Document:

Letter Agreement  Dated September 18,2002

 
EXHIBIT 10.27

 
September 18, 2002

 
 
Mr. John T. Redmond 
President and CEO 
MGM Grand Resorts 
3799 Las Vegas Boulevard, South 
Las Vegas, NV 80109

 

	 	Re:	 	Increase in Scope of Construction of the Borgata 

 
Dear Mr. Redmond: 
 
This letter agreement (“Letter Agreement”) represents the agreement to an increase in the scope of the Facility (as detailed
below), to be constructed in accordance with the terms of that certain Operating Agreement (the “Operating Agreement”) of Marina District Development Holding Co., LLC, a New Jersey limited liability company (“Holding Co.”) as
adopted and amended by that certain Contribution and Adoption Agreement, effective December 13, 2000, by and among Holding Co., MAC, CORP., a New Jersey corporation (“MR Sub”) and Boyd Atlantic City, Inc., a New Jersey corporation
(“Boyd Sub”). MR Sub and Boyd Sub are the Members of Holding Co. Unless otherwise defined herein, all capitalized terms in this Letter Agreement shall have the same meaning ascribed to such terms in the Operating Agreement. 
 
The parties hereby agree as follows: 
 
A.    MR Sub and Boyd Sub agree and
acknowledge that the following shall represent an increase in the scope of the Facility for purposes of Section 3.3(b) (iii) of the Operating Agreement: 
 
Ticket In / Ticket Out Slot Ticketing System 
A ticket in / ticket out slot ticketing and redemption system that would include the software and hardware to operate the system, along with all required and necessary equipment to count and redeem
ticket in / ticket out vouchers in the cashiering and / or countrooms areas. Such costs shall increase the aggregate shared Project Costs by no more than Seven Million Four Hundred Thousand Dollars ($7,400,000), as described on Exhibit A attached
hereto and incorporated herein by this reference. 
 
B.    MR Sub and Boyd Sub shall share equally in the increase, if any, in the aggregate Project Costs up to but not exceeding the approved increase in scope as set forth in Section A of this Letter Agreement. As a
result of the approved increase in scope of the Facility, the responsibility of Boyd Sub to make additional capital contributions due to cost overruns, pursuant to Section 3.3(b) of the Operating Agreement, shall not be triggered until, and only to
the extent that, the aggregate Project Costs exceed One Billion Sixty Two Million Five Hundred Thousand Dollars ($1,062,500,000), which represents One Billion Thirty Five Million Dollars ($1,035,000,000) plus the amount set forth Section A of this
Letter Agreement, plus the Increase in Scope of Construction of the Borgata Agreement Letter dated January 16, 2002 between Boyd Atlantic City, Inc. and MAC Corp. Correspondingly, Boyd Sub and MR Sub shall 

 
Mr. John T. Redmond 
September 18, 2002 
Page Two 
 
share equally in all In Balance Contributions, if any, required by the provider of Construction Financing to the extent such In Balance Contributions
relate to the approved increase in scope as set forth in this Letter Agreement. 
 
C.    The Ticket in / Ticket out system and all related equipment and components shall be considered a part of the Program and the Facility for all purposes under the Operating
Agreement. 
 
Please indicate your agreement to the
terms of this Letter Agreement by countersigning below, where indicated. 
 

	 Very truly yours,

	
	 BOYD GAMING CORPORATION, a
 Nevada corporation

	
	 By:
	 	 /s/    ELLIS
LANDAU        

	 Its:
	 	 Executive Vice President, Treasurer
 and Chief Financial Officer

	
	 BOYD ATLANTIC CITY, INC., a
 New Jersey corporation

	
	 By:
	 	 /s/    ELLIS
LANDAU        

	 Its:
	 	 Vice President, Treasurer
 and Chief Financial Officer

 
ACCEPTED AND AGREED TO this 1st day of October, 2002: 
 

	 MAC, CORP., a New Jersey corporation

	
	 By:
	 	  /s/    GARY N.
JACOBS        

	 Its:
	 	 Director & Secretary

	
	 MIRAGE RESORTS, INCORPORATED,
 a Nevada corporation

	
	 By:
	 	 /s/    GARY N.
JACOBS        

	 Its:
	 	 Director & SecretaryLetter Agreement Dated February 21, 2003

 
EXHIBIT 10.28

 
February 21, 2003 
 
John T. Redmond 
President and CEO 
MGM Grand Resorts 
3600 Las Vegas Boulevard, South 
Las Vegas, NV
80109 
 
Re: Increase in Scope of
Construction of the Borgata 
 
Dear Mr. Redmond:

 
This letter agreement (“Letter
Agreement”) represents the agreement to an increase in the scope of the Facility (as detailed below), to be constructed in accordance with the terms of that certain Operating Agreement (the “Operating Agreement”) of Marina District
Development Holding Co., LLC, a New Jersey limited liability company (“Holding Co.”) as adopted and amended by that certain Contribution and Adoption Agreement, effective December 13, 2000, by and among Holding Co., MAC, CORP., a New
Jersey corporation (“MR Sub”) and Boyd Atlantic City, Inc., a New Jersey corporation (“Boyd Sub”). MR Sub and Boyd Sub are the Members of Holding Co. Unless otherwise defined herein, all capitalized terms in this Letter Agreement
shall have the same meaning ascribed to such terms in the Operating Agreement. 
 
