June 20, 2008
Veitch signs $10 million "no compete" agreement with Star Cruises
Star Cruises Ltd. announced today that Colin Veitch has resigned as an executive Director with effect from June 17, 2008, in order to concentrate on his role as president and chief executive officer of NCLC. It also announced that on June 19, it entered into a non-competition agreement with Mr. Veitch for a consideration of US$10 million (approximately HK$78 million).
NCL Corporation Ltd. is the parent of Norwegian Cruise Line and is owned 50% by Star Cruises and 50% by investment partnerships organized by Apollo Management, L.P. ely;
A stock exchange announcement from Star Cruises says that "Mr. Veitch has confirmed that he has no disagreement with the Board and there is no matter in relation to his resignation that needs to be brought to the attention of the shareholders of the company."
The announcement says: "The Directors believe that it is in the interest of the Group to enter into the Non-Competition Agreement with Mr. Veitch given that Mr. Veitch has significant expertise and experience in the cruise industry generally, and has developed specific insight and knowledge of various Asian markets as an executive Director of the Company, in addition to extensive experience in other international markets as president and chief executive officer of NCLC. The Company is expected to benefit from the covenants of Mr. Veitch under the Non-Competition Agreement, which promote and encourage a continued alignment of his interests with those of the Company and its affiliates."