-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EMmcuy7cRn3OFNvgOgUh1nfdapOUtInJI/KFDJR/UykOKSdBGKZYLjLPAvveliOp 1tZJ0FHqa3PbQ30y7CCVCQ== 0000914121-07-001349.txt : 20070530 0000914121-07-001349.hdr.sgml : 20070530 20070530170323 ACCESSION NUMBER: 0000914121-07-001349 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20070530 DATE AS OF CHANGE: 20070530 GROUP MEMBERS: BARRY S. STERNLICHT GROUP MEMBERS: BRETT TORINO GROUP MEMBERS: FLAG LEISURE GROUP, LLC GROUP MEMBERS: FLAG LUXURY PROPERTIES, LLC GROUP MEMBERS: FLAG LUXURY RIV, LLC GROUP MEMBERS: I-1/I-2 US HOLDINGS, L.L.C. GROUP MEMBERS: LMN 134 FAMILY COMPANY LLC GROUP MEMBERS: MITCHELL J. NELSON GROUP MEMBERS: MJX FLAG ASSOCIATES, LLC GROUP MEMBERS: MJX REAL ESTATE VENTURES, LLC GROUP MEMBERS: ONIROT LIVING TRUST DATED 6/20/2000 GROUP MEMBERS: PAUL KANAVOS GROUP MEMBERS: RH1, LLC GROUP MEMBERS: RIVACQ LLC GROUP MEMBERS: ROBERT SILLERMAN GROUP MEMBERS: SCG HOTEL MANAGEMENT, L.L.C. GROUP MEMBERS: SOF US HOTEL CO-INVEST HOLDINGS, L.L.C. GROUP MEMBERS: SOF-VII MANAGEMENT, L.L.C. GROUP MEMBERS: SOF-VII U.S. HOTEL HOLDINGS, L.L.C. GROUP MEMBERS: STARWOOD CAPITAL GROUP GLOBAL, LLC GROUP MEMBERS: STARWOOD CAPITAL HOSPITALITY FUND I-1, L.P. GROUP MEMBERS: STARWOOD CAPITAL HOSPITALITY FUND I-2, L.P. GROUP MEMBERS: STARWOOD GLOBAL OPPORTUNITY FUND VII-A, L.P. GROUP MEMBERS: STARWOOD GLOBAL OPPORTUNITY FUND VII-B, L.P. GROUP MEMBERS: STARWOOD US OPPORTUNITY FUND VII-D, L.P. GROUP MEMBERS: STARWOOD US OPPORTUNITY FUND VII-D-2, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: RIVIERA HOLDINGS CORP CENTRAL INDEX KEY: 0000899647 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 880296885 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-50785 FILM NUMBER: 07888172 BUSINESS ADDRESS: STREET 1: 2901 LAS VEGAS BLVD SOUTH CITY: LAS VEGAS STATE: NV ZIP: 89109 BUSINESS PHONE: 7027345110 MAIL ADDRESS: STREET 1: 2901 LAS VEGAS BLVD S CITY: LAS VEGAS STATE: NV ZIP: 89109 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Flag Luxury Riv LLC CENTRAL INDEX KEY: 0001373234 IRS NUMBER: 263424738 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 650 MADISON AVENUE CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 212-776-8181 MAIL ADDRESS: STREET 1: 650 MADISON AVENUE CITY: NEW YORK STATE: NY ZIP: 10022 SC 13D/A 1 rh8811478-13da16.txt AMENDMENT NO. 16 TO SCHEDULE 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 16)* Riviera Holdings Corp. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, $.001 per share - -------------------------------------------------------------------------------- (Title of Class of Securities) 769627100 - -------------------------------------------------------------------------------- (CUSIP Number) Andrew J. Perel Cadwalader, Wickersham & Taft LLP One World Financial Center New York, New York 10281 (212) 504-6656 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) May 23, 2007 - -------------------------------------------------------------------------------- (Date of Event Which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box [ ]. Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The Information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Flag Luxury Riv, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 418,294 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 0 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 418,294 ----------------------------------- 10 SHARED DISPOSITIVE POWER 0 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 418,294 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.36% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Flag Luxury Properties, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 418,294 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 418,294 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 418,294 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.36% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) MJX Flag Associates, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 418,294 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 418,294 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 418,294 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.36% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) LMN 134 Family Company LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 418,294 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 418,294 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 418,294 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.36% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Mitchell J. Nelson - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 418,294 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 418,294 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 418,294 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.36% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) ONIROT Living Trust dated 6/20/2000 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 418,294 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 418,294 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 418,294 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.36% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) RH1, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Nevada - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 418,294 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 0 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 418,294 ----------------------------------- 10 SHARED DISPOSITIVE POWER 0 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 418,294 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.36% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Flag Leisure Group, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 836,588 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 836,588 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 836,588 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.71% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) MJX Real Estate Ventures, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 836,588 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 836,588 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 836,588 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.71% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Robert Sillerman - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 836,588 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 836,588 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 836,588 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.71% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Paul Kanavos - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 836,588 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 836,588 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 836,588 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.71% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Brett Torino - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 836,588 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 836,588 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 836,588 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.71% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Rivacq LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 627,442 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 0 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 627,442 ----------------------------------- 10 SHARED DISPOSITIVE POWER 0 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) SOF U.S. Hotel Co-Invest Holdings, L.L.C - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) SOF-VII U.S. Hotel Holdings, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) I-1/I-2 U.S. Holdings, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Starwood Global Opportunity Fund VII-A, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Starwood Global Opportunity Fund VII-B, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Starwood US Opportunity Fund VII-D, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Starwood US Opportunity Fund VII-D-2, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Starwood Capital Hospitality Fund I-1, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Starwood Capital Hospitality Fund I-2, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS WC - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON PN - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) SOF-VII Management, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) SCG Hotel Management, L.L.C. