Document:

Exhibit 10.43

 

PRIVILEGED AND

CONFIDENTIAL

 

SHARED
SERVICES AGREEMENT

 

This Shared Services Agreement is made as of January 1,
2008 (the “Effective Date”) between
Herbst Gaming, Inc. (“HG”), a Nevada corporation and collectively,
Berry-Hinckley Industries, a Nevada corporation and Terrible Herbst, Inc.
(collectively, “TH”), a Nevada corporation. HG and TH are sometimes
individually referred to as a “Part” and
collectively as the “Parties.”

 

Preliminary
Statements

 

WHEREAS, subject to the terms and conditions set
forth herein, TH desires to reimburse HG for certain employees of HG which are
listed on the attached Exhibit A (the “Employees”) and perform services for TH as requested from
time to time by TH (the “Services”); and

 

WHEREAS, subject to the terms and conditions set
forth herein, HG desires that such Employees perform such Services for TH and
charge TH for the costs associated with such Services.

 

Agreement

 

NOW THEREFORE, in consideration of the terms and
conditions set forth below and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties agree as
follows:

 

1.               Specifications
of Work.

 

1.1 General Services. The Parties agree that
the general scope and results of the Services to be performed by the Employees
shall be determined by TH and consist primarily of the day-to-day functions of
TH.

 

1.2 Substitution
of Individuals. In the event that an Employee resigns as an employee
of HG or has been terminated by HG as an employee (“Termination Event”), HG shall provide notice of such
Termination Event to TH. If an Employee is subject to a Termination Event: (i) HG
shall use its reasonable efforts to replace or substitute another individual as
an Employee but shall not have any liability to TH for its failure to do so; (ii) HG
shall provide written notice to TH of such replacement or substitute Employee;
and (iii) the Parties shall consent in writing to the amendment of the
attached Exhibit A, including the salary, the benefit cost and the
Allocation Percentage attributable to such replacement or substituted Employee,
which shall not be unreasonably withheld. If an Employee is subject to a
Termination Event and if HG has not replaced or substituted such Employee, all
references to such Employee and costs allocations to such Employee shall be
deemed automatically deleted from the attached Exhibit A.

 

2.             Term. Subject to the terms and conditions set forth
herein, this Agreement shall commence on the Effective Date and continue in
full force and effect for one year (the “Term”),

 

1

 

unless terminated as
provided herein, and the Term shall, unless terminated by mutual written
agreement by the Parties, be automatically extended for an additional one year
period.

 

3.             Fees.

 

3.1            Consideration.

 

(a)              In consideration of
furnishing the Services, TH shall pay to HG a fee (the
“Fee”) in amount equal to the
Allocation Percentage multiplied by the Employees’ salaries plus the costs of the benefits,
including, without limitation, the costs of group health insurance and
disability insurance (the “Benefits”), as
set forth on the attached Exhibit A. The Allocation Percentage is
based on the percentage of employees employed by TH and HG, respectively, as
set forth in Exhibit A.

 

(b)             By
January 15 of each successive year, the parties shall submit the
following: (i) a list of Employees currently employed; (ii) the total
amount of the Benefits for said Employees for the preceding year; (iii) the total number of
employees employed by each entity, respectively; and (iv) the percentage
of employees employed by each entity respectively. The Fee for the following
year shall then be calculated based on (i) – (iv) and Exhibit A
shall be amended accordingly.

 

3.2        Payment. The Fees shall be paid in arrears
monthly no later than the tenth day of each month for the immediately preceding
calendar month, and if not paid by the end of the immediately preceding
calendar month shall be deemed a default hereunder. All Fees not paid on or prior
to such due date shall be subject to a monthly late charge of eight percent
(8%) of the unpaid balance.

