Document:

Exhibit 10.40

 

EXECUTION VERSION

 

WAIVER AND AMENDMENT TO THIRD AMENDED AND RESTATED OPERATING AGREEMENT OF CANNERY CASINO RESORTS, LLC

 

This WAIVER AND AMENDMENT TO THIRD AMENDED AND RESTATED OPERATING AGREEMENT OF CANNERY CASINO RESORTS, LLC (this “Agreement”) is made as of October 2, 2012 by and among Millennium Gaming, Inc., a Nevada corporation (“Millennium Gaming”), OCM AcquisitionCo, LLC, a Nevada limited liability company (“AcquisitionCo”), Crown CCR Group Investments One, LLC, a Delaware limited liability company (“Crown One”), and Crown CCR Group Investments Two, LLC, a Delaware limited liability company (“Crown Two” and, together with Millennium Gaming, AcquisitionCo and Crown One, the “Current Members”) and amends the Third Amended and Restated Operating Agreement of Cannery Casino Resorts, LLC, dated as of March 3, 2010, by and between Millennium Gaming, AcquisitionCo, Crown One and Crown Two (the “Operating Agreement”).  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Operating Agreement.

 

RECITALS

 

A.                                    As of the date hereof, the Current Members are the only Members of Cannery Casino Resorts, LLC (the “Company”).

 

B.                                    Concurrently herewith, the Company will (i) enter into a new First Lien Credit Agreement with Deutsche Bank Trust Company Americas (“DBTCA”), as administrative agent and collateral agent, swing line lender and issuer of letters of credit, the Company and Washington Trotting Association, Inc. (“WTA”), as borrowers and certain lenders party thereto (the “New First Lien Credit Agreement”), and a new Second Lien Credit Agreement with DBTCA as administrative agent and collateral agent, the Company and WTA as borrowers and certain lenders from time to time party thereto (the “New Second Lien Credit Agreement” and together with the New First Lien Credit Agreement, the “New Credit Agreements”), (ii) using borrowings under the New Credit Agreements, (A) repay all outstanding borrowings under its existing First Lien Credit Agreement, dated as of May 18, 2007, by and among the Company, Bank of America, N.A. as Administrative Agent, Collateral Agent and L/C Issuer, and the lenders from time to time party thereto and its existing Second Lien Credit Agreement, dated as of May 18, 2007, by and among the Company, Bank of America, N.A. as Administrative Agent and Collateral Agent, and the lenders from time to time party thereto, (B) repay in full all advances made under its existing furniture, fixtures and equipment credit facility, and (C) redeem 39,384 Series C Preferred Units held by AcquisitionCo, redeem 6,391 Series C Preferred Units held by Crown One and redeem 6,390 Series C Preferred Units held by Crown Two (collectively, the “Series C Redemption”), and (iii) accept 10,000 Series C Preferred Units contributed to the Company by Millennium Gaming, accept 7,241 Series C Preferred Units contributed to the Company by AcquisitionCo, accept 2,797 Series C Preferred Units contributed to the Company by Crown One and accept 2,797 Series C Preferred Units contributed to the Company by Crown Two, in each case, as a capital contribution by the respective Current Members to the Company (collectively, the “Series C Capital Contribution”).  The transactions described in clauses (i), (ii) and (ii) above are collectively referred to herein as the “Refinancing Transactions.”

 

C.                                    Upon the completion of the Series C Redemption and the Series C Capital Contribution, no Series C Preferred Units will remain outstanding.

 

D.                                    Section 2.3(b)(i) of the Operating Agreement requires (i) that any optional redemption of Series C Preferred Units be made on a pro rata basis (the “Pro Rata Requirement”) and (ii) that written notice of any such redemption shall be provided to each holder of Series C Preferred Units (the “Notice Requirement”).

 

 

E.                                     The Series C Redemption will not be made on a pro rata basis.

 

F.                                      The Current Members would not materially benefit from the delivery of a notice pursuant to the Notice Requirement.