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Starwood Capital Group Global, LLC - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS AF - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Connecticut - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 0 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 0 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 627,442 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.03% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- CUSIP NO.: 769627100 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Barry S. Sternlicht - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_| (b) |X| - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS OO - -------------------------------------------------------------------------------- 5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) or 2(e) |_| - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF 123,200 SHARES ----------------------------------- BENEFICIALLY 8 SHARED VOTING POWER OWNED BY EACH 627,442 REPORTING ----------------------------------- PERSON 9 SOLE DISPOSITIVE POWER 123,200 ----------------------------------- 10 SHARED DISPOSITIVE POWER 627,442 ----------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 750,642 - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_| - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 6.02% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- This Amendment No. 16 amends and supplements the statement on Schedule 13D (the "Statement") originally filed with the Securities and Exchange Commission on December 28, 2005, and amended by Amendment No. 1 on March 3, 2006, Amendment No. 2 on March 23, 2006, Amendment No. 3 on April 5, 2006, Amendment No. 4 on May 18, 2006, Amendment No. 5 on August 2, 2006, Amendment No. 6 on August 4, 2006, Amendment No. 7 on March 12, 2007, Amendment No. 8 on March 23, 2007, Amendment No. 9 on March 26, 2007, Amendment No. 10 on March 30, 2007, Amendment No. 11 on April 17, 2007, Amendment No. 12 on April 27, 2007, Amendment No. 13 on May 4, 2007, Amendment No. 14 on May 15, 2007 and Amendment No. 15 on May 16, 2007 by Flag Luxury Riv, LLC; Flag Luxury Properties, LLC; MJX Flag Associates, LLC; Flag Leisure Group, LLC; MJX Real Estate Ventures, LLC; LMN 134 Family Company LLC; Mitchell Nelson; ONIROT Living Trust dated 6/20/2000; Robert Sillerman; Paul Kanavos; RH1, LLC; Brett Torino; Rivacq LLC; SOF U.S. Hotel Co-Invest Holdings, L.L.C.; SOF-VII US Hotel Holdings, L.L.C.; I-1/I-2 U.S. Holdings, L.L.C.; Starwood Global Opportunity Fund VII-A, L.P.; Starwood Global Opportunity Fund VII-B, L.P.; Starwood U.S. Opportunity Fund VII-D, L.P.; Starwood U.S. Opportunity Fund VII-D-2, L.P.; Starwood Capital Hospitality Fund I-1, L.P.; Starwood Capital Hospitality Fund I-2, L.P.; SOF-VII Management, L.L.C.; SCG Hotel Management, L.L.C.; Starwood Capital Group Global, LLC; and Barry S. Sternlicht with respect to the common stock, par value $0.001 per share, of Riviera Holdings Corporation, a Nevada corporation. Unless otherwise indicated, each capitalized term used but not defined herein shall have the meaning assigned to such term in the Statement. From and after the date hereof, all references in the Statement to the Statement or terms of similar import shall be deemed to refer to the Statement as amended and supplemented hereby. The Reporting Persons have entered into a Fifth Amended and Restated Joint Filing Agreement, dated as of May 3, 2007, a copy of which was filed as Exhibit 10.20 to the Statement, and which is incorporated herein by reference. Neither the fact of this filing nor anything contained herein shall be deemed an admission by the Reporting Persons that they constitute a "group" as such term is used in Section 13(d)(1)(k) of the rules and regulations under the Securities Exchange Act of 1934, as amended. ITEM 1. SECURITY AND ISSUER Response unchanged. ITEM 2. IDENTITY AND BACKGROUND Response unchanged. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION Response unchanged. ITEM 4. PURPOSE OF TRANSACTION Item 4 is hereby supplemented as follows: On May 23, 2007, Riviera Holdings Corporation filed an Answer and Counterclaim (attached as Exhibit 10.25) to the Complaint filed by Flag Luxury Riv, LLC, Rivacq LLC, and Riv Acquisition Holdings Inc. on May 2, 2007 (attached as Exhibit 10.24). ITEM 5. INTEREST IN SECURITIES OF THE COMPANY Response unchanged. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS, OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE COMPANY. Response unchanged. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS. Item 7 is hereby supplemented as follows: 10.24 Complaint filed May 2, 2007 by Flag Luxury Riv, LLC, Rivacq LLC, and Riv Acquisition Holdings Inc. 10.25 Answer and Counterclaim filed May 23, 2007 by Riviera Holdings Corporation. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Flag Luxury Riv, LLC By: /s/ Paul Kanavos ------------------------------ Name: Paul Kanavos Title: President Flag Luxury Properties, LLC By: /s/ Paul Kanavos ------------------------------ Name: Paul Kanavos Title: President MJX Flag Associates, LLC By: /s/ Robert Sillerman ------------------------------ Name: Member Title: Robert Sillerman RH1, LLC By: Flag Leisure Group, LLC Its sole member By: /s/ Paul Kanavos ------------------------------ Name: Paul Kanavos Title: President Flag Leisure Group, LLC By: /s/ Paul Kanavos ------------------------------ Name: Paul Kanavos Title: President MJX Real Estate Ventures, LLC By: /s/ Robert Sillerman ------------------------------ Name: Robert Sillerman Title: Member LMN 134 Family Company LLC By: /s/ Mitchell J. Nelson ------------------------------ Name: Mitchell J. Nelson Title: Managing Member Mitchell J. Nelson /s/ Mitchell J. Nelson ------------------------------------ Robert Sillerman /s/ Robert Sillerman ------------------------------------ Paul Kanavos /s/ Paul Kanavos ------------------------------------ ONIROT Living Trust Dated 06/20/2000 By: /s/ Brett Torino ------------------------------------ Name: Brett Torino Title: Trustee Brett Torino By: /s/ Brett Torino ------------------------------------ Rivacq LLC By: SOF U.S. Hotel Co-Invest Holdings, L.L.C. By: SOF-VII U.S. Hotel Holdings, L.L.C. By: /s/ Barry S. Sternlicht ---------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer By: I-1/I-2 U.S. Holdings, L.L.C. By: /s/ Barry S. Sternlicht ---------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer SOF U.S. Hotel Co-Invest Holdings, L.L.C. By: SOF-VII U.S. Hotel Holdings, L.L.C. By: /s/ Barry S. Sternlicht ---------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer By: I-1/I-2 U.S. Holdings, L.L.C. By: /s/ Barry S. Sternlicht ---------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer SOF-VII U.S. Hotel Holdings, L.L.C. By: /s/ Barry S. Sternlicht ---------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer I-1/I-2 U.S. Holdings, L.L.C. By: /s/ Barry S. Sternlicht ---------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer Starwood Global Opportunity Fund VII-A, L.P. By: SOF-VII Management, L.L.C. Its general partner By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ----------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer Starwood Global Opportunity Fund VII-B, L.P. By: SOF-VII Management, L.L.C. Its general partner By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ------------------------------ Name: Barry S. Sternlicht Title: Chief Executive Officer Starwood U.S. Opportunity Fund VII-D, L.P. By: SOF-VII Management, L.L.C. ---------------------------------- Its general partner By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ------------------------------ Name: Barry S. Sternlicht Title: Chief Executive Officer Starwood U.S. Opportunity Fund VII-D-2, L.P. By: SOF-VII Management, L.L.C. Its general partner By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ------------------------------ Name: Barry S. Sternlicht Title: Chief Executive Officer Starwood Capital Hospitality Fund I 1,L.P. By: SCG Hotel Management, L.L.C. ---------------------------------- Its general partner By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ------------------------------ Name: Barry S. Sternlicht Title: Chief Executive Officer Starwood Capital Hospitality Fund I-2, L.P. By: SCG Hotel Management, L.L.C. Its general partner By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer SOF-VII Management, L.L.C. By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ------------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer SCG Hotel Management, L.L.C. By: Starwood Capital Group Global, L.L.C. Its General manager By: /s/ Barry S. Sternlicht ------------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer Starwood Capital Group Global, LLC By: /s/ Barry S. Sternlicht ---------------------------------------- Name: Barry S. Sternlicht Title: Chief Executive Officer Barry S. Sternlicht /s/ Barry S. Sternlicht ------------------------------------------ Dated: May 30, 2007 EX-10.24 2 rh8811478-ex10_24.txt AMENDED COMPLAINT EXHIBIT 10.24 [STAMP] /s/ (illegible signature) ------------------------- CLERK OF THE COURT May 24 10PM '07 FILED [END STAMP] COMP William R. Urga, Esq. Nevada Bar No. 1195 Martin A. Little, Esq. Nevada Bar No. 7067 JOLLEY URGA WIRTH WOODBURY & STANDISH 3800 Howard Hughes Parkway Sixteenth Floor Las Vegas, Nevada 89169 Telephone: (702) 699-7500 Facsimile: (702) 699-7555 Attorneys for Plaintiffs DISTRICT COURT CLARK COUNTY, NEVADA - --------------------------------------------- FLAG LUXURY RIV, LLC, RIVACQ LLC, RH1 LLC and Case No.: A539614 RIV ACQUISITION HOLDINGS INC., Dept. No.: XI Plaintiffs, Arbitration Exemption Claimed: Declaratory Relief vs. RIVIERA HOLDINGS CORPORATION, VINCENT L. DIVITO, PAUL A. HARVEY, JAMES N. LAND, JR., JEFFREY A. SILVER, and WILLIAM L. WESTERMAN, Defendants. - --------------------------------------------- AMENDED COMPLAINT ----------------- Plaintiffs Flag Luxury Riv, LLC ("FLR"), Rivacq LLC ("Rivacq"), RH1 LLC ("RH1") and Riv Acquisition Holdings Inc. ("RAH") (collectively, "Plaintiffs"), by and through their attorneys, for their Complaint against defendants allege as follows: NATURE OF THE ACTION -------------------- 1. Plaintiffs bring this action for declaratory relief to address whether a provision in the Nevada Business Combinations Law ("BCL") set out in Chapter 78 of the Nevada Revised Statutes and Article III, Section 7 of the Articles of Incorporation (the "Charter Provision") of Riviera Holdings Corporation ("Riviera") prevent Plaintiffs from engaging in any business combination with Riviera, including the Plaintiffs' March 26, 2007 all-cash merger proposal to acquire all of the outstanding shares of Riviera at a price of $27.00 per share (the "Proposal"). Riviera, through its Board of Directors (the "Board" or "Riviera Board"), has incorrectly taken the position that the BCL prevents the Plaintiffs from engaging in any business combination (including the Proposal) with Riviera for the three-year disqualification period set forth in the BCL (i.e., Nevada Revised Statutes ("NRS") 78.438), and that the Charter Provision also prevents the Plaintiffs from making the Proposal. However, as Plaintiffs have explained to Defendants, nothing in the BCL or Charter Provision prevents the Plaintiffs from engaging in a business combination, including the Proposal, with Riviera. THE PARTIES ----------- 2. Plaintiff FLR is a limited liability company which owns 418,294 shares of Riviera and is a shareholder of RAH. 3. Plaintiff RH1 is a limited liability company which owns 418,294 shares of Riviera and is a shareholder of RAH. 4. Plaintiff Rivacq is a limited liability company which owns 627,442 shares of Riviera and is a shareholder of RAH. 5. Plaintiff RAH is a holding company that was formed in anticipation of a merger with Riviera. 6. Defendant Riviera is a Nevada corporation with its principal place of business in Las Vegas, Nevada. Riviera, through its subsidiaries, owns and operates the Riviera Hotel and Casino in Las Vegas, Nevada, and the Riviera Black Hawk Casino in Black Hawk, Colorado. 2 7. Defendants Vincent L. DiVito, Paul A. Harvey, James N. Land, Jr., Jeffrey A. Silver, and William L. Westerman are the directors of Riviera. FACTUAL BACKGROUND ------------------ The Plaintiffs' Previous Purchase Of Stock - ------------------------------------------ 8. On December 22, 2005, Plaintiffs FLR, Rivacq and another party (the "Buyers") entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with William Westerman (the Chairman and CEO of Riviera) and his family trust, pursuant to which the Buyers agreed to acquire 1,000,000 shares of Riviera common stock from Westerman and his family trust at a price of $15.00 per share. Pursuant to the Stock Purchase Agreement, subject, among other things, to the issuance of all necessary approvals and waivers from the Board under the Charter Provision and the Nevada Revised Statutes, as well as to the issuance of any necessary approvals by the Nevada and Colorado gaming authorities, (i) the Buyers also agreed to acquire an additional 650,000 shares of Riviera from Westerman and his family trust at a price of $15.00 per share and (ii) Westerman and his family trust agreed to grant the Buyers an irrevocable option (the "Westerman Option") to purchase an additional 441,471 shares of Riviera at a price of $15.00 per share. Following the acquisition of the initial tranche of shares under the Stock Purchase Agreement, the Buyers collectively held approximately 9.7% of the issued and outstanding Shares. 9. Shortly thereafter, the Buyers and RH1 formed RAH as a wholly-owned subsidiary of the Buyers. The Riviera Board's Approval Of The Previous Stock Purchases And The Merger Agreement - -------------------------------------------------------- 10. On April 6, 2006, Riviera entered into an agreement and plan of merger with RAH (the "Merger Agreement"), whereby RAH would acquire all outstanding shares of 3 Riviera for $17.00 per Share. On April 5, 2006, Riviera provided the following waivers and approvals with respect to the Stock Purchase Agreement and the Merger Agreement: (i) Riviera waived the Charter Provision with respect to RAH and its affiliates; and (ii) Riviera approved RAH and its affiliates' acquisition of Riviera shares in excess of 10% of the total number of outstanding shares for the purpose of the BCL (specifically, NRS 78.411 to 78.444). 11. On August 4, 2006, after obtaining approvals from the Nevada gaming authorities, the Buyers acquired the second tranche of 650,000 shares of Riviera and exercised the Westerman Option to acquire an additional 441,471 shares of Riviera (for a total of 1,091,471 shares of Riviera) pursuant to the Stock Purchase Agreement. By their terms, the April 5, 2006 approvals and waivers provided by Riviera as set forth above applied to the purchase by the Buyers of the second tranche of Riviera shares and to the acquisition of shares pursuant to the exercise of the Westerman Option. As a result of the acquisition of the second tranche of shares and the shares acquired pursuant to the Westerman Option, as of August 4, 2006, the Buyers and RH1 collectively held approximately 18.3% of the issued and outstanding common stock of Riviera. 12. On August 29, 2006, the Merger Agreement was submitted to a vote of Riviera's stockholders at Riviera's annual meeting and did not receive the number of votes required for its approval. Later that day, Riviera notified RAH that it was terminating the Merger Agreement. 4 The Contingent Option Agreement - ------------------------------- 13. On March 21, 2007, RAH entered into an agreement with two Riviera stockholders (Triple Five Investco LLC and Dominion Financial LLC (together, "T5")) for an option to acquire 1,147,550 shares of Riviera stock held by T5 at a price of $23.00 per share (the "Option Agreement"), the exercise of which was subject to certain conditions. Specifically, RAH's ability to exercise the option to purchase Riviera stock under the Option Agreement is expressly conditioned upon the following approvals by Riviera: (i) a waiver by the Riviera Board of the Charter Provision; (ii) approval by the Riviera Board with respect to NRS 78.438(1); and (iii) amendment of Riviera's charter and by-laws to provide that NRS Sections 78.378 to 78.3793 do not apply to the option or any exercise thereof. 14. The Riviera stock held by T5 and subject to the Option Agreement represents approximately 9.2% of the issued and outstanding shares of Riviera common stock. 15. The Option Agreement also includes a provision whereby T5 agreed to vote against any action or proposal that would result in an acquisition of Riviera by any party other than RAH or its affiliates. This provision states in relevant part: T5 does hereby agree to cooperate with RAH and reasonably perform whatever is required (to the extent not at T5's material cost) to insure that the [option] Transaction closes, including voting the Shares against any action, agreement, transaction or proposal that would result in any acquisition by any party other than RAH or its affiliates, whether by merger or otherwise, of control of [Riviera]. 16. The term of the Option Agreement is 90 days, with an extension permitted up to an additional 90 days. Riviera's Incorrect Position Regarding the BCL - ---------------------------------------------- 17. On March 26, 2007, by way of letter to Riviera's Board, Plaintiffs made the all-cash Proposal to the Riviera Board to acquire all of the outstanding common stock of 5 Riviera at a price of $27.00 per share - $10 per share higher than the $17 per share price that the Riviera Board had agreed to just a year earlier in the Merger Agreement. 18. By letter dated March 28, 2007, a copy of which is attached hereto as Exhibit 1 and incorporated herein by this reference, Riviera (through the Riviera Board) informed the Plaintiffs that the BCL and Charter Provision prevented the Plaintiffs from engaging in the Proposal, and that the BCL (i.e., NRS 78.438) prevents the Plaintiffs from engaging in any business combination (including the Proposal) with Riviera for the three-year disqualification period set forth in that statute. 19. Specifically, as evidenced by its March 28, 2007 letter to RAH, Riviera maintains that under the Option Agreement, RAH and its related parties have acquired "beneficial ownership" of the shares that are the subject of the Option Agreement for purposes of the BCL. Thus, Riviera contends that the three-year disqualification period set forth in NRS 78.438 applies to RAH. 20. Even though the Proposal represents a 58% increase in the offer that the Riviera Board had approved a year earlier, Riviera has incorrectly taken the position that the Plaintiffs are prevented from engaging in the Proposal, or engaging in any business combination with Riviera for the three-year disqualification period set forth in NRS 78.438. 21. On Riviera's incorrect view, the Plaintiffs would be prevented from engaging in a business combination with Riviera for the three-year disqualification period set forth in NRS 78.438 no matter what terms the Plaintiffs offered for Riviera. 