Document:

Exhibit

EXECUTION COPY

THIS SIXTH AMENDMENT TO PARTICIPATION AGREEMENT is made September 17, 2015.

BETWEEN:

		
	(1)
	P.T. FREEPORT INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia and domesticated in the State of Delaware, U.S.A. (“PT-FI”) and

		
	(2)
	P.T. RIO TINTO INDONESIA, a limited liability company organized under the laws of the Republic of Indonesia (“PTRTI”),

WHEREAS

		
	(A)
	By a Contract of Work dated December 30, 1991 made between The Government of the Republic of Indonesia (the “Government”) and PT-FI, the Government appointed PT-FI as the sole contractor for the Government with respect to the Contract Area, as defined in the Contract of Work, with the sole rights to explore, mine, process, store, transport, market, sell, and dispose of Products, as defined below, in the Contract Area (defined as aforesaid).

		
	(B)
	Pursuant to that certain Participation Agreement dated October 11, 1996, between PT-FI and PTRTI, as amended by the First Amendment to Participation Agreement dated April 30, 1999, the Second Amendment to Participation Agreement dated February 22, 2006, the Third Amendment to Participation Agreement dated October 7, 2009, the Fourth Amendment to Participation Agreement dated November 14, 2013, and the Fifth Amendment to Participation Agreement dated August 4, 2014 (as amended and in effect prior to the effectiveness of this Sixth Amendment, the “Participation Agreement”), PT-FI and PTRTI participate in operations under the COW (as defined below) on the terms and conditions set forth therein.

		
	(C)
	PT-FI and PTRTI desire to amend the Participation Agreement as hereinafter set forth.

IT IS HEREBY AGREED as follows:

		
	1.
	Definitions.  In this Sixth Amendment (including the Schedules and Annexes hereto), unless the context otherwise requires, capitalized terms used herein shall have the meanings provided under the Participation Agreement.

Sixth Amendment to Participation Agreement

{N2803770.2}        1

		
	2.
	Amendments To Annex A of The Participation Agreement.   With effect from January 1, 2014, the Product Schedule is hereby amended so that it comprises the Product Schedule as set forth on the Schedule attached to this Sixth Amendment.

		
	3.
	Representations and Warranties.  Each Participant hereby represents and warrants  to the other Participant as follows:

		
	(a)
	The execution, delivery and performance by such Participant of this Sixth Amendment (i) is within such Participant’s corporate powers, (ii) has been duly authorized by all necessary corporate action, (iii) requires no action by or in respect of, or filing with, any governmental body, agency or official, (iv) does not contravene, or constitute a default under, any provision of any applicable law, statute, ordinance, regulation, rule, order or other governmental restriction or of the certificate or articles of incorporation or by-laws of such Participant, (v) does not contravene, or constitute a default under, any agreement, judgment, injunction, order, decree, indenture, contract lease, instrument or other commitment to which such Participant is a party or by which such Participant or any of its assets are bound and (vi) will not result in the creation or imposition of any lien upon any asset of such Participant under any existing indenture, mortgage, deed of trust, loan or loan agreement or other agreement or instrument to which such Participant is a party or by which it or any of its assets may be bound or affected.

		
	(b)
	The Participation Agreement, as amended by this Sixth Amendment, is the legal, valid and binding obligation of such Participant, and is enforceable against such Participant in accordance with its terms, subject to bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights generally and subject to any limitation acts and to general equitable principles.

		
	4.
	Reference to and Effect Upon the Participation Agreement.  Upon the execution  by both Participants of this Sixth Amendment, each reference in the Participation Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, shall mean and be a reference to the Participation Agreement, as amended hereby.

		
	5.
	Reaffirmation.  Each Participant hereby reaffirms to the other that, except as modified hereby, the Participation Agreement remains in full force and effect and has not been otherwise waived, modified or amended.  Except as expressly modified hereby, all of the terms and conditions of the Participation Agreement shall remain unaltered and in full force and effect.