 

G.                                    In order to facilitate the Refinancing Transactions, the Current Members have agreed to waive the Pro Rata Requirement and the Notice Requirement with respect to the Series C Redemption and to make other amendments to the Operating Agreement solely upon the terms and conditions provided for in this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows:

 

1.                                      Waiver.  The Current Members hereby waive the Pro Rata Requirement and the Notice Requirement with respect to the Series C Redemption in connection with the Refinancing Transactions.  Nothing contained in this Agreement shall be deemed to constitute a waiver of any other rights or remedies the Current Members may have under the Operating Agreement or under applicable law.

2.                                      Amendments to the Operating Agreement.  The Current Members agree to amend the Operating Agreement by:

 

(a)                                 inserting the following as a new Section 2.7:

 

2.7.                            Redemption of Series C Preferred Units.  On October 2, 2012, Series C Preferred Units held by AcquisitionCo, Crown One and Crown Two shall be redeemed by the Company as set forth in the table below:

 

	
Member
    	
 
    	
Series C Preferred Units
   to be Redeemed
    	
 
    	
Redemption Price per
   Series C Preferred Unit
    	
 
    	
Aggregate Redemption
   Price of Series C
   Preferred Units
   Redeemed
    	
 
    
	
AcquisitionCo
    	
 
    	
39,384
    	
 
    	
$
    	
1,666.66
    	
 
    	
$
    	
65,638,995.64
    	
 
    
	
Crown One
    	
 
    	
6,391
    	
 
    	
$
    	
1,666.66
    	
 
    	
$
    	
10,650,910.45
    	
 
    
	
Crown Two
    	
 
    	
6,390
    	
 
    	
$
    	
1,666.66
    	
 
    	
$
    	
10,649,243.75
    	
 
    
	
TOTAL
    	
 
    	
52,165
    	
 
    	
—
    	
 
    	
$
    	
86,939,149.83
    	
 
    

 

(b)                                 inserting the following as a new Section 2.8:

 

2.8.                            Contribution of Series C Preferred Units.  On October 2, 2012, Series C Preferred Units held by Millennium Gaming, AcquisitionCo, Crown One and Crown Two shall be contributed to the Company as set forth in the table below:

 

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Member
    	
 
    	
Series C Preferred Units to be Contributed to the Company
    	
 
    
	
Millennium Gaming
    	
 
    	
10,000
    	
 
    
	
AcquisitionCo
    	
 
    	
7,241
    	
 
    
	
Crown One
    	
 
    	
2,797
    	
 
    
	
Crown Two
    	
 
    	
2,797
    	
 
    
	
TOTAL
    	
 
    	
22,835
    	
 
    

 

(c)                                  deleting Appendix A in its entirety and replacing it with the following:

 

APPENDIX A
 Attached to and Made a Part of
 the Third Amended and Restated Operating Agreement of

Cannery Casino Resorts, LLC
 (a Nevada Limited Liability Company)

 

Ownership of the Company

 

	
Member
    	
 
    	
Preferred
   Units
    	
 
    	
Common
   Units
    	
 
    	
Preferred
   Percentage
   Interest
    	
 
    	
Percentage
   Interest
    	
 
    
	
Millennium   Gaming, Inc.

 

c/o   Cannery Casino Resorts, LLC

221   North Rampart Boulevard

Las   Vegas, NV 89145

Attn:                         William J.   Paulos
   William C. Wortman

Fax:                            (702)   507-5992
    	
 
    	
128,000 Series A1 Preferred Units

 
    	
 
    	
0
    	
 
    	
43.79
    	
%
    	
43.79
    	
%
    

 

3

 

	
Member
    	
 
    	
Preferred
   Units
    	
 
    	
Common
   Units
    	
 
    	
Preferred
   Percentage
   Interest
    	
 
    	
Percentage
   Interest
    	
 
    
	
OCM   AcquisitionCo, LLC

 

c/o   Oaktree Capital Management, LLC

333   South Grand Avenue, 28th Floor

Los   Angeles, CA 90071

Attn:                         Stephen A.   Kaplan
   Fax: (213) 830-6293
    	
 
    	