 

4.               Ownership Rights. All
right, title and interest in and to all products, services and materials
provided to TH by the Employees under this Agreement shall be and remain the property
of TH exclusively. HG shall have no right, title or interest in or to any
products, services or materials that are produced in connection with the
Services performed by the Employees pursuant to the terms of this Agreement.
With specific regard to Sean Higgins, that he is a shared Employee shall not
impair, limit or waive the attorney-client relationship existing between him
and TH, and the privileges and confidentiality related thereto. Notwithstanding
the above,
HG shall retain all rights, title and interest to any and all intellectual
property that it utilizes or may utilize as part of the Services.

 

5.             Termination.

 

5.1        Default. If either Party (the “Defaulting Party”) materially defaults in
the performance of its obligations under this Agreement, and if such default is
not cured within 15 days after written notice is given to the Defaulting Party specifying
the default, then the other Party may, by giving written notice to the
Defaulting Party, terminate this Agreement as of the date specified in the
notice of termination.

 

5.2        Notice by TH. TH
shall have the right to terminate this Agreement by giving written notice to HG
as of the date specified in such notice of termination; provided that such
notice is given at least 30 days prior to the effective date of termination.

 

2

 

5.3 Payments. Upon
termination of this Agreement pursuant to Section 5.1 or 5.2,
TH’s sole remaining obligations, except as provided for in Section 11.8,
shall be to pay the Fees and late charges relating to the Services prior to the
date of such termination.

 

5.4
Assistance. Upon any termination
of this Agreement, HG will assist and comply with TH’s reasonable directions to
cause the orderly transition and migration of the Services to TH or a third
party contractor to whom TH chooses to transfer the Services.

 

6.              Liability.

 

6.1
Indemnification. Except as
provided for herein, HG shall indemnify, defend and hold harmless TH and its
parent, subsidiaries, affiliated companies, and their officers, directors and
employees (individually and collectively referred to as an “TH Indemnified Party”) from and against
all demands, liens, claims, actions, causes of action, obligations, costs,
expenses, attorneys’ fees, damages, controversies, judgments, costs of
litigation and liabilities (“TH Claims”) caused
by, incurred or otherwise arising from or relating to the Employees, including,
without limitation, (i) any pension or other compensation or employee
benefits-related liabilities, and (ii) as a result of employee legal
matters, such as employee related litigation. TH shall indemnify, defend and
hold harmless HG and its subsidiaries, affiliated companies, and their
officers, directors and employees (individually and collectively referred to as
an “HG Indemnified Party”, and
collectively with the TH Indemnified Party, an “Indemnified
Party”) from and against all demands, liens, claims, actions, causes
of action, obligations, costs, expenses, attorneys’ fees, damages, controversies,
judgments, costs of litigation and liabilities (“HG
Claims”, and collectively with the TH Claims, “Claims”) caused by, incurred or otherwise
arising from or relating to the actions of the Employees while performing
Services on behalf of TH.

 

6.2
Notice and Procedures. An
Indemnified Party seeking indemnification pursuant to Section 6.1
will give prompt written notice in reasonable detail (the “Notice of Claim”) to HG or TH, as the
case may be, stating the basis of any Claim for which indemnification is being
sought hereunder within 30 days after the Indemnified Party’s knowledge
thereof; provided, however, that
an Indemnified Party’s failure to provide any such notice to either TH or HG,
as the case may be, will not relieve HG or TH, as the case may be, of or from
any of its obligations hereunder, except to the extent that the HG or TH
suffers prejudice as a result of such failure. If the facts giving rise to such
indemnification involve an actual or threatened claim by or against a third
party:

 

(a)           the Parties will cooperate in the prosecution or defense
of such claim and will furnish such records, information and testimony and
attend to such proceedings as may be reasonably requested in connection
therewith; and

 

(b)           an Indemnified Party will make no settlement of any Claim
that would give rise to liability on the part of HG or TH without HG’s or TH’s
prior written consent which will not be unreasonably withheld or delayed, and
HG and TH, as the case may be, will not be liable for the amount of any settlement
affected without its prior written consent.