		
	6.
	Choice of Law.  This Sixth Amendment shall be governed by and construed in accordance with the laws of the State of New York.

Sixth Amendment to Participation Agreement

{N2803770.2}        2

		
	7.
	Counterparts.  This Sixth Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  One or more counterparts of this Sixth Amendment may be delivered by telecopier, and if so delivered shall be deemed to be delivered with the intention that they shall have the same effect as an original counterpart hereof.  Any party delivering any such counterpart by telecopy shall promptly forward to the other party an original counterpart hereof.

IN WITNESS WHEREOF, the parties hereby have caused their duly authorized officers to execute and deliver this Sixth Amendment as of the date first above written.

PT FREEPORT INDONESIA

/s/ Maroef Sjamsooddin

		
	By:
	Maroef Sjamsooddin

		
	Its:
	President Director

P.T. RIO TINTO INDONESIA

/s/ Greg Sinclair

		
	By:
	Greg Sinclair

		
	Its:
	President Director

Sixth Amendment to Participation Agreement

{N2803770.2}        3

ANNEX A
Product Schedule
	
									
	Recovered  Metal in Concentrate

	Year
	 
	Copper
	 
	Gold
	 
	Silver

	 
	 
	(million lbs)
	 
	(000's ozs)
	 
	(000's ozs)

	 
	 
	 
	 
	 
	 
	 

	1995
	 
	1,029
	 
	1,318
	 
	2,872

	1996
	 
	1,085
	 
	1,379
	 
	2,828

	1997
	 
	1,140
	 
	1,791
	 
	2,969

	1998
	 
	1,022
	 
	1,350
	 
	3,239

	1999
	 
	1,165
	 
	1,503
	 
	3,822

	2000
	 
	1,052
	 
	1,242
	 
	4,039

	2001
	 
	1,132
	 
	1,397
	 
	3,943

	2002
	 
	1,090
	 
	1,375
	 
	3,795

	2003
	 
	979
	 
	1,456
	 
	3,659

	2004
	 
	874
	 
	1,377
	 
	3,077

	2005
	 
	1,146.368
	 
	1,870
	 
	4,121

	2006
	 
	1,092.005
	 
	1,642.69
	 
	3,934

	2007
	 
	1,099
	 
	1,631
	 
	4,045

	2008
	 
	1,110
	 
	1,198.7
	 
	4,158

	2009
	 
	1,107
	 
	2,004.30
	 
	4,203

	2010
	 
	1,099
	 
	1,567
	 
	4,296

	2011
	 
	821
	 
	1,045
	 
	3,379

	2012
	 
	720.75
	 
	888.28
	 
	2,591.310

	2013
	 
	927.25
	 
	1,177.036
	 
	3,867.307

	2014
	 
	1,066
	 
	1,697.684
	 
	4,414.383

	2015
	 
	1,057
	 
	1,493
	 
	4,156

	2016
	 
	1,044
	 
	1,529
	 
	3,768

	2017
	 
	1,008
	 
	1,589
	 
	3,359

	2018
	 
	1,008
	 
	1,589
	 
	3,359

	2019
	 
	1,024
	 
	1,589
	 
	3,396

	2020
	 
	1,027
	 
	1,593
	 
	3,405

	2021
	 
	470.627
	 
	648.31
	 
	3,878

	Future Adjustment
Amount1
	 
	681
	 
	676
	 
	---

	Total
	 
	28,076
	 
	39,616
	 
	98,573

1 The Future Adjustment Amount for each of copper and gold shall be added to the Product Schedule  in accordance with the following: 

Sixth Amendment to Participation Agreement

{N2803770.2}        4

		
	(A)
	if the Cumulative Target is exceeded prior to January 1,  2021, (i) the Future Adjustment Amount for copper shall be added to the Product Schedule pro rata over a single period of 12 consecutive months in equal amounts per month of 56,750,000 pounds, commencing with the month immediately following the month in which the Cumulative Target for copper is exceeded and (ii) the Future Adjustment Amount for gold shall be added to the Product Schedule pro rata over a single period of 12 consecutive months in equal amounts per month for the first 11 months of 56,333 ounces and for month 12 of 56,337 ounces, commencing with the month immediately following the month in which the Cumulative Target for gold is exceeded. ; or 

		
	(B)
	if the Cumulative Target is not exceeded prior to January 1, 2021, the Future Adjustment Amount shall be added to the Product Schedule in calendar year 2021.

