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EXHIBIT 4.28
AGREEMENT AND PLAN OF REORGANIZATION
AMONG
OUTBACK STEAKHOUSE, INC.,
OUTBACK STEAKHOUSE OF FLORIDA, INC.,
▇▇▇▇▇▇▇▇ & ASSOCIATES, INC.,
AND
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
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TABLE OF CONTENTS
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ARTICLE 1 - PLAN OF ACQUISITION....................................................................1
1.1 THE MERGER................................................................................1
1.2 ADJUSTMENTS...............................................................................2
1.3 CLOSING...................................................................................2
1.4 EXECUTION AND DELIVERY OF CLOSING DOCUMENTS...............................................2
1.5 EXECUTION AND FILING OF MERGER DOCUMENTS..................................................3
1.6 EFFECTIVENESS OF MERGER...................................................................3
1.7 FURTHER ASSURANCES........................................................................3
1.8 CERTIFICATES..............................................................................3
1.9 CLOSING OF TRANSFER BOOKS.................................................................3
1.10 FRACTIONAL SHARES.........................................................................3
1.11 ACCOUNTING TREATMENT......................................................................3
ARTICLE 2 - REPRESENTATIONS AND WARRANTIES OF FAI AND ▇▇▇▇▇▇▇▇.....................................4
2.1 ORGANIZATION AND GOOD STANDING............................................................4
2.2 POWER AND AUTHORITY.......................................................................4
2.3 FOREIGN CORPORATION.......................................................................4
2.4 AUTHORITY AND VALIDITY....................................................................4
2.5 BINDING EFFECT............................................................................4
2.6 COMPLIANCE WITH OTHER INSTRUMENTS.........................................................5
2.7 CAPITALIZATION OF FAI.....................................................................5
2.8 ABSENCE OF CERTAIN CHANGES................................................................5
2.9 TAX LIABILITIES...........................................................................6
2.10 NO UNDISCLOSED LIABILITIES................................................................7
2.11 TITLE TO PROPERTIES.......................................................................7
2.12 CONTRACTS.................................................................................7
2.13 LITIGATION AND GOVERNMENT CLAIMS..........................................................7
2.14 NO VIOLATION OF ANY INSTRUMENT............................................................7
2.15 NECESSARY APPROVALS AND CONSENTS..........................................................8
2.16 COMPLIANCE WITH LAWS......................................................................8
2.17 ACCURACY OF INFORMATION FURNISHED.........................................................8
ARTICLE 3 - REPRESENTATIONS AND WARRANTIES OF ▇▇▇▇▇▇▇▇.............................................8
3.1 AUTHORITY AND VALIDITY....................................................................8
3.2 BINDING EFFECT............................................................................8
3.3 OWNERSHIP.................................................................................9
3.4 VOTING....................................................................................9
3.5 RESIDENCY.................................................................................9
3.6 COMPLIANCE WITH OTHER INSTRUMENTS.........................................................9
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TABLE OF CONTENTS (Continued)
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ARTICLE 4 - REPRESENTATIONS AND WARRANTIES OF OSI AND OUTBACK......................................9
4.1 ORGANIZATION AND GOOD STANDING............................................................9
4.2 FOREIGN QUALIFICATION.....................................................................9
4.3 POWER AND AUTHORITY.......................................................................9
4.4 AUTHORITY AND VALIDITY....................................................................9
4.5 BINDING EFFECT............................................................................9
4.6 COMPLIANCE WITH OTHER INSTRUMENTS.........................................................10
4.7 CAPITALIZATION OF OSI.....................................................................10
4.8 SEC REPORTS...............................................................................10
4.9 LITIGATION AND GOVERNMENT CLAIMS..........................................................11
4.10 NECESSARY APPROVALS AND CONSENTS..........................................................11
4.11 ABSENCE OF CERTAIN CHANGES OR EVENTS......................................................11
ARTICLE 5 - JOINT COVENANTS OF FAI, ▇▇▇▇▇▇▇▇, OSI AND OUTBACK......................................11
5.1 NOTICE OF ANY MATERIAL CHANGE.............................................................11
5.2 COOPERATION...............................................................................12
5.3 POST-CLOSING ADJUSTMENT...................................................................12
5.4 DISTRIBUTION AND ALLOCATIONS..............................................................12
5.5 ADDITIONAL AGREEMENTS.....................................................................13
ARTICLE 6 - COVENANTS OF FAI AND ▇▇▇▇▇▇▇▇..........................................................13
6.1 SECURITIES LAW COMPLIANCE.................................................................13
6.2 PAYMENT OF LIABILITIES....................................................................14
6.3 POOLING...................................................................................15
ARTICLE 7 - COVENANTS OF OSI AND OUTBACK...........................................................15
7.1 EMPLOYMENT AGREEMENTS.....................................................................15
7.2 ASSUMED LIABILITIES.......................................................................15
ARTICLE 8 - JOINT CONDITIONS PRECEDENT TO CLOSING OBLIGATIONS......................................15
8.1 CONSENTS TO TRANSACTION...................................................................15
8.2 ABSENCE OF LITIGATION.....................................................................16
8.3 DISSENTER'S RIGHTS........................................................................16
ARTICLE 9 - CONDITIONS PRECEDENT TO OBLIGATIONS OF FAI.............................................16
9.1 COMPLIANCE................................................................................16
9.2 REPRESENTATIONS AND WARRANTIES............................................................16
9.3 MATERIAL ADVERSE CHANGES..................................................................16
ARTICLE 10 - CONDITIONS PRECEDENT TO OBLIGATIONS OF OSI AND
OUTBACK...................................................................................16
10.1 COMPLIANCE................................................................................17
10.2 REPRESENTATIONS AND WARRANTIES............................................................17
10.3 CURRENT FINANCIAL STATUS..................................................................17
10.4 MATERIAL ADVERSE CHANGES..................................................................17
10.5 POOLING...................................................................................17
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TABLE OF CONTENTS (Continued)
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ARTICLE 11 - INDEMNIFICATION.......................................................................17
11.1 INDEMNIFICATION BASED ON AGREEMENT........................................................17
11.2 LIMITATION................................................................................18
11.3 COOPERATION...............................................................................18
11.4 NOTICE....................................................................................18
ARTICLE 12 - MISCELLANEOUS.........................................................................18
12.1 TERMINATION...............................................................................18
12.2 EXPENSES..................................................................................19
12.3 ENTIRE AGREEMENT..........................................................................19
12.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES................................................19
12.5 COUNTERPARTS..............................................................................19
12.6 NOTICES...................................................................................20
12.7 SUCCESSORS AND ASSIGNS....................................................................20
12.8 GOVERNING LAW.............................................................................20
12.9 WAIVER AND OTHER ACTION...................................................................20
12.10 SEVERABILITY..............................................................................20
12.11 HEADINGS..................................................................................20
12.12 CONSTRUCTION..............................................................................21
12.13 JURISDICTION AND VENUE....................................................................21
12.14 ENFORCEMENT...............................................................................21
12.15 FURTHER ASSURANCES........................................................................21
12.16 EQUITABLE REMEDIES........................................................................21
EXHIBIT A
ARTICLES OF MERGER.................................................................................A-1
EXHIBIT B
DISCLOSURE SCHEDULES...............................................................................B-1
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AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION (the "Agreement") is made and
entered effective as of the 30th day of September, 1998, by and among OUTBACK
STEAKHOUSE, INC., a Delaware corporation ("OSI"), OUTBACK STEAKHOUSE OF FLORIDA,
INC., a Florida corporation ("Outback"), ▇▇▇▇▇▇▇▇ & ASSOCIATES, INC., a Colorado
corporation ("FAI") and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, an individual residing in the State
of Colorado ("▇▇▇▇▇▇▇▇").
