Document:

EXHIBIT
10.8

 

EXECUTION
COPY

 

LIMITED
LIABILITY COMPANY

MEMBERSHIP
INTERESTS SECURITY AGREEMENT

 

THIS LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS
SECURITY AGREEMENT dated as of January 11, 2002 is by and between
APCOA/STANDARD PARKING, INC., a Delaware corporation (the “Borrower”), and
WILMINGTON TRUST COMPANY, as trustee and collateral agent (hereinafter, in such
capacity, the “Agent”) for itself and the several holders (the “Holders”) of
the 14% Senior Subordinated Second Lien Notes due 2006 (the “Notes”) issued by
the Borrower, pursuant to an indenture dated as of even date herewith (as
amended, supplemented or otherwise modified from time to time, the
“Indenture”), among the Borrower, each of the Borrower’s subsidiaries named on
the signature pages thereto (the “Guarantors”) and the Agent.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Indenture, the Borrower and
the Guarantors have severally agreed to make payments to the Agent and the
Holders upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the Borrower is a member of an affiliated
group of companies that includes each of the Guarantors;

 

WHEREAS, the proceeds of the offering and exchange of
the Notes will be used in part to enable the Borrower to make valuable
transfers to one or more of the Guarantors in connection with the operation of
their respective businesses;

 

WHEREAS, the Borrower and the Guarantors are engaged
in related businesses, and each of such parties will derive substantial direct
and indirect benefit from the offering and issuance of the Notes to the
Holders;

 

WHEREAS, under the terms of the Security Agreement (as
defined in the Indenture), the Borrower has agreed that the Agent, for the
benefit of itself and the Holders, shall have a second priority security interest
in substantially all of the personal property assets of the Borrower, including
the Borrower’s interests in its subsidiaries and certain joint ventures and
partnerships and related income, distributions and proceeds thereof, subject
only to security interests expressly permitted by the Indenture, to secure the
Borrower’s obligations under the Indenture;

 

WHEREAS, the Borrower is the direct legal and
beneficial owner of that percentage of membership interests of each of the
limited liability companies described on Annex A hereto (the “Subsidiaries”);
and

 

WHEREAS, it is a condition precedent to the issuance
of the Notes that the Borrower shall have executed and delivered this Limited
Liability Company Membership Interests Security Agreement (as it may be amended
or modified from time to time, this “Agreement”) to the Agent for the ratable
benefit of the Agent and the Holders;

 

 

NOW, THEREFORE, in consideration of the premises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

 

1.             Definitions.

 

1.1.          Certain
Defined Terms.  All capitalized
terms used herein without definition shall have the respective meanings
provided therefor in the Amended and Restated Credit Agreement, dated as of
even date herewith, by and among the Borrower and LaSalle Bank National
Association (“LaSalle”) as agent and the lenders party thereto (as such
agreement may be amended, restated, modified or supplemented and in effect from
time to time, the “Credit Agreement”). 
Terms used herein and not defined in the Credit Agreement or otherwise
defined herein that are defined in the Uniform Commercial Code of Illinois have
such defined meanings herein, unless the context otherwise indicates or
requires.  The following terms shall
have the following meanings:

 

Event of Default.  An “Event of Default” as defined in the
Indenture.

 

Intercreditor Agreement.  The “Intercreditor Agreement” as defined in
the Indenture.

 

Membership Agreement.  The operating agreement or limited liability
company agreement or similar governing agreement of each of the Subsidiaries
and any instruments related thereto that created or that govern a Subsidiary,
as the same may be amended, restated, modified or supplemented and in effect
from time to time.

 

Membership Interests.  The Borrower’s membership interests in each
of the Subsidiaries, including, without limitation, (a) all rights, title and
interest, remedies, powers and privileges vested in the Borrower under the
Membership Agreements; (b) all rights, title and interest in and to the
profits, income, surplus, moneys, available cash flow, assets and revenues of
any kind accruing, and all Accounts arising, under or in respect of the
Subsidiaries and the Membership Agreements; (c) all rights, title and interest
in and to any and all security for or claims against others in respect of the
Membership Agreements; (d) all rights, title and interest in and to the
Subsidiaries, now owned or hereafter acquired, as a result of exchange offers,
direct investments or contributions or otherwise; (e) all distributions of
income, profit, revenues, or other assets paid or payable to the Borrower in
its capacity as a member; (f) all Accounts now or hereafter due and to become
due to the Borrower from the Subsidiaries; and (g) any and all Proceeds of the
foregoing.

 

Security Interests.  The second priority security interests
granted pursuant to §2 hereof.

 

UCC.  The Uniform Commercial Code as in effect at
the relevant time(s) in the State of Illinois, provided that if by
reason of mandatory provisions of law, the perfection or the effect of
perfection or non-perfection of the Security Interests or the availability of
any remedy hereunder is governed by the Uniform Commercial Code as in effect in
any other jurisdiction, “UCC” means the Uniform Commercial Code as in effect in
such other jurisdiction for purposes of the

 

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provisions hereof relating to such perfection or effect of perfection
or non-perfection or availability of such remedy.

 

1.2.          Other
Definitional Provisions.  Any of the
defined terms used herein may, unless the context otherwise requires, be used
in the singular or the plural depending on the reference.  All references to statutes and related
regulations shall include (unless otherwise specifically provided herein) any
amendments of the same and any successor statutes and regulations.

 

2.             Grant
of Second Priority Security Interests. 
The Borrower hereby grants to the Agent, for the benefit of the Agent
and the Holders, continuing second priority security interests in, a right of
setoff against, and an assignment to the Agent, for the benefit of the Agent
and the Holders, of all right, title and interest of the Borrower in and to the
Membership Interests, except to the extent that (i) any such Membership
Interest (or some or all of the rights comprising such Membership Interest)
shall not be assignable or capable of being encumbered as a matter of law or
under the terms of the Membership Agreement applicable thereto (but solely to
the extent that any such restriction shall be enforceable under the UCC and
other applicable law), without the consent of the applicable party or parties
thereto other than the Borrower and (ii) such consent has not been obtained
(collectively, “Excluded Membership Interests” and, as the case may be,
“Excluded Membership Agreements”); provided, however, that upon
obtaining the consent of the party or parties to any such Membership Agreement
(other than the Borrower) with respect to any such otherwise Excluded
Membership Interests and/or Excluded Membership Agreement, the terms
“Membership Interests” and “Membership Agreement” shall thereafter include the
same to the extent permitted by such consents.

 

2.1.          Ranking;
Subordination.  Notwithstanding
anything to the contrary in this Agreement, the security interests granted
herein to the Agent for the ratable benefit of the Agent and the Holders shall
be junior and subordinate to the claims of the agent and the lenders under the
Credit Agreement as provided in the Indenture. 
Furthermore, notwithstanding anything to the contrary in this Agreement,
the Agent will not be able to exercise any rights or claims against the
Membership Interests until and unless such party is permitted to do so pursuant
to the Intercreditor Agreement, dated as of even date herewith, among LaSalle,
as agent for the lenders under the Credit Agreement, Wilmington Trust Company,
as trustee under the Indenture, on behalf of the Holders, the Company and the
Guarantors.  As provided in, and subject
to the terms of, the Intercreditor Agreement, the Agent will follow any
instructions given to it by the representative of the lenders under the Credit
Agreement and, so long as amounts or commitments to lend remain outstanding
under the Credit Agreement, the lenders under the Credit Agreement will make
all determinations and decisions relating to the disposal of the Membership
Interests.

 

3.             Security
for the Notes.  This Agreement and
the second priority security interest in and pledge of the Membership Interests
evidenced hereunder are made with and granted to the Agent, for the benefit of
the Holders and the Agent, as security for the payment and performance in full
of the Notes and the other obligations of the Borrower and the Guarantors under
the Indenture.

 

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4.             Representations
and Warranties.  The Borrower
represents and warrants as follows:

 

4.1           Binding
Obligation.  This Agreement is the
legally valid and binding obligation of the Borrower, enforceable against it in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, reorganization, moratorium, or similar laws or equitable principles
relating to or limiting creditor’s rights generally.