 

3

 

7 .             Acknowledgement. During the Term, TH shall pay the Fees and
late charges to HG without any deductions made whatsoever for state or federal
taxes of any kind.

 

8.              Compliance. HG agrees to: (i) pay all applicable federal and/or state taxes
which arise or relate to the employment of any Employee under this Agreement; (ii) pay
all premiums and contributions with respect to the Benefits as they apply to
such Employees; and (iii) comply with employer obligations with respect to
HG’s employees, including the Employees, under applicable federal, state and
local laws and regulations.

 

9.             Independent Contractor Status. The Parties agree and acknowledge that HG (and any person employed by
HG) is performing the Services hereunder as an independent contractor. Nothing
contained in this Agreement shall be deemed to constitute either Party as an
agent, representative, partner, joint venturer or employee of the other Party
for any purpose.

 

10.          Separate Expenses. All items not paid by the Parties pursuant to this Agreement shall be
paid for separately by each of the Parties, including, without limitation,
separate printing, postage, stationery and services rendered by third parties.

 

11.          Miscellaneous.

 

11.1 Notices. All notices, requests, demands
and other communications required or permitted to be given under this Agreement
shall be in writing and shall be deemed given (i) two business days after
being sent by a nationally recognized overnight delivery service or (ii) upon
receipt of electronic or other confirmation of transmission if sent via
facsimile, in each case at the addresses or facsimile numbers (or at such other
address or facsimile number for a party as shall be specified by like notice)
set forth below:

 

	
  If
  to HG:

  	
  Herbst
  Gaming, Inc. 3440 

  
	
   

  	
  W. Russell Road
  Las Vegas,

  
	
   

  	
  Nevada 89118
  Attention:

  
	
   

  	
  Edward J. Herbst

  
	
   

  	
  Fax: (702)
  889-7691

  
	
   

  	
   

  
	
  If to TH:

  	
  Terrible Herbst, Inc.

  
	
   

  	
  5195 Las Vegas
  Boulevard South 

  Las Vegas, Nevada 89119

  
	
   

  	
  Attention: Jerry Herbst

  
	
   

  	
  Fax: 702) 798-8079

  

 

11.2 Entire Agreement. The provisions of this
Agreement (including the attached exhibit) shall be construed to be one
instrument that reflects the Parties’ entire agreement as to matters expressed
herein. There are no representations, agreements, arrangements or
understandings (whether oral or written) between or among the Parties relating
to the subject matter of this Agreement that are not fully expressed herein.

 

11.3 Amendment. This
Agreement may not be amended except by an instrument in writing signed on
behalf of each of the Parties.

 

4

 

11.4
Assignment/Change of Control. Neither
Party may, without the prior written consent of the other Party, assign or
transfer this Agreement, in whole or in part, either voluntarily or by
operation of law, and any such assignment or transfer shall be null and void.

 

11.5
Governing Law; Jurisdiction. This
Agreement has been executed and delivered in, and shall be governed by and
construed in accordance with the internal laws (as opposed to the conflicts of
law provisions) of, the State of Nevada. Any litigation arising out of or
related to this Agreement shall be instituted and prosecuted only in the
appropriate state or federal court situated in Clark County, Nevada. Each Party
hereto hereby submits to the exclusive jurisdiction and venue of such courts
for purposes of any such action and the enforcement of any judgment or order
arising therefrom. Each Party hereto hereby waives any right to a change of
venue and any and all objections to the jurisdiction of the state and federal
courts located in Clark County, Nevada.

 

11.6
Waivers. No delay or failure by
any Party to exercise or enforce at any time any right or provision of this
Agreement shall be considered a waiver thereof or of such party’s right
thereafter to exercise or enforce each and every right and provision of this
Agreement. To be valid, a waiver shall be in writing, but need not be supported
by consideration. No single waiver shall constitute a continuing or subsequent
waiver.