W I T N E S S E T H:
WHEREAS, Outback is a wholly-owned subsidiary of OSI; and
WHEREAS, ▇▇▇▇▇▇▇▇ is the sole owner of the issued and outstanding
common stock of FAI, and ▇▇▇▇▇▇▇▇ is the sole director, President and is
responsible for the day-to-day operations of FAI; and
WHEREAS, Outback and FAI have entered into that certain Florida limited
partnership known as Outback/Denver-I, Limited Partnership ("Partnership");
WHEREAS, the Partnership operates Outback Steakhouse restaurants in the
State of Colorado, Wyoming and Montana; and
WHEREAS, the Board of Directors of FAI has approved the merger of FAI
into Outback (the "Merger") upon the terms and conditions set forth in this
Agreement; and
WHEREAS, for federal income tax purposes it is intended that the Merger
shall qualify as a reorganization within the meaning of Section 368(a) of the
Internal Revenue Code of 1986, as amended (the "Code"); and
WHEREAS, pursuant to the Merger, FAI will be merged with and into
Outback and all of the outstanding shares of capital stock of FAI will be
converted into shares of common stock, par value $.01, of OSI (the "OSI Common
Stock"); and
WHEREAS, the parties hereto desire by this Agreement to set forth the
terms and conditions upon which they are willing to consummate the Merger.
NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements contained herein, the parties hereto covenant and agree
as follows:
ARTICLE 1
PLAN OF ACQUISITION
1.1 THE MERGER. Subject to and upon the terms and conditions
contained herein, FAI shall be merged with and into Outback, with Outback being
the surviving corporation, in accordance with the Articles of Merger
substantially in the form attached to this Agreement as EXHIBIT A (the "Merger
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Agreement"), which will be executed and delivered by OSI, Outback, and FAI prior
to the Merger. As a result of the Merger, each voting and nonvoting common share
of FAI outstanding immediately before the Effective Date (as herein defined)
shall, by virtue of the Merger and without any further action being required by
the holders thereof, be converted into and exchanged for 35.6675 shares of OSI
Common Stock.
1.2 ADJUSTMENTS.
(a) Except as otherwise provided in this SECTION 1.2, the
total number of shares of OSI Common Stock to be issued pursuant to the
Merger shall be Seventy-One Thousand Three Hundred Thirty Five
(71,335).
(b) If, between the date of this Agreement and the Closing
Date or the Effective Date, as the case may be, (i) the outstanding
shares of capital stock of FAI shall have been changed into a different
number of shares or a different class by reason of any
reclassification, recapitalization, split-up, combination, exchange of
shares, or readjustment, with a record date within such period, or a
stock dividend thereon shall be declared with a record date within such
period or (ii) FAI shall have issued additional shares of its capital
stock, the number of shares of OSI Common Stock received in exchange
for each share of FAI's capital stock shall be adjusted so that the
aggregate number of shares of OSI Common Stock received in exchange for
all shares of FAI's capital stock (assuming no Dissenting Shares)
remains at 71,335.
(c) If, between the date of this Agreement and the Closing
Date or the Effective Date, as the case may be, the outstanding shares
of OSI Common Stock shall have been changed into a different number of
shares or a different class by reason of any reclassification,
recapitalization, split-up, combination, exchange of shares, or
readjustment, with a record date within such period, or a stock
dividend thereon shall be declared with a record date within such
period, the number of shares of OSI Common Stock received in exchange
for each share of capital stock of FAI (as specified in SECTION 1.1
hereof) shall be adjusted to accurately reflect such change.
1.3 CLOSING. The closing of the transactions contemplated by this
Agreement, including the Merger (the "Closing"), shall take place at 10:00 a.m.,
Tampa time, at the offices of Outback on January 31, 1999, or on such date and
at such other time and place as is agreed upon by the parties hereto. The day on
which the Closing occurs is herein referred to as the "Closing Date". If any of
the conditions to the obligations of the parties to this Agreement have not been
satisfied or waived by the Closing Date, then the party to this Agreement that
is unable to meet such condition or conditions shall be entitled to postpone the
Closing by written notice to the other parties until such condition shall have
been satisfied (which such party shall seek to cause to happen at the earliest
practicable date) or waived, but the Closing shall occur not later than February
28, 1999, unless further extended by written agreement of the parties to this
Agreement. The parties shall use their best efforts to effectuate a timely
closing as provided in this SECTION 1.3.
1.4 EXECUTION AND DELIVERY OF CLOSING DOCUMENTS. Before the
Closing, each party shall cause to be prepared and at the Closing the parties
shall execute and deliver each agreement and instrument required by this
Agreement or the Merger Agreement to be so executed and delivered and not
theretofore accomplished. At the Closing, each party also shall execute and
deliver such other appropriate and customary documents as the other parties
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reasonably may request for the purpose of consummating the transactions
contemplated by this Agreement and the Merger Agreement. All actions taken at
the Closing shall be deemed to have been taken simultaneously at the time the
last of any such actions is taken or completed.
1.5 EXECUTION AND FILING OF MERGER DOCUMENTS. At the time of
completion of the Closing, OSI, Outback, FAI and ▇▇▇▇▇▇▇▇ agree to take the
following actions:
(a) to execute and deliver all documents and certificates
relating to the Merger required to be executed by them that have not
already been so executed and that are required under applicable
federal, state and local laws to be filed in order validly to
effectuate the Merger; and
(b) to cause Articles of Merger to be filed with the Secretary
of State of the State of Florida and the Secretary of State of the
State of Colorado and a Certificate of Merger to be issued by each such
officer.
1.6 EFFECTIVENESS OF MERGER. The Merger shall become effective
under the laws of Florida upon filing of the Articles of Merger with the
Secretary of State of the State of Florida and the Secretary of State of the
State of Colorado (the "Effective Date"). Such Effective Date shall be indicated
on Certificates of Merger issued by the Secretary of State of the State of
Florida and by the Secretary of State of the State of Colorado pursuant to the
provisions of Sections 607.1101-607.1107 of the Florida Business Corporation Act
(the "Florida Act") and the laws of the State of Colorado ("Colorado Law").
1.7 FURTHER ASSURANCES. After the Closing, the parties hereto
shall execute and deliver such additional documents and take such additional
actions as may reasonably be deemed necessary or advisable by any party in order
to consummate the transactions contemplated by this Agreement and by the Merger
Agreement, and to vest more fully in Outback the ownership of and the rights to
the business and assets of FAI as existed immediately before the Effective Date.
1.8 CERTIFICATES. As soon as practicable after the Effective Date,
OSI shall make available and each holder of capital stock of FAI shall be
entitled to receive upon surrender of stock certificates of FAI representing FAI
capital stock for cancellation, certificates representing the number of shares
of OSI Common Stock into which such shares are converted in the Merger as
provided in SECTION 1.1 hereof. The OSI Common Stock into which such FAI capital
stock is converted shall be deemed issued at the Effective Date.
1.9 CLOSING OF TRANSFER BOOKS. At the Closing Date, the stock
transfer books of FAI shall be closed and no transfer of capital stock of FAI,
shall thereafter be made.
1.10 FRACTIONAL SHARES. No fractional shares of OSI Common Stock
and no certificates or scrip therefor shall be issued. Instead, one whole share
of OSI Common Stock shall be issued for each fractional share of .5 or more of
one whole share and each fractional share of less than .5 of one whole share
shall be disregarded.
1.11 ACCOUNTING TREATMENT. It is the intention of the parties
hereto that the Merger will be treated for financial reporting purposes as a
pooling of interests.
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ARTICLE 2
REPRESENTATIONS AND WARRANTIES OF FAI AND ▇▇▇▇▇▇▇▇
Each of FAI and ▇▇▇▇▇▇▇▇, jointly and severally, represent and warrant
to OSI and Outback as follows:
2.1 ORGANIZATION AND GOOD STANDING. FAI is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Colorado.
2.2 POWER AND AUTHORITY. FAI has the requisite power and authority
and all material licenses and permits required by governmental authorities to
own, lease and operate its properties and assets and to carry on its businesses
as currently being conducted.
2.3 FOREIGN CORPORATION. FAI is duly qualified or licensed to do
business and in good standing as a foreign corporation in every jurisdiction
where the failure to so qualify could have a material adverse effect on its
respective business, operations, assets or financial condition.