 

4.2           Ownership
of Membership Interest.  The
Borrower owns the Membership Interests free and clear of any lien, security
interest, encumbrance, claim and right of others (collectively “Liens”), except
for the Security Interests, the first priority security interest granted to
LaSalle and the lenders under the Credit Agreement and Permitted Liens under
the Credit Agreement.  No effective
financing statement or other form of lien notice covering all or any part of
the Membership Interests is on file in any recording office, except for those
in favor of the Agent and those in favor of LaSalle, as agent under the Credit
Agreement, evidencing the Liens granted in favor of LaSalle as secured party in
respect of the first priority Lien in favor of the lenders party to the Credit
Agreement.

 

4.3           Office
Locations.  The mailing address,
chief place of business, the chief executive office and the office where
Borrower keeps its books and records relating to the Membership Interests are
located at the places specified on Exhibit A hereto.

 

4.4           Perfection.  This Agreement creates a valid, perfected
and second priority security interest in the Membership Interests (other than
any Excluded Membership Interests and/or Excluded Membership Agreements),
securing the payment of the Notes, and the other obligations of the Borrower
and the Guarantors under the Indenture, and all filings, registrations,
recordings and other actions necessary or desirable to create, perfect and
protect such Security Interests have been duly taken, and such Security
Interests are entitled to all of the rights, priorities and benefits afforded
by the UCC or other relevant law as enacted in any relevant jurisdiction which
relates to perfected security interests. 
The Borrower has marked its books and records to reflect the Security
Interests.

 

4.5           Governmental
Authorizations; Consents.  No
authorization, approval or other action by, and no notice to or filing with,
any domestic or foreign governmental authority or regulatory body or consent of
any other Person is required (other than filing in appropriate governmental
offices UCC financing statements in favor of the Agent as secured party
evidencing the Liens granted hereunder) either (a) for the grant by the Borrower
of the Security Interests granted hereby or for the execution, delivery or
performance of this Agreement by the Borrower or (b) for the perfection of or
the exercise by the Agent of its rights and remedies hereunder.

 

4.6           Conflicting
Laws and Contracts.  Except for the
required consent of the Managers of each of the Subsidiaries, neither the
execution and delivery by the Borrower of this Agreement, the creation and
perfection of the Security Interests, nor compliance by the Borrower with the
terms and provisions hereof, will violate any law, rule, regulation, order,
writ, judgment, injunction, decree or award binding on the Borrower, the
Certificate of Incorporation or

 

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By-Laws of the Borrower, or the provisions of any indenture, instrument
or agreement to which the Borrower is a party or a subject, or by or which it,
or its properties, is bound, or conflict with or constitute a default
thereunder.

 

4.7           Accurate
Information.  All information
heretofore, herein or hereafter supplied to the Agent by or on behalf of the
Borrower with respect to the Membership Interests is and will be accurate and
complete in all material respects.

 

5.             Further
Assurances; Covenants.

 

5.1           Other
Documents and Actions.  The Borrower
will, from time to time, at its expense, promptly execute and deliver all
further instruments and documents and take all further action that may be
required by applicable law or be necessary or desirable, or that the Agent may
request, in order to create, perfect and protect any security interest granted
or reaffirmed or purported to be granted or reaffirmed hereby or to enable the
Agent to exercise and enforce its rights and remedies with respect to the
Membership Interests.  Without limiting
the generality of the foregoing, the Borrower will: (a) execute and file such
financing or continuation statements, or amendments thereto, and such other
instruments, documents or notices, as may be required by applicable law or be
necessary or desirable, or as the Agent may request, in order to create,
perfect and preserve the Security Interests granted or reaffirmed or purported
to be granted or reaffirmed hereby; (b) at any reasonable time, upon demand by
the Agent allow the Agent or Persons designated by the Agent to examine and
make copies of the records of the Borrower related to the Membership Interests,
and to discuss the Membership Interests and the records of the Borrower with
respect thereto with, and to be advised as to the same; and (c) upon the Agent’s
request, appear in and defend any action or proceeding that may affect the
Agent’s second priority security interest in the Membership Interests.

 

5.2           Corporate
or Name Change.  The Borrower will
give the Agent at least thirty (30) days’ prior written notice of any change in
the Borrower’s name, identity, mailing address or corporate structure. With
respect to any such change, the Borrower will execute such documents and take
such actions as the Agent deems necessary or desirable to create, perfect and protect
the Security Interests.

 

5.3           Locations.  The Borrower will give the Agent at least
thirty (30) days’ prior written notice of any change in the Borrower’s or any
Subsidiary’s mailing address.  With
respect to any new location (which in any event shall be within the continental
United States), the Borrower will execute such documents and take such actions
as the Agent deems necessary to perfect and protect the Security Interests.

 

5.4           Uncertificated
Securities Covenants.  The Borrower
shall, and shall cause other appropriate parties under §§8-313 and 8-321 of the
UCC to, mark its or their books and records with the numbers and face amounts
of all uncertificated securities evidencing the Membership Interests and all
rollovers and replacements therefor to reflect the Security Interests.  Upon request therefor, the Borrower shall
provide the Agent and shall cause other Persons to provide the Agent with
written confirmation of the Security Interest in such uncertificated
securities.  The Borrower shall take,
and shall cause all other necessary Persons to take, all action necessary

 

5

 

or appropriate to create, perfect and maintain a second perfected
priority Lien in such uncertificated securities in favor of the Agent.  In the event that subsequent to the date
hereof, the Membership Interests are evidenced by certificates, the Borrower
will promptly deliver such certificates to the Agent, together with an
assignment duly endorsed in blank for transfer.

 

5.5           Protection
of Membership Interests.  The
Borrower will do nothing to impair the rights of the Agent in the Membership
Interests (provided that the foregoing shall not be deemed to be in conflict
with the grant by the Borrower of a first priority Lien in the Membership
Interests in favor of the lenders party to the Credit Agreement).

 

5.6           Taxes
and Claims.  The Borrower will pay
when due all property and other taxes, assessments and governmental charges
imposed upon, and all claims against, the Membership Interests; provided,
that no such tax, assessment or charge need be paid if the Borrower is
contesting same in good faith by appropriate proceedings promptly instituted
and diligently conducted and if the Borrower has established such reserve or
other appropriate provision, if any, as shall be required in conformity with
GAAP; and provided further that the same can be contested without risk
of loss or forfeiture or material impairment of the Membership Interests in
question.

 

5.7           Membership
Interests Information.  The Borrower
will furnish to the Agent, from time to time upon request, statements and
schedules further identifying and describing the Membership Interests and such
other reports in connection with the Membership Interests as the Agent may
reasonably request, all in reasonable detail. 
The Borrower will, promptly upon request, provide to the Agent all
information and evidence it may reasonably request concerning the Membership
Interests to enable the Agent to enforce the provisions of this Agreement.

 

5.8           Records
of Membership Interest.  The
Borrower shall keep full and accurate books and records relating to the
Membership Interests and shall stamp or otherwise mark such books and records
in such manner as the Agent may reasonably request indicating that the
Membership Interests are subject to the Security Interests.

 

5.9           No
Change to the Membership Agreements. 
The Borrower will not permit, suffer or otherwise consent to, any
amendment, supplement or other modification to any of the Membership Agreements
of any of the Subsidiaries which is or can reasonably be expected to be adverse
to the interests of the Agent and the Holders, except in accordance with the
Indenture.

 

5.10         Proceeds.  To the extent required by the Indenture or
upon demand of the Agent when any Event of Default has occurred and is
continuing, the Borrower , in accordance with the Indenture, but subject to the
terms of the Intercreditor Agreement, will remit to the Agent for application
to the obligations of the Borrower under the Indenture, all income, cash flow,
profits and distributions received by the Borrower in connection with the
Membership Interests, and (b) any and all proceeds received by the Borrower in
connection with a sale of any Membership Interests.

