-----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, PeqkYQTIw1VqEOa8q0nKE1agXp79Nawqk3Ui3fRpkQq4CGn+ByQA/D1pDVwDlD25 srjpiZDOV1QNhrOyT1KBEw== 0000921895-08-003020.txt : 20081209 0000921895-08-003020.hdr.sgml : 20081209 20081209171735 ACCESSION NUMBER: 0000921895-08-003020 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20081209 DATE AS OF CHANGE: 20081209 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: MULTIMEDIA GAMES INC CENTRAL INDEX KEY: 0000896400 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 742611034 STATE OF INCORPORATION: TX FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-60113 FILM NUMBER: 081239149 BUSINESS ADDRESS: STREET 1: 206 WILD BASIN RD. STREET 2: BUILDING B, FOURTH FLOOR CITY: AUSTIN STATE: TX ZIP: 78746 BUSINESS PHONE: 5123347500 MAIL ADDRESS: STREET 1: 206 WILD BASIN RD. STREET 2: BUILDING B, FOURTH FLOOR CITY: AUSTIN STATE: TX ZIP: 78746 FORMER COMPANY: FORMER CONFORMED NAME: TV BINGO NETWORK INC /TX/ DATE OF NAME CHANGE: 19930126 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: DOLPHIN LIMITED PARTNERSHIP III, L.P. CENTRAL INDEX KEY: 0001372405 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 156 W. 56TH STREET STREET 2: SUITE 1203 CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 203-358-8000 MAIL ADDRESS: STREET 1: 96 CUMMINGS POINT ROAD CITY: STAMFORD STATE: CT ZIP: 06902 SC 13D/A 1 sc13da207378002_12082008.htm AMENDMENT NO. 2 TO THE SCHEDULE 13D sc13da207378002_12082008.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D
(Rule 13d-101)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
§ 240.13d-2(a)

(Amendment No. 2)1

Multimedia Games, Inc.
(Name of Issuer)

Common Stock , $0.01 par value
(Title of Class of Securities)

625453105
(CUSIP Number)

STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

December 8, 2008
(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 that is the subject of this Schedule 13D, and is filing this schedule because of §§ 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 § 240.13d-7 for other parties to whom copies are to be sent.


_______________
1              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. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DOLPHIN LIMITED PARTNERSHIP I, L.P.
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
 285,140
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
 285,140
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
 285,140
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
1.1%
14
TYPE OF REPORTING PERSON
 
PN

2
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DOLPHIN FINANCIAL PARTNERS, L.L.C.
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
 148,900
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
 148,900
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
 148,900
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
Less than 1%
14
TYPE OF REPORTING PERSON
 
OO

3
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DOLPHIN LIMITED PARTNERSHIP III, L.P.
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
WC
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
 1,453,695
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
 1,453,695
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
 1,453,695
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
5.5%
14
TYPE OF REPORTING PERSON
 
PN

4
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DOLPHIN ASSOCIATES, LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
285,140
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
285,140
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
285,140
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
1.1%
14
TYPE OF REPORTING PERSON
 
OO

5
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DOLPHIN HOLDINGS CORP.
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
285,140
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
285,140
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
285,140
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
1.1%
14
TYPE OF REPORTING PERSON
 
CO

6
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DOLPHIN ASSOCIATES III, LLC
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
1,453,695
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
1,453,695
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
1,453,695
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
5.5%
14
TYPE OF REPORTING PERSON
 
OO

7
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DOLPHIN HOLDINGS CORP. III
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
1,453,695
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
1,453,695
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
1,453,695
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
5.5%
14
TYPE OF REPORTING PERSON
 
CO

8
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
DONALD T. NETTER
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
AF
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
1,887,735
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
1,887,735
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
1,887,735
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
o
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
7.1%
14
TYPE OF REPORTING PERSON
 
IN

9
CUSIP NO. 625453105
 
 
1
NAME OF REPORTING PERSON
 
JUSTIN A. ORLANDO
2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
  (a) x
  (b) o
3
SEC USE ONLY
 
4
SOURCE OF FUNDS
 
00
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
 
¨
6
CITIZENSHIP OR PLACE OF ORGANIZATION
 
USA
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7
SOLE VOTING POWER
 
- 0 -
8
SHARED VOTING POWER
 
- 0 -
9
SOLE DISPOSITIVE POWER
 
- 0 -
10
SHARED DISPOSITIVE POWER
 
- 0 -
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
- 0 - * 
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
 
x
13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
 
0%
14
TYPE OF REPORTING PERSON
 
IN
 
 
* See Item 5.
10
CUSIP NO. 625453105
 
The following constitutes Amendment No. 2 (“Amendment No. 2”) to the Schedule 13D filed by the undersigned.  This Amendment No. 2 amends the Schedule 13D as specifically set forth.

