Buffalo Wild Wings 2009 Annual Report Download - page 116

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The Nevada Gaming Authorities may investigate any individual who has a material relationship to, or material involvement
with, Buffalo Wild Wings or the licensed subsidiary to determine whether such individual is suitable or should be licensed as a
business associate of a gaming licensee. Officers, directors, and certain key employees of the licensed subsidiary must file applications
with the Nevada Gaming Authorities and may be required to be licensed by the Nevada Gaming Authorities. Our officers, directors,
and key employees who are actively and directly involved in the gaming activities of the licensed subsidiary may be required to be
licensed or found suitable by the Nevada Gaming Authorities. The Nevada Gaming Authorities may deny an application for licensing
or a finding of suitability for any cause they deem reasonable. A finding of suitability is comparable to licensing, and both require
submission of detailed personal and financial information followed by a thorough investigation. The applicant for licensing or a
finding of suitability, or the gaming licensee by which the applicant is employed or for whom the applicant serves, must pay all the
costs of the investigation. Changes in licensed positions must be reported to the Nevada Gaming Authorities, and in addition to their
authority to deny an application for a finding of suitability or licensure, the Nevada Gaming Authorities have jurisdiction to
disapprove a change in a corporate position.
If the Nevada Gaming Authorities were to find an officer, director, or key employee unsuitable for licensing or to continue
having a relationship with us or the licensed subsidiary, Buffalo Wild Wings or the licensed subsidiary would have to sever all
relationships with that person. In addition, the Nevada Commission may require us or the licensed subsidiary to terminate the
employment of any person who refuses to file appropriate applications. Determinations of suitability or of questions pertaining to
licensing are not subject to judicial review in Nevada.
We are required to submit detailed financial and operating reports to the Nevada Commission. Substantially all of Buffalo Wild
Wings and the licensed subsidiary’s material loans, leases, sales of securities, and similar financing transactions must be reported to or
approved by the Nevada Commission.
If the Nevada Commission determined that we or the licensed subsidiary violated the Nevada Act, it could limit, condition,
suspend, or revoke, subject to compliance with certain statutory and regulatory procedures, our gaming license and those of the
licensed subsidiary. In addition, we and the licensed subsidiary and the persons involved could be subject to substantial fines for each
separate violation of the Nevada Act at the discretion of the Nevada Commission. Further, a supervisor could be appointed by the
Nevada Commission to operate the gaming establishments and, under certain circumstances, earnings generated during the
supervisor’s appointment (except for the reasonable rental value of the gaming establishments) could be forfeited to the State of
Nevada. Limitation, conditioning, or suspension of any gaming license or the appointment of a supervisor could (and revocation of
any gaming license would) materially adversely affect our gaming operations.
Any beneficial holder of our voting securities, regardless of the number of shares owned, may be required to file an application,
be investigated, and have his or her suitability as a beneficial holder of the voting securities determined if the Nevada Commission has
reason to believe that such ownership would otherwise be inconsistent with the declared policies of the State of Nevada. The applicant
must pay all costs of investigation incurred by the Nevada Gaming Authorities in conducting any such investigation.
The Nevada Act requires any person who acquires more than 5% of any class of our voting securities to report the acquisition to
the Nevada Commission. The Nevada Act requires that beneficial owners of more than 10% of any class of our voting securities apply
to the Nevada Commission for a finding of suitability within thirty days after the Chairman of the Nevada Board mails the written
notice requiring such filing. Under certain circumstances, an “institutional investor” as defined in the Nevada Act, which acquires
more than 10% but not more than 25% of any class of our voting securities, may apply to the Nevada Commission for a waiver of
such finding of suitability if such institutional investor holds the voting securities for investment purposes only.
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Source: BUFFALO WILD WINGS INC, 10-K, February 26, 2010 Powered by Morningstar® Document Research℠