2.4 AUTHORITY AND VALIDITY.
(a) FAI has the corporate power and authority to execute,
deliver and perform its obligations under this Agreement, the Merger
Agreement and the other documents executed or to be executed by FAI in
connection with this Agreement; and the execution, delivery and
performance by FAI of this Agreement, the Merger Agreement and the
other documents executed or to be executed by FAI in connection with
this Agreement have been duly authorized by all necessary corporate
action. The execution, delivery and performance by FAI of this
Agreement, the Merger Agreement and any other documents executed or to
be executed in connection with this Agreement and the consummation of
the transactions provided for herein have been duly authorized and
approved by the board of directors and shareholders of FAI as required
under the laws of the State of Colorado and FAI's corporate governance
documents.
(b) ▇▇▇▇▇▇▇▇ has the power and authority to execute, deliver
and perform his obligations under this Agreement and the other
documents executed or to be executed by ▇▇▇▇▇▇▇▇ in connection with
this Agreement.
2.5 BINDING EFFECT. This Agreement, the Merger Agreement and the
other documents executed or to be executed by FAI and ▇▇▇▇▇▇▇▇ in connection
with this Agreement have been or will have been duly executed and delivered by
FAI and ▇▇▇▇▇▇▇▇, and are or will be, when executed and delivered, the legal,
valid and binding obligations of each of FAI and ▇▇▇▇▇▇▇▇ enforceable in
accordance with their terms except that:
(a) enforceability may be limited by bankruptcy, insolvency or
other similar laws affecting creditors' rights; and
(b) the availability of equitable remedies may be limited by
equitable principles of general applicability.
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2.6 COMPLIANCE WITH OTHER INSTRUMENTS. Neither the execution and
delivery by FAI nor ▇▇▇▇▇▇▇▇ of this Agreement and the Merger Agreement, nor the
consummation by them of the transactions contemplated hereby and thereby, will
violate, breach, be in conflict with, or constitute a default under, or permit
the termination or the acceleration of maturity of, or result in the imposition
of any lien, claim or encumbrance upon any material property or asset of FAI or
▇▇▇▇▇▇▇▇ pursuant to, its certificate of incorporation, bylaws, partnership
agreement, operating agreement or other charter or governance document, or any
note, bond, indenture, mortgage, deed of trust, evidence of indebtedness, loan
or lease agreement, other agreement or instrument (including with customers),
judgment, order, injunction or decree by which FAI or ▇▇▇▇▇▇▇▇ is bound, to
which either of them is a party, or to which any assets of either of them are
subject; PROVIDED, HOWEVER, this SECTION 2.5 shall not apply with respect to any
of the foregoing if FAI is bound thereby, a party thereto, or its assets
subject, solely by reason of its status as a partner in the Partnership.
2.7 CAPITALIZATION OF FAI.
(a) The authorized capital stock of FAI consists of Fifty
Thousand (50,000) common shares. There are two thousand (2,000) common
shares issued and outstanding, all of which are owned by ▇▇▇▇▇▇▇▇.
There are no other shareholders of FAI and no other persons with rights
or options to acquire capital stock of FAI. All of the issued and
outstanding shares of capital stock of FAI have been duly authorized
and validly issued and are fully paid and nonassessable. There are no
shares of capital stock of FAI held in its treasury.
(b) There are no voting trusts, shareholder agreements or
other voting arrangements to which the shareholder of FAI is a party.
(c) There is no outstanding subscription, contract,
convertible or exchangeable security, option, warrant, call or other
right obligating FAI to issue, sell, exchange or otherwise dispose of,
or to purchase, redeem or otherwise acquire, shares of, or securities
convertible into or exchangeable for, capital stock of FAI.
2.8 ABSENCE OF CERTAIN CHANGES. From December 31, 1997 to the
Closing Date, (except solely as a result of FAI's status as a partner in the
Partnership) FAI has not:
(a) suffered any material adverse change in its business,
results of operations, working capital, assets, liabilities, or
condition (financial or otherwise) or the manner of conducting its
business;
(b) suffered any material damage or destruction to or loss of
its assets not covered by insurance, or any loss of suppliers or
employees;
(c) acquired or disposed of any asset, or incurred, assumed,
guaranteed, endorsed, paid or discharged any indebtedness, liability or
obligation, or subjected or permitted to be subjected any material
amount of assets to any lien, claim or encumbrance of any kind, except
in the ordinary course of business or pursuant to agreements in force
at the date of this Agreement and identified in Item 2.8(c) of the
Disclosure Schedules;
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(d) forgiven, compromised, canceled, released, waived or
permitted to lapse any material rights or claims;
(e) entered into or terminated any lease, agreement,
commitment or transaction, or agreed to or made any changes in any
leases or agreements, other than transactions and commitments entered
into in the ordinary course of business;
(f) written up, written down or written off the book value of
any assets;
(g) declared, paid or set aside for payment any dividend or
distribution with respect to its capital stock;
(h) redeemed, purchased or otherwise acquired, or sold,
granted or otherwise disposed of, directly or indirectly, any of its
capital stock or securities or any rights to acquire such capital stock
or securities, or agreed to changes in the terms and conditions of any
such rights outstanding as of the date of this Agreement;
(i) except in the ordinary course of business, increased the
compensation of any employee or paid any bonuses to any employee or
contributed to any employee benefit plan;
(j) entered into any employment, consulting, compensation or
collective bargaining agreement with any person or group, except oral
employment agreements which can be terminated at will; or
(k) entered into, adopted or amended any employee benefit plan
or severance agreements.
2.9 TAX LIABILITIES. FAI has filed all federal, state, county,
local and foreign tax returns and reports required to be filed by them by the
date hereof, including those with respect to income, payroll, property,
withholding, social security, unemployment, franchise, excise and sales taxes;
FAI has either paid in full all taxes that have become due as reflected on any
return or report and any interest and penalties with respect thereto or have
fully accrued on their books or have established adequate reserves for all taxes
payable but not yet due; and have made cash deposits with appropriate
governmental authorities representing estimated payments of taxes, including
income taxes and employee withholding tax obligations. No extension or waiver of
any statute of limitations or time within which to file any return has been
granted to FAI with respect to any tax. No unsatisfied deficiency, delinquency
or default for any tax, assessment or governmental charge has been claimed,
proposed or assessed against FAI nor has FAI received notice of any such
deficiency, delinquency or default. FAI has no reason to believe that FAI has or
may have any tax liabilities other than those reflected on the unaudited balance
sheet of FAI as of December 31, 1998, with any notes thereto, and the related
unaudited statements of income for the twelve months ended December 31, 1998,
together with supplemental information on FAI, each prepared and attested to by
the chief financial officer of FAI (the "Balance Sheets") and those arising in
the ordinary course of business since the date thereof. With regard to the
foregoing, FAI has relied on the accuracy and completeness of the Schedule K-1
provided by the Partnership.
▇▇▇▇▇▇▇▇ shall have sole responsibility for filing all required tax
returns for FAI. OSI shall assist ▇▇▇▇▇▇▇▇ in preparing income tax returns and
shall cooperate with ▇▇▇▇▇▇▇▇ to the extent necessary therefor, and ▇▇▇▇▇▇▇▇
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shall provide OSI with copies of all such returns at least fifteen (15) days
prior to filing.
2.10 NO UNDISCLOSED LIABILITIES. There are no liabilities or
obligations of FAI (other than material liabilities arising solely by reason of
FAI's status as a partner in the Partnership) of any nature, whether absolute,
accrued, contingent or otherwise, other than liabilities or obligations
indicated in Items 2.10(a) and 2.10(b) of the Disclosure Schedules.
2.11 TITLE TO PROPERTIES. FAI has good and marketable title to the
assets reflected in its books and records as being owned by it, (except as they
have since been affected by transactions in the ordinary course of business and
consistent with past practices) the real and personal properties reflected in
the Balance Sheets (except for assets subject to financing leases required to be
capitalized under generally accepted accounting principles, all of which are so
reflected in the Balance Sheet or notes thereto) and all assets purchased by FAI
since the date of the Balance Sheet, in each case free and clear of any lien,
claim or encumbrance, except as reflected in the Balance Sheet or notes thereto
and in Item 2.11 of the Disclosure Schedule and except for liens for taxes,
assessments or other governmental charges not yet due and payable.
Except for those assets acquired since the date of the Balance Sheets,
all material properties and assets owned by FAI are properly reflected on the
applicable Balance Sheets and notes thereto.