 

6.             Agent
Appointed Attorney-in-Fact.  The
Borrower hereby irrevocably appoints LaSalle, or if the Credit Agreement is no
longer in effect, the Agent as the Borrower’s

 

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attorney-in-fact, with full authority in the place and stead of the
Borrower and in the name of the Borrower, with or without the signature of the
Borrower where permitted by law, from time to time in LaSalle’s, or if the
Credit Agreement is no longer in effect, the Agent’s discretion to take any
action and to execute any instrument that LaSalle, or if the Credit Agreement
is no longer in effect, the Agent may deem necessary or advisable to accomplish
the purposes of this Agreement, including, without limitation:

 

(a)           to sign and endorse any documents
(including without limitation financing or continuation statements, and
amendments thereto) necessary or advisable to create, perfect, protect and
maintain the perfection and priority of the Security Interests;

 

(b)           to pay or discharge taxes or Liens,
levied or placed upon or threatened against the Membership Interests, or any of
them, the legality or validity thereof and the amounts necessary to discharge
the same to be determined by LaSalle, or if the Credit Agreement is no longer
in effect, the Agent in its reasonable discretion, and such payments made by
LaSalle, or if the Credit Agreement is no longer in effect, the Agent to become
obligations of the Borrower to the Agent, due and payable immediately without
demand and secured by the Security Interests;

 

(c)           after the occurrence and during the
continuance of an Event of Default, to ask, demand, collect, sue for, recover,
compound, receive and give acquittance and receipts for moneys or property due
and to become due under or in respect of the Membership Interests, or any of
them;

 

(d)           after the occurrence and during the
continuance of an Event of Default, to file any claims or take any action or
institute any proceedings that LaSalle, or if the Credit Agreement is no longer
in effect, the Agent may deem necessary or desirable for the collection of the
Membership Interests or otherwise to enforce the rights of LaSalle, or if the
Credit Agreement is no longer in effect, the Agent with respect to the
Membership Interests; and

 

(e)           after the occurrence and during the
continuance of an Event of Default, generally to sell, transfer, pledge,
request redemption of Member’s interest, exercise any voting rights of the
Borrower under the Membership Agreements of each of the Subsidiaries, make any
agreement with respect to or otherwise deal with the Membership Interests as
fully and completely as though the Agent were the absolute owner thereof for
all purposes.

 

The Borrower hereby ratifies and approves all acts of
LaSalle, or if the Credit Agreement is no longer in effect, the Agent made or
taken pursuant to this §6.  Neither
LaSalle, or if the Credit Agreement is no longer in effect, the Agent nor any
Person designated by the Agent shall be liable for any acts or omissions or for
any error of judgment or mistake of fact or law, unless it is determined by a
judgment of a court of competent jurisdiction, final and not subject to review
on appeal, that such action, omission, error or mistake constituted gross
negligence or willful misconduct.  This
power, being coupled with an interest, is irrevocable so long as this Agreement
shall remain in force.

 

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7.             Transfers
and Other Liens.  The Borrower shall
not:

 

(a)           Sell, assign (by operation of law or
otherwise) or otherwise dispose of, or grant any option with respect to, any of
the Membership Interests or any portion thereof.

 

(b)           Create, incur or suffer to exist any
Lien upon or with respect to any of the Membership Interests to secure
indebtedness of any Person except for the second priority security interest
created by this Agreement and except for the Liens in favor of LaSalle securing
the lenders under the Credit Agreement.

 

(c)           Sign or authorize the signing on its
behalf or filing of any financing statement naming it as debtor covering all or
any portion or any of the Membership Interests, except financing statements
naming the Agent as secured party and except for financing statements naming
LaSalle as secured party in respect of the first priority Lien in favor of the
lenders party to the Credit Agreement.

 

8.             Remedies

 

(a)           If
any Event of Default shall have occurred and be continuing, the Agent may,
subject to the terms of the Intercreditor Agreement, exercise in respect of any
or all of the Membership Interests, in addition to all other rights and
remedies provided for herein or otherwise available to it, all the rights and
remedies of a secured party on default under the UCC and also may without
notice except as specified below, sell or otherwise dispose of the Membership
Interests or any part thereof in one or more units at public or private sale,
at any of the Agent’s offices or elsewhere, at such time or times, for cash, on
credit or for future delivery, and at such price or prices and upon such other
terms as the Agent may deem commercially reasonable.  The Borrower agrees that, to the extent notice of sale shall be
required by law, at least ten (10) days’ notice to the Borrower of the time and
place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification. 
At any sale of any or all of the Membership Interests, if permitted by
law, the Agent may bid (which bid may be, in whole or in part, in the form of
cancellation of indebtedness) for the purchase of the Membership Interests or
any portion thereof for the account of the Agent.  The Agent shall not be obligated to make any sale of Membership
Interests regardless of notice of sale having been given.  The Agent may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor,
and such sale may, without further notice, be made at the time and place to
which it was so adjourned.  To the
extent permitted by law, the Borrower hereby specifically waives all rights of
redemption, stay or appraisal which it has or may have under any law now
existing or hereafter enacted.

 

(b)           Upon
the occurrence and during the continuance of an Event of Default, the Agent or
its agents or attorneys shall have the right to take possession of the
Borrower’s original books and records relating to the Membership Interests.

 

(c)           The
Borrower acknowledges and agrees that a breach of any of the covenants
contained in §§5.1(a), 5.1(b), 7 and 8 hereof will cause irreparable injury to
the Agent and that

 

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the Agent has no adequate remedy at law in respect of such breaches and
therefore agrees, without limiting the right of the Agent to seek and obtain
specific performance of other obligations of the Borrower contained in this
Agreement, that the covenants of the Borrower contained in the sections
referred to in this section shall be specifically enforceable against the
Borrower.

 

9.             Limitation
on Duty of the Agent with Respect to Membership Interests.  Beyond the safe custody thereof, the Agent
shall have no duty with respect to the Membership Interests in its control (or
in the control of any agent) or with respect to any income or distributions
thereon or the preservation of rights against prior parties or any other rights
pertaining thereto.

 

10.           Application
of Proceeds.  Upon the occurrence
and during the continuance of an Event of Default, the proceeds of any sale of,
or other realization upon, all or any part of the Membership Interests shall be
applied first in accordance with the Intercreditor Agreement, and then in
accordance with the Indenture.

 

11.           Expenses.  The Borrower shall pay all expenses of
protecting, appraising, handling and maintaining the Membership Interests, all
costs, fees and expenses of perfecting and maintaining the Security Interests,
and any and all excise, property, sales and use taxes imposed by any state,
federal or local authority on any of the Membership Interests or the Security
Interests.  If the Borrower fails
promptly to pay any portion of the above expenses when due or to perform any
other obligation of the Borrower under this Agreement, the Agent may, at its
option, but shall not be required to, pay or perform the same, and the Borrower
agrees to reimburse the Agent therefor on demand.  All sums so paid or incurred by the Agent for any of the
foregoing, any and all other sums for which the Borrower may become liable
hereunder and all costs and expenses (including reasonable attorneys’ fees,
legal expenses and court costs) incurred by the Agent in enforcing or
protecting the Security Interests or any of their rights or remedies under this
Agreement shall be payable on demand, shall bear interest until paid at the
highest rate provided in the Notes and shall be secured by the Membership Interests.

 

12.           Termination
of Security Interests; Release of Membership Interests.  Upon indefeasible payment in full of all
obligations of the Borrower and the Guarantors under the Indenture and the
termination of the Indenture, the Security Interests shall terminate and all
rights to the Membership Interests shall revert to the Borrower.  Upon such termination of the Security
Interests or release of the Membership Interests, the Agent will, at the
expense of the Borrower, execute and deliver to the Borrower such documents as
the Borrower shall reasonably request to evidence the termination of the
Security Interests or the release of the Membership Interests, as the case may
be.