 

11.7
Attorneys’ Fees. In the event of
any action or legal proceeding between or among the Parties to enforce,
protect, interpret or establish any of their rights or obligations under this
Agreement or any action or legal proceeding for damages for an alleged breach
of any provision of this Agreement, the prevailing party shall be entitled to
recover from the other party reasonable expenses, attorneys’ fees and costs.

 

11.8
Survival of Certain Provisions. Notwithstanding
anything contained in this Agreement, the provisions of Sections 4, 5.3,
6 and 11 shall survive the expiration of the Term or the termination of
this Agreement.

 

11.9
Interpretation. The captions of
the sections of this Agreement are for convenience and reference only, and the
words contained therein shall in no way be held to explain, modify, amplify or
aid in the interpretation, construction or meaning of this Agreement. Any
pronouns or references used herein shall be deemed to include the masculine,
feminine or neuter genders as appropriate. Any expression in the singular or
the plural shall, if appropriate in the context, include both the singular and
the plural.

 

11.10
Partial Invalidity. Each
provision hereof shall be interpreted in such manner as to be effective and
valid under applicable law, but in case any provisions herein are, for any
reason, held to be invalid, illegal or unenforceable in any respect, such
provisions shall be ineffective to the extent, but only to the extent, of such
invalidity, illegality or unenforceability without invalidating the remainder
of such provisions or any other provisions hereof, unless such a construction
would be unreasonable.

 

11.11 Execution
in Counterparts; Facsimile Signatures. This Agreement may be
executed in counterparts, each of which shall be considered an original
instrument, but all of

 

5

 

which together shall be
considered one and the same agreement. Facsimile copies of the signature page hereof
shall be deemed originals and shall be binding for all purposes.

 

IN WITNESS WHEREOF, the Parties have executed this
Agreement to be effective as of the Effective Date.

 

	
   

  	
  Herbst Gaming, Inc., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward Herbst

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Terrible Herbst, Inc., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jerry E. Herbst

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Berry-Hinckley Industries, a Nevada corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jerry E. Herbst

  
	
   

  	
  Its:

  	
  President

  
				

 

6Exhibit 10.44

 

ADVERTISING PURCHASING AGREEMENT

 

This Advertising Purchase Agreement is made and
entered into between Herbst Gaming Inc., a Nevada corporation (hereinafter “HGI”) and TERRIBLE HERBST INC., a Nevada
corporation, (hereinafter “TH’’). Now for valuable consideration, receipt of
which is acknowledged, the parties agree as follows:

 

1) HGI Obligations.
By this agreement the Parties have agreed to allow HGI to purchase advertising
time on TH’s network of gas pump and interior television screens located at TH
operated gas stations identified in Schedule A. HGI will be allocated 50% of
the available time not sold to 3rd party advertisers on each 4-5
minute loop. HGI will be responsible for the content of its advertisements. HGI will pay TH a flat rate of $30,000 per month
for the time. All payments will be made monthly. This monthly payment amount will
be offset by any revenues received from 3rd party advertisers.

 

2) Herbst Gaming
Exclusivity. TH hereby agrees that HGI will be the exclusive advertiser of
casinos or other gaming related products on the TH network, unless HGI agrees,
in writing, to allow other such advertising.

 

3) Term. The term
of the agreement shall be for 12 months commencing on January 1, 2008.

 

4) Video and Audio
Display. The parties agree that there will be a four to five minute
continuously running television loop at each location. TH shall be entitled to
use the remaining time of the loop for its own purposes of offer it for sale to
other 3rd party advertisers.

 

a.                    Media.
TH will provide and maintain a television loop (approximately 4-5 minutes in
length) on LCD screens that operate continuously on the dispensers and inside
of the convenience store that incorporates TH’s specified content. The loop
will provide entertainment and advertising content. HGI will provide TH with
its video ads all of which will be incorporated by TH into the video loop. TH
will arrange for and manage all video and video-related operations. Neither
party may modify the content of the video prepared by the other. HGI shall
provide to TH its ad content by the 10th
of the month preceding the month in which the ads will run.