22. Riviera's position regarding NRS 78.438 is without merit for at least two independent reasons. First, even assuming that the ownership interests of the owners of RAH should be aggregated for purposes of NRS 78.438, that provision expressly provides that the three-year disqualification period does not apply if the transaction by which a shareholder first 6 becomes an "interested stockholder" by reaching the 10% ownership threshold was approved by the board of directors. Specifically, NRS 78.438(1) provides in relevant part: A resident domestic corporation may not engage in any combination with any interested stockholder of the resident domestic corporation for 3 years after the date that the person first became an interested stockholder unless the combination or the transaction by which the person first became an interested stockholder is approved by the board of directors of the resident domestic corporation before the person first became an interested stockholder. (emphasis added) 23. As set forth above, on April 5, 2006, the Riviera Board approved the acquisitions whereby RAH acquired first 9.7% (by way of the first tranche), and then an additional 8.6% (by way of the second tranche and the exercise of the Westerman Option) of the outstanding shares of common stock of Riviera. Therefore, under the plain terms of NRS 78.438, the Riviera Board had approved of the transaction by which RAH first became an "interested stockholder" (i.e., when, by way of the second tranche and the exercise of the Westerman Option, it first became an owner of 10% of the outstanding stock of Riviera). Accordingly, by the express terms of NRS 78.438, the three-year disqualification period does not apply to RAH. 24. The Riviera Board has stated that when it provided the approval of the transactions on April 5, 2006, it limited such approval to those transactions (i.e., the Stock Purchase Agreement and the Merger Agreement). This assertion does nothing to avoid the undisputed fact that under the plain terms of NRS 78.438, the Riviera Board approved of the very transaction by which RAH first became an owner of 10% of the Company's stock. Thus, by the express operation of the statute's terms, and for this reason alone, the three-year disqualification period does not apply to RAH. 7 25. The second, independent reason why Riviera's position is incorrect regarding NRS 78.438 is because, as set forth above, the exercise of the option under the Option Agreement is contingent on RAH obtaining specified approvals from the Riviera Board. It is undisputed that the Riviera Board has not provided all of the waivers and consents necessary in order for RAH to be able to exercise the option. Therefore, for purposes of NRS 78.438, RAH has not become the beneficial owner of the stock of Riviera covered by the Option Agreement. 26. For purposes of NRS 78.438, the limited voting restriction set forth in the Option Agreement does not render RAH the beneficial owner of the stock which is the subject of the Option Agreement. This is because, among other things, the voting restriction in the Option Agreement does not give RAH or the Plaintiffs the ability to direct the vote of the shares which are the subject of the Option Agreement (including with respect to ordinary corporate matters such as the election of directors). It is merely a limited covenant which restricts how T5 can vote its shares with respect to a specific, extraordinary corporate transaction, and only applies for a limited, 90-day period (with an extension permitted up to an additional 90 days). 27. RAH has explained to the Riviera Board that Riviera's reading of NRS 78.438 is contrary to the plain terms of that provision, but Riviera still takes the position that the three-year disqualification period of the statute applies to RAH. Riviera's Incorrect Position Regarding The Charter Provision - ------------------------------------------------------------ 28. Riviera, through the Riviera Board, has also incorrectly asserted in its March 28, 2007 letter to RAH that by virtue of the Option Agreement, RAH and its related parties have acquired beneficial ownership of Riviera stock which triggers the application of the Charter Provision, and that as to any voting rights that RAH acquires (aside from those which 8 they have reported in their most recent report on Schedule 13D, filed with the Securities and Exchange Commission), those voting rights will be reduced to 1/100 of one vote per share. 29. Riviera's position that the Charter Provision applies to RAH is without basis. The Charter Provision mandates that once any person or group has acquired within any consecutive three year period beneficial ownership of more than 10% of Riviera's outstanding shares of common stock (i.e., becomes a "Substantial Stockholder"), that person or group will be "entitled to cast only one-hundreth (1/100) of one vote per share for each such share in excess of 10% of the then issued and outstanding shares of Common Stock." 30. The Charter Provision also provides that at any time prior to the time that a stockholder becomes a Substantial Stockholder, two-thirds of the Board has the power to waive "with respect to a Substantial Stockholder" the voting limitation in the Charter Provision. 31. In light of the plain terms of the Charter Provision, Riviera's position that the voting dilution provisions contained therein apply to RAH is untenable for at least three reasons. First, the Charter Provision does not give the Board the power to waive the voting restrictions on a limited or conditional basis for a particular transaction. Rather, the Board has the power to waive the voting restrictions with respect to a particular entity prior to that entity becoming a Substantial Stockholder. 32. As noted above, it is undisputed that on April 5, 2006, the Riviera Board voted to waive the Charter Provision's voting restrictions with respect to RAH and its affiliates, who had not yet become Substantial Stockholders. And as noted above, it is undisputed that the Riviera Board's April 5, 2006 waiver of the voting restrictions applied to the August 4, 2006 purchase of Riviera stock (by which RAH came to own a total of 18.3% of Riviera's outstanding common stock). Thus, by express operation of the Charter Provision's terms, the voting restrictions do not apply to RAH. 9 33. The second reason why Riviera's position regarding the Charter Provision is unfounded is because, as set forth above, for the purposes of the Charter Provision, RAH has not become the beneficial owner of the stock of Riviera covered by the Option Agreement (i.e., the express conditions on the exercise of the option have not occurred). Thus, the voting limitation in the Charter Provision does not apply to RAH, any interests of RAH obtained pursuant to the Option Agreement or the RAH Proposal. 34. For purposes of the Charter Provision, the limited voting restriction set forth in the Option Agreement does not render RAH the beneficial owner of the stock which is the subject of the Option Agreement. This is because, among other things, the voting restriction in the Option Agreement does not give RAH or the Plaintiffs the ability to direct the vote of the shares which are the subject of the Option Agreement (including with respect to ordinary corporate matters such as the election of directors). It is merely a limited covenant which restricts how T5 can vote its shares with respect to a specific, extraordinary corporate transaction, and only applies for a limited, 90-day period (with an extension permitted up to an additional 90 days). 35. Finally, even assuming that the voting limitation in the Charter Provision applied to the RAH Proposal, this would only result in a dilution in the voting rights of RAH, including with respect to the Proposal. It would not be a basis for Riviera to take the position that the Plaintiffs are prevented from engaging in the Proposal. FIRST CLAIM FOR RELIEF ---------------------- (Declaratory Judgment Concerning NRS 78.438) -------------------------------------------- 36. Plaintiffs repeat and reallege the above paragraphs as if fully set forth herein. 10 37. There is an actual and present controversy between Plaintiffs and Defendants concerning the application of NRS 78.438 to the RAH Proposal. Indeed, Riviera's incorrect reading of NRS 78.438 has led it to publicly take the position that Plaintiffs are prevented from being able to engage in any business combination with Riviera (including the Proposal) for the three-year disqualification period set forth in that statute. On Riviera's incorrect view, the Plaintiffs would be prevented from engaging in a business combination for the three-year prohibition period no matter what terms the Plaintiffs offered for Riviera. As bidders for Riviera, Plaintiffs have an immediate and protectible interest in having Plaintiffs' Proposal considered by Riviera and its Board. The Plaintiffs have an immediate and protectible interest in Riviera not taking the erroneous position that Plaintiffs cannot engage in any business combination with Riviera for three years, no matter what terms the Plaintiffs offer. As shareholders of Riviera, FLR, RH1 and Rivacq have an immediate and protectible interest in declaratory relief that the BCL is not an impediment to Riviera considering the Proposal. 