Item 3.                                Source and Amount of Funds or Other Consideration.
 
Item 3 is hereby amended and restated to read as follows:

The Shares and options to acquire shares purchased by Dolphin I, Dolphin Financial Partners and Dolphin III were purchased with working capital (which may, at any given time, include margin loans made by brokerage firms in the ordinary course of business) in open market purchases, except as otherwise noted.  The aggregate purchase cost of the 1,887,735 Shares beneficially owned in the aggregate by Dolphin I, Dolphin Financial Partners and Dolphin III is approximately $12,476,488, including brokerage commissions.
 
Item 4.                                Purpose of Transaction.
 
Item 4 is hereby amended to add the following:

On December 8, 2008, Dolphin III, on behalf of the Reporting Persons, delivered a letter (the “Letter”) to the members of the Issuer’s Nominating and Corporate Governance Committee.  As of the close of business on December 9, 2008, the Reporting Persons had not received a written or oral response from the Issuer.  A copy of the Letter is attached as exhibit 99.1 hereto and incorporated herein by reference.
 
Item 5.                                Interest in Securities of the Issuer.

Item 5 is hereby amended and restated to read as follows:

(a)           The aggregate percentage of Shares reported owned by each person named herein is based upon 26,587,821 Shares outstanding, as of August 1, 2008, which is the total number of Shares outstanding as reported in the Issuer’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 8, 2008.
 
As of the date hereof, the Reporting Persons collectively own an aggregate of 1,887,735 Shares, constituting approximately 7.1% of the Shares outstanding.

As of the date hereof, Dolphin I beneficially owns 285,140 Shares, constituting approximately 1.1% of the Shares outstanding.  As the general partner of Dolphin I, Dolphin Associates may be deemed to beneficially own the 285,140 Shares owned by Dolphin I, constituting approximately 1.1% of the Shares outstanding.  As the managing member of Dolphin Associates, which in turn is the general partner of Dolphin I, Dolphin Holdings may be deemed to beneficially own the 285,140 Shares owned by Dolphin I, constituting approximately 1.1% of the Shares outstanding.  As the Chairman, Chief Executive Officer, President and Senior Managing Director of Dolphin Holdings, which is the managing member of Dolphin Associates, which in turn is the general partner of Dolphin I, Mr. Netter may be deemed to beneficially own the 285,140 Shares owned by Dolphin I, constituting approximatley 1.1% of the Shares outstanding.
 
11

As of the date hereof, Dolphin III owns 1,453,695 Shares, constituting approximately 5.5% of the Shares outstanding.  As the general partner of Dolphin III, Dolphin Associates III may be deemed to beneficially own the 1,453,695 Shares owned by Dolphin III, constituting approximately 5.5% of the Shares outstanding.  As the managing member of Dolphin Associates III, which in turn is the general partner of Dolphin III, Dolphin Holdings III may be deemed to beneficially own the 1,453,695 Shares owned by Dolphin III, constituting approximately 5.5% of the Shares outstanding.  As the Chief Executive Officer, President and Senior Managing Director of Dolphin Holdings III, which is the managing member of Dolphin Associates III, which in turn is the general partner of Dolphin III, Mr. Netter may be deemed to beneficially own the 1,453,695 Shares owned by Dolphin III, constituting approximately 5.5% of the Shares outstanding.

As of the date hereof, Dolphin Financial Partners owns 148,900 Shares, constituting less than 1% of the Shares outstanding.  As the Manager of Dolphin Financial Partners, Mr. Netter may be deemed to beneficially own the 148,900 Shares owned by Dolphin Financial Partners, constituting less than 1% of the Shares outstanding.

Mr. Orlando does not directly own any Shares.  Mr. Orlando, as a member of a “group” for the purposes of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended, is deemed to beneficially own the Shares beneficially owned by the other members of the Group.  Mr. Orlando disclaims beneficial ownership of the Shares owned in the aggregate by the other members of the Group.