 

b.                   Sale
of Advertising by HGI. HGI is entitled to sell, give, or otherwise use its time
in the television loop for advertising. HGI will use
commercially reasonable efforts to avoid advertising that is likely to be
offensive to motorists. TH retains final approval on all advertisements
submitted by HGI, which approval shall not unreasonably be withheld.

 

c.                    Locations. The initial locations
for the entire advertising network are set forth in Schedule A.

 

d.                   Additional Advertising
Time.
TH and HGI may amend this agreement to add more advertising time to be sold to
HGI, if desired by TH. TH and HGI
can negotiate compensation at that time.

 

e.                    Chevron Guidelines. As it applies to
Chevron branded stations, HGI will adhere to Chevron’s published Video at the
Pump content guidelines.

 

5) Maintenance.
Once installed TH is required to maintain at its expense the equipment in good
condition; to make sure the equipment remains compatible so as to not interfere
with its gasoline dispensing equipment; and TH is exclusively responsible for
any service disruption.

 

6) Renewal. At
the end of the 12-month term, all parties may negotiate an extension.

 

7) Early
Termination.

 

a.                    TH may, upon 15 days
written notice terminate this Agreement as to any location as to which HGI is
in material breach of a material contract
term that is not cured within 30 days after notice of the breach is given to
HGI by TH and the Agreement shall terminate as to that location
effective that date.

 

b.                   TH may terminate this
Agreement as to any location where it ceases operating a service
station/convenience store. However, should it terminate in this manner for more
than 15 location, the parties agree to negotiate a reduction in the monthly fee
(for purposes of this section, the number of stores will be measured from the
locations listed on Schedule A.

 

8) Accounting &
Audit Rights. TH will provide HGI with a monthly accounting of all revenue
received from 3rd party advertisers and make adjustment to the
monthly rental payment based on such accounting. HGI has the right, at its own
expense, to audit the books and records of TH as they apply to the advertising
set forth in this Agreement. Should those books and records have a discrepancy
of more than 5%, TH shall repay that amount and reimburse HGI for the audit.

 

9) Miscellaneous
Terms.

 

Each person
signing this Agreement represents that he has authority to bind the party for
which he signs. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original. This writing contains the entire
agreement of the parties. In the event of any conflict between the specific
terms of this Agreement and the terms of any such other prior agreement, the
terms of this Agreement govern. No supplement, modification or waiver of this
Agreement shall be binding unless executed in writing by the party to be bound
thereby. No representations other than those expressly set forth in this
writteri agreement were made or relied upon by either party. No agent,
employee, or other representative of either party is empowered to alter any of
the terms of this Agreement. This Agreement is binding on the parties and each
of their successors and permitted assigns. Neither Party may assign this
Agreement without the prior written consent of the other, said consent not to
be unreasonably withheld.

 

The validity,
interpretation, and performance of this Agreement shall be controlled by and
construed under Nevada law. Venue for any
legal action or mediation proceeding relating to or arising out of this
Agreement shall be in Clark County, Nevada. Nothing in this Agreement
shall be construed to constitute or appoint either party as the agent or representative
of the other party for any purpose whatsoever, or to grant to either party any
rights or authority to assume or create any obligation or responsibility,
express or

 

1

 

implied, for or on behalf
of or in the name of the other, or to bind the other in any way or manner
whatsoever. This Agreement does not provide for a joint venture, partnership,
agency or employment relationship between the parties, or any other
relationship.

 

Any failure of either
party to enforce or require the strict performance of any contract provision
shall not constitute a waiver of such provision or of any breach of such
provision, nor in any way affect the right of such party to strictly enforce
same. Any notice to be given under this Agreement shall be in writing and
addressed to the party at the address of its principal place of business (as
stated below or at such other address as either party may hereafter designate
in writing. Any such notice shall be deemed to have been duly given upon
personal delivery or three (3) business days after being enclosed in a
properly sealed and addressed envelope, if sent by registered or certified
mail, and if deposited (postage and registry or certification fee prepaid) in a
post office or branch post office regularly maintained by the United States
Government.