38. Under the plain terms of NRS 78.438, the Riviera Board had approved of the transaction by which RAH first became an "interested stockholder" (i.e., an owner of 10% of the outstanding stock of Riviera). For this reason alone, by the express terms of NRS 78.438, the three-year disqualification period contained in that provision does not apply to RAH or the RAH Proposal. 39. A second, independent reason why Riviera's position is without basis regarding 78.438 is because the exercise of the option under the Option Agreement is contingent on RAH obtaining specified waivers and consents from the Riviera Board. It is undisputed that the Riviera Board has not provided all approvals necessary in order for RAH to be able to exercise the option. Therefore, for purposes of NRS 78.438, RAH has not become the beneficial owner of the stock of Riviera covered by the Option Agreement. 11 40. Accordingly, for each of the two independent reasons set forth above, Plaintiffs are entitled to a judgment declaring that the three-year disqualification period provided in NRS 78.438 does not apply to RAH or the RAH Proposal. 41. Plaintiffs are also entitled to a judgment declaring that Riviera, through its Board, may not invoke NRS 78.438 as an impediment to considering the Proposal. 42. Plaintiffs have no adequate remedy at law. 43. The harm suffered by Plaintiffs is irreparable. Riviera's public position that the BCL prevents the Plaintiffs from engaging in the Proposal (or engaging in any business combination with Riviera) for the three-year disqualification period set forth in NRS 78.438 puts in jeopardy the opportunity for the Plaintiffs and the Company to enter into a transaction that is in the best interest of Riviera's shareholders. SECOND CLAIM FOR RELIEF ----------------------- (Declaratory Judgment Concerning The Charter Provisions) -------------------------------------------------------- 44. Plaintiffs repeat and reallege the above paragraphs as if fully set forth herein. 45. There is an actual and present controversy between Plaintiffs and Defendants concerning the application of the Charter Provision to RAH and the RAH Proposal. Riviera has taken a public position that the Charter Provision is a reason why the Plaintiffs are prevented from engaging in the Proposal or engaging in a business combination with Riviera. As bidders for Riviera, Plaintiffs have an immediate and protectible interest in having its Proposal considered by Riviera and its Board. The Plaintiffs have an immediate and protectible interest in Riviera not taking the erroneous position that the Charter Provision prevents the Plaintiffs from engaging in any business combination with Riviera, no matter what terms the Plaintiffs offer. As shareholders of Riviera, FLR, RH1 and Rivacq have an immediate and protectible interest in 12 declaratory relief that the Charter Provision is not an impediment to Riviera considering the Proposal. 46. Under the plain terms of the Charter Provision, the Riviera Board had waived the voting restrictions prior to RAH becoming a "Substantial Stockholder." For this reason, by the express terms of the Charter Provision as quoted above, the voting restrictions contained in that provision do not apply to RAH. 47. A second, independent reason why Riviera's position is without basis regarding the Charter Provision is because, as explained above, RAH has not become the beneficial owner of the stock of Riviera covered by the Option Agreement. 48. A third, independent reason why Riviera's position is without basis regarding the Charter Provision is because, even assuming that the Charter Provision applied to RAH or the RAH Proposal, this would only result in a dilution of the voting rights of RAH. It would not be a basis for Riviera to take the position that Plaintiffs are prevented from engaging in the Proposal or engaging in a business combination with Riviera. 49. Accordingly, Plaintiffs are entitled to a judgment declaring that the voting restrictions contained in the Charter Provision do not apply to RAH or the RAH Proposal. 50. Plaintiffs are also entitled to a judgment declaring that Riviera may not invoke the Charter Provision as an impediment to considering the Proposal. 51. Plaintiffs have no adequate remedy at law. RELIEF REQUESTED ---------------- WHEREFORE, Plaintiffs respectfully demand judgment on its Complaint as follows: (a) declaring that the three-year disqualification period provided in NRS 78.438 does not apply to RAH or the Proposal; 13 (b) declaring that the Defendants may not invoke NRS 78.438 as an impediment to considering the Proposal; (c) declaring that the voting limitation in the Charter Provision does not apply to RAH, any interests acquired under the Option Agreement or the Proposal; (d) declaring that the Defendants may not invoke the Charter Provision as an impediment to considering the Proposal; (e) awarding Plaintiffs their costs and expenses, incurred in this action, including reasonable attorneys' fees; and (f) granting such other and further relief as this Court deems just and proper. Dated this 2nd day of May, 2007 JOLLEY URGA WIRTH WOODBURY & STANDISH By: /s/William R. Urga ----------------------------------------- William R. Urga, Esq. Nevada Bar No. 1195 Martin A. Little, Esq. Nevada Bar No. 7067 3800 Howard Hughes Parkway, Sixteenth Floor Las Vegas, Nevada 89169 Telephone: (702) 699-7500 Facsimile: (702) 699-7500 Of Counsel: Jonathan M. Hoff, Esq. Andrew J. Perel, Esq. Tom M. Fini, Esq. CADWALADER, WICKERSHAM & TAFT LLP One World Financial Center New York, New York 10281 Telephone: (212)504-6000 Facsimile: (212)504-6666 Attorneys for Plaintiffs 14 RECEIPT OF COPY RECEIPT OF COPY of the above and foregoing AMENDED COMPLAINT is hereby acknowledged this 2nd day of May, 2007. GORDON & SILVER, LTD. By: /s/ Jeffrey A. Silver ----------------------------------------- JEFFREY A. SILVER, ESQ. Nevada Bar No. 2870 Howard Hughes Parkway Ninth Floor Las Vegas, Nevada 89169 Telephone: (702) 796-5555 Facsimile: (702) 369-2666 Attorneys for Defendants 15 EXHIBIT "1" EXHIBIT "1" [Riviera Holdings Corporation Letterhead] William L. Westerman Chairman of the board March 28, 2007 Riv Acquisition Holdings Inc. 3753 Howard Hughes Parkway, Suite 101 Las Vegas, Nevada 89109 Attention: Paul C. Kanavos Dear Paul: The board of directors of Riviera Holdings Corporation (the "Board") has reviewed the March 26, 2007 letter from Riv Acquisition Holdings Inc. ("RAH") containing a proposal to acquire all of the outstanding stock of Riviera at $27 per share. In addition, we have reviewed the Option Agreement, dated March 21, 2007 (the "Option Agreement"), that RAH has entered into with Triple Five Investco LLC and Dominion Financial LLC (collectively, "T5"), which covers 1,147,550 shares, or 9.2%, of Riviera's outstanding stock owned by T5 (the "T5 Stock"). First, let me say we are deeply disappointed that without Board approval and in disregard of Riviera's statements to RAH and its related parties (including you) about Riviera's opposition to shareholder lockups that would interfere with the ability of shareholders to receive and respond to competing takeover proposals and thereby get the highest value for their shares, RAH entered into the Option Agreement and locked up the T5 Stock against any offers for the acquisition of Riviera by anyone other than RAH or its related parties. We note further that before entering into the Option Agreement, RAH and its related parties made repeated requests for Board waivers and approvals under Nevada's takeover laws and Riviera's articles of incorporation (collectively, "Prior Approval") to allow a lockup of the T5 Stock (which Prior Approval the Board declined to grant). This demonstrates that (i) RAH and its related parties understood the Option Agreement required Prior Approval and (ii) RAH's entry into it without Prior Approval was by no means an inadvertent violation of that requirement. That being said, Riviera is not in a position at this time to give further consideration to RAH's acquisition proposal because, among other reasons, under the Option Agreement RAH and its related parties have acquired "beneficial ownership" (for purposes of Nevada's Business Combination Law (the "BCL") and Article III, Section 7 of Riviera's articles of incorporation ("Section 7")) of the T5 stock without Prior Riv Acquisition Holdings, Inc. March 28, 2007 Page 2 Approval, as was required under the BCL and Section 7. Consequently, for the three-year period prescribed by the BCL, RAH and its related parties are disqualified from engaging in a merger or any other "combination" (as broadly defined in the BCL) with Riviera. After the expiration of that three-year period, RAH and its related parties will remain subject to various restrictions on combinations with Riviera, as further provided in the BCL. Furthermore, to the extent that RAH or its related parties acquire voting rights as to the T5 Stock or any other Riviera shares besides the shares of which they have reported beneficial ownership in their most recent Schedule 13D amendment filed with the Securities and Exchange Commission, those voting rights will be reduced to 1/100 of one vote per share, to the extent