The parties hereby agree as follows: 
 
A.    MR Sub and Boyd Sub agree and acknowledge that the following shall represent an increase in the scope of the Facility for purposes of Section 3.3(b)(iii) of the Operating
Agreement: 
 
Surface Parking Lot: A surface
parking lot to be constructed in material conformity and compliance with those certain plans and specifications described on Exhibit A attached hereto and incorporated herein by this reference (the “Surface Parking Lot”), increasing the
aggregate shared Project Costs by no more than Four Million Five Hundred Thousand Dollars ($4,500,000), as more particularly described on Exhibit B attached hereto and incorporated herein by this reference. The Surface Parking Lot shall be
constructed by Marina District Development Company, LLC, a New Jersey limited liability company (“MDDC”) upon that certain real property (the “Leased Premises”) that is the subject of a ground lease to be entered into between
MDDC and MR Sub concurrently herewith (the “Surface Parking Lot Ground Lease”). 
 
B.    MR Sub and Boyd Sub shall share equally in the increase, if any, in the aggregate Project Costs up to but not exceeding the approved increase in scope as set forth in Section
A of this Letter Agreement. As a result of the approved increase in scope of the Facility, the responsibility of Boyd Sub to make additional capital contributions due to cost overruns, pursuant to Section 3.3(b) of the Operating Agreement, shall not
be triggered until, and only to the extent that, the aggregate Project Costs exceed One Billion Sixty Seven Million Dollars ($1,067,000,000), which represents One Billion Sixty Two Million Five Hundred Thousand Dollars ($1,062,500,000) plus the
amount set forth Section A of this Letter Agreement. Correspondingly, Boyd Sub and MR Sub shall share equally in all In Balance Contributions, if any, required by the provider of Construction Financing to the extent such In Balance Contributions
relate to the approved increase in scope as 

John T. Redmond 
MGM Grand Resorts 
February 21, 2003 
 
set forth in this Letter Agreement. 
 
C.    The Surface Parking Lot (including any other use(s) of the Leased Premises permitted under the Surface Parking
Lot Ground Lease) shall be considered a part of the Program and the Facility for all purposes under the Operating Agreement, for so long as the Surface Parking Lot Ground Lease shall remain in full force and effect. 
 
D.    MR Sub agrees that the construction
of the Surface Parking Lot shall not be deemed to be a change in the location of the Facility or the Employee Parking Lot for purposes of Section 3.2(d)(i) and (ii), respectively, of the Operating Agreement and shall not result in the assessment of
environmental remediation costs against MDDC as provided therein. 
 
E.    The parties agree to prepare and execute any amendments to the Operating Agreement or such other documents or instruments as may reasonably be necessary to reflect the terms and provisions of this
Letter Agreement, including, but not limited to (i) amending the Operating Agreement to include reference to the Surface Parking Lot Ground Lease; and (ii) amending, to the extent necessary, any existing easement agreements relating to the
construction and operation of the Facility. 
 
(signature page follows) 
 

John T. Redmond 
MGM Grand Resorts 
February 21, 2003 
 
Please indicate your agreement to the terms of this Letter Agreement by countersigning below, where
indicated. 
 

	 Very truly yours,

	
	 BOYD GAMING CORPORATION, a
 Nevada corporation

	
	 By:
	 	   /s/   ELLIS LANDAU

	 Its:
	 	 Executive Vice President, Treasurer
 and Chief Financial Officer

 

	
	 BOYD ATLANTIC CITY, INC., a
 New Jersey corporation

	
	 By:
	 	   /s/   ELLIS LANDAU

	 Its:
	 	 Vice President, Treasurer
 and Chief Financial Officer

 
ACCEPTED AND AGREED TO this 26th day of February, 2003: 
 

	
	 MAC, CORP., a New Jersey corporation

	
	 By:
	 	   /s/   JOHN T. REDMOND

	 Its:
	 	 Chairman of the Board

 