 

13.           Marshaling.  Neither the Agent nor any Holder shall be
required to marshal any present or future security for (including but not
limited to this Agreement and the Membership Interests), or other assurances of
payment of, the Indebtedness under the Notes or the Indenture or any of them,
or to resort to such security or other assurances of payment in any particular
order.  All of the Agent’s rights
hereunder and in respect of such security and other assurances of payment shall
be cumulative and in addition to all other rights, however existing or
arising.  To the extent that it lawfully
may, the Borrower hereby agrees that it will not invoke any law 

 

9

 

relating to the marshaling of collateral that might cause delay in or
impede the enforcement of the Agent’s rights under this Agreement or under the
Indenture, and to the extent that it lawfully may the Borrower hereby
irrevocably waives the benefits of all such laws.

 

14.           Borrower’s
Obligations Not Affected.  The
obligations of the Borrower hereunder shall remain in full force and effect
without regard to, and shall not be impaired by (i) any exercise or
nonexercise, or any waiver, by the Agent or any Holder of any right, remedy,
power or privilege under or in respect the Notes, the Indenture, or any
security therefor (including this Agreement); (ii) any amendment or supplement
to or modification of the Indenture; (iii) any amendment or supplement to or
modification of any instrument (other than this Agreement) securing the Notes,
including, without limitation, the Indenture; or (iv) the taking of additional
security for, or any other assurances of payment of, the Notes or the release
or discharge or termination of any security or other assurances of payment or
performance for the Notes; whether or not the Borrower shall have notice or knowledge
of any of the foregoing.

 

15.           Further
Assurances.  The Borrower will do
all such acts, and will furnish to the Agent all such financing statements,
certificates, legal opinions and other documents and will obtain all such
governmental consents and corporate approvals and will do or cause to be done
all such other things as the Agent may reasonably request from time to time in
order to give full effect to this Agreement and to secure the rights of the
Agent and the Holders hereunder, all without any cost or expense to the Agent
or any Holder.  If the Agent so elects,
a photocopy of this Agreement may at any time and from time to time be filed by
the Agent as a financing statement in any recording office in any jurisdiction.

 

16.           Survival
of Representations.  All
representations and warranties of the Borrower contained in this Agreement
shall survive the execution and delivery of this Agreement.

 

17.           Agent’s
Exoneration.  Under no circumstances
shall the Agent be deemed to assume any responsibility for or obligation or
duty with respect to any part or all of the Membership Interests of any nature
or kind or any matter or proceedings arising out of or relating thereto, other
than (i) to exercise reasonable care in the physical custody of any
certificates or documents evidencing any of the Membership Interests and (ii)
after an Event of Default shall have occurred and be continuing to act in a
commercially reasonable manner.  The
Agent shall not be required to take any action of any kind to collect, preserve
or protect its or the Borrower’s rights in the Membership Interests or against
other parties thereto.  The Agent’s
prior recourse to any part or all of the Membership Interests shall not
constitute a condition of any demand, suit or proceeding for payment or
collection of any of the obligations under the Indenture.

 

18.           No
Waiver, Etc.  Neither this Agreement
nor any term hereof may be changed, waived, discharged or terminated except by
a written instrument expressly referring to this Agreement and to the provisions
so modified or limited and executed by the Agent pursuant to the terms of the
Indenture.  No act, failure or delay by
the Agent shall constitute a waiver of its rights and remedies hereunder or
otherwise.  No single or partial waiver
by the Agent of any default or right or remedy that it may have shall operate
as a waiver of any other default, right or remedy or of the same default, right
or remedy on a future occasion.  The
Borrower hereby

 

10

 

waives presentment, notice of dishonor and protest of all instruments,
included in or evidencing any of the Notes or the Membership Interests, and any
and all other notices and demands whatsoever (except as expressly provided for
in the Indenture).

 

19.           Notice,
Etc.  All notices, requests and
other communications hereunder shall be made in the manner set forth in Section
14.02 of the Indenture.

 

20.           Successors
and Assigns.  This Agreement and all
obligations of the Borrower shall be binding upon the successors and assigns of
the Borrower, and shall, together with the rights and remedies of the Agent
hereunder, inure to the benefit of the Agent, its successors in title and
assigns.

 

21.           Governing
Law.  THIS AGREEMENT AND THE
OBLIGATIONS OF THE BORROWER HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS
CONFLICTS OR CHOICE OF LAWS RULES OR PRINCIPLES).

 

22.           Entire
Agreement.  This Agreement, together
with the Indenture and the other security agreements executed and delivered
pursuant thereto, embodies the entire agreement and understanding between the
Borrower and the Holders relating to the Membership Interests and supersedes
all prior written and oral agreements and understandings between the Borrowers
and the Holders relating to the Membership Interests.

 

23.           Headings.  The descriptive section headings have been
inserted for convenience of reference only and do not define or limit the
provisions hereof.

 

24.           Counterparts.  This Agreement may be executed in any number
of counter-parts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

 

25.           Severability,
etc.  If any term of this Agreement
shall be held to be invalid, illegal or unenforceable, the validity of all
other terms hereof shall be in no way affected thereby, and this Agreement
shall be construed and be enforceable as if such invalid, illegal or
unenforceable term had not been included. 
The Borrower acknowledges receipt of a copy of this Agreement.

 

26.           Collateral
Purposes Only.  This Agreement is
executed only as security for the Notes and the other obligations of the
Borrower and the Guarantors under the Indenture.  Anything to the contrary notwithstanding, the Agent shall not be
deemed to have assumed any of the responsibilities or obligations of the
Borrower under any of the Membership Agreements.  The Borrower shall retain any distributions made under such  Membership Agreements to the Borrower when
no Event of Default has occurred and is continuing.

 

[Remainder of page
intentionally left blank; signature page follows]

 

 

11

 

IN
WITNESS WHEREOF, this Limited Liability Company Membership
Interests Security Agreement has been executed as of the day and year first
above written.

 

	
   

  	
  APCOA/STANDARD PARKING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G. Marc Baumann

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  G. Marc Baumann

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Executive Vice President, Chief Financial

  
	
   

  	
   

  	
  Officer, Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WILMINGTON TRUST COMPANY, as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James D. Nesci

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  James D. Nesci

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Authorized Signer

  
				

 

12

 

Annex A

 

to
Limited Liability Company Membership Interests Security Agreement

 

	
  I.        SUBSIDIARY

  	
   

  	
  Record
  Owner

  	
   

  	
  Percentage
  of

  Membership Interests

  	
   

  
	
  APCOA LaSalle
  Parking Company, L.L.C.

  	
   

  	
  Borrower

  	
   

  	
  100

  	
  %

  
	
  APCOA Bradley
  Parking Company, LLC

  	
   

  	
  Borrower

  	
   

  	
  100

  	
  %

  
	
  APCOA Parking
  Venture V L.L.C.

  	
   

  	
  Borrower

  	
   

  	
  99

  	
  %

  
	
  Executive
  Parking Industries, L.L.C.

  	
   

  	
  Borrower

  	
   

  	
  24

  	
  %

  

 

13

 

Exhibit
A

 

Locations

 

900 North Michigan Avenue

 

Suite 1600

 

Chicago, Illinois 60611

 

14EXHIBIT 10.9

 

EXECUTION
COPY

 

JOINT VENTURE INTEREST SECURITY
AGREEMENT

 

THIS
JOINT VENTURE INTEREST SECURITY AGREEMENT dated as of January 11, 2002, is by
and between APCOA/STANDARD PARKING, INC., a Delaware corporation (the
“Borrower”), and WILMINGTON TRUST COMPANY, as trustee and collateral agent
(hereinafter, in such capacity, the “Agent”) for itself and the several holders
(the “Holders”) of the 14% Senior Subordinated Second Lien Notes due 2006 (the
“Notes”) issued by the Borrower, pursuant to an indenture dated as of even date
herewith (as amended, supplemented or otherwise modified from time to time, the
“Indenture”), among the Borrower, each of the Borrower’s subsidiaries named on
the signature pages thereto (the “Guarantors”) and the Agent.