“Cumulative Target” means (i) with respect to copper, cumulative aggregate copper production of 9.5 billion pounds commencing from 1 January, 2011, and (ii) with respect to gold, cumulative aggregate gold production of 11 million ounces commencing from 1 January, 2011.  

Sixth Amendment to Participation Agreement

{N2803770.2}        5mgm-ex101_96.htm

 

Exhibit 10.1

MGM RESORTS INTERNATIONAL

PROFIT GROWTH SHARE INCENTIVE PLAN

PURPOSE

The MGM RESORTS INTERNATIONAL Profit Growth Share Incentive Plan (the “Plan”) is designed to reward eligible employees of MGM RESORTS INTERNATIONAL (the “Company”) and its affiliates and subsidiaries for their efforts in connection with the Company’s enhancement of business operations in connection with the Company’s Profit Growth Plan.

ARTICLE 1

ELIGIBILITY AND PARTICIPATION

Section 1.1  The Compensation Committee (the “Committee”) of the Company’s Board of Directors, in its discretion, shall select employees of the Company and its affiliates and subsidiaries to participate in the Plan (the “Participants”).  Participation in the Plan shall be limited to employees who are classified in the Company’s payroll classification system in a payroll code of level 19 or above and will generally be limited to the following groups: senior corporate leadership, property presidents/general managers, property chief financial officers, corporate department heads, employees employed by the program management office, initiative team leads, and select property and corporate department vice presidents, executive directors and directors; provided that the Committee retains the discretion to choose which employees actually become Participants in the Plan.  If any Participant ceases to provide services to the Company or any affiliate or subsidiary prior to or on December 31, 2016, such Participant shall not be entitled to receive a bonus award. 

ARTICLE 2

PERFORMANCE OBJECTIVE

Section 2.1  If the Committee determines that the aggregate value of EBITDA achieved through the initiatives currently identified in the Company’s Profit Growth Plan, as well as future initiatives adopted by the Project Management Office and incorporated into the Profit Growth Plan, is at least $300 million, calculated as an annual run rate based on actual results achieved as of December 31, 2016 as a result of all initiatives implemented under the Profit Growth Plan and normalized to account for events other than the Profit Growth Plan that affect the Company’s EBITDA (the “Performance Objective”), then each Participant who is still providing services to the Company or an affiliate or subsidiary as of December 31, 2016 shall be entitled to receive a bonus award under the Plan.  If the Company does not achieve the Performance Objective (as determined by the Committee), then no Participant shall be entitled to a bonus award under this Plan, and, to the extent applicable, any such bonus award already granted shall be forfeited in accordance with Article 3.

ARTICLE 3

DETERMINATION OF BONUS AWARDS

Section 3.1  All awards under the Plan shall be in the form of performance share units (“PSUs”) granted under the terms of the Company’s Amended and Restated 2005 Omnibus Incentive Plan and the Company’s standard Form of Bonus PSU Award Agreement as then in effect; provided that such PSUs shall be subject to immediate forfeiture as of December 31, 2016, if the Performance Objective is not achieved.  In addition, such PSUs shall be subject to immediate forfeiture upon any termination of the applicable Participant’s employment with the Company or any affiliate or subsidiary for any reason on or prior to December 31, 2016 (but shall generally not be subject to forfeiture solely as a result of the Participant’s termination of employment after December 31, 2016).  