2.12 CONTRACTS. Excluding (i) contracts and commitments between
Outback or OSI and FAI or the Partnership, (ii) contracts and commitments
entered into by the Partnership to which Outback or OSI is a party, (iii)
contracts and commitments entered into by FAI in the ordinary course of the
Partnership's business without violation of the provisions of the Partnership
Agreement, and (iv) contracts and commitments entered into with the written
consent of OSI or Outback, Item 2.12 of the Disclosure Schedule is a complete
and accurate list of all of the contracts and commitments (including summaries
of oral contracts) to which FAI is a party or by which FAI is bound:
2.13 LITIGATION AND GOVERNMENT CLAIMS. Except as indicated in Item
2.13 of the Disclosure Schedule, there is no pending suit, claim, action or
litigation or administrative, arbitration or other proceeding or governmental
investigation or inquiry against FAI or the Partnership or to which any of their
business or assets is subject. Except as indicated in Item 2.13 of the
Disclosure Schedule, there are no such proceedings threatened or, to the best
knowledge of FAI or ▇▇▇▇▇▇▇▇, contemplated or, to the best knowledge of FAI or
▇▇▇▇▇▇▇▇, any basis for any unasserted claims (whether or not the potential
claimant may be aware of the claim) of any nature that might be asserted against
FAI or the Partnership.
2.14 NO VIOLATION OF ANY INSTRUMENT. Except as indicated in Item
2.14 of the Disclosure Schedule, FAI is not in violation of or default under nor
has any event occurred that, with the lapse of time or the giving of notice or
both, would constitute a violation of or default under or permit the termination
or the acceleration of maturity of or result in the imposition of a lien, claim
or encumbrance upon any property or asset of FAI pursuant to, the articles or
certificates of incorporation, bylaws or other chartering or governance document
of FAI or (excluding any of the following entered into by the Partnership and to
which Outback or OSI is a signatory or to which Outback or OSI consented in
writing or which were entered into by FAI in the ordinary course of business
without violation of the provisions of the Partnership Agreement) any note,
bond, indenture, mortgage, deed of trust, evidence of indebtedness, loan or
lease agreement, other material agreement or instrument (including with
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customers), judgment, order, injunction or decree to which FAI is a party, by
which FAI is bound or to which any of the assets of FAI are subject.
2.15 NECESSARY APPROVALS AND CONSENTS. Other than (a) in connection
with or in compliance with the laws of the States of Florida and Colorado with
respect to effectuating the Merger, (b) consents required to be obtained from
applicable liquor control authorities, (c) consents required to be obtained from
lessors, and (d) under the provisions of the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, as amended, or state securities or blue sky
laws, no authorization, consent, permit or license or approval of or
declaration, registration or filing with, any person or governmental or
regulatory authority or agency is necessary for the execution and delivery by
each of FAI and ▇▇▇▇▇▇▇▇ of this Agreement, the Merger Agreement and the other
agreements executed or to be executed by them in connection with this Agreement,
and the consummation by FAI and ▇▇▇▇▇▇▇▇ of the transactions contemplated by
this Agreement and the Merger Agreement, and the ownership and operation by
Outback of the respective businesses and properties of FAI after the Effective
Date in substantially the same manner as now operated.
2.16 COMPLIANCE WITH LAWS. ▇▇▇▇▇▇▇▇ has no actual knowledge that
FAI or the Partnership are not in compliance with any such laws applicable to
their respective business, where failure to so comply would have a material
adverse effect on their business, operations, properties, assets or conditions.
2.17 ACCURACY OF INFORMATION FURNISHED. No representation or
warranty by FAI or ▇▇▇▇▇▇▇▇ in this Agreement nor any information in the
Financial Statements or in the Disclosure Schedule contains any untrue statement
of a material fact or omits to state any material fact that would make the
statements herein or therein, in light of the circumstances under which they
were made, false or misleading. Each of FAI and ▇▇▇▇▇▇▇▇ have disclosed to OSI
and Outback all facts known to them that are material to FAI's and the
Partnership's respective businesses, operations, financial condition or
prospects.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF ▇▇▇▇▇▇▇▇
In addition to the representations and warranties contained in ARTICLE
2, ▇▇▇▇▇▇▇▇ represents and warrants to OSI and Outback as follows:
3.1 AUTHORITY AND VALIDITY. He has the capacity and authority to
execute, deliver and perform this Agreement and all other agreements and
documents he is executing or will execute in connection herewith or therewith.
3.2 BINDING EFFECT. This Agreement and the other documents
executed or to be executed by ▇▇▇▇▇▇▇▇ in connection with this Agreement have
been or will have been duly executed and delivered by him and are or will be,
when executed and delivered, his legal, valid and binding obligations
enforceable in accordance with their terms except that:
(a) enforceability may be limited by bankruptcy, insolvency or
other similar laws affecting creditors' rights; and
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(b) the availability of equitable remedies may be limited by
equitable principles of general applicability.
3.3 OWNERSHIP. ▇▇▇▇▇▇▇▇ is the sole record and beneficial
shareholder of FAI and no other person has any rights (in any form) to acquire
any capital stock of FAI.
3.4 VOTING. He acknowledges that in his individual capacity as
shareholder and director of FAI, he has voted in favor of the execution and
delivery of this Agreement and the Merger Agreement.
3.5 RESIDENCY. ▇▇▇▇▇▇▇▇ is, and has been at all times during the
one year period ending on the date hereof, a resident of the State of Colorado.
3.6 COMPLIANCE WITH OTHER INSTRUMENTS. Neither the execution and
delivery by ▇▇▇▇▇▇▇▇ of this Agreement and the Merger Agreement, nor the
consummation by him of the transactions contemplated hereby and thereby will
violate, breach, be in conflict with or constitute a default under or permit the
termination or the acceleration of maturity of or result in the imposition of
any lien, claim or encumbrance upon any material property or asset of ▇▇▇▇▇▇▇▇
pursuant to any note, bond, indenture, mortgage, deed of trust, evidence of
indebtedness, loan or lease agreement, other agreement or instrument (including
with customers), judgment order, injunction or decree by which ▇▇▇▇▇▇▇▇ is
bound, to which he is a party or to which he is subject.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF OSI AND OUTBACK
OSI and Outback jointly and severally represent and warrant to FAI and
▇▇▇▇▇▇▇▇ as follows:
4.1 ORGANIZATION AND GOOD STANDING. OSI and Outback are
corporations duly organized, validly existing and in good standing under the
laws of the States of Colorado and Florida, respectively.
4.2 FOREIGN QUALIFICATION. Outback is duly qualified or licensed
to do business and in good standing as a foreign corporation in Colorado and in
every other jurisdiction where the failure to so qualify could have a material
adverse effect on its respective business, operations, assets or financial
condition.
4.3 POWER AND AUTHORITY. OSI and Outback each have the corporate
power and authority and all licenses and permits required by governmental
authorities to own, lease and operate their respective properties and assets and
to carry on their respective business as currently being conducted.
4.4 AUTHORITY AND VALIDITY. OSI and Outback each have the
corporate power and authority to execute, deliver and perform their respective
obligations under this Agreement, the Merger Agreement and the other documents
executed or to be executed by OSI and Outback in connection with this Agreement
and the execution, delivery and performance by OSI and Outback of this
Agreement, the Merger Agreement and the other documents executed or to be
executed by OSI and Outback in connection with this Agreement have been duly
authorized by all necessary corporate action.
4.5 BINDING EFFECT. This Agreement, the Merger Agreement and the
other documents executed or to be executed by OSI and Outback in connection with
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this Agreement have been or will have been duly executed and delivered by OSI
and Outback and are or will be, when executed and delivered, the legal, valid
and binding obligations of OSI and Outback, enforceable in accordance with their
terms except that:
(a) enforceability may be limited by bankruptcy, insolvency or
other similar laws affecting creditors' rights; and
(b) the availability of equitable remedies may be limited by
equitable principles of general applicability.