92,690 Series A1 Preferred Units

 
    	
 
    	
0
    	
 
    	
31.71
    	
%
    	
31.71
    	
%
    
	
Crown   CCR Group Investments One, LLC

 

c/o   The Corporation Trust Company

1209   Orange Street

Wilmington,   Delaware 19801

Attn:                       Scott Lascala
   Service of Process Department

Fax:                            (302) 655-7813

 

with a copy to:

 

Crown   Limited

8   Whiteman Street

Southbank,   Victoria 3006

Australia

Attn:   Company Secretary

Facsimile:   + 61 3 9292 8815

 
    	
 
    	
35,807 Series A2 Preferred Units

 
    	
 
    	
0
    	
 
    	
12.25
    	
%
    	
12.25
    	
%
    

 

4

 

	
Member
    	
 
    	
Preferred
   Units
    	
 
    	
Common
   Units
    	
 
    	
Preferred
   Percentage
   Interest
    	
 
    	
Percentage
   Interest
    	
 
    
	
Crown   CCR Group Investments Two, LLC

 

c/o   The Corporation Trust Company

1209   Orange Street

Wilmington,   Delaware 19801

Attn:                         Scott Lascala
   Service of Process Department

Fax:                            (302)   655-7813

 

with a copy to:

 

Crown   Limited

8   Whiteman Street

Southbank,   Victoria 3006

Australia

Attn:   Company Secretary

Facsimile:   + 61 3 9292 8815
    	
 
    	
35,807 Series A2 Preferred Units

 
    	
 
    	
0
    	
 
    	
12.25
    	
%
    	
12.25
    	
%
    
	
Total
    	
 
    	
220,690 Series A1 Preferred Units;

71,614 Series A2 Preferred Units;

0 Series B Preferred Units;

0 Series C Preferred Units;

292,304 aggregate Preferred Units
    	
 
    	
0
    	
 
    	
100.00
    	
%
    	
100.00
    	
%
    

 

5

 

3.                                      Conditions Precedent.  This Agreement shall be effective upon the date of satisfaction of each of the following conditions:

 

(a)                                 the Company and the counterparties thereto shall have duly executed and delivered the New Credit Agreements; and

 

(b)                                 the Refinancing Transactions, including the Series C Redemption and the Series C Capital Contribution, shall be been consummated.

 

4.                                    Representations and Warranties.  Each of the Current Members hereby represents and warrants, severally and not jointly, to each other Current Member that (a) such Current Member has the legal power and authority to execute and deliver this Agreement; (b) the officers of such Current Member executing this Agreement have been duly authorized to execute and deliver the same and bind such Current Member with respect to the provisions hereof; (c) the execution and delivery hereof by such Current Member and the performance and observance by such Current Member of the provisions hereof do not violate or conflict with any organizational document of such Current Member or any law applicable to such Current Member or result in a breach of any provision of or constitute a default under any other material agreement, instrument or document binding upon or enforceable against such Current Member; (d) this Agreement and each document executed by such Current Member in connection herewith constitute valid and binding obligations of such Current Member in every respect, enforceable in accordance with their terms; and (e) all representations and warranties made by such Current Member and contained in this Agreement or the Operating Agreement, as applicable, are true and correct in all material respects on and as of the date of this Agreement to the same extent as though made on and as of such date, except to the extent that any such representations or warranties expressly relate to an earlier date.

 

5.                                      Further Assurances.  Each of the parties hereto agrees to execute and deliver, or to cause to be executed and delivered, all such instruments as may reasonably be requested to effectuate the intent and purposes, and to carry out the terms, of this Agreement.

 

6.                                      Payment of Fees and Expenses.  Each Current Member shall be responsible all of the fees and expenses (including without limitation, all reasonable fees and expenses of counsel to such Current Member) incurred by such Current Member in connection with this Agreement.

 

7.                                      Operating Agreement Unaffected.  Except as otherwise specifically provided herein, all provisions of the Operating Agreement shall remain in full force and effect and be unaffected hereby.