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to the Indenture, the Borrower and the Guarantors have severally
agreed to make payments to the Agent and the Holders upon the terms and subject
to the conditions set forth therein;

 

WHEREAS,
the Borrower is a member of an affiliated group of companies that includes each
of the Guarantors;

 

WHEREAS,
the proceeds of the offering and exchange of the Notes will be used in part to
enable the Borrower to make valuable transfers to one or more of the Guarantors
in connection with the operation of their respective businesses;

 

WHEREAS,
the Borrower and the Guarantors are engaged in related businesses, and each of
such parties will derive substantial direct and indirect benefit from the
offering and issuance of the Notes to the Holders;

 

WHEREAS,
the Borrower has agreed that the Agent, for the benefit of itself and the
Holders, shall have a second priority security interest in substantially all of
the personal property assets of the Borrower, including the Borrower’s
interests in its subsidiaries and certain joint ventures and partnerships and
related income, distributions and proceeds thereof, subject only to security
interests expressly permitted by the Indenture, to secure the Borrower’s
obligations under the Indenture;

 

WHEREAS,
the Borrower is the direct legal and beneficial owner of that percentage of
joint venture interests of each of the joint ventures described on Annex A
hereto (the “Subsidiaries”); and

 

WHEREAS,
it is a condition precedent to the issuance of the Notes that the Borrower
shall have executed and delivered this Joint Venture Interest Security
Agreement (as it may be amended or modified from time to time, this
“Agreement”) to the Agent for the ratable benefit of the Agent and the Holders;

 

 

NOW,
THEREFORE, in consideration of the premises contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Definitions.

 

1.1.          Certain Defined Terms.  All capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Amended
and Restated Credit Agreement, dated as of even date herewith, by and among the
Company and LaSalle Bank National Association 
(“LaSalle”) as agent and the lenders party thereto (as such agreement
may be amended, restated, modified or supplemented and in effect from time to
time, the “Credit Agreement”).  Terms
used herein and not defined in the Credit Agreement or otherwise defined herein
that are defined in the UCC have such defined meanings herein, unless the
context otherwise indicates or requires. 
The following terms shall have the following meanings:

 

Joint
Venture Agreement.  The joint venture agreement or similar
governing agreement of each of the Subsidiaries and any instruments related
thereto that created or govern a Subsidiary, as the same may be amended,
restated, modified or supplemented and in effect from time to time.

 

Joint
Venture Interests.  The Borrower’s joint venture interests in
each of the Subsidiaries, including, without limitation, (a) Borrower’s right,
title and interest, remedies, powers and privileges vested in the Borrower
under the Joint Venture Agreements; (b) Borrower’s right, title and interest in
and to the profits, income, surplus, moneys, available cash flow, assets and
revenues of any kind accruing, and all Accounts arising, under or in respect of
the Subsidiaries and the Joint Venture Agreements; (c) the Borrowers right,
title and interest in and to any and all security for or claims against others
in respect of the Joint Venture Agreements; (d) the Borrower’s right, title and
interest in and to the Subsidiaries, now owned or hereafter acquired, as a
result of exchange offers, direct investments or contributions or otherwise;
(e) all distributions of income, profit, revenues, or other assets paid or
payable to the Borrower in its capacities as a joint venturer; (f) all Accounts
now or hereafter due and to become due to the Borrower from the Subsidiaries;
and (g) any and all Proceeds of the foregoing.

 

Security
Interests.  The second priority security interests
granted pursuant to §2 hereof.

 

UCC. 
The Uniform Commercial Code as in effect at the relevant time(s) in the
State of Illinois, provided that if by reason of mandatory provisions of
law, the perfection or the effect of perfection or non-perfection of the
Security Interests or the availability of any remedy hereunder is governed by
the Uniform Commercial Code as in effect in any other jurisdiction, “UCC” means
the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such perfection or effect of
perfection or non-perfection or availability of such remedy.

 

1.2.          Other Definitional Provisions.  Any of the defined terms used herein may,
unless the context otherwise requires, be used in the singular or the plural
depending on the reference.

 

2

 

All references
to statutes and related regulations shall include (unless otherwise
specifically provided herein) any amendments of the same and any successor
statutes and regulations.

 

2.             Grant of Second Priority
Security Interests.  The Borrower
hereby grants to the Agent, for the benefit of the Agent and the Holders, continuing
second priority security interests in, a right of setoff against, and an
assignment to the Agent, for the benefit of the Agent and the Holders, of all
right, title and interest of the Borrower in and to the Joint Venture
Interests, except to the extent that (i) any such Joint Venture Interest is not
assignable or capable of being encumbered as a matter of law or under the terms
of the Joint Venture Agreement applicable thereto (but solely to the extent
that any such restriction shall be enforceable under the UCC and other
applicable law), without the consent of the applicable party or parties thereto
other than the Borrower and (ii) such consent has not been obtained
(collectively, “Excluded Joint Venture Interests” and, as the case may be,
“Excluded Joint Venture Agreements”); provided, however, that
upon obtaining the consent of the party or parties to any such Joint Venture
Agreement (other than the Borrower) with respect to any such otherwise Excluded
Joint Venture Interests and/or Excluded Joint Venture Agreement, the terms
“Joint Venture Interests” and “Joint Venture Agreement” shall thereafter
include the same to the extent permitted by such consents.

 

2.1.          Ranking; Subordination.  Notwithstanding anything to the contrary in
this Agreement, the security interests granted herein to the Agent for the
ratable benefit of the Agent and the Holders shall be junior and subordinate to
the claims of the agent and the lenders under the Credit Agreement as provided
in the Indenture.  Furthermore,
notwithstanding anything to the contrary in this Agreement, the Agent will not
be able to exercise any rights or claims against the Joint Venture interests
until and unless such party is permitted to do so pursuant to the Intercreditor
Agreement, dated as of even date herewith, among LaSalle, as agent for the
lenders under the Credit Agreement, Wilmington Trust Company, as trustee under
the Indenture, on behalf of the Holders, the Company and the Guarantors.  As provided in, and subject to the terms of,
the Intercreditor Agreement, the Agent will follow any instructions given to it
by the representative of the lenders under the Credit Agreement and, so long as
amounts or commitments to lend remain outstanding under the Credit Agreement,
the lenders under the Credit Agreement will make all determinations and
decisions relating to the disposal of the Joint Venture Interests.

 

3.             Security for the Notes.  This Agreement and the second priority
security interest in and pledge of the Joint Venture Interests evidenced
hereunder are made with and granted to the Agent, for the benefit of the
Holders and the Agent, as security for the payment and performance in full of
all the Notes and the other obligations of the Borrower and the Guarantors
under the Indenture.

 

4.             Representations and Warranties.  The Borrower represents and warrants as
follows:

 

4.1.          Binding Obligation.  This Agreement is the legally valid and
binding obligation of the Borrower, enforceable against it in accordance with
its terms, except as enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium, or similar laws or equitable principles relating to
or limiting creditor’s rights generally.

 

3

 

4.2.          Ownership of Joint Venture Interest.  The Borrower owns the Joint Venture
Interests, free and clear of any lien, security interest, encumbrance, claim
and right of others (collectively, “Liens”), other than the rights of the
Subsidiaries under the Joint Venture Agreements to call the Borrower’s Joint
Venture Interests, the first priority security interest granted to LaSalle and
the lenders under the Credit Agreement and the Security Documents referred to
therein and Permitted Liens under the Credit Agreement.  No effective financing statement or other
form of lien notice covering all or any part of the Joint Venture Interests is
on file in any recording office, except for those in favor of the Agent and
those in favor of LaSalle as secured party in respect of the first priority
Lien in favor of the lenders party to the Credit Agreement

 

4.3.          Office Locations.  The mailing address, chief place of
business, the chief executive office and the office where the Borrower keeps
its books and records relating to the Joint Venture Interests are located at
the places specified on Exhibit A hereto.