4.6 COMPLIANCE WITH OTHER INSTRUMENTS. Neither the execution and
delivery by OSI and/or Outback of this Agreement, the Merger Agreement, nor the
consummation by it of the transactions contemplated hereby and thereby will
violate, breach, be in conflict with or constitute a default under or permit the
termination or the acceleration of maturity of or result in the imposition of
any lien, claim or encumbrance upon any property or asset of OSI or Outback
pursuant to, the certificate of incorporation or bylaws of OSI or Outback or any
note, bond, indenture, mortgage, deed of trust, evidence of indebtedness, loan
or lease agreement, other agreement or instrument, judgment order, injunction or
decree by which OSI or Outback is bound, to which it is a party or to which its
assets are subject.
4.7 CAPITALIZATION OF OSI. The authorized capital stock of OSI
consists of Two Hundred Million (200,000,000) shares of Common Stock, $.01 par
value and Two Million (2,000,000) shares of Preferred Stock, $.01 par value, of
which approximately 49,155,774 shares of Common Stock and no shares of Preferred
Stock were issued and outstanding as of August 7, 1998. All of the issued and
outstanding shares of OSI Common Stock have been duly authorized and validly
issued and are fully paid and nonassessable. The shares of OSI Common Stock to
be issued in exchange for FAI's capital stock at the Effective Date, when issued
and delivered, will be duly authorized, validly issued, fully paid and
nonassessable. As of the date hereof, except for (i) employee and director stock
options to acquire shares of OSI Common Stock and (ii) employee stock ownership
plans, there are no options, warrants or other rights, agreements or commitments
outstanding obligating Outback or OSI to issue shares of its capital stock. All
of the outstanding shares of capital stock of Outback are owned by OSI, free and
clear of any lien or encumbrance.
4.8 SEC REPORTS. OSI has delivered to FAI and ▇▇▇▇▇▇▇▇ true and
complete copies of its (i) Annual Report on Form 10-K for the year ended
December 31, 1997; (ii) Proxy Statement used in connection with its 1997 Annual
Meeting of Shareholders; (iii) 1997 Annual Report to Shareholders; (iv) all
periodic reports, if any, on Form 8-K filed with the Securities and Exchange
Commission since December 31, 1997 to the date hereof; and (v) all Forms 10-Q,
if any, filed with the Securities and Exchange Commission since December 31,
1997 to the date hereof. Such documents and reports did not on their dates or
the date of filing, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. OSI has filed all material documents required to be filed by it
with the SEC and all such documents complied as to form with the applicable
requirements of law. Copies of all other reports filed by OSI with the SEC from
the date hereof to and including the Effective Date have been or will be
delivered to FAI and ▇▇▇▇▇▇▇▇. All financial statements and schedules included
in the documents referred to in this SECTION 4.8 were prepared in accordance
with generally accepted accounting principles, applied on a consistent basis
except as noted therein and fairly present the information purported to be shown
therein.
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4.9 LITIGATION AND GOVERNMENT CLAIMS. There is no pending suit,
claim, action or litigation or administrative, arbitration or other proceeding
or governmental investigation or inquiry against OSI or Outback which would,
severally or in the aggregate, have a material adverse effect on the business,
results of operations, assets or the condition, financial or otherwise, of OSI
and its subsidiaries, taken as a whole. There are no such proceedings threatened
or, to the knowledge of OSI or Outback, contemplated or any unasserted claims
(whether or not the potential claimant may be aware of the claim), which might,
severally or in the aggregate have a material adverse effect on the business,
results of operations, assets or the condition, financial or otherwise, of OSI
and its subsidiaries, taken as a whole.
4.10 NECESSARY APPROVALS AND CONSENTS. Other than (a) in connection
with or in compliance with the laws of the States of Florida and Colorado with
respect to effectuating the Merger, (b) consents required to be obtained from
applicable liquor control authorities, (c) consents required to be obtained from
lessors, and (d) under the provisions of the Securities Act of 1933, as amended,
the Securities Exchange Act of 1934, or state securities or blue sky laws, no
authorization, consent, permit or license or approval of or declaration,
registration or filing with, any person or governmental or regulatory authority
or agency is necessary for the execution and delivery by OSI and Outback of this
Agreement, the Merger Agreement and the other agreements executed or to be
executed by either of them in connection with this Agreement and the
consummation by OSI and Outback of the transactions contemplated by this
Agreement and the Merger Agreement.
4.11 ABSENCE OF CERTAIN CHANGES OR EVENTS. Except as disclosed in
public filings by OSI with the Securities and Exchange Commission prior to the
date hereof and the Closing Date, since December 31, 1997, there has not been
any material adverse change in the financial condition, results of operations or
the business, properties, assets or liabilities of Outback or OSI.
ARTICLE ▇
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇ ▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇ AND OUTBACK
FAI and ▇▇▇▇▇▇▇▇, jointly and severally, on the one hand, and OSI and
Outback, jointly and severally on the other hand, covenant with each other as
follows:
5.1 NOTICE OF ANY MATERIAL CHANGE. Until the Effective Date, each
of FAI, ▇▇▇▇▇▇▇▇, OSI and Outback shall, promptly after the first notice or
occurrence thereof but prior to the Effective Date, advise the others in writing
of any event or the existence of any state of facts that:
(a) would make any of its representations and warranties in
this Agreement untrue in any material respect; or
(b) would otherwise constitute a material adverse change in
the business, results of operation, working capital, assets,
liabilities or condition (financial or otherwise) of OSI, Outback or
FAI and their respective subsidiaries, taken as a whole. No supplement
or amendment to any Disclosure Schedule shall have any effect for the
purpose of determining the satisfaction of or compliance with the
conditions to the obligations of the parties to consummate the Merger
set forth elsewhere in this Agreement.
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5.2 COOPERATION. Until the Effective Date, each of the parties
hereto shall and shall cause each of its affiliates to use its best efforts to:
(a) proceed promptly to make or give the necessary
applications, notices, requests and filings to obtain at the earliest
practicable date and, in any event, before the Closing Date, the
approvals, authorizations and consents necessary to consummate the
transactions contemplated by this Agreement;
(b) cooperate with and keep the other informed in connection
with this Agreement; and
(c) take such actions as the other parties may reasonably
request to consummate the transactions contemplated by this Agreement
and use its best efforts and diligently attempt to satisfy, to the
extent within its control, all conditions precedent to the obligations
to close this Agreement.
5.3 POST-CLOSING ADJUSTMENT. As soon as practicable after the
Closing Date, but in no event more than forty-five (45) days thereafter, OSI
shall determine and report in writing to all parties hereto:
(a) the amount of current assets of FAI as of the Effective
Date; and
(b) the amount of all liabilities of FAI (other than
liabilities specified in Item 6.2 of the FAI Disclosure Schedule to the
extent assumed by Outback) which were not paid in full prior to the
Effective Date.
Upon receipt of such report, ▇▇▇▇▇▇▇▇ (by notice to OSI as provided
herein) shall have a period of ten (10) days in which to object in writing to
any portion or item of such report. In the event no objection is timely made,
OSI's report shall be final and binding on all parties. If timely objection is
made, the chief financial officer of OSI and ▇▇▇▇▇▇▇▇ (and at the expense of
▇▇▇▇▇▇▇▇) shall meet and attempt to agree on the items to which objection was
made. If such persons cannot agree within thirty (30) days from the date of
written objection, the items on which agreement has not been reached shall be
submitted to the Tampa, Florida office of PricewaterhouseCoopers (or other
agreed upon independent "Big Five" accounting firm) for a resolution of such
items and whose decision shall be final and binding on all parties. The fees and
expenses of PricewaterhouseCoopers (or other accounting firm) shall be paid by
the non-prevailing party.
If, as finally determined, the sum of Subsection (a) above exceeds the
sum of Subsections (b) and (c), OSI shall pay such excess to ▇▇▇▇▇▇▇▇ within ten
(10) days of such final determination. If, as finally determined, the sum of
Subsections (b) and (c) exceeds the sum of Subsection (a), ▇▇▇▇▇▇▇▇ shall pay
such excess to OSI within ten (10) days of the final determination.
5.4 DISTRIBUTION AND ALLOCATIONS. The parties acknowledge and
agree that notwithstanding the effective date of the Merger, Outback shall be
entitled to FAI's entire share of Partnership distributions of cash flow, and
shall be allocated FAI's shares of profit and loss, from and after January 1,
1999.
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5.5 ADDITIONAL AGREEMENTS.