Each of Dolphin I, Dolphin Financial Partners, Dolphin III, Dolphin Associates, Dolphin Holdings, Dolphin Associates III, Dolphin Holdings III and Mr. Netter, as members of a “group” for the purposes of Rule 13d-5(b)(1) of the Securities Exchange Act of 1934, as amended, is deemed to beneficially own the Shares beneficially owned by the other members of the Group.  Each of Dolphin I, Dolphin Financial Partners, Dolphin III, Dolphin Associates, Dolphin Holdings, Dolphin Associates III, Dolphin Holdings III and Mr. Netter disclaims beneficial ownership of the Shares owned in the aggregate by the other members of the Group, except to the extent of its or his pecuniary interest therein.

(b)           By virtue of his position with Dolphin Holdings, Dolphin Holdings III and Dolphin Financial Partners, Mr. Netter has the sole power to vote and dispose of the Shares beneficially owned by Dolphin I, Dolphin III and Dolphin Financial Partners.

(c)           Schedule A annexed hereto lists all transactions in the Shares by the Reporting Persons since the filing of Amendment No. 1 to the Schedule 13D.  All of such transactions were effected in the open market, unless otherwise noted.

(d)           No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of dividends from, or proceeds from the sale of, the Shares.

(e)           Not applicable.
 
12
 
Item 7.                                Material to be Filed as Exhibits.
 
Item 7 is hereby amended to add the following exhibit:
 
Exhibit 99.1
Letter dated December 8, 2008 from Dolphin Limited Partnership III, L.P. to the members of the Nominating and Corporate Governance Committee of Multimedia Games, Inc.
 
 
13
CUSIP NO. 625453105
 
SIGNATURES
 
After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
 
Dated:  December 9, 2008
DOLPHIN LIMITED PARTNERSHIP I, L.P.
   
 
By:
Dolphin Associates, LLC
General Partner
     
 
By:
Dolphin Holdings Corp.
Managing Member
   
 
By:
 /s/ Donald T. Netter 
   
Donald T. Netter
Chairman, Chief Executive Officer,
President and Senior Managing Director

 
DOLPHIN LIMITED PARTNERSHIP III, L.P.
   
 
By:
Dolphin Associates III, LLC
General Partner
     
 
By:
Dolphin Holdings Corp. III
Managing Member
   
 
By:
 /s/ Justin A. Orlando
   
Justin A. Orlando
Vice President, Managing Director

 
DOLPHIN FINANCIAL PARTNERS, L.L.C.
   
 
By:
 /s/ Donald T. Netter
   
Donald T. Netter
Manager

 
DOLPHIN ASSOCIATES, LLC
   
 
By:
Dolphin Holdings Corp.
Managing Member
   
 
By:
 /s/ Donald T. Netter
   
Donald T. Netter
Chairman, Chief Executive Officer,
President and Senior Managing Director
 
14
CUSIP NO. 625453105
 
 
DOLPHIN ASSOCIATES III, LLC
   
 
By:
Dolphin Holdings Corp. III
Managing Member
   
 
By:
 /s/ Justin A. Orlando
   
Justin A. Orlando
Vice President and Managing Director

 
DOLPHIN HOLDINGS CORP.
   
 
By:
 /s/ Donald T. Netter
   
Donald T. Netter
Chairman, Chief Executive Officer,
President and Senior Managing Director

 
DOLPHIN HOLDINGS CORP. III
   
 
By:
 /s/ Justin A. Orlando
   
Justin A. Orlando
Vice President and Managing Director

 
  /s/ Donald T. Netter
 
DONALD T. NETTER

 
  /s/ Justin A. Orlando
 
JUSTIN A. ORLANDO

 
15
CUSIP NO. 625453105
 
SCHEDULE A

Transactions in the Shares Since the Filing of Amendment No. 1 to the Schedule 13D

Class of
Security
Securities
Purchased / (Sold)
 
Price ($)
Date of
Purchase / Sale

DOLPHIN LIMITED PARTNERSHIP I, L.P.

Common Stock
8,340
  
2.9386
11/06/2008

DOLPHIN FINANCIAL PARTNERS, L.L.C.
None

DOLPHIN LIMITED PARTNERSHIP III, L.P.
None

DOLPHIN ASSOCIATES, LLC
None

DOLPHIN HOLDINGS CORP.
None
 
DOLPHIN ASSOCIATES III, LLC
None
 
DOLPHIN HOLDINGS CORP. III
None
 
DONALD T. NETTER
None
 
JUSTIN A. ORLANDO
None
 
 
16
 
 
 
 EX-99.1 2 ex991to13da207378002_120808.htm LETTER DATED DECEMBER 8, 2008 ex991to13da207378002_120808.htm
Exhibit 99.1
 
Dolphin Limited Partnership III, L.P.
 