 

4.4.          Perfection.  This Agreement creates a valid, perfected
and second priority security interest in the Borrower’s Joint Venture
Interests, securing the payment of the Notes and the other obligations of the
Borrower and the Guarantors under the Indenture, and all filings,
registrations, recordings and other actions necessary or desirable to create,
perfect and protect such Security Interests have been duly taken, and such
Security Interests are entitled to all of the rights, priorities and benefits
afforded by the UCC or other relevant law as enacted in any relevant
jurisdiction which relates to perfected security interests.

 

4.5           Governmental Authorizations;
Consents.  Other than the consent of
any of the Subsidiaries, no authorization, approval or other action by, and no
notice to or filing with, any domestic or foreign governmental authority or
regulatory body or consent of any other Person is required (other than
filing  in appropriate governmental
offices UCC financing statements in favor of the Agent as secured party
evidencing the Liens granted hereunder) either (a) for the grant by the
Borrower of the Security Interests granted hereby or for the execution,
delivery or performance of this Agreement by the Borrower or (b) for the
perfection of or the exercise by the Agent of its rights and remedies
hereunder.

 

4.6           Conflicting Laws and Contracts.  Neither the execution and delivery by the
Borrower of this Agreement, the creation and perfection of the Security
Interests, nor compliance by the Borrower with the terms and provisions hereof,
will violate any law, rule, regulation, order, writ, judgment, injunction,
decree or award binding on the Borrower, the Joint Venture Agreements, or the
provisions of any indenture, instrument or agreement to which the Borrower is a
party or a subject, or by or which it, or its properties, is bound, or conflict
with or constitute a default thereunder.

 

4.7           Accurate
Information.  All information
heretofore, herein or hereafter supplied to the Agent by or on behalf of the
Borrower with respect to the Joint Venture Interests is and will be accurate
and complete in all material respects.

 

5.             Further Assurances; Covenants

 

4

 

 

5.1           Other Documents and Actions.  The Borrower will, from time to time, at its
expense, promptly execute and deliver all further instruments and documents and
take all further action that may be required by applicable law or be necessary
or desirable, or that the Agent may request, in order to create, perfect and
protect any security interest granted or reaffirmed or purported to be granted
or reaffirmed hereby or to enable the Agent to exercise and enforce its rights
and remedies with respect to the Joint Venture Interests.  Without limiting the generality of the
foregoing, the Borrower will: (a) execute and file such financing or
continuation statements, or amendments thereto, and such other instruments,
documents or notices, as may be required by applicable law or be necessary or
desirable, or as the Agent may request, in order to create, perfect and
preserve the Security Interests granted or reaffirmed or purported to be
granted or reaffirmed hereby; (b) at any reasonable time, upon demand by the
Agent allow the Agent or Persons designated by the Agent to examine and make
copies of the records of the Borrower related to the Joint Venture Interests,
and to discuss the Joint Venture Interests and the records of the Borrower with
respect thereto with, and to be advised as to the same by, the Borrower’s
officers and employees; and (c) upon the Agent’s request, appear in and defend
any action or proceeding that may affect the Borrower’s title to or the Agent’s
second priority security interest in the Joint Venture Interests.

 

5.2           Corporate or Name Change.  The Borrower will give the Agent at least
thirty (30) days’ prior written notice of any change in the Borrower’s name,
identity, mailing address or corporate structure. With respect to any such
change, the Borrower will execute such documents and take such actions as the
Agent deems necessary or desirable to create, perfect and protect the Security
Interests.

 

5.3           Locations.  The Borrower will give the Agent at least
thirty (30) days’ prior written notice of any change in the Borrower’s chief
place of business.  With respect to any
new location (which in any event shall be within the continental United
States), the Borrower will execute such documents and take such actions as the
Agent deems necessary to perfect and protect the Security Interests.

 

5.4           Uncertificated Securities
Covenants.  The Borrower shall, and
shall cause other appropriate parties under §§ 8-313 and 8-321 of the UCC to,
mark its or their books and records with the numbers and face amounts of all
uncertificated securities evidencing the Joint Venture Interests and all
rollovers and replacements therefor to reflect the Security Interests.  Upon request therefor, the Borrower shall
provide the Agent with written confirmation of the Security Interest in such
uncertificated securities.  The Borrower
shall take, and shall cause all other necessary Persons to take, all action
necessary or appropriate to create, perfect and maintain a second perfected
priority Lien in such uncertificated securities in favor of the Agent.  In the event that subsequent to the date
hereof, the Joint Venture Interests are evidenced by certificates, the Borrower
will promptly deliver such certificates to the Agent, together with an
assignment duly endorsed in blank for transfer.

 

5.5           Protection of Joint Venture
Interests.  The Borrower will do
nothing to impair the rights of the Agent in the Joint Venture Interests
(provided that the foregoing shall not be

 

5

 

deemed to be in
conflict with the grant by the Borrower of a second priority Lien in the Joint
Venture Interests in favor of the Trustee securing the Subordinated Notes).

 

5.6           Taxes and Claims.  The Borrower will pay when due all property
and other taxes, assessments and governmental charges imposed upon, and all
claims against, the Joint Venture Interests; provided, that no such tax,
assessment or charge need be paid if the Borrower is contesting same in good
faith by appropriate proceedings promptly instituted and diligently conducted
and if the Borrower has established such reserve or other appropriate
provision, if any, as shall be required in conformity with GAAP; and provided
further that the same can be contested without risk of loss or forfeiture
or material impairment of the Joint Venture Interests or Security Interests in
question.

 

5.7           Joint Venture Interests
Information.  The Borrower will
furnish to the Agent, from time to time upon request, statements and schedules
further identifying and describing the Joint Venture Interests and such other
reports in connection with the Joint Venture Interests as the Agent may
reasonably request (including financial statements of the Joint Venture), all
in reasonable detail.  The Borrower
will, promptly upon request, provide to the Agent all information and evidence
it may reasonably request concerning the Joint Venture Interests to enable the
Agent to enforce the provisions of this Agreement.

 

5.8           Records of Joint Venture Interest.  The Borrower shall keep full and accurate
books and records relating to the Joint Venture Interests and shall stamp or
otherwise mark such books and records in such manner as the Agent may
reasonably request indicating that the Joint Venture Interests are subject to
the Security Interests.

 

5.9           No Change to Joint Venture
Agreements.  The Borrower will not
permit, suffer or otherwise consent to, any amendment, supplement or other
modification to any of the Joint Venture Agreements which is or can reasonably
be expected to be adverse to the interests of the Agent and the Holders,
without the prior consent in writing of the Agent (which will not be
unreasonably withheld).

 

5.10         Proceeds.  To the extent required by the Indenture or
upon demand of the Agent when any Event of Default (wherever used in this
document, as defined in the Indenture) has occurred and is continuing, the
Borrower, in accordance with the Indenture, but subject to the terms of the
Intercreditor Agreement, will remit to the Agent for application to the
obligations of the Borrower and the Guarantors under the Indenture, (a) all
income, cash flow, profits and distributions received by the Borrower in
connection with the Joint Venture Interests, and (b) any and all proceeds
received by the Borrower in connection with a sale of any Joint Venture
Interests.