(a) Subject to the terms and conditions herein provided, each
of the parties hereto agrees to use all reasonable efforts to take or
cause to be taken, all actions and to do or cause to be done, all
things necessary, proper or advisable under applicable laws and
regulations to consummate and make effective the transactions
contemplated by this Agreement, including using all reasonable efforts
to obtain all necessary waivers, consents and approvals, to effect all
necessary registrations and filings and to lift any injunction or other
legal bar to the Merger (and, in such case, to proceed with the Merger
as expeditiously as possible), subject, however, to the appropriate
vote of the shareholders of FAI.
(b) In case at any time after the Effective Date any further
action is necessary or desirable to carry out the purposes of this
Agreement, the proper officers and/or directors of OSI and Outback and
▇▇▇▇▇▇▇▇ shall take all such necessary action.
(c) Neither Outback, OSI, FAI nor ▇▇▇▇▇▇▇▇ shall take any
action which would jeopardize the characterization of the Merger as a
reorganization within the meaning of Section 368(a) of the Code or the
treatment of the Merger for financial reporting purposes as a pooling
of interests.
ARTICLE 6
COVENANTS OF FAI AND ▇▇▇▇▇▇▇▇
▇▇▇ and ▇▇▇▇▇▇▇▇ covenant and agree with OSI as follows:
6.1 SECURITIES LAW COMPLIANCE. ▇▇▇▇▇▇▇▇ represents and warrants,
and covenants to Outback and OSI that:
(a) ▇▇▇▇▇▇▇▇ has received all schedules and exhibits and the
documents furnished to FAI pursuant to SECTION 4.8;
(b) ▇▇▇▇▇▇▇▇ has had the opportunity to ask questions of and
receive answers from representatives of the management of OSI
concerning the terms and conditions of the transactions contemplated
hereby and to obtain all additional information that OSI possesses or
could acquire without unreasonable expense that is necessary to verify
the accuracy of information furnished to ▇▇▇▇▇▇▇▇.
(c) OSI and Outback have furnished him with all information
requested and full access to materials concerning OSI and Outback which
▇▇▇▇▇▇▇▇ and/or his advisors deemed necessary to properly evaluate the
Merger. Such information and access have been made available and
utilized to the extent ▇▇▇▇▇▇▇▇ considers necessary and advisable in
making an informed investment decision, and ▇▇▇▇▇▇▇▇ has consulted his
own tax advisor and understands the evaluation of such materials may
require the assistance of experts and ▇▇▇▇▇▇▇▇ has utilized such
experts to the extent deemed necessary.
(d) ▇▇▇▇▇▇▇▇ understands that the OSI Common Stock to be
received is an investment of a speculative nature and ▇▇▇▇▇▇▇▇ must
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bear the risks thereof for an indefinite period of time. ▇▇▇▇▇▇▇▇ has
adequate means for providing for his needs, is able to bear the
economic risk of the investment and has no need for liquidity in the
OSI Common Stock to be received in the Merger.
(e) ▇▇▇▇▇▇▇▇ and/or his representatives or advisors who have
acted with or on behalf of ▇▇▇▇▇▇▇▇ and who have advised ▇▇▇▇▇▇▇▇ in
this matter have such knowledge and experience in financial and
business matters that ▇▇▇▇▇▇▇▇ is capable of evaluating the merits and
risks of the Merger for OSI Common Stock.
(f) ▇▇▇▇▇▇▇▇ is participating in the Merger solely for his
account as a private investment, and ▇▇▇▇▇▇▇▇ has no present agreement,
understanding, arrangement or intention to sell or transfer all or any
portion of the shares of OSI Common Stock to be issued in the Merger to
any other person or persons. ▇▇▇▇▇▇▇▇ does not presently intend to
enter into any such agreement or undertaking and there are no present
circumstances which will compel ▇▇▇▇▇▇▇▇ to sell any OSI Common Stock
so received. ▇▇▇▇▇▇▇▇ will not sell or otherwise transfer the shares
(except for DE MINIMIS gifts of shares) unless they are registered
under the Securities Act and applicable state securities laws or, in
the opinion of OSI and its counsel, an exemption from registration is
available therefor.
(g) The investment by ▇▇▇▇▇▇▇▇ in OSI Common Stock pursuant to
the Merger is a suitable investment for ▇▇▇▇▇▇▇▇ given the investment
goals and objectives of ▇▇▇▇▇▇▇▇.
(h) ▇▇▇▇▇▇▇▇ agrees to indemnify and hold OSI and Outback and
each of their respective officers, directors and advisors harmless
against all liability arising out of or in connection with any
purchase, resale or distribution by ▇▇▇▇▇▇▇▇ of any OSI Common Stock
received hereby which is effected other than in strict compliance with
the terms hereof and applicable law.
(i) ▇▇▇▇▇▇▇▇ understands that the shares of OSI Common Stock
to be issued in the Merger will not be registered under the Securities
Act, nor any state securities laws, and such OSI Common Stock may not
be sold or transferred except in compliance with such laws. Neither OSI
nor Outback will have any obligation to register any such OSI Common
Stock.
(j) ▇▇▇▇▇▇▇▇ understands that OSI will place an appropriate
legend on the certificate representing OSI Common Stock to be received
restricting the transfer of the shares and stop-transfer instructions
will be given to the transfer agent for the OSI Common Stock with
respect to such certificates.
(k) ▇▇▇▇▇▇▇▇ is a natural person (i) whose net worth (the
excess of total assets over total liabilities), individually or jointly
with his spouse, exceeds $1,000,000 (inclusive of the value of home,
home furnishings and automobiles); or (ii) who had an Individual Annual
Adjusted Gross Income in excess of $200,000 in each of the two most
recent tax years or joint income with ▇▇▇▇▇▇▇▇'▇ spouse in excess of
$300,000 in each of those years and reasonably expects to reach the
same income level in the current tax year.
6.2 PAYMENT OF LIABILITIES. FAI and ▇▇▇▇▇▇▇▇ covenant and agree
that all debts and liabilities of FAI relating to periods prior to the Closing
Date shall be paid or satisfied in full prior to the Effective Date, except only
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current liabilities and those debts and liabilities of FAI assumed by Outback as
specified in Item 6.2 of the Disclosure Schedules.
6.3 POOLING. ▇▇▇▇▇▇▇▇ agrees that until such time as financial
results of OSI covering at least thirty (30) days of combined operations of OSI
and FAI subsequent to the Effective Date have been published, he will not sell
or otherwise dispose of any shares of OSI Common Stock held by him as of the
Effective Date or any of such shares thereafter acquired by him at any time or
from time to time prior to the date of such publication. OSI shall give
instructions to its transfer agent and registrar, Bank of New York, Inc., with
respect to the shares of OSI Common Stock issued pursuant to the Merger, to the
effect that no transfer of such shares shall be effected until the date on which
the requisite financial results have been published and OSI and the transfer
agent may take any action, including placing an appropriate legend on the
certificates, they deem necessary to enforce this provision.
ARTICLE 7
COVENANTS OF OSI AND OUTBACK
OSI and Outback, jointly and severally, covenant and agree with FAI and
▇▇▇▇▇▇▇▇ as follows:
7.1 EMPLOYMENT AGREEMENTS. Solely with respect to the Merger, and
any consequential termination of any partnership by operation of law, Outback
agrees not to elect to terminate the Employment Agreements between the
Partnership, as employer, and the general managers of the Partnership's Outback
Steakhouse restaurants, as employees. Outback shall succeed to all rights and
obligations of the Partnership under such Employment Agreements. Nothing
contained herein shall be construed as in any way limiting Outback's right to
terminate any such Employment Agreement as a result of any circumstance or event
other than the Merger and consequential termination of the Partnership by
operation of law.
7.2 ASSUMED LIABILITIES. OSI and Outback agree to assume and pay
the liabilities specified in Item 6.2 (subject to the amount limits specified in
Item 6.2 of the Disclosure Schedules) and to indemnify and hold harmless
▇▇▇▇▇▇▇▇ from any loss or liability therefor.