provided In paragraph (b) of Section 7. Finally, Riviera reserves all of its rights against RAH and its related parties with respect to violations of the BCL end Section 7 resulting from the Option Agreement or any other lockups or other unauthorized acquisitions of Riviera stock. Very truly yours, RIVIERA HOLDINGS CORPORATION /s/ William L. Westerman -------------------------------------------- William L. Westerman Chairman AFFIRMATION Pursuant to NRS 239B.030 The undersigned does hereby affirm that the preceding Amended Complaint filed in District Court Case No. A539614 [ X ] Does not contain the social security number of any person. - OR - [___] Contains the social security number of a person as required by a specific State or federal law, to wit: ------------------------------------------------------------------ (State specific law) for the administration of a public program or for an application for a federal or state grant. /s/ William R. Urga 5-2-07 - --------------------------- --------------------------- William R. Urga, Esq. #1195 (Date) Attorney for Plaintiffs EX-10.25 3 rh8811478-ex10_25.txt ANSWER RIVERIA COUNTERCLAIM EXHIBIT 10.25 [STAMP] May 24, 2007 @ 9:29 [END STAMP] ROC GORDON & SILVER, LTD. ERIC R. OLSEN Nevada Bar No. 3127 KENNETH E. HOGAN Nevada Bar No. 10083 3960 Howard Hughes Pkwy., 9th Floor Las Vegas, Nevada 89169 (702) 796-5555 Attorneys for Defendants DISTRICT COURT CLARK COUNTY, NEVADA FLAG LUXURY RIV, LCC; RIVACQ LLC, CASE NO. A539614 RH1 LLC and RIVACQUISITION HOLDINGS DEPT. XI INC., RECEIPT OF COPY Plaintiffs, vs. RIVIERA HOLDINGS CORPORATION, VINCENT L. DIVITO, PAUL A. HARVEY, JAMES N. LAND, JR., JEFFREY A. SILVER, and WILLIAM WESTERMAN, Defendants. - -------------------------------------------------- The undersigned acknowledges receipt of Defendants' Answer and Riviera Holdings Corporation's Counterclaim filed in the above referenced case. Dated this 24 day of May, 2007. JOLLEY URGA WIRTH WOODBURY & STANDISH /s/ William R. Urga -------------------------------------------- WILLIAM R. URGA 3800 Howard Hughes Parkway, 16th Fl. Las Vegas, Nevada 89169 Attorneys for Plaintiffs 1 of 1 [STAMP] May 24, 2007 @ 9:29 Electronically Filed 05/23/2007 8:26:48 PM /s/ (illegible signature) ------------------------- CLERK OF THE COURT [END STAMP] ANS GORDON & SILVER, LTD. ERIC R. OLSEN Nevada Bar No. 3127 KENNETH E. HOGAN Nevada Bar No. 10083 3960 Howard Hughes Pkwy., 9th Floor Las Vegas, Nevada 89169 (702) 796-5555 Attorneys for Defendants/Counterclaimants DISTRICT COURT CLARK COUNTY, NEVADA FLAG LUXURY RIV, LCC; RIVACQ LLC, RH1 LLC and RIVACQUISITION HOLDINGS CASE NO. A539614 INC., DEPT. XI Plaintiffs, vs. RIVIERA HOLDINGS CORPORATION, VINCENT L. DIVITO, PAUL A. HARVEY, JAMES N. LAND, JR., JEFFREY A. SILVER, ANSWER AND RIVIERA HOLDINGS and WILLIAM WESTERMAN, CORPORATION'S COUNTERCLAIM Defendants. - -------------------------------------------- Defendants Riviera Holdings Corporation, Vincent L. Divito, Paul A. Harvey, James N. Land, Jr., Jeffrey A. Silver, and William Westerman ("Defendants"), by and through their attorneys, the law firm of Gordon & Silver, Ltd., for their Answer to the Amended Complaint for Declaratory Relief filed by the Plaintiffs Flag Luxury Riv, LLC, RIVACQ LLC, RH1 LLC and RIV Acquisition Holdings ("Plaintiffs"), state as follows: NATURE OF THE ACTION -------------------- 1. Answering Paragraph 1 of the Complaint, Defendants admit that the general nature of the action filed by Plaintiffs is for declaratory relief, but otherwise deny each and every allegation contained therein. 1 of 13 THE PARTIES ----------- 2. Answering Paragraph 2 of the Complaint, Defendants admit each and every allegation contained therein. 3. Answering Paragraph 3 of the Complaint, Defendants admit each and every allegation contained therein. 4. Answering Paragraph 4 of the Complaint, Defendants admit each and every allegation contained therein. 5. Answering Paragraph 5 of the Complaint, Defendants admit each and every allegation contained therein. 6. Answering Paragraph 6 of the Complaint, Defendants admit each and every allegation contained therein. 7. Answering Paragraph 7 of the Complaint, Defendants admit each and every allegation contained therein. FACTUAL BACKGROUND ------------------ 8. Answering Paragraph 8 of the Complaint, Defendants state that following the initial tranche of stock Plaintiffs held only 9.6% of Riviera's stock, but otherwise admit each and every allegation contained therein. 9. Answering Paragraph 9 of the Complaint, Defendants admit each and every allegation contained therein. 10. Answering Paragraph 10 of the Complaint, Defendants admit each and every allegation contained therein, save and except Defendants deny that the Defendants provided anything more than limited waivers and approvals. 11. Answering Paragraph 11 of the Complaint, Defendants deny that the Defendants provided anything more than limited and conditional waivers and approvals, Defendants state that Plaintiffs held approximately 18.4% of Riviera's stock upon receipt of the second tranche, and Defendants state that they are without sufficient knowledge to confirm the date of the second tranche and therefore deny that allegation, but otherwise Defendants admit each and every allegation contained therein. 2 of 13 12. Answering Paragraph 12 of the Complaint, Defendants admit each and every allegation contained therein. 13. Answering Paragraph 13 of the Complaint, Defendants admit each and every allegation contained therein. 14. Answering Paragraph 14 of the Complaint, Defendants admit each and every allegation contained therein. 15. Answering Paragraph 15 of the Complaint, Defendants admit each and every allegation contained therein. 16. Answering Paragraph 16 of the Complaint, Defendants admit each and every allegation contained therein. 17. Answering Paragraph 17 of the Complaint, Defendants admit that on March 26, 2007 Plaintiffs made a $27 per share proposal to the Riviera Board for all the outstanding stock and that this was $10.00 more than the price in the Merger Agreement. 18. Answering Paragraph 18 of the Complaint, Defendants admit each and every allegation contained therein. 19. Answering Paragraph 19 of the Complaint, Defendants admit each and every allegation contained therein. 20. Answering Paragraph 20 of the Complaint, Defendants deny each and every allegation contained therein. 21. Answering Paragraph 21 of the Complaint, Defendants deny that their view is incorrect, and as to the remaining allegations Defendants state that they do not have sufficient knowledge or information upon which to base a belief as to the truth of the allegations contained therein and upon such ground deny each and every allegation contained therein. 22. Answering Paragraph 22 of the Complaint, Defendants deny each and every allegation contained therein. 23. Answering Paragraph 23 of the Complaint, Defendants deny each and every allegation contained therein. 3 of 13 24. Answering Paragraph 24 of the Complaint, Defendants admit that they gave limited approval to the original Purchase Agreement and Merger Agreement, but otherwise deny each and every allegation contained therein. 25. Answering Paragraph 25 of the Complaint, Defendants deny each and every allegation contained therein. 26. Answering Paragraph 26 of the Complaint, Defendants deny each and every allegation contained therein. 27. Answering Paragraph 27 of the Complaint, Defendants admit their position is that the three-year disqualification period of the statute applies to RAH, but deny that such position is contrary to NRS 78.438. 28. Answering Paragraph 28 of the Complaint, Defendants admit each and every allegation contained therein, save and except Defendants deny that their assertions are incorrect. 29. Answering Paragraph 29 of the Complaint, Defendants deny each and every allegation contained therein. 30. Answering Paragraph 30 of the Complaint, Defendants admit that the Charter Provision states, among other things, that upon the vote of 2/3s of the Board, the Board may waive the voting restriction in the Charter Provision with respect to a Substantial Stockholder. 31. Answering Paragraph 31 of the Complaint, Defendants deny each and every allegation contained therein. 32. Answering Paragraph 31 of the Complaint, Defendants deny each and every allegation contained therein. 33. Answering Paragraph 33 of the Complaint, Defendants deny each and every allegation contained therein. 34. Answering Paragraph 34 of the Complaint, Defendants deny each and every allegation contained therein. 35. Answering Paragraph 35 of the Complaint, Defendants deny each and every allegation contained therein. 4 of 13 FIRST CLAIM FOR RELIEF ---------------------- (Declaratory Judgment Concerning NRS 78.438) 36. Answering Paragraph 36 of the Complaint, Defendants repeat and reallege the above answers as though fully set forth herein. 37. Answering Paragraph 37 of the Complaint, Defendants admit there is a controversy between Plaintiffs and Defendants concerning the application of the NRS 78.438, and that Riviera has taken the position that Plaintiffs are prevented from engaging in any business combination with Riviera (including the Proposal) for the three-year disqualification period set forth in that statute, but otherwise deny each and every allegation contained therein. 