 
December 8, 2008
 
 
 
Multimedia Games, Inc.
The Nominating and Corporate Governance Committee
Mr. Emanuel R. Pearlman, Chairman
Mr. Michael Maples, Chairman of the Board
Mr. Robert D. Repass
6 Wild Basin Road
Austin, TX 78746
 
 
Gentlemen:
 
As you know, Dolphin Limited Partnership III, L.P., together with its affiliates (“Dolphin”), has been a significant and constructive shareholder of Multimedia Games, Inc. (“MGAM”) for over two years.  As early as April, 2008 we discussed Dolphin’s belief that the addition of another shareholder representative to the Board of MGAM would be beneficial for the Company and its shareholders.  As you know, Dolphin has a long history of positive efforts to increase value on behalf of all shareholders in other public companies.
 
On September 3, 2008 Dolphin formally delivered a letter to the Board voluntarily placing its representative in nomination.  Since then, there have been numerous substantive discussions regarding the addition of Dolphin’s representative to the Board.  As you know, Dolphin’s representative has met with the directors and members of senior management and has been fully vetted and approved by the Nominating and Corporate Governance Committee (the “Committee”).  In addition, Dolphin believes it has forged a positive relationship with the CEO.  Dolphin was notified through the CEO in a conversation last week that the Chairman of the Board (and a member of the Committee) supported a plan to have Dolphin’s nominee approved by the Committee and to then submit Dolphin’s nominee for approval by the full Board prior to a telephonic meeting of the Board originally expected to be held before the Company’s fourth quarter conference call in the first half of December.  In fact, the CEO discussed making arrangements for Dolphin’s representative to receive the Board materials from both the last meeting and the next meeting.  In a departure from the Company’s normal meeting cycle, we were informed that the Company’s proxy statement would likely be mailed in the January time frame for a March meeting, as opposed to May.  We understand that the Board has still not determined when the shareholder meeting will be held.
 
Three months after Dolphin’s September 3rd letter, Dolphin was disappointed to learn that the Committee did not act as it had previously indicated.  On the evening of Thursday December 4th, Dolphin was informed that due to scheduling conflicts, the Board is not expected to meet until January, 2009.  At the same time Dolphin was further advised without explanation that while the Committee has informed Dolphin of its intent to include the Dolphin nominee in the Company’s slate for the 2009 Annual Meeting, the Dolphin representative will not be added to the Board until voted on at the 2009 Annual Meeting, the date of which has yet to be determined.  Further, Dolphin has neither been provided nor received anything in writing to confirm the Committee’s approval of the Dolphin nominee for inclusion in the 2009 slate, nor have we received written confirmation that proxies will be solicited for Dolphin’s nominee in the same manner as all other director nominees and with the full support of the current Board and its continuing members.
 
 
156 West 56th Street § New York, New York 10019 § Phone: 212-488-1590 § partners@dol-fin.com
 
 
 
 
 
The Committee’s handling of this process has raised significant concerns in our mind as to its intentions.  We would expect and trust that the Committee and the Board will clarify the current status without delay to assuage such concerns.  We reiterate our strong belief that it is in the best interest of all shareholders for Dolphin’s nominee to be added to the Board as soon as possible and with the full support of the Board and its continuing members.  We have previously expressed our view on the current market price of the shares, and we believe it is imperative that Dolphin’s nominee be seated before critical business issues are reviewed and acted upon at the upcoming meetings, including reviews of the 2009 budget and capital spending plans.
 
As you know, Dolphin owns over 7% of MGAM and receipt of one seat on the Board was a constructive compromise offered in order to move the Company forward as quickly as possible.  As I’m sure you can appreciate, given the already lengthy process, and the still hazy status, absent an appropriate near term written clarification from the Committee and the Board, Dolphin will feel free to pursue additional avenues to enhance the investment of all shareholders.  While Dolphin was advised on December 4th that a representative of the Committee would be communicating with Dolphin, there have been no further communications from the Committee addressing the apparent change or the status of the process as of the close of business today.  We hope to hear from the Committee regarding this matter expeditiously.
 
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Very truly yours,
 
Dolphin Limited Partnership III, L.P.
 

 
cc:  Anthony Sanfilippo, Chief Executive Officer
 
 
 

 
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