 

8.                                      No Other Promises or Inducements.  There are no promises or inducements that have been made to any party hereto to cause such party to enter into this Agreement other than those that are set forth in this Agreement.  This Agreement has been entered into by each Current Member freely, voluntarily, with full knowledge, and without duress, and, in executing this Agreement, no Current Member is relying on any representations, either written or oral, express or implied, made by any other Current Member, other than those representations in this Agreement and the Operating Agreement.  The Current Members agree that the consideration received by each Current Member under this Agreement has been actual and adequate.

 

9.                                      No Course of Dealing.  Each Current Member acknowledges and agrees that, (a) this Agreement is not intended to, nor shall it, establish any course of dealing between the Current Members that is inconsistent with the express terms of the Operating Agreement, and (b)  except with respect to the Pro Rata Requirement and the Notice Requirement as each relates to the Series C Redemption, the Current Members shall not be under any obligation to forbear from exercising any of their rights or remedies under the Operating Agreement.

 

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10.                               No Waiver of Rights. No waiver shall be deemed to be made by any party hereunder of any of its rights hereunder unless the same shall be in writing signed on behalf of such party.

 

11.                               Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

12.                               Entire Agreement.  This Agreement sets forth the entire agreement and understanding among the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements, and undertakings of every kind and nature among them with respect to the subject matter hereof.

 

13.                               Counterparts.  This Agreement may be executed in any number of counterparts, and by the parties hereto on the same or separate counterparts and by facsimile signature, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement.

 

14.                               Severability Of Provisions; Captions; Attachments.  Wherever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. The captions to sections and subsections herein are inserted for convenience only and shall be ignored in interpreting the provisions of this Agreement.

 

15.                               JURY TRIAL WAIVER.  EACH OF THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG THEM, OR ANY OF THEM, ARISING OUT OF, IN CONNECTION WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 

[Signature pages follow.]

 

7

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date and year first above written.

 

 

	
 
    	
MILLENNIUM   GAMING, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/William Wortman
    
	
 
    	
 
    	
Name:
    	
William   Wortman
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
OCM   ACQUISITIONCO, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen Kaplan
    
	
 
    	
 
    	
Name:
    	
Stephen   Kaplan
    
	
 
    	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ronald Beck
    
	
 
    	
 
    	
Name:
    	
Ronald   Beck
    
	
 
    	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CROWN   CCR GROUP INVESTMENTS ONE, LLC:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Xavier Walsh
    
	
 
    	
 
    	
Name:
    	
Xavier   Walsh
    
	
 
    	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
CROWN   CCR GROUP INVESTMENTS TWO, LLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Xavier Walsh
    
	
 
    	
 
    	
Name:
    	
Xavier   Walsh
    
	
 
    	
 
    	
Title:
    	
Chairman
    

 

WAIVER AND AMENDMENT TO THIRD AMENDED AND RESTATED OPERATING AGREEMENT OF CANNERY CASINO RESORTS, LLCExhibit 10.1

 

UNITED STATES DISTRICT COURT
 FOR THE DISTRICT OF COLUMBIA

 

	
 
    	
)
    	
 
    
	
UNITED STATES OF AMERICA,
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Plaintiff,
    	
)
    	
CASE NO. 12   - CV - 1598
    
	
 
    	
)
    	
 
    
	
v.
    	
)
    	
JUDGE: Richard J. Leon
    
	
 
    	
)
    	
 
    
	
STANDARD PARKING CORPORATION,
    	
)
    	
FILED:
    
	
KCPC HOLDINGS, INC., and 
    	
)
    	
 
    
	
CENTRAL PARKING CORPORATION,
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
Defendants.
    	