38. Answering Paragraph 38 of the Complaint, Defendants deny each and every allegation contained therein. 39. Answering Paragraph 39 of the Complaint, Defendants deny each and every allegation contained therein. 40. Answering Paragraph 40 of the Complaint, Defendants deny each and every allegation contained therein. 41. Answering Paragraph 41 of the Complaint, Defendants deny each and every allegation contained therein. 42. Answering Paragraph 42 of the Complaint, Defendants state that they are without sufficient knowledge upon which to base an answer and on that basis, deny each and every allegation contained therein. 43. Answering Paragraph 43 of the Complaint, Defendants deny each and every allegation contained therein. SECOND CLAIM FOR RELIEF ----------------------- (Declaratory Judgment Concerning the Charter Provision) 44. Answering Paragraph 44 of the Complaint, Defendants repeat and reallege the above answers as though fully set forth herein. 45. Answering Paragraph 45 of the Complaint, Defendants admit that there is a controversy concerning the application of the Charter Provision, and that Defendants have taken the position that the Charter Provision precludes Plaintiffs from engaging in the Proposal or in a 5 of 13 business combination with Riviera, but otherwise deny each and every allegation contained therein. 46. Answering Paragraph 46 of the Complaint, Defendants deny each and every allegation contained therein. 47. Answering Paragraph 47 of the Complaint, Defendants deny each and every allegation contained therein. 48. Answering Paragraph 48 of the Complaint, Defendants deny each and every allegation contained therein. 49. Answering Paragraph 49 of the Complaint, Defendants deny each and every allegation contained therein. 50. Answering Paragraph 50 of the Complaint, Defendants deny each and every allegation contained therein. 51. Answering Paragraph 51 of the Complaint, Defendants state that they are without sufficient knowledge upon which to base an answer and on that basis, deny each and every allegation contained therein. AFFIRMATIVE DEFENSES 1. The claims of the Plaintiffs have been waived as a result of the acts and conduct of the Plaintiffs. 2. Plaintiffs are estopped from asserting the claims herein as a result of the conduct of the Plaintiffs. 3. Plaintiff, with full knowledge of all the facts connected with or relating to the transaction alleged in the Complaint, ratified and confirmed in all respects the acts of the Defendant, by accepting the benefits to the Plaintiff accruing from such acts. 4. It has been necessary for the Defendants to retain the services of an attorney to defend this action and a reasonable sum should be allowed Defendants as and for attorney's fees, together with its costs expended in this action. 5. Pursuant to NRCP 11, all possible affirmative defenses may not have been alleged herein insofar as sufficient facts were not available after reasonable inquiry upon the filing of 6 of 13 this Answer, and therefore, Defendant reserves the right to amend this answer to allege additional affirmative defenses if subsequent investigation warrants. WHEREFORE, Defendant prays for the following: 1. That Declaratory Judgment be entered against the Plaintiffs and in favor of the Defendants on each claim for relief; 2. That Plaintiffs take nothing by way of their Amended Complaint on file herein; 3. For award of reasonable attorneys' fees to Defendants for having to defend this suit; and 4. For such other further relief as the Court deems just and proper. COUNTERCLAIM COMES NOW, Defendant/Counterclaimant Rivera Holdings Corporation ("Riviera"), and for its Counterclaim against the Plaintiffs/Counterdefendants, alleges as follows: NATURE OF THE ACTION -------------------- 1. Counterclaimant is entitled to declaratory relief stating that the Nevada Business Combinations Law ("BCL") set forth in Chapter 78 of the Nevada Revised Statutes presently operates to preclude Counterdefendants from any business combination with Riviera until December 22, 2008, and that the Article III, Section 7, of the Articles of Incorporation, ("Charter Provision") applies to the shares obtained by Counterdefendants pursuant to the T5 Option and Lock-up Agreement. FACTUAL BACKGROUND ------------------ 2. On or about December 22, 2005, Counterdefendants entered into an agreement with William L. Westerman, CEO of Riviera ("Westerman"), for the purpose of acquiring Riviera common stock (the "Purchase Agreement"). 3. The 2,091,471 shares of stock subject to the Purchase Agreement equate to approximately 18.4% of the outstanding shares of Riviera. 4. Thereafter, Counterdefendants proposed a Plan of Merger ("Plan of Merger") whereby Counterdefendants would acquire all outstanding shares of Riviera for $17 per share. In connection with the Plan of Merger, the Counterdefendants sought approval of the Purchase 7 of 13 Agreement for acquisition of greater than 10% of the outstanding shares of Riviera stock. 5. On or about April 3, 2006, Counterclaimants agreed to limited and conditional approval of Counterdefendants' transaction for acquiring greater than 10% of outstanding shares of Riviera stock concurrent to the Plan of Merger, and only as a part of the Plan of Merger. 6. The Minutes of the Special Meeting of the Board of Directors of Riviera reflect the approval of the Plan of Merger as follows: APPROVAL OF AGREEMENT --------------------- RESOLVED, that the Agreement and Plan of Merger (the "Agreement") by and among Riv Acquisition Holdings Inc., a Delaware corporation (the "Parent"), Riv Acquisition Inc., a Nevada corporation ("Merger Sub") and Riviera Holdings Corporation, a Nevada corporation (the "Company"), as presented to the Board and as set forth on Exhibit B, providing, in part, that (i) Merger Sub will merge with and into the Company (the "Merger"), (ii) each share of the common stock par value $.001 of the Company ("Company Common Stock") issued and outstanding immediately prior to the filing of the articles of merger with the Secretary of State of the State of Nevada (the "Secretary of State") will be converted into the right to receive $17.00 and (iii) other transactions will occur as contemplated by the Agreement concurrently with the Merger (collectively, the "Transactions"), is hereby authorized and approved by the Board substantially in the form presented. 7. In those same Minutes, Riviera also provided waiver of the BCL (specifically NRS 78.410 to 78.444), but only a limited and conditional waiver. The Minutes of the Special Meeting of the Board of Directors of Riviera state specifically: WAIVER OF NRS ss.ss. 78.411 TO 778.444 (FOR SPECIFIC TRANSACTIONS) RESOLVED, that with respect to the provisions of Nevada Revised Statutes ("NRS") ss.ss. 78.411 TO 78.444, EFFECTIVE UPON THE Execution of the agreement, the Board hereby approves Parent and its affiliates acquiring shares of Company Common Stock only through the Merger, the Transactions and the transactions contemplated by the Stock Purchase Agreement. WAIVER OF NRS ss.ss. 78.378 TO 78.3793 (FOR SPECIFIC TRANSACTIONS) RESOLVED, that the Board believes that it is in the best interest of the Company to amend the Bylaws of the Company by adding article IX, effective upon the Execution of the Agreement, as follows: "The provisions of Nevada Revised Statutes ss.ss. 78.378 to 78.3793, inclusive, do not apply to the corporation or to an acquisition of a controlling interest with respect only to Riv Acquisition Holdings Inc., a Delaware corporation ("Parent") or Parent's Affiliates (as defined below) acquiring the common stock of the corporation under the terms of the following agreements: (i) that Agreement and Plan of Merger (the "Agreement") by and among the parent, 8 of 13 Riv Acquisition Inc., a Nevada corporation ("Merger Sub") and the corporation pursuant to which Merger Sub will merge with and into the corporation (the "Merger"), each share of the common stock par value $.001 of the corporation issued and outstanding immediately prior to the filing of the articles of merger with the Secretary of State of the State of Nevada will be converted into the right to receive $17.00 and other transactions that will occur under the Agreement concurrently with the Merger; and (ii) the transactions contemplated by the Stock Purchase Agreement ("Stock Purchase Agreement") dated December 22, 2005, among Flag Luxury Riv. LLC, Rivacq LLC, High Desert Gaming LLC, William L. Westerman and the William L. Westerman 2004 Revocable Family Trust. For the purposes of this article IX, the term "Affiliate" of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person." RESOLVED, FURTHER, that the foregoing amendment to the Bylaws, to be effective as of the Execution of the Agreement, shall only be effective with respect to the acquisition of shares of Company Common Stock through the Merger, the Transactions and the transactions contemplated by the Stock Purchase Agreement. 8. On or about August 29, 2006, by vote of the Riviera Stockholders, the Plan of Merger was disapproved, and on that same date Riviera notified Counterdefendants that it was terminating the Plan of Merger. 