 

6.             Agent Appointed Attorney-in-Fact.  The Borrower hereby irrevocably appoints
LaSalle or, if the Credit Agreement is no longer in effect, the Agent as the
Borrower’s attorney-in-fact, with full authority in the place and stead of the
Borrower and in the name of the Borrower, with or without the signature of the
Borrower where permitted by law, from time to time in LaSalle’s or, if the
Credit Agreement is no longer in effect, the Agent’s discretion to take any
action and to execute any instrument that LaSalle or, if the Credit Agreement
is no longer in

 

6

 

effect, the
Agent may deem necessary or advisable to accomplish the purposes of this
Agreement, including, without limitation:

 

(a)           to
sign and endorse any documents (including without limitation financing or
continuation statements, and amendments thereto) necessary or advisable to
create, perfect, protect and maintain the perfection and priority of the
Security Interests;

 

(b)           to
pay or discharge taxes or Liens, levied or placed upon or threatened against
the Joint Venture Interests, or any of them, the legality or validity thereof
and the amounts necessary to discharge the same to be determined by LaSalle or,
if the Credit Agreement is no longer in effect, the Agent in its reasonable
discretion, and such payments made by the Agent to become obligations of the
Borrower to LaSalle or, if the Credit Agreement is no longer in effect, the
Agent, due and payable immediately without demand and secured by the Security Interests;

 

(c)           after
the occurrence and during the continuance of an Event of Default, to ask,
demand, collect, sue for, recover, compound, receive and give acquittance and
receipts for moneys due and to become due under or in respect of the Joint
Venture Interests, or any of them;

 

(d)           after
the occurrence and during the continuance of an Event of Default, to file any
claims or take any action or institute any proceedings that LaSalle or, if the
Credit Agreement is no longer in effect, the Agent may deem necessary or
desirable for the collection of the Joint Venture Interests or otherwise to
enforce the rights of LaSalle or, if the Credit Agreement is no longer in
effect, the Agent with respect to the Joint Venture Interests; and

 

(e)           after
the occurrence and during the continuance of an Event of Default, generally to
sell, transfer, pledge, exercise any voting rights of the Borrower under the
Joint Venture Agreements, make any agreement with respect to or otherwise deal
with the Joint Venture Interests as fully and completely as though the Agent
were the absolute owner thereof for all purposes.

 

The
Borrower hereby ratifies and approves all acts of LaSalle or, if the Credit
Agreement is no longer in effect, LaSalle or, if the Credit Agreement is no
longer in effect, the Agent made or taken pursuant to this §6.  Neither LaSalle or, if the Credit Agreement
is no longer in effect, the Agent nor any Person designated by the Agent shall
be liable for any acts or omissions or for any error of judgment or mistake of
fact or law, unless it is determined by a judgment of a court of competent
jurisdiction, final and not subject to review on appeal, that such action,
omission, error or mistake constituted gross negligence or willful misconduct.  This power, being coupled with an interest,
is irrevocable so long as this Agreement shall remain in force.

 

7.             Transfers and Other Liens.  The Borrower shall not:

 

(a)           Other
than a sale to any of the Subsidiaries pursuant to the exercise by any of the
Subsidiaries of its call under the Joint Venture Agreements, sell, assign (by

 

7

 

operation
of law or otherwise) or otherwise dispose of, or grant any option with respect
to, any of the Joint Venture Interests or any portion thereof.

 

(b)           Create,
incur or suffer to exist any Lien upon or with respect to any of the Joint
Venture Interests to secure indebtedness of any Person except for the second
priority security interest created by this Agreement and except for the Liens
in favor of LaSalle securing the lenders under the Credit Agreement.

 

 

(c)           Sign
or authorize the signing on its behalf or filing of any financing statement
naming it as debtor covering all or any portion or any of the Joint Venture
Interests, except financing statements naming the Agent as secured party and
except for financing statements naming LaSalle as secured party in respect of
the first priority Lien in favor of the lenders party to the Credit Agreement

 

8.             Remedies.

 

(a)           If any Event of Default shall have
occurred and be continuing, the Agent may, in accordance with the terms of the
Intercreditor Agreement, exercise in respect of any or all of the Joint Venture
Interests, in addition to all other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party on
default under the UCC and also may without notice except as specified below,
sell or otherwise dispose of the Joint Venture Interests or any part thereof in
one or more units at public or private sale, at any of the Agent’s offices or
elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as the Agent may deem
commercially reasonable.  The Borrower
agrees that, to the extent notice of sale shall be required by law, at least
ten (10) days’ notice to the Borrower of the time and place of any public sale
or the time after which any private sale is to be made shall constitute
reasonable notification.  At any sale of
any or all of the Joint Venture Interests, if permitted by law, the Agent may
bid (which bid may be, in whole or in part, in the form of cancellation of
indebtedness) for the purchase of the Joint Venture Interests or any portion
thereof for the account of the Agent. 
The Agent shall not be obligated to make any sale of the Joint Venture
Interests regardless of notice of sale having been given.  The Agent may adjourn any public or private
sale from time to time by announcement at the time and place fixed therefor,
and such sale may, without further notice, be made at the time and place to
which it was so adjourned.  To the
extent permitted by law, the Borrower hereby specifically waives all rights of
redemption, stay or appraisal which it has or may have under any law now existing
or hereafter enacted.

 

(b)           Upon the occurrence and during the
continuance of an Event of Default, LaSalle or, if the Credit Agreement is no
longer in effect, the Agent or its agents or attorneys shall have the right to
take possession of the Borrower’s original books and records relating to the
Joint Venture Interests, to obtain access to the Borrower’s data processing
equipment, computer hardware and software relating to the Joint Venture
Interests and to use all of the foregoing and the information contained therein
in any manner the Agent deems appropriate.

 

8

 

(c)           The Borrower acknowledges and agrees
that a breach of any of the covenants contained in §§5.1(a), 5.1(b), 7 and 8
hereof will cause irreparable injury to the Agent and that the Agent has no
adequate remedy at law in respect of such breaches and therefore agrees,
without limiting the right of the Agent to seek and obtain specific performance
of other obligations of the Borrower contained in this Agreement, that the
covenants of the Borrower contained in the sections referred to in this section
shall be specifically enforceable against the Borrower.

 

9.             Limitation on Duty of the Agent
with Respect to Joint Venture Interests. 
Beyond the safe custody thereof, the Agent shall have no duty with
respect to the Joint Venture Interests in its control (or in the control of any
agent) or with respect to any income or distributions thereon or the
preservation of rights against prior parties or any other rights pertaining
thereto.

 

10.           Application of Proceeds.  Any and all income, cash flow, profits and
distributions the Borrower receives in connection with its Joint Venture
Interests and the proceeds of any sale of, or other realization upon, all or
any part of the Joint Venture Interests shall be applied first in accordance
with the Intercreditor Agreement, and then in accordance with the Indenture.

 

11.           Expenses.  The Borrower shall pay all expenses of
protecting, appraising, handling and maintaining the Joint Venture Interests,
all costs, fees and expenses of perfecting and maintaining the Security
Interests, and any and all excise, property, sales and use taxes imposed by any
state, federal or local authority on any of the Joint Venture Interests or the Security
Interests.  If the Borrower fails
promptly to pay any portion of the above expenses when due or to perform any
other obligation of the Borrower under this Agreement, the Agent may, at its
option, but shall not be required to, pay or perform the same, and the Borrower
agrees to reimburse the Agent therefor on demand.  All sums so paid or incurred by the Agent for any of the
foregoing, any and all other sums for which the Borrower may become liable
hereunder and all costs and expenses (including reasonable attorneys’ fees,
legal expenses and court costs) incurred by the Agent in enforcing or
protecting the Security Interests or any of their rights or remedies under this
Agreement shall be payable on demand, shall bear interest until paid at the
highest rate provided in the Notes and shall be secured by the Joint Venture
Interests.

 

12.           Termination of Security Interests;
Release of Joint Venture Interests. 
Upon indefeasible payment in full of all obligations of the Borrower and
the Guarantors under the Indenture and the termination of the Indenture, the
Security Interests shall terminate and all rights to the Joint Venture
Interests shall revert to the Borrower. 
Upon such termination of the Security Interests or release of the Joint
Venture Interests, the Agent will, at the expense of the Borrower, execute and
deliver to the Borrower such documents as the Borrower shall reasonably request
to evidence the termination of the Security Interests or the release of the
Joint Venture Interests, as the case may be.

 

13.           Marshaling.  Neither the Agent nor any Holder shall be
required to marshal any present or future security for (including but not
limited to this Agreement and the Joint Venture Interests), or other assurances
of payment of, the indebtedness under the Notes or the Indenture or any of
them, or to resort to such security or other assurances of payment in any
particular order.  All of the Agent’s
rights hereunder and in respect of such security and other assurances of

 

9

 

payment shall
be cumulative and in addition to all other rights, however existing or
arising.  To the extent that it lawfully
may, the Borrower hereby agrees that it will not invoke any law relating to the
marshaling of collateral that might cause delay in or impede the enforcement of
the Agent’s rights under this Agreement or under the Indenture, and to the
extent that it lawfully may the Borrower hereby irrevocably waives the benefits
of all such laws.