	
	 MIRAGE RESORTS, INCORPORATED,
 a New Jersey corporation

	
	 By:
	 	   /s/   GARY N. JACOBS

	 Its:
	 	 SecretaryAnnual Incentive Plan

EXHIBIT 10.29 
 

	 BOYD GAMING CORPORATION
	 	 POLICY NO. MCP-3

 
ANNUAL
INCENTIVE PLAN 
 

	 APPROVED: /s/    DONALD D. SNYDER
	    	 EFFECTIVE DATE:  12/3/97

	 	    	 REVISED DATE:  9/5/02

 
 
PURPOSE: 
 
The purpose of the Boyd Gaming Corporation Annual Incentive Plan (hereinafter referred to as the “AIP”) is to promote the
interests of the Boyd Gaming Corporation (hereinafter referred to as “Boyd Gaming”) and its shareholders by providing key employees with financial rewards for outstanding individual and unit performance which contribute significantly to
the financial success of Boyd Gaming. It is intended that the AIP will reinforce Boyd Gaming’s business planning and performance management process by focusing the efforts of employees on the achievement of key business objectives and help to
attract and retain key employees by providing attractive compensation opportunities linked to performance results. 
 
POLICY: 
 
Administration.    The AIP shall be administered by Boyd Gaming’s Chief Executive Officer subject to such
approvals, rules and guidelines as are required, or may be established, by the Compensation and Stock Option Committee of Boyd’s Gaming’s Board of Directors (hereinafter referred to as the “Committee”). The Committee shall
establish from time to time such rules and guidelines and shall make such determinations as it determines to be necessary or desirable for the administration of the AIP. Subject to the foregoing, Boyd Gaming’s Chief Executive Officer may, in
his discretion, delegate the day to day administration of the AIP to other individuals to ensure the effective administration of the AIP. 
 

	 BOYD GAMING CORPORATION
	 	 POLICY NO. MCP-3

 
ANNUAL
INCENTIVE PLAN 
 
Eligibility.    Eligibility to participate in the AIP shall be limited to those managers and other key employees of Boyd Gaming and its major operating units who are in positions in which their decisions,
actions and counsel significantly impact the end results of Boyd Gaming. It is intended that participation will be limited to key corporate executives, property general managers, and other key managers and employees specifically determined by Boyd
Gaming’s Chief Executive Officer to be in positions in which their decisions, actions and counsel significantly impact the end results of Boyd Gaming. Boyd Gaming’s Chief Executive Officer is not eligible to participate in the AIP.

 
Participation.    Prior to the start of each fiscal year or as soon as possible thereafter, Boyd Gaming’s Chief Executive Officer shall approve the employees who will participate in the AIP. Upon
selection, participants shall be notified of their selection as participants, their potential incentive opportunity for the year, and the specific performance measures and standards upon which incentive payments, if any, will be based. Additional
participants may be approved during a fiscal year for participation on a prorated basis. In the event that an employee’s eligibility status or designated opportunity level changes during the course of a fiscal year, participation shall be
determined on a prorated basis. While it is anticipated that the AIP will be an ongoing program from year to year, designation as a participant for any particular year shall not entitle an individual to participate or receive incentive opportunities
with respect to any other year. 
 
Incentive
Opportunities.    Incentive opportunities shall be established for each participant in the AIP. Incentive opportunities shall vary in amount, and as a percentage of base salary, according to the nature and degree of each
participant’s ability to directly impact the annual results of Boyd Gaming, to establish an appropriate balance between short and long-term management focus and to provide attractive total annual compensation opportunities consistent with
competitive practice and desired performance results. Guidelines for establishing individual incentive opportunities shall be approved each year by the Compensation Committee. 

 

	 BOYD GAMING CORPORATION
	 	 POLICY NO. MCP-3

 
ANNUAL
INCENTIVE PLAN 
 
Performance
Objectives.    Performance measures and goals incorporating specified threshold, target and maximum achievement levels shall be established for each participant at the start of each year. Measures shall be established in
terms of overall corporate, region, property, department/function and individual performance and weighted based on each participant’s focus or area of management control. It is intended that performance measures and goals under the AIP will be
derived from, and directly support, Boyd Gaming’s business plan and annual business planning process. Objectives may provide for a subjective assessment of performance based on pre-established criteria supporting Boyd Gaming’s annual
business plan or strategic initiatives. 
 
Funding Triggers.    An overall corporate performance threshold, or trigger, may be established below which no payments may be made for the year under the AIP. Additionally, a funding trigger may be
established for each operating property. If the property trigger is not achieved, no payments may be made for personnel at that location for the achievement of property or departmental goals. 
 
Maximum Total Property
Awards.    Total awards paid for an individual property may be limited to a maximum percentage of a property’s operating income to insure that maximum property awards do not exceed a reasonable proportion of the overall
property income. 
 