ARTICLE 8
JOINT CONDITIONS PRECEDENT TO CLOSING OBLIGATIONS
Except as may be waived by OSI, the obligations of FAI, ▇▇▇▇▇▇▇▇, OSI
and Outback to consummate the transactions contemplated by this Agreement shall
be subject to the satisfaction, on or before the Closing Date, of each of the
following conditions:
8.1 CONSENTS TO TRANSACTION. FAI, Outback and OSI shall have
received all consents or approvals and made all applications, requests, notices
and filings with, any person, governmental authority or governmental agency
required to be obtained or made in connection with the consummation of the
transactions contemplated by this Agreement. There shall have been obtained from
all state and local governments and governmental agencies all approvals and
consents necessary to enable FAI and/or the Partnership, as applicable, to
transfer their liquor licenses and permits to Outback, to enable Outback to
assume such licenses and permits or to enable Outback to operate restaurants (of
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the kind and quality customarily operated by Outback) using such permits or
licenses. Copies of all consents and approvals received by any party pursuant to
this SECTION 8.1 shall be furnished to the other party.
8.2 ABSENCE OF LITIGATION. No governmental agency or authority
shall have instituted or threatened in writing to institute, any action or
proceeding seeking to delay, restrain, enjoin or prohibit the consummation of
the transactions contemplated by this Agreement and no order, judgment or decree
by any court or governmental agency or authority shall be in effect that
enjoins, restrains or prohibits the same or otherwise would materially interfere
with the operation of the assets and business of FAI or the Partnership or OSI
and its subsidiaries, including the surviving corporation in the Merger, after
the Closing Date.
8.3 DISSENTER'S RIGHTS. The number of shares of capital stock of
FAI for which shareholders have exercised appraisal or dissenters' rights under
applicable law shall be a number which, in the sole and absolute discretion of
OSI, does not jeopardize the financial reporting and accounting treatment of the
Merger specified in SECTION 1.11 or is otherwise not contrary to the best
interests of Outback or OSI.
ARTICLE 9
CONDITIONS PRECEDENT TO OBLIGATIONS OF FAI
The obligations of FAI and ▇▇▇▇▇▇▇▇ to consummate the transactions
contemplated by this Agreement shall be subject to the satisfaction on or before
the Closing Date of each of the following conditions:
9.1 COMPLIANCE. OSI and Outback shall have, or shall have caused
to be, satisfied or complied with and performed in all material respects all
terms, covenants and conditions of this Agreement to be complied with or
performed by OSI and Outback on or before the Closing Date.
9.2 REPRESENTATIONS AND WARRANTIES. All of the representations and
warranties made by OSI and Outback in this Agreement, and in all certificates
and other documents delivered by OSI and Outback to FAI and ▇▇▇▇▇▇▇▇ pursuant
hereto or in connection with the transactions contemplated hereby, shall have
been true and correct in all material respects as of the date hereof and shall
be true and correct in all material respects at the Closing Date with the same
force and effect as if such representations and warranties had been made at and
as of the Closing Date, except for changes permitted or contemplated by this
Agreement.
9.3 MATERIAL ADVERSE CHANGES. Since the date of OSI's most recent
10-Q, as filed with the Securities and Exchange Commission, through the date
hereof, there shall have occurred no material adverse change in the business,
properties, assets, liabilities, results of operations or condition, financial
or otherwise, of OSI and Outback, taken as a whole.
ARTICLE 10
CONDITIONS PRECEDENT TO OBLIGATIONS OF OSI AND OUTBACK
Except as may be waived by OSI and Outback, the obligations of OSI and
Outback to consummate the transactions contemplated by this Agreement shall be
subject to the satisfaction, on or before the Closing Date, of each of the
following conditions:
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10.1 COMPLIANCE. FAI and ▇▇▇▇▇▇▇▇ shall have or shall have caused
to be satisfied or complied with and performed in all material respects all
terms, covenants and conditions of this Agreement to be complied with or
performed by any of them on or before the Closing Date.
10.2 REPRESENTATIONS AND WARRANTIES. All of the representations and
warranties made by FAI and/or ▇▇▇▇▇▇▇▇ in this Agreement, the Disclosure
Schedule, and in all certificates and other documents delivered by FAI or
▇▇▇▇▇▇▇▇ pursuant hereto or in connection with the transactions contemplated
hereby, shall have been true and correct in all material respects as of the date
hereof and shall be true and correct in all material respects at the Closing
Date with the same force and effect as if such representations and warranties
had been made at and as of the Closing Date, except for changes permitted or
contemplated by this Agreement.
10.3 CURRENT FINANCIAL STATUS. OSI shall have received the
unaudited financial statements of FAI as of January 1, 1999, for the month then
ended.
10.4 MATERIAL ADVERSE CHANGES. Since December 31, 1997, there shall
have occurred no material adverse change in the business, properties, assets,
liabilities, results of operations or condition, financial or otherwise, of FAI
or the Partnership.
10.5 POOLING. OSI shall have received a letter from Deloitte &
Touche, in form and substance satisfactory to OSI and dated not more than five
days prior to the Closing Date, to the effect that the Merger shall qualify as a
pooling of interests for financial reporting purposes.
ARTICLE 11
INDEMNIFICATION
▇▇▇▇▇▇▇▇, on the one hand, and OSI and Outback, jointly and severally,
on the other hand, agree as follows:
11.1 INDEMNIFICATION BASED ON AGREEMENT. Subject to the limitations
contained in SECTION 11.2 hereof, ▇▇▇▇▇▇▇▇ shall indemnify and hold harmless
OSI, Outback and FAI, and OSI, Outback and FAI, jointly and severally, shall
indemnify and hold harmless ▇▇▇▇▇▇▇▇, against any losses, claims, damages or
liabilities to which such indemnified party may become subject, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon any facts or circumstances that would constitute a breach
by the other of any representation, warranty or covenant contained herein or in
any agreement executed pursuant hereto and will reimburse any legal or other
expenses reasonably incurred by any indemnified party in connection with
investigating or defending any such loss, claim, damage, liability or action.
In addition to the above, ▇▇▇▇▇▇▇▇ shall indemnify OSI, Outback and
FAI, as provided in the first paragraph of this SECTION 11.1, against any loss,
claim, damage or liability arising out of (i) any tax liability of FAI for any
period prior to and including the Effective Date and (ii) any debt of FAI (other
than the debts specified in Item 6.2 of the Disclosure Schedule to the extent
assumed by Outback), and (iii) all claims, obligations, causes of action and
liabilities, of whatever kind or character, of any of FAI which arise out of or
are based upon events first occurring on or before the Effective Date, except
only the liabilities assumed by Outback as specified in Item 6.2 of the
Disclosure Schedule.
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11.2 LIMITATION. ▇▇▇▇▇▇▇▇ shall have no obligation under SECTION
11.1 to indemnify OSI, Outback or FAI for any liability, loss, claim or damage
arising out of or based upon facts or actions first occurring after the
Effective Date. All obligations of indemnity (other than those relating to tax
obligations of FAI under SECTION 11.1 above which shall continue for the period
specified in SECTION 12.4(B) hereof) shall terminate two (2) years from the
Closing Date; PROVIDED, HOWEVER, the obligations of indemnity shall not
terminate with respect to any matter for which indemnification is claimed within
two (2) years from the Closing Date.
11.3 COOPERATION. If any claim, demand, action, suit, proceeding or
investigation arising out of or pertaining to this Agreement or the transactions
contemplated hereby is begun or asserted, whether begun or asserted before or
after the Closing Date, the parties hereto will cooperate and use their best
efforts to defend against and respond thereto.
11.4 NOTICE. An indemnified party shall give notice to the
indemnifying party or parties within ten (10) business days after actual receipt
of service or summons to appear in any action begun in respect of which
indemnity may be sought hereunder. Failure to so notify the indemnifying party
or parties shall cause the indemnified party to be liable for any damage caused
by failure to give timely notice. The indemnifying party or parties may
participate at their own expense and with their counsel in the defense of such
action. If the indemnifying party or parties so elect within a reasonable time
after receipt of such notice, they may assume the defense of such action with
counsel chosen by the indemnifying party or parties and approved by the
indemnified party in such action, unless the indemnified party reasonably
objects to such assumption on the ground that its counsel has advised it that
there may be legal defenses available to it that are different from or in
addition to those available to the indemnifying party or parties, in which case
the indemnified party shall have the right to employ counsel approved by the
indemnifying party or parties. If the indemnifying party or parties assume the
defense of such action, the indemnifying party or parties shall not be liable
for fees and expenses of counsel for the indemnified party incurred thereafter
in connection with such action. In no event shall the indemnifying party or
parties be liable for the fees and expenses of more than one counsel for the
indemnified parties in connection with any one action or separate but similar or
related actions in the same jurisdiction arising out of the same general
allegations or circumstances unless, in the reasonable opinion of such counsel,
there is, under applicable standards of professional conduct, a conflict on any
significant issue between the positions of any two or more indemnified parties.