Section 3.2  In October 2015, Participants shall, subject to approval of the Committee, receive, in full settlement of such Participants’ rights to an award under this Plan, an award of PSUs on the terms and conditions described in Section 3.1.  The target number of PSUs will have an Accounting Value as of the date of grant of such PSUs equal to the award such Participant is eligible to earn under this Plan.  For this purpose, “Accounting Value” means the accounting value calculated under procedures approved or modified by the Committee from time to time.

 

 

ARTICLE 4

OTHER TERMS AND CONDITIONS

Section 4.1  No person shall have any legal claim to be granted an award under the Plan and the Committee shall have no obligation to treat Participants uniformly. Except as may be otherwise required by law, bonus awards under the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary. Bonuses awarded under the Plan shall be payable from the general assets of the Company and no Participant shall have any claim with respect to any specific assets of the Company.

Section 4.2  Neither the Plan nor any action taken under the Plan shall be construed as giving any employee the right to be retained in the employ of the Company or any subsidiary or to obligate the Company or any subsidiary to maintain any employee’s compensation at any level.

Section 4.3  The Company or any of its subsidiaries may deduct from any award any applicable withholding taxes or any amounts owed by the employee to the Company or any of its subsidiaries.

Section 4.4  All awards under this Plan shall be subject to Company’s Policy on Recovery of Incentive Compensation in Event of Financial Restatement (or any successor policy) as in effect from time to time, and shall be considered a bonus for purposes of such policy.  In addition, any award granted hereunder shall be subject to recovery (in whole or in part) by the Company to the minimum extent required by applicable law and/or stock exchange listing requirements.

Section 4.5  The Company intends that the Plan and all bonus awards avoid the imposition of additional taxes, interest, and penalties pursuant to Section 409A of the Code and, accordingly, the Plan shall be interpreted to that end. Notwithstanding any contrary provision in the Plan, any payments of “nonqualified deferred compensation” (within the meaning of Section 409A of the Code) that are otherwise required to be paid under the Plan to a “specified employee” (as defined under Section 409A of the Code) as a result of his or her termination of employment (which for this purpose shall mean a “separation from service” under Section 409A of the Code) shall be delayed for the first six months following such termination (or, if earlier, the date of death of the specified employee) and shall instead be paid on the first payroll date that immediately follows the end of such six-month period (or the first payroll date scheduled after the death of the specified employee).

Section 4.6.  The Plan shall become effective upon its adoption by the Committee.

ARTICLE 5

ADMINISTRATION

Section 5.1  The Committee shall have full power and authority to administer and interpret the provisions of the Plan and to adopt such rules, regulations, agreements, guidelines and instruments for the administration of the Plan and for the conduct of its business as the Committee deems necessary or advisable.

Section 5.2  The Committee shall have full power to delegate to any officer or employee of the Company the authority to administer and interpret the procedural aspects of the Plan, subject to the Plan’s terms, including adopting and enforcing rules to decide procedural and administrative issues.

Section 5.3  The Committee may rely on opinions, reports or statements of officers or employees of the Company or any subsidiary thereof and of Company counsel (inside or retained counsel), public accountants and other professional or expert persons.

Section 5.4  The Board of Directors and the Committee reserve the right to amend or terminate the Plan in whole or in part at any time. Unless otherwise prohibited by applicable law, any amendment required to conform the Plan to the requirements of applicable law may be made by the Committee.

Section 5.5  No member of the Committee shall be liable for any action taken or omitted to be taken or for any determination made by him or her in good faith with respect to the Plan, and the Company shall indemnify and hold harmless each member of the Committee against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any act or omission in connection with the administration or interpretation of the Plan, unless arising out of such person’s own fraud or bad faith.

2

 

Section 5.6  The place of administration of the Plan shall be the State of Nevada, and the validity, construction, interpretation, administration and effect of the Plan and of its rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the State of Delaware.

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