.

 

(d)                                  Releases,
Indemnification and D&O Insurance.  The Plans shall provide for general
mutual releases and exculpation by the Debtors, the estates and the reorganized
Debtors for the benefit of (1) all individuals serving as directors and
officers of the Debtors as of the Effective Date, (2) the Agent and the
Lenders, and (3) the advisors, attorneys and consultants to each of the
foregoing.  The terms of such general
mutual releases and exculpation shall be in form and substance customary for
transactions of this type and mutually agreed to.  In addition, the reorganized Debtors shall
assume all existing indemnification obligations of the Debtors in favor of the
directors and officers described in clause (1) above (whether in the
Debtors’ bylaws, contracts or otherwise), and the Plan shall include
provisions for the purchase of director and officer liability insurance for the
directors and officers of the Reorganized Debtors (in form and substance
satisfactory to the Directors of the Reorganized Debtors).

 

(e)                                  Charter; Bylaws.  The charter and bylaws of each of the Debtors shall
have been restated in a manner reasonably satisfactory to the Steering
Committee Lenders and consistent with section 1123(a)(6) of the
Bankruptcy Code.

 

(f)                                    Tax
Issues.  The terms of the Plan and the restructuring
contemplated by this Term Sheet shall be structured to preserve favorable tax
attributes of the Debtors to the extent reasonably practicable.  The Debtors shall consult with the Steering
Committee Lenders on tax issues and matters of tax structure relating to the
Plan and the restructuring contemplated by this Term Sheet.

 

(g)                                 Executory
Contracts.  The assumption or rejection of any material contract,
(a “Park”)(5) and the Time Warner license agreement, shall 

 

(5) The Parks include Six Flags America, Largo,
Maryland, Six Flags Discovery Kingdom, Vallejo, California, Six Flags Fiesta
Texas, San Antonio, Texas, Six Flags Great Adventure, Hurricane Harbor &
Wild Safari, Jackson, New Jersey, Six Flags Great America, Gurnee,
Illinois, Six Flags Hurricane Harbor, Arlington, Texas, Six Flags Hurricane
Harbor, Valencia, California, Six Flags Kentucky Kingdom, Louisville, Kentucky,
Six Flags Magic Mountain, Valencia, California, Six Flags Mexico, Mexico City,
Mexico, Six Flags New England, Agawam, Massachusetts, Six Flags New Orleans,
New Orleans, Louisiana, Six Flags St. Louis, Eureka, Missouri, Six Flags White
Water Atlanta, Marietta, Georgia, La Ronde, Montreal, Canada, The Great Escape,
Lake George, New York and the Partnership Parks.

 

8

 

be subject to the
prior approval of the Steering Committee Lenders.

 

6.                                       Conditions Precedent. 
The support of the Steering Committee Lenders for the Restructuring
described herein is subject to the satisfaction (in their sole discretion) of
the following conditions:

 

(a)                                  Due Diligence.  The Steering Committee Lenders’ satisfaction with the
results of ongoing due diligence investigations regarding the business,
operations, assets, liabilities, condition (financial or otherwise) or
prospects of the Debtors.

 

(b)                                  Partnership
Parks; IP Issues.  Arrangements satisfactory to the Steering Committee
Lenders regarding (i) ongoing investments in, and third party financing of
future liquidity puts relating to, the Partnership Parks and (ii) the
Debtors continued access to the intellectual property currently used in the
business or satisfaction with strategies for the de-theming and re-theming of
the Parks including all costs associated therewith.

 

(c)                                  New
Orleans Park.  Claims relating to the New Orleans park shall not
exceed an amount acceptable to the Steering Committee Lenders.

 

(d)                                  Limit on Non-Trade SFTP Claims.  Allowed claims (other than trade claims incurred in
the ordinary course of business) against the SFTP Debtors shall not exceed an
amount acceptable to the Steering Committee Lenders.

 

(e)                                  Documentation.  The Plan, including any amendments,
modifications or supplements thereto, and all other documentation contemplated
by this Restructuring shall be acceptable to the Steering Committee Lenders.

 

(f)                                    Confirmation Order.  Entry of an order confirming the Plan in
form and substance satisfactory to the Steering Committee Lenders.

 

(g)                                 No MAE.  There shall not have occurred any event,
development or circumstance since the petition date (other than any event,
claim, or circumstance relating to the Chapter 11 cases or the commencement
thereof) that shall have resulted or could reasonably be expected to result in
a material adverse change in the business, condition (financial or otherwise),
income, operations or prospects of the Debtors.

 

(h)                                 No Force Majeure.  There shall not have occurred a force
majeure event (to be defined as a significant global disruption in the
financial markets caused by outbreak of war, terrorism, or other incidents, but
not adverse changes in the financial, banking or capital markets generally).

 

9

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