Performance Management
Process.    It is intended that the AIP will be integrated with Boyd Gaming’s annual business planning and budgeting process. Each year, Boyd Gaming’s Chief Executive Officer shall approve the key business drivers
and performance indicators to be supported by the AIP and establish guidelines for determining the appropriate performance measures and goal levels for each participant. Performance measures and goals shall be established consistent with these
guidelines and approved by each participant’s respective corporate executive, regional manager or property general manager. Performance measures and goals shall be documented in writing on forms 

	 BOYD GAMING CORPORATION
	 	 POLICY NO. MCP-3

 
ANNUAL
INCENTIVE PLAN 
 
approved for such purpose and shall be
subject to final approval by Boyd Gaming’s Chief Executive Officer or designee(s). 
 
Determination of Awards Earned.    As soon as practical following the end of each year, the Compensation Committee shall determine the degree to which overall corporate
performance objectives have been achieved and approve an aggregate pool available for payment based on the aggregate incentive opportunities earned by individual participants under the AIP. Subject to the foregoing, Boyd Gaming’s Chief
Executive Officer shall determine the degree to which performance goals have been achieved and the award to be paid, if any, to each participant under the AIP. The level of incentive opportunities to be paid will vary according to the degree to
which performance goals are achieved between established threshold and maximum levels. No incentive payments shall be made if specified thresholds are not achieved. In making such determinations, Boyd Gaming’s Chief Executive Officer shall
consider the recommendations provided for such purpose by Boyd Gaming’s Management Committee and each participant’s respective corporate executive, regional manager, or property general manager. 
 
Discretionary
Fund.    Notwithstanding anything herein to the contrary, the Chief Executive Officer may make discretionary payments to any employee to further the purpose of the AIP subject to review of the Committee. 
 
Payment.    Payment of any awards
earned shall be made in cash as soon as possible following the determination of awards earned unless otherwise deferred subject to such rules as may be established for such purpose. 
 
Termination of Employment.    If a participant ceases to be employed by Boyd
Gaming at any time prior to the end of a fiscal year, the participant shall not be entitled to any payment under the AIP. However, the foregoing notwithstanding, Boyd Gaming’s Chief Executive Officer may provide for the full or partial payment
of awards in the event of a participant’s termination of employment due to death, disability, retirement or for such 

 

	 BOYD GAMING CORPORATION
	 	 POLICY NO. MCP-3

 
ANNUAL
INCENTIVE PLAN 
 
other reason determined by the Chief
Executive to be appropriate to achieve the purpose of the AIP and in the best interests of Boyd Gaming. 
 
Source of Payment.    All payments under the AIP shall be paid from the general funds of Boyd Gaming and no
separate fund shall be established and no other segregation of assets shall be made to assure payment. Nothing contained in this AIP and no action taken pursuant to the provisions of the AIP shall create a trust of any kind, or a fiduciary
relationship between Boyd Gaming and any participant, beneficiary or other person. 
 
Right to Terminate Employment.    Nothing in this AIP or in any agreement entered into pursuant to the AIP shall confer upon any person the right to continue in the
employment of Boyd Gaming or affect any right Boyd Gaming may have to terminate the employment of such person. 
 
Withholding.    Whenever any payments are to be made under the AIP, Boyd Gaming shall withhold amounts
sufficient to satisfy any withholding tax or any other requirements as appropriate. 
 
Effect on Other Plans.    Receipt of an award or payment under the AIP shall not affect a recipient’s eligibility to participate in any other plan of Boyd Gaming and any
payment made pursuant to the AIP shall not be used in determining the benefits provided under any other plan of Boyd Gaming unless specifically so provided. 
 
Amendment.    Boyd Gaming may terminate or amend the AIP at any time. No amendment or modification, however,
shall adversely affect the right of a participant to payment of any amounts determined prior to such amendment or modification. 
 
Effective Date.    The AIP shall be effective as of January 1, 1998, and shall remain in effect until
terminated by Boyd Gaming. 

	 BOYD GAMING CORPORATION
	 	 POLICY NO. MCP-3

 
ANNUAL
INCENTIVE PLAN 
 
PROCEDURES: 
 
Each year variables for the upcoming plan year will be set
and communicated to each participating individual. Variables are: 
 

	 	•	 	incentive opportunity/position 

	 	•	 	financial goals to be used 

	 	•	 	threshold and maximum goals as a percentage of the target 

	 	•	 	threshold and maximum incentive based on target being 100% 

	 	•	 	weighting of the incentive opportunity based on the position’s ability to influence results 

	 	•	 	corporate and property funding triggers 

 
Individual goals for the coming period will be determined from the annual performance evaluation. 
 
The annual variables will be reviewed and approved by the
Management Committee and then referred to the Compensation and Stock Option Committee.

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