)
    	
 
    
	
 
    	
)
    	
 
    
	
 
    	
)
    	
 
    

 

ASSET PRESERVATION STIPULATION AND ORDER

 

It is hereby stipulated and agreed by and between the undersigned parties, subject to approval and entry by the Court, that:

 

I. DEFINITIONS

 

As used in this Asset Preservation Stipulation and Order (“Stipulation and Order”):

 

A.                      “Acquirer” or “Acquirers” mean the entity or entities to whom the Defendants divest the Parking Facilities, or who succeed to the Defendants’ interests in any Parking Facility Agreement that is transferred pursuant to the proposed Final Judgment.

 

B.                      “Standard” means Defendant Standard Parking Corporation, a Delaware corporation, with its headquarters in Chicago, Illinois, and includes its successors and assigns, and its subsidiaries, divisions, groups, affiliates, partnerships, joint ventures, directors, officers, managers, agents, and employees.

 

 

C.                      “Central” means Defendant KCPC Holdings, Inc., a Delaware corporation, with its headquarters in Mt. Kisco, New York, together with its wholly owned subsidiary, Defendant Central Parking Corporation, a Tennessee corporation with its headquarters in Nashville, Tennessee, and includes their successors and assigns, and their subsidiaries, divisions, groups, affiliates, partnerships, joint ventures, directors, officers, managers, agents, and employees.

 

D.                      “Parking Facility Agreements” means all agreements, whether leases, management agreements or otherwise, related to the operation or management of off-street parking facilities as listed in Schedule A attached to the proposed Final Judgment, between or among the Defendants and the owners or agents of the owners of the properties listed in Schedule A.

 

E.                       “Parking Facilities” means all Defendants’ interests in the properties listed in Schedule A of the proposed Final Judgment, including the Parking Facility Agreements for those properties, and all tangible and intangible assets used by Defendants primarily in connection with those properties, including, but not limited to: employment, customer or other contracts; equipment and other property; the customer lists, business accounts and records, and market research data for the individual Parking Facilities; manuals and instructions provided to employees; and other physical assets, associated with the properties; but not assets, such as centralized systems software, that are located outside the Parking Facilities and do not relate primarily to the properties listed on Schedule A.

 

F.                        “Transaction” means the merger and acquisition contemplated by the Agreement and Plan of Merger dated as of February 28, 2012, by and among KCPC Holdings, Inc., Standard Parking Corporation, Hermitage Merger Sub, Inc. and the Stockholders’ Representative.

 

2

 

II. OBJECTIVES

 

The proposed Final Judgment filed in this case is meant to ensure Defendants’ prompt divestiture of the Parking Facilities for the purpose of maintaining competition in the sale of off-street parking services in the geographic markets specified in the Complaint, in order to remedy the effects that the United States alleges would otherwise result from Standard’s acquisition of Central. This Asset Preservation Stipulation and Order ensures that until the divestitures required by the proposed Final Judgment have been accomplished, the Parking Facilities remain as economically viable, competitive, and ongoing providers of off-street parking services; that Defendants will preserve and maintain the Parking Facilities; and that the Parking Facilities will be able to be used effectively by an Acquirer to compete in the provision of off-street parking services.

 

III. JURISDICTION AND VENUE

 

The Court has jurisdiction over the subject matter of this action and over each of the parties hereto. Defendants waive service of summons on the Complaint, and agree that venue of this action is proper in the United States District Court for the District of Columbia.

 

IV. COMPLIANCE WITH AND ENTRY OF
  THE PROPOSED FINAL JUDGMENT

 

A.                      The parties stipulate that a Final Judgment in the form attached as Exhibit A may be filed with and entered by the Court upon the motion of any party or upon the Court’s own motion, at any time after compliance with the requirements of the Antitrust Procedures and Penalties Act (APPA), 15 U.S.C. § 16, and without further notice to any party or other proceedings, provided that the United States has not withdrawn its consent, which it may do at any time before the entry of the proposed Final Judgment by serving notice thereof on the Defendants and by filing that notice with the Court. Defendants agree to arrange, at their

 

3

 

expense, publication as quickly as possible of the newspaper notice required by the APPA, which shall be drafted by the United States in its sole discretion. The publication shall be arranged no later than three business days after Defendants’ receipt from the United States of the text of the notice and the identity of the newspaper within which the publication shall be made. Defendants shall promptly send to the United States (1) confirmation that publication of the newspaper notice has been arranged, and (2) the certification of the publication prepared by the newspaper within which the notice was published.

