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    Filed 3/2/17

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    Filed 3/2/17

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    79 views13 pages

    Buss Petition

    Uploaded by

    THROnline
    Filed 3/2/17

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 13
    ee SHEPPARD, MULLIN. RICHTER & HAMPTON Lip BEL ae PARD, V r Saperior Cop ‘A Limited Liability Partnership oe Including Professional Corporations ane ADAM F, STREISAND, Cal. Bar No. 155662 war 88 201F NICHOLAS J. VAN BRUNT, Cal. Bar No. 233876 HN mY ‘VALERIE E. ALTER, Cal. Bar No. 239805 ere R, Cats neat Oech GOLNAZ YAZDCHI, Cal, Bar No, 279160 7 Ea il 1901 Avenue of the Stars, Suite 1600 ete | Los Angeles, California 90067-6055, Telephone: ' 310.228.3700 Facsimile: 310.228.3701 Email: astreisand@ sheppardmollin.com avanbrumt@ sheppardmullin.com valter@sheppardmullin.com gyazdchi@sheppardmullin.com Attorncys for JEANIE M. BUSS, Co-Trustee SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES, CENTRAL DISTRICT Inte: CaseNo. 47 STPBO1834 JERRY H. BUSS 2006 CHILDREN’S | PETITION FOR INSTRUCTIONS TO CO- ELECTING SMALL BUSINESS TRUSTEES CONCERNING ‘TRUST, dated September 1, 2006 APPOINTMENT OF CONTROLLING OWNER OF THE LOS ANGELES * LAKERS, INC. [Prob. Code § 17200(b)(6)] Das: [tt /-2er7 CASE ASSIGNED To wor ee I SemnaeissariOy PELITION FOR INSTRUCTIONS TO CO-TRUSTBES CONCERNING APPOINTMENT OF ‘CONTROLLING OWNER OF THE LOS ANGELES LAKERS, INC. ee ee) 10 iL 12 3 14 16 7 18 19 a +23 24 26 27 2B Jeanie M. Buss (“Pet mer”), a co-trustee of the Jerry H. Buss 2006 Children's Electing ‘Small Business Trust dated September 1, 2006 (the “Jerry 2006 ESBT” or the “Trust”), established by Jerry H. Buss (the “Trustor” or “Dr. Buss”) on September 1, 2006, hereby petitions ‘he court for instructions concerning the appointment of the Controlling Owner of The Los Angeles Lakers, Inc., a California corporation (the “Lakers” or “Corporation”) and respectfully alleges as follows: 1. Purpose of the Petition. Petitioner seeks instructions from this Court to compel her brothers, James H. Buss (“Jim”) and Johnny H. Buss (“Johnny”), es Petitioner's co-trustees, to jcomply with the mandatory terms of the Trust. The Petition is necessary because Johnny with the ‘active participation of Jim breached the express tetms of the Trust that require them to take all ‘actions reasonably available to them to ensure that Petitionér remains the Controlling Owner of ‘the Lakers. The Trust holds shares of the Corporati , which owns the Los Angeles Lakers basketball team, Dr. Buss established the Trust during his lifetime. The Jerry 2006 ESBT is irrevocable by its terms, and is to be administered for the benefit of Trustor’s children,’ (Trust, Art. 2),? fy In addition 19 the Jerry 2006 ESBT that is the subject of this Petition, Trustor established two other trusts during his lifetime, namely the Jerry H. Buss Family Trust dated February 16, 2001, as amended and restated (the “Family Trust") and the Buss 2005 Children’s Electing Small Business Trust dated May 13, 2005 (the “2005 ESBT”). Petitioner, Jim, and Johnny currently act as co-trustees of each of those trusts as well. Additionally, Trustor’s former wife, Jo Ana C. Buss (“Jo Ann”), mother of Petitioner, Jim, Johnny, and their sister, Janie M. Drexel, established a trust nearly identical to the Jerry 2006 ESBT on September 1, 2006, namely the Jo Ann C. 2006 Children’s Electing Small Business Trust dated September 1, 2006 (the “Jo * Petitioner, Jim, and Johnny serve as co-irustees of two other similar irevocable trusts, and Dr Buss’s living tust (now irrevocable), for which Petitioner seeks identical instruction from the [court by way of concurrently filed but scparate petitions. “ Petitioner has attached a redacted copy of the Trust instrument 25 EXHIBIT 1 and will lodge a full, un-redacted copy should it be required for an in camera review. 2 Sam TTD PETITION FOR INSTRUCTIONS TO CO-TRUSTEES CONCERNING APPOINTMENT OF| CONTROLLING OWNER OF THE LOS ANGELES LAKERS, INC, oe aw ew Ww 10 12 13 14 15 16 7 18 19 20 21 2 23 Ann 2006 ESBT”). Petitioner, Jim, and Johnny also serve as co-trustees of the Jo Ann 2006 ESBT. The four trusts (the 2005 ESBT, Jerry 2006 ESBT, Jo Ann 2006 ESBT, and Family Trust) collectively own approximately 66% of the outstanding shares of the Lakers (collectively, the “Buss Trusts"). Essentially identical petitions have been filed concurrently with respect to each of the Buss Trusts. 3. Trustor, who was.the majority owner of the Corporation during his lifetime, stated in the Trust his specific desire “that the Trustee retain The Los Angeles Lakers, Inc. stock as an asset of this trust uatl the trust is terminated...” and mandated the trustees to “continue to hold any or all of the issued and outstanding shares of The Los Angeles Lakers, Inc...” (EX. 1, Trust, Art. 11, 4.11.5, Art. 10, 10.23). As a member of the National Basketball Association (the “NBA"}, the Lakers are required by the’NBA to have an individual designated to serve as its “Controlling Owner,” as that term is defined by the NBA. Under the Lakers’ Bylaws, the Board of Directors (the “Board”) must have five members, and only a director on the Board is eligible 10 [be elected and serve as the Corporation's “Controlling Ownet.” The Trustor explicitly stated in ‘the Trust that the trustees “shall take whatever actions that are reasonably available to the Trustee[s] to ensure that the Trustor continues to be the ‘Controlling Owner’ of The Los Angeles Laker, Inc. (as that term is defined by the National Basketball Association’s Rules and Regulations in effect from time to time) during the Trustor’s lifetime co long as he desires to act.” Ud, at Ant. 11, 11-10), The Trust further mandates that, upon Trustor's death, ~...the Trusteels} | shall take whatever actions are reasonably a ble to the Trustee(s] to have JEANIE M. BUSS appointed as the new Controlling Owner of The Los Angeles Lakers, Inc.” (id. [emphasis adéed)). The trustees may appoint someone other than Petitioner as the Controlling | Owner only if Petitioner is no longer living, or if she has not been appointed as the new Controlling Owner following Trustor's death. (7d.)3 The Trust makes it clear that Section 11.10 is mandatory: “Wherever used in this Declaration of Trust...{tIhe term “shall” is mandatory * The Trustor included identical provisions in the 2005 ESBT and the Family Trust. Jo Ann also included identical language in the Jo Ann 2006 ESBT, as to Dr. Buss continuing to be the Conteolling Over and Petitioner to fill that role following Dr. Buss’s tenure. 3. SsiRHT

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