2824

COUNTY LOCAL LAWS

SECTION 2-15-18 RESTRICTIONS AGAINST TRANSFERS

(A) THE FRANCHISE SHALL NOT BE ASSIGNED OR
TRANSFERRED, EITHER BY THE ACT OF THE COMPANY OR BY
OPERATION OF LAW, WITHOUT THE CONSENT OF THE COUNCIL.
THE GRANTING, GIVING OR WAIVING OF ANY ONE OR MORE OF
SUCH CONSENTS SHALL NOT RENDER UNNECESSARY ANY
SUBSEQUENT CONSENT OR CONSENTS.

{B) THE COMPANY SHALL PROMPTLY NOTIFY THE COUNCIL
OF ANY ACTUAL OR PROPOSED CHANGE IN, OR TRANSFER OF,
OR ACQUISITION BY ANY OTHER PARTY OF, CONTROL OF THE
COMPANY. THE WORD "CONTROL" AS USED HEREIN INCLUDES
ACTUAL WORKING CONTROL IN WHATEVER MANNER EXERCISED.
EVERY CHANGE, TRANSFER OR ACQUISITION OF CONTROL OF
THE COMPANY SHALL MAKE THE FRANCHISE SUBJECT TO
CANCELLATION UNLESS AND UNTIL THE COUNCIL SHALL HAVE
CONSENTED THERETO. FOR THE PURPOSE OF DETERMINING
WHETHER IT SHALL CONSENT TO SUCH CHANGE, TRANSFER OR
ACQUISITION OF CONTROL, THE COUNCIL MAY INQUIRE INTO
THE QUALIFICATIONS OF THE PROSPECTIVE CONTROLLING
PARTY, AND THE COMPANY SHALL ASSIST THE COUNCIL IN ANY
SUCH INQUIRY. IF THE COUNCIL DOES NOT SCHEDULE
HEARING ON THE MATTER WITHIN SIXTY (60) DAYS AFTER
NOTICE OF THE CHANGE OR PROPOSED CHANGE AND THE FILING
OF A PETITION REQUESTING ITS CONSENT, IT SHALL BE
DEEMED TO HAVE CONSENTED. IN THE EVENT THAT THE
COUNCIL ADOPTS A RESOLUTION DENYING ITS CONSENT AND
SUCH CHANGE, TRANSFER OR ACQUISITION OF CONTROL HAS
BEEN EFFECTED, THE COUNCIL MAY CANCEL THE FRANCHISE
UNLESS CONTROL OF THE COMPANY IS RESTORED TO ITS
STATUS PRIOR TO THE CHANGE, OR TO A STATUS ACCEPTABLE
TO THE COUNCIL.

(C)      NOTHING IN THIS SECTION SHALL BE DEEMED TO

PROHIBIT      A MORTGAGE OR PLEDGE OF THE FRANCHISE,

SYSTEM,      OR ANY PART THEREOF, FOR FINANCING PURPOSES;

NOR DOES   IT PROHIBIT THE SALE OF THE COMPANY'S STOCK

PUBLICLY   IN COMPLIANCE WITH APPLICABLE LAWS.

SECTION 2-15.19 RESTRICTIONS ON THE COMPANY

(A)   CONTRACTS WITH AND PAYMENTS BY AND BETWEEN
COMPANY AND AFFILIATES WILL BE SUBJECT TO COMPLETE
DISCLOSURE TO THE COUNCIL. FOR PURPOSES OF
REGULATION, THE COUNCIL RESERVES THE RIGHT TO INQUIRE
INTO THE ACTUAL COST OF PERFORMING SERVICES WHICH HAY
BE PURCHASED OR CONTRACTED FOR FROM ANY AFFILIATE.

(B)   THE COMPANY'S OWNERSHIP STRUCTURE SHALL