 

B.                          Defendants shall abide by and comply with the provisions of the proposed Final Judgment pending entry of the Final Judgment by the Court, or until expiration of time for all appeals of any Court ruling declining entry of the proposed Final Judgment, and shall, from the date of the signing of this Stipulation by the parties, comply with all of the terms and provisions of the proposed Final Judgment as though the same were in full force and effect as an order of the Court.

 

C.                               Defendants shall not consummate the transaction sought to be enjoined by the Complaint herein before the Court has signed this Stipulation and Order.

 

D.                               This Asset Preservation Stipulation and Order shall apply with equal force and effect to any amended proposed Final Judgment agreed upon in writing by the parties and submitted to the Court.

 

E.                                In the event (1) the United States has withdrawn its consent, as provided in Paragraph IV.A above, or (2) the proposed Final Judgment is not entered pursuant to this Stipulation and Order, the time has expired for all appeals of any Court ruling declining entry of the proposed Final Judgment, and the Court has not otherwise ordered continued compliance with the terms and provisions of the proposed Final Judgment, then the parties are released from

 

4

 

all further obligations under this Asset Preservation Stipulation and Order, and the making of this Asset Preservation Stipulation and Order shall be without prejudice to any party in this or any other proceeding.

 

F.                                 Defendants represent that the divestitures ordered in the proposed Final Judgment can and will be made expeditiously, and that Defendants will later raise no claim of mistake, hardship or difficulty of compliance as grounds for asking the Court to modify any of the provisions contained therein.

 

V. PRESERVATION OF THE DIVESTITURE ASSETS

 

Until the divestitures required by the proposed Final Judgment have been accomplished:

 

A.                               Defendants shall preserve, maintain, and continue to operate the Parking Facilities as ongoing, economically viable, and competitive providers of off-street parking services. Defendants shall take all steps necessary to preserve and maintain the value and goodwill of the Parking Facilities. Within thirty calendar days after the entry of the Asset Preservation Stipulation and Order, Defendants will inform the United States of the steps Defendants have taken to comply with this Asset Preservation Stipulation and Order.

 

B.                               Defendants shall provide sufficient working capital and lines and sources of credit to continue to maintain the Parking Facilities as economically viable, competitive, and ongoing providers of off-street parking services.

 

C.                               Defendants shall not, except as part of a divestiture approved by the United States in accordance with the proposed Final Judgment, remove, sell, lease, assign, transfer, destroy, pledge, or otherwise dispose of any of the Parking Facilities.

 

D.                               Defendants’ employees whose operation, development, or sales duties are primarily related to the Parking Facilities shall not be terminated except for cause, or reassigned

 

5

 

to other areas within the company, except for transfer bids initiated by employees pursuant to Defendants’ regular, established job posting policy. Defendants shall provide the United States with ten calendar days’ notice of such transfer.

 

E.                                          Defendants shall use all reasonable efforts to maintain the sales and revenues of the Parking Facilities, and shall maintain at actual 2012 levels or previously approved levels for 2013, whichever are higher, all operational, promotional, advertising, sales, technical, customer-service, and marketing support for the Parking Facilities.

 

F.                                           Defendants shall provide such support services for the Parking Facilities as the Parking Facilities require to operate as economically viable, competitive, and ongoing providers of off-street parking services. These support services may include federal, state and local municipal regulatory compliance; human resources; legal; finance; software and computer operations support; and such other services as are required to operate the Parking Facilities.

 

G.                                         Defendants shall preserve the existing relationships with each off-street parking services customer, with the owners of the underlying properties and agents of those owners, and with others having business relations with any of the Parking Facilities, in accordance with current practice.

 

H.                                        Defendants shall maintain, in accordance with sound accounting principles, accurate and complete financial ledgers, books and records that report on a periodic basis, such as the last business day of every month, consistent with past practices, the assets, liabilities, expenses, revenues, and income attributable to the Parking Facilities.