ARTICLE 12
MISCELLANEOUS
12.1 TERMINATION. This Agreement and the transactions contemplated
hereby may be terminated at any time on or before the Closing Date
(notwithstanding approval by the shareholders of FAI):
(a) by mutual consent of FAI and OSI;
(b) by OSI if there has been a material misrepresentation or
breach of warranty in the representations and warranties of FAI or
▇▇▇▇▇▇▇▇ set forth herein or if there has been any material failure on
the part of FAI or ▇▇▇▇▇▇▇▇ to comply with their obligations hereunder;
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(c) by FAI if there has been a material misrepresentation or
breach of warranty in the representations and warranties of OSI or
Outback set forth herein or if there has been any material failure on
the part of OSI or Outback to comply with their obligations hereunder;
(d) by either OSI, FAI or ▇▇▇▇▇▇▇▇, if the transactions
contemplated by this Agreement have not been consummated by February
28, 1999, unless such failure of consummation is due to the failure of
the terminating party to perform or observe the covenants, agreements
and conditions hereof to be performed or observed by it at or before
the Closing Date;
(e) by either OSI, or FAI if the conditions precedent to its
obligations to close this Agreement have not been satisfied or waived
by it at or before the Closing Date; and
(f) by either FAI or OSI if the transactions contemplated
hereby violate any nonappealable final order, decree or judgment of any
court or governmental body or agency having competent jurisdiction.
12.2 EXPENSES. Each party hereto shall pay its own expenses
incurred in connection with this Agreement and the transactions contemplated
hereby.
12.3 ENTIRE AGREEMENT. This Agreement and the exhibits and
Disclosure Schedule hereto constitute and contain the complete agreement among
the parties with respect to the transactions contemplated hereby and supersede
all prior agreements and understandings among the parties with respect to such
transactions. The parties hereto have not made any representation or warranty
except as expressly set forth in this Agreement, the Merger Agreement or in any
certificate or schedule delivered pursuant hereto. The obligations of any party
under any agreement executed pursuant to this Agreement shall not be affected by
this SECTION 12.3.
12.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
(a) The representations, warranties and indemnification
obligations of OSI and Outback contained herein or in any exhibit,
certificate, document or instrument delivered pursuant to this
Agreement shall survive the Closing for a period of two years;
PROVIDED, HOWEVER, that the obligations of OSI and Outback under
ARTICLE 11 hereof shall survive for the periods provided therein.
(b) Except where otherwise specifically provided in this
Agreement, the representations, warranties and indemnification
obligations of ▇▇▇▇▇▇▇▇ contained herein or in any exhibit, schedule,
certificate, document or instrument delivered pursuant to this
Agreement shall survive the Closing for a period of three years from
the Effective Date; PROVIDED, HOWEVER, the representations and
warranties contained in SECTION 2.9 (TAX LIABILITIES) shall survive the
Closing for a period ending four years after the filing of FAI's
federal income tax return for the period including the Effective Date.
12.5 COUNTERPARTS. This Agreement may be executed in any number of
identical counterparts, each of which when so executed and delivered shall be
deemed an original and such counterparts together shall constitute only one
original.
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12.6 NOTICES. All notices, demands, requests or other
communications that may be or are required to be given, served or sent by any
party to any other party pursuant to this Agreement shall be in writing and
shall be mailed by registered or certified mail, return receipt requested,
postage prepaid or transmitted by hand delivery, recognized national overnight
delivery service, telegram or telex, addressed as follows:
If to FAI or ▇▇▇▇▇▇▇▇: ▇▇▇▇▇▇▇▇ & ASSOCIATES, INC.
▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ▇▇▇▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
If to OSI or Outback: OUTBACK STEAKHOUSE, INC.
▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇, General Counsel
Each party may designate by notice in writing a new address to which
any notice, demand, request or communication may thereafter be so given, served
or sent. Each notice, demand, request or communication that is mailed, delivered
or transmitted in the manner described above shall be deemed sufficiently given,
served, sent and received for all purposes at such time as it is delivered to
the addressee (with the return receipt, the delivery receipt, the affidavit of
messenger or (with respect to a telex) the answer back being deemed conclusive
evidence of such delivery) or at such time as delivery is refused by the
addressee upon presentation.
12.7 SUCCESSORS AND ASSIGNS. This Agreement and the rights,
interests and obligations hereunder shall be binding upon and shall inure to the
benefit of the parties hereto and, except as otherwise specifically provided for
herein, their respective successors and assigns.
12.8 GOVERNING LAW. This Agreement shall be construed and enforced
in accordance with the laws of the State of Florida without giving effect to
principles of comity or conflicts of law thereof.
12.9 WAIVER AND OTHER ACTION. This Agreement may be amended,
modified or supplemented only by a written instrument executed by the parties
against which enforcement of the amendment, modification or supplement is
sought.
12.10 SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid or unenforceable, such provision shall be fully severable and
this Agreement shall be construed and enforced as if such illegal, invalid or
unenforceable provision were never a part hereof; the remaining provisions
hereof shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance; and in lieu of
such illegal, invalid or unenforceable provision, there shall be added
automatically as part of this Agreement, a provision as similar in its terms to
such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable.
12.11 HEADINGS. All headings and captions in this Agreement are
intended solely for the convenience of the parties and none shall be deemed to
affect the meaning or construction of any provision hereof.
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12.12 CONSTRUCTION. All references herein to the masculine, neuter
or singular shall be construed to include the masculine, feminine, neuter or
plural, where applicable.
12.13 JURISDICTION AND VENUE. The parties agree that any action
brought by either party against the other in any court, whether federal or
state, shall be brought within the State of Florida in the judicial circuit in
which OSI has its principal place of business. Each party hereby agrees to
submit to the personal jurisdiction of such courts and hereby waives all
questions of personal jurisdiction or venue for the purpose of carrying out this
provision, including, without limitation, the claim or defense therein that such
courts constitute an inconvenient forum.
12.14 ENFORCEMENT. In the event it is necessary for any party to
retain legal counsel or institute legal proceedings to enforce the terms of this
Agreement, including, without limitation, obligations upon expiration or
termination, the prevailing party shall be entitled to receive from the
non-prevailing party, in addition to all other remedies, all costs of such
enforcement including, without limitation, attorney's fees and court costs and
including appellate proceedings.
12.15 FURTHER ASSURANCES. Each party covenants and agrees to execute
and deliver, prior to or after the Merger, such further documents as may
reasonably be requested by another party to fully effectuate the transactions
provided for herein.
12.16 EQUITABLE REMEDIES. The parties hereto acknowledge that a
refusal by a party to consummate the transactions contemplated hereby will cause
irreparable harm to the other parties, for which there may be no adequate remedy
at law. A party not in default at the time of such refusal shall be entitled, in
addition to other remedies at law or in equity, to specific performance of this
Agreement by the party that refused to consummate the transactions contemplated
hereby.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.
"OSI"
Attest: OUTBACK STEAKHOUSE, INC.
a Delaware corporation
By:_____________________________ By: _____________________________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Secretary ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President
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"Outback"
Attest: OUTBACK STEAKHOUSE OF FLORIDA, INC.,
a Florida corporation
By:_______________________________ By: ________________________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Secretary ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Chief
Operating Officer
"FAI"
Attest: ▇▇▇▇▇▇▇▇ & ASSOCIATES, INC.
a Colorado corporation
By:_______________________________ By: ________________________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Secretary ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, President
Witness: "▇▇▇▇▇▇▇▇"
__________________________________ _____________________________________
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
__________________________________
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