 

10)
Dispute Resolution. The parties agree that any arid all controversy or
dispute arising out of the relationship, including claims for breach of contract, violation of public policy,
breach of implied promises, intentional infliction of emotional distress and
any other alleged claims which are not settled by mutual agreement and
good faith negotiation, shall be submitted to final and binding arbitration to
an arbitrator with no less than 10 years
experience in arbitrating contractual disputes in Clark County, Nevada. Any
such claim, dispute or controversy
shall be resolved pursuant to the following three step process: 1) negotiation
of the dispute in a face to face meeting by principals only; 2) non-binding mediation, and if these steps fail;
3) binding arbitration before a neutral mutually selected arbitrator.
Judgment on the award may be entered by any court having jurisdiction thereof
in Las Vegas, Nevada. The parties agree that the prevailing party herein shall
be entitled to recover its costs, disbursements and reasonable attorney’s fees
from the non-prevailing party following the
final award. Mediation shall be confidential. In the event that the parties are
unable to resolve the dispute by way of mediation, the matter will be
submitted to binding arbitration. The parties shall mutually agree on a
mediator or arbitrator as appropriate within 10 days of the first party
demanding mediation or arbitration. If the parties cannot agree on a mediator/arbitrator, a presiding judge in the Clark
County District Court in Clark County, Nevada shall have jurisdiction to
appoint same. Once appointed, if the
mediator determines that either of the parties failed to make a good faith
attempt to resolve the dispute, that mediator will have the authority to
either sanction the party for failing to comply with this provision or that
parties’ failure to participate in the
mediation in good faith will be deemed a factor to deny that party attorney fees
in the event that the matter proceeds
to arbitration. In consideration of each party’s agreement to submit to
arbitration any disputes that arise out of the engagement relationship between
them, each party agrees that arbitration shall constitute his/her/its exclusive
legal remedy and each party expressly waives
the right to pursue legal redress of any kind in any other forum and expressly
waives the right to any jury trial. Notwithstanding the foregoing,
either party shall have the limited right to seek equitable relief in the form
of a temporary restraining order or preliminary injunction in a court of competent jurisdiction to protect that party
from actual or threatened irreparable injury resulting from an alleged breach of this agreement pending a final decision
in arbitration. This agreement shall be governed by and constructed in
accordance with the laws of the State of Nevada without regard to
conflict of law principles. Venue is hereby stipulated to Clark County, Nevada.
Both parties waive their rights to any other jurisdiction and venues.

 

11)
Non Disclosure. TH and HGI will not discuss this transaction
with any third party and will not disclose its terms to any third party. TH will not (i) solicit, initiate, encourage,
enter into or conduct any discussions, or enter into any agreement or
understanding with any other person or entity regarding the matters
covered in this agreement.

 

12)
Mutual Representations of Authority to act. Each party represents that they are a duly formed
corporation duly organized, validly existing and in good standing under
the laws of their respective states of incorporation. Each has the corporate
power and authority to carry on its business as now being conducted and is duly
qualified and in good standing, authorized to do business in every jurisdiction
within which the parties intend to conduct business. Each party will secure as
needed all corporate approvals by its Board of Directors to consummate the
transaction. Each party has all licenses and permits (federal, state and local)
required by governmental authority to own, operate and to carry on its business
as now being conducted.

 

 

IN WITNESS WHEREOF, the parties have executed this
Advertising Agreement

 

Effective the 1st day of March 2008.

 

 

	
   

  	
  TERRIBLE HERBST, INC.

  	
   

  	
  HERBST
  GAMING, INC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Jerry E. Herbst

  	
   

  	
  /s/
  Timothy P. Herbst

  
	
   

  	
  By:   Jerry E. Herbst

  	
   

  	
  By:
    Timothy P. Herbst

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]