 

14.           Borrower’s Obligations Not Affected.  The obligations of the Borrower hereunder
shall remain in full force and effect without regard to, and shall not be
impaired by (i) any exercise or nonexercise, or any waiver, by the Agent or any
Holder of any right, remedy, power or privilege under or in respect the Notes,
the Indenture or any security therefor (including this Agreement); (ii) any
amendment or supplement to or modification of the Indenture; (iii) any
amendment or supplement to or modification of any instrument (other than this Agreement)
securing the Notes, including, without limitation, the Indenture; or (iv) the
taking of additional security for, or any other assurances of payment of, the
Notes or the release or discharge or termination of any security or other
assurances of payment or performance for the Notes; whether or not the Borrower
shall have notice or knowledge of any of the foregoing.

 

15.           Further Assurances.  The Borrower will do all such acts, and will
furnish to the Agent all such financing statements, certificates, legal
opinions and other documents and will obtain all such governmental consents and
corporate approvals and will do or cause to be done all such other things as
the Agent may reasonably request from time to time in order to give full effect
to this Agreement and to secure the rights of the Agent and the Holders
hereunder, all without any cost or expense to the Agent or any Holder.  If the Agent so elects, a photocopy of this
Agreement may at any time and from time to time be filed by the Agent as a
financing statement in any recording office in any jurisdiction.

 

16.           Survival of Representations.  All representations and warranties of the
Borrower contained in this Agreement shall survive the execution and delivery
of this Agreement.

 

17.           Agent’s Exoneration.  Under no circumstances shall the Agent be
deemed to assume any responsibility for or obligation or duty with respect to
any part or all of the Joint Venture Interests of any nature or kind or any
matter or proceedings arising out of or relating thereto, other than (i) to
exercise reasonable care in the physical custody of any certificates or
documents evidencing any of the Joint Venture Interests and (ii) after an Event
of Default shall have occurred and be continuing to act in a commercially
reasonable manner.  The Agent shall not
be required to take any action of any kind to collect, preserve or protect its
or the Borrower’s rights in the Joint Venture Interests or against other
parties thereto.  The Agent’s prior
recourse to any part or all of the Joint Venture Interests shall not constitute
a condition of any demand, suit or proceeding for payment or collection of any
of the obligations under the Indenture.

 

18.           No Waiver, Etc.  Neither this Agreement nor any term hereof
may be changed, waived, discharged or terminated except by a written instrument
expressly referring to this Agreement and to the provisions so modified or
limited and executed by the Agent pursuant to the terms of the Indenture.  No act, failure or delay by the Agent shall
constitute a waiver of its rights and remedies hereunder or otherwise.  No single or partial waiver by the Agent of
any default or right or remedy that it may have shall operate as a waiver of
any other default, right or

 

10

 

remedy or of
the same default, right or remedy on a future occasion.  The Borrower hereby waives presentment,
notice of dishonor and protest of all instruments, included in or evidencing
any of the Notes or the Joint Venture Interests, and any and all other notices
and demands whatsoever (except as expressly provided for in the Indenture).

 

19.           Notice, Etc.  All notices, requests and other
communications hereunder shall be made in the manner set forth in Section 14.02
of the Indenture.

 

20.           Successors and Assigns.  This Agreement and all obligations of the
Borrower shall be binding upon the successors and assigns of the Borrower, and
shall, together with the rights and remedies of the Agent hereunder, inure to
the benefit of the Agent, its successors in title and assigns.

 

21.           Governing Law.  THIS AGREEMENT AND THE OBLIGATIONS OF THE
BORROWER HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO ITS CONFLICTS OR CHOICE OF
LAWS RULES OR PRINCIPLES).

 

22.           Entire Agreement.  This Agreement, together with the Indenture
and the other security agreement executed and delivered pursuant thereto,
embodies the entire agreement and understanding between the Borrower and the
Holders relating to the Joint Venture Interests and supersedes all prior
written and oral agreements and understandings between the Borrowers and the
Holders relating to the Joint Venture Interests.

 

23.           Headings.  The descriptive section headings have been
inserted for convenience of reference only and do not define or limit the
provisions hereof.

 

24.           Counterparts.  This Agreement may be executed in any number
of counter-parts, all of which taken together shall constitute one and the same
instrument and any of the parties hereto may execute this Agreement by signing
any such counterpart.

 

25.           Severability, etc.  If any term of this Agreement shall be held
to be invalid, illegal or unenforceable, the validity of all other terms hereof
shall be in no way affected thereby, and this Agreement shall be construed and
be enforceable as if such invalid, illegal or unenforceable term had not been
included.  The Borrower acknowledges
receipt of a copy of this Agreement.

 

26.           Collateral Purposes Only.  This Agreement is executed only as security
for the Notes and the other obligations of the Borrower and the Guarantors
under the Indenture.  Anything to the
contrary notwithstanding, the Agent shall not be deemed to have assumed any of
the responsibilities or obligations of the Borrower under any of the Borrower
‘s Joint Venture Agreements.  The
Borrower shall retain any distributions made under such  Joint Venture Agreements to the Borrower
when no Event of Default has occurred and is continuing.

 

[Remainder of page intentionally left blank; signature
page follows]

 

11

 

IN WITNESS WHEREOF, this Joint Venture Interest Security Agreement
has been executed as of the day and year first above written.

 

	
   

  	
   

  	
  APCOA/STANDARD
  PARKING, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ G. Marc
  Baumann

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  G. Marc
  Baumann

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Executive
  Vice President, Chief Financial Officer,

  	
   

  
	
   

  	
   

  	
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WILMINGTON
  TRUST COMPANY, as Agent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James D.
  Nesci

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  James D.
  Nesci

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Authorized
  Signer

  	
   

  

 

12

 

Annex A

 

to Joint
Venture Interest Security Agreement

 

	
  I.              ISSUER

  	
   

  	
  Record Owner

  	
   

  	
  Percentage of Joint

  Venture Interests

  	
   

  
	
  A-M Frontier Field Parking Company

  	
   

  	
  Borrower

  	
   

  	
  50

  	
  %

  
	
  A-M Monroe Parking

  	
   

  	
  Borrower

  	
   

  	
  50

  	
  %

  
	
  A-M New York Parking Company

  	
   

  	
  Borrower

  	
   

  	
  50

  	
  %

  
	
  APCOA-ETNA Parking

  	
   

  	
  Borrower

  	
   

  	
  90

  	
  %

  
	
  APCOA/JA-Ash Parking Joint Venture

  	
   

  	
  Borrower

  	
   

  	
  60

  	
  %

  
	
  APCOA-M&M

  	
   

  	
  Borrower

  	
   

  	
  80

  	
  %

  
	
  APCOA-M&M Parking II

  	
   

  	
  Borrower

  	
   

  	
  80

  	
  %

  
	
  APCOA-Miami Parking

  	
   

  	
  Borrower

  	
   

  	
  49

  	
  %

  
	
  APCOA/Mitchell/ETNA Transportation Services Joint
  Venture

  	
   

  	
  Borrower

  	
   

  	
  60

  	
  %

  
	
  APCOA-Progressive Parking

  	
   

  	
  Borrower

  	
   

  	
  75

  	
  %

  
	
  APCOA/Progressive Parking II

  	
   

  	
  Borrower

  	
   

  	
  75

  	
  %

  
	
  APCOA-RSN Shuttle Operation

  	
   

  	
  Borrower

  	
   

  	
  82

  	
  %

  
	
  APCOA/Standard Parking – VIP Joint Venture

  	
   

  	
  Borrower

  	
   

  	
  65 

  	
  %

  

 

13

 

Exhibit
A

 

Locations

 

	
  900 North Michigan Avenue

  
	
   

  
	
  Suite 1600

  
	
   

  
	
  Chicago,
  Illinois 60611

  

 

14

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