9. Upon termination of the Plan of Merger, the approval and conditional waivers of NRS 78.411 to 78.444 also terminated. 10. On or about March 21, 2007, Flag and T5 signed an option and lock-up agreement ("Option and Lock-up Agreement"), effective upon signature. Under this agreement, Counterdefendants acquired a beneficial interest in approximately 9.2% of the outstanding shares of common stock of Riviera. 11. On March 26, 2007, Flag faxed a proposal for acquisition of all outstanding Riviera stock to Riviera's Board for a price of $27.00 per share ("Merger Proposal"). 12. On March 28, 2007, the Riviera Board met, and authorized Westerman to send a letter of rejection to the Merger Proposal, which was sent the same day. 9 of 13 FIRST CLAIM FOR RELIEF ---------------------- (Declaratory Judgment Pursuant to NRS 78.414(2)) ------------------------------------------------ 13. Counterclaimant hereby repeats, re-alleges and incorporates by reference Paragraphs 1 through 12 of its Counterclaim as though fully set forth herein. 14. Triple Five Investco LLC and Dominion Financial LLC (together, "T5") were the beneficial owners of certain shares of Riviera Stock, approximating 9.2% of the outstanding shares of Riviera. 15. On or about March 21, 2007, Counterdefendants entered into the Option and Lock-up agreement with T5 for the purpose of acquiring T5's shares. 16. Nevada law provides, at NRS 78.414(2), that the term "Beneficial owner" is one who holds either: (a) The right to acquire the shares, whether the right is exercisable immediately or only after the passage of time, under any agreement, arrangement or understanding, whether or not in writing, or upon the exercise of rights to convert or exchange, warrants or options, or otherwise, but a person is not considered the beneficial owner of shares tendered under an offer for a tender or exchange made by the person or any of his affiliates or associates until the tendered shares are accepted for purchase or exchange; or (b) The right to vote the shares under any agreement, arrangement or understanding, whether or not in writing, but a person is not considered the beneficial owner of any shares under this paragraph if the agreement, arrangement or understanding to vote the shares arises solely from a revocable proxy or consent given in response to a solicitation made in accordance with the applicable regulations under the Securities Exchange Act and is not then reportable on a Schedule 13D under the Securities Exchange Act, or any comparable or successor report; or any person, through any associates, who directly or indirectly has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting, or disposing of the shares with any other person who beneficially owns the shares, is a "beneficial owner" of those shares. 17. On those facts as set forth above, Riviera is entitled to a judgment declaring that Counterdefendants were the "beneficial owners" of the T5 stock, as of March 21, 2007. SECOND CLAIM FOR RELIEF ----------------------- (Declaratory Judgment Pursuant to NRS 78.414(3)) ------------------------------------------------ 18. Counterclaimant hereby repeats, re-alleges and incorporates by reference Paragraphs 1 through 17 of its Counterclaim as though fully set forth herein. 19. Triple Five Investco LLC and Dominion Financial LLC (together, "T5") were the beneficial owners of certain shares of Riviera Stock, approximating 9.2% of the outstanding 10 of 13 shares of Riviera. 20. On or about March 21, 2007, Counterdefendants entered into the Option and Lock-up Agreement with T5 for the purpose of acquiring T5's shares. 21. Nevada law provides, at NRS 78.414(3), that any person, through any associates, who directly or indirectly has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting, or disposing of the shares with any other person who beneficially owns the shares, is a "beneficial owner" of those shares. 22. On those facts above, Counterclaimant is entitled to a judgment declaring that Counterdefendants were the "beneficial owners" of the stock subject to the T5 stock, as of March 21, 2007. THIRD CLAIM FOR RELIEF ---------------------- (Declaratory Judgment Pursuant to N.R.S. 78.438) 23. Counterclaimant hereby repeats, re-alleges and incorporates by reference Paragraphs 1 through 22 of its Counterclaim as though fully set forth herein. 24. Nevada law, at NRS 78.438, provides that once an entity becomes an "interested stockholder," business combinations between a Nevada corporation and that shareholder are prohibited for a period of three years "unless the combination or transaction by which the person first became an interested stockholder is approved by the board of directors of the resident domestic corporation before the person first became an interested stockholder." 25. There is an actual and present controversy between the Riviera and Counterdefendants concerning the application of NRS 78.438 to the Counterdefendants' Merger Proposal. 26. Counterdefendant maintains that the Riviera Board approved the Purchase Agreement by which RAH first became an interested stockholder, thereby taking it out of the three-year disqualification period of NRS 78.438. They also maintain that they are not the beneficial owner of the Riviera stock covered by the T5 Option Agreement and Lock-up and that, therefore, NRS 78.438 does not apply to the Merger Proposal. In fact, Counterdefendants are the beneficial owners of the Riviera stock covered by the T5 Option and Lock-up Agreement, 11 of 13 and the three-year disqualification period of NRS 78.438 applies, because the approval and waiver of the purchase of over 10% of the shares in April 2006 was expressly limited and tied to the Merger Agreement, which was terminated in August 2006, as a result of a vote of the Riviera Shareholders. 27. The actions and course of dealing of the Counterdefendants since the time of the termination of the Merger Agreement reflect Counterdefendants' knowledge that the April 2006 approvals and waivers were limited and conditional. 28. Counterdefendants' March 21, 2007 acquisition of beneficial ownership in the T5 shares of Riviera stock was not approved by the Riviera Board, and in fact was opposed explicitly by representatives of the Board in the "11 Points" e-mail. 29. On those facts as set forth above, Counterclaimant is entitled to a judgment declaring that Counterdefendants' are subject to the three-year disqualification of NRS 78.438 which precludes Riviera from engaging in business combinations with Counterdefendants, including the Merger Proposal, until December 22, 2008. FOURTH CLAIM FOR RELIEF ----------------------- (Declaratory Judgment Concerning the Charter Provisions) 30. Counterclaimant hereby repeats, re-alleges and incorporates by reference Paragraphs 1 through 29 of its Counterclaim as though fully set forth herein. 31. There is an actual and present controversy between Riviera and Counterdefendants concerning the application of the Charter Provision to Counterdefendants and the Merger Proposal. 32. The Charter Provision mandates that once a person or group has acquired more than 10% of Riviera's outstanding common stock (i.e., has become a "substantial stockholder"), within the consecutive three-year period, that person or group will be "entitled to cast only 1/100th of one vote per share for each such share in excess of 10% of the then issued and outstanding shares of common stock." 33. As stated above, all approvals and waivers granted by the Riviera Board in April of 2006 were expressly limited to the context of the Merger Agreement. Once the Merger 12 of 13 Agreement was terminated by a vote of the shareholders in August 2006, that approval was also terminated. 34. Because the waiver was terminated, the voting restriction of the Charter Provision is in effect as to the Counterclaimants. 35. Riviera seeks a judgment declaring that the voting restriction in the Charter Provision, limiting the Counterdefendants' right to 1/100th of one vote per share, is in effect as to the T5 shares that are the subject of the Option and Lock-up Agreement. WHEREFORE, Counterclaimant prays for Relief as follows: 1. For judgment declaring that the Counterdefendants were "beneficial owners" of the Riviera Stock subject to the T5 Option and Lock-up Agreement as of March 21, 2007. 2. For judgment declaring that the Counterdefendants, as interested stockholders no more than 10% of Riviera's outstanding shares, are subject to and not exempted from the provisions of NRS 78.438, and that, as a result of Counterdefendants' status as non-exempted interested stockholders, they are prohibited by law from entering into business combinations with these Counterdefendants, until December 22, 2008. 3. For judgment declaring that the Charter Provision voting restriction applies to Counterclaimants. 4. For attorney's fees and costs as allowed by law. 5. For such other and further relief as may be deemed appropriate by the Court. Dated this 23rd day of May, 2007. GORDON & SILVER, LTD. /s/ Eric R. Olsen -------------------------------------------- ERIC R. OLSEN Nevada Bar No. 3127 KENNETH E. HOGAN Nevada Bar No. 10083 3960 Howard Hughes Pkwy., 9th Floor Las Vegas, Nevada 89169 (702) 796-5555 Attorneys for Defendants/Counterclaimant 13 of 13 -----END PRIVACY-ENHANCED MESSAGE-----