 

I.                                             Defendants shall take no action that would jeopardize, delay, or impede the sale of the Parking Facilities to an Acquirer acceptable to the United States in its sole discretion.

 

6

 

J.                                        Subject to the approval of the United States, Defendants shall each appoint at their expense a person or persons who will be responsible for monitoring the Parking Facilities and ensuring Defendants’ compliance with the proposed Final Judgment and this Stipulation. In the event such persons are unable to perform their duties, Defendants shall appoint, subject to the approval of the United States, replacements within ten working days. Should Defendants fail to appoint replacements acceptable to the United States within this time period, the United States shall appoint replacements to serve at Defendants’ expense.

 

K.                                   Defendants shall take no action that would interfere with the ability of any trustee appointed pursuant to the proposed Final Judgment to complete the divestitures pursuant to the proposed Final Judgment to an Acquirer acceptable to the United States.

 

L.                                     Defendants’ obligations under this Section V are qualified to the limited extent provided for under Paragraph IV.K of the proposed Final Judgment, permitting Defendants under specified circumstances to accomplish divestitures of the Parking Facilities by terminating Parking Facility Agreements, or by allowing those Agreements to expire.

 

VI. DURATION OF
  ASSET PRESERVATION OBLIGATIONS

 

Defendants’ obligations under Section V of this Asset Preservation Stipulation and Order shall remain in effect until (1) consummation of the divestitures required by the proposed Final Judgment, or (2) further order of the Court. If the United States voluntarily dismisses the Complaint in this matter, Defendants are released from all further obligations under the Stipulation and Order.

 

7

 

	
Dated:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Respectfully submitted,
    	
 
    	
FOR DEFENDANT STANDARD
    
	
 
    	
 
    	
PARKING CORPORATION
    
	
FOR PLAINTIFF
    	
 
    	
 
    
	
UNITED STATES OF AMERICA
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ James J. Calder
    
	
/s/ Carl Willner
    	
 
    	
James J. Calder (applied for pro hac vice   admission)
    
	
Carl Willner (D.C. Bar No. 412841)
    	
 
    	
Katten Muchin Rosenman LLP
    
	
United States Department of Justice
    	
 
    	
575 Madison Avenue
    
	
Antitrust Division 
    	
 
    	
New York, NY 10022-2585
    
	
Telecommunications and Media
    	
 
    	
Tel. (212)-940-6460
    
	
Enforcement Section
    	
 
    	
 
    
	
450 Fifth Street, NW, Suite 7000
    	
 
    	
 
    
	
Washington, DC 20530
    	
 
    	
/s/ Claudia Callaway
    
	
Tel: (202)-514-5813
    	
 
    	
Claudia Callaway (D.C. Bar No. 442237)
    
	
 
    	
 
    	
Kattin Muchin Rosenman LLP
    
	
 
    	
 
    	
2900 K Street, N.W. 
    
	
 
    	
 
    	
Suite 200 
    
	
 
    	
 
    	
Washington, D.C. 20007-5118
    
	
 
    	
 
    	
Tel: (212) 625-3590
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
FOR DEFENDANTS 
    
	
 
    	
 
    	
KCPC HOLDINGS, INC. AND 
    
	
 
    	
 
    	
CENTRAL PARKING CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
/s/ Leon B. Greenfield
    
	
 
    	
 
    	
Leon B. Greenfield (D.C. Bar No. 440795)
    
	
 
    	
 
    	
Wilmer Cutler Pickering Hale and Dorr LLP
    
	
 
    	
 
    	
1875 Pennsylvania Avenue, NW
    
	
 
    	
 
    	
Washington, DC 20006 
    
	
 
    	
 
    	
Tel: (202)-663-6972
    

 

ORDER

 

IT IS SO ORDERED by the Court, this 1st day of October, 2012.

 

	
 
    	
 
    	
/s/ Richard J. Leon
    
	
 
    	
 
    	
United States District Judge
    

 

8

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