Exhibit 10.3
ASSET PURCHASE AGREEMENT
BY AND AMONG
RUTH'S CHRIS STEAK HOUSE, INC.
AND
NEW N.O. CRESCENT CITY INVESTORS, L.L.C.,
a Washington Limited Liability Company;
STEVEN QUEYROUZE,
individually
ANNE QUEYROUZE,
as First Intervenor
AND
CRESCENT CITY INVESTORS, INC.
as Second Intervenor
EXECUTION VERSION
TABLE OF CONTENTS
Page
ARTICLE 1. DEFINITIONS
2
1.1
AFFILIATE
2
1.2
ASSUMED LIABILITIES
2
1.3
CLOSING
2
1.4
CLOSING DATE
2
1.5
CODE
3
1.6
EMPLOYEE BENEFIT PLAN
3
1.7
ENVIRONMENTAL LAW
3
1.8
ERISA
3
1.9
ERISA AFFILIATE
3
1.10
FIRST INTERVENOR
3
1.11
FRANCHISE RIGHTS
3
1.12
FRANCHISE AGREEMENTS
3
1.13
GOVERNMENTAL AUTHORITY
3
1.14
HAZARDOUS MATERIALS
3
1.15
INVESTOR
4
1.16
KNOWLEDGE
4
1.17
LEASED PREMISES
4
1.18
LIENS
4
1.19
MATERIAL ADVERSE EFFECT
4
1.20
PERSON
4
1.21
SECOND INTERVENOR
4
1.22
WARN ACT
4
ARTICLE 2. PURCHASE AND SALE OF ASSETS
5
2.1
PURCHASED ASSETS
5
2.2
EXCLUDED ASSETS
7
2.3
NO LIENS
8
2.4
ASSUMED LIABILITIES
8
2.5
SHARED LIABILITIES
8
2.6
PAYMENT OF LIABILITIES
9
ARTICLE 3. PURCHASE PRICE
9
3.1
PURCHASE PRICE
9
3.2
ADJUSTMENTS TO PURCHASE PRICE
9
3.3
ALLOCATION OF THE PURCHASE PRICE AMONG THE ASSETS
10
3.4
NONCOMPETITION
10
ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF SELLER
10
4.1
QUEYROUZE'S CAPACITY AND OWNERSHIP INTEREST IN SELLER
11
4.2
ORGANIZATION
11
4.3
REQUISITE POWER AND AUTHORITY
11
4.4
ABSENCE OF BREACH
12
4.5
OWNERSHIP OF ASSETS
12
4.6
CONDITION OF ASSETS
13
4.7
COMPLIANCE; LICENSES AND PERMITS
13
4.8
CONTRACTS
13
4.9
TRADE PAYABLES
14
4.10
INVENTORY
14
4.11
REAL PROPERTY LEASE
14
4.12
EASEMENTS
15
i
4.13
PROPRIETARY RIGHTS
15
4.14
OTHER PROPERTY
15
4.15
INSURANCE
15
4.16
FINANCIAL STATEMENTS
16
4.17
NO ASSIGNMENTS
16
4.18
TAXES
16
4.19
NO VIOLATIONS
17
4.20
BUSINESS NAMES
17
4.21
BROKERS' FEES AND EXPENSES
17
4.22
LITIGATION
17
4.23
LABOR MATTERS
17
4.24
BENEFIT PLANS AND ERISA
18
4.25
ENVIRONMENTAL MATTERS
18
4.26
FULL DISCLOSURE
19
4.27
PURCHASER'S KNOWLEDGE
19
ARTICLE 5 REPRESENTATION AND WARRANTIES OF PURCHASER
19
5.1
ORGANIZATION OF PURCHASER
19
5.2
REQUISITE POWER AND AUTHORITY
19
5.3
ABSENCE OF BREACH
20
5.4
BROKERS FEES AND EXPENSES
20
ARTICLE 6 COVENANTS
20
6.1
PRESERVATION OF BUSINESS AND RELATIONSHIPS; INSURANCE
20
6.2
PROHIBITED TRANSACTIONS
21
6.3
PURCHASER'S ACCESS TO PREMISES AND INFORMATION; CONFIDENTIALITY
21
6.4
CONSENTS
22
6.5
NO NEGOTIATIONS
22
6.6
NOTIFICATION OF CERTAIN MATTERS
22
6.7
CONFIDENTIAL INFORMATION
23
6.8
PURCHASER GUARANTEE
24
6.9
REAL ESTATE MATTERS
24
6.10
ENVIRONMENTAL MATTERS
25
6.11
REAL PROPERTY LEASE NOTICES
25
6.12
FURTHER ASSURANCES
25
6.13
INVESTOR APPROVAL
25
6.14
DEPOSITS, PRE-PAID EXPENSES, ETC.
26
6.15
CERTAIN STATE OF WASHINGTON SALES TAXES; RESALE CERTIFICATES
26
6.16
MINIMUM INVENTORY LEVELS
26
6.17
SELLER'S PRODUCTION OF INFORMATION TO PURCHASER
26
ARTICLE 7 CONDITIONS TO PURCHASER'S OBLIGATIONS
26
7.1
REPRESENTATIONS AND WARRANTIES TRUE AT CLOSING
26
7.2
OBLIGATIONS PERFORMED
26
7.3
AUTHORIZATIONS, CONSENTS, LICENSES, PERMITS AND APPROVALS
26
7.4
CLOSING DOCUMENTS
27
7.5
INSPECTION
27
7.6
SELLER'S DELIVERIES
27
7.7
AUDITED STATEMENTS
29
7.8
NO CHALLENGE
29
7.9
NO MATERIAL