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(or such lesser period hereinafter provided for) following the date hereof (the |
"Restricted Period"), he shall not, without the prior express written consent |
of the Acquiror: |
(i) except with respect to the Permitted Hotels |
(as defined below), call upon, solicit, divert, take away or attempt |
to call upon, solicit, divert or take away any existing or potential |
customers, suppliers or accounts of the Acquiror Companies, the |
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<PAGE> 3 |
Target Company or the Related Entities or their respective businesses |
in connection with any business substantially similar to the Business; |
(ii) hire or attempt to hire, for himself or on |
behalf of any other person, any present or future employee of the |
Acquiror Companies, the Target Company or any Related Entity; or |
(iii) own, lease, maintain, operate, franchise, |
license, manage, invest in or provide financing for, or give any |
advice to any person, firm, partnership, association, venture, |
corporation or other entity owning an interest in or engaging, |
directly or indirectly, in the management or operation of, (A) any |
Hilton Garden, Courtyard by Marriott or Doubletree Club hotel wherever |
located or (B) any other Upscale Hotel (as defined below) or Extended |
Stay Hotel (as defined below) located in the United States, Canada, |
Mexico or the Caribbean within a ten (10)-mile radius of any hotel now |
or hereafter operated under the "Wyndham," "ClubHouse," or "Homegate" |
brand, except for any such activity conducted for or on behalf of, or |
in conjunction with, any of the Acquiror Companies or, in the case of |
clause (B), Permitted Hotels (as defined below); provided, that if a |
hotel operated under the "Wyndham," "ClubHouse," or "Homegate" brand |
is announced for a location that is within a ten (10)-mile radius of |
any hotel that prior to the date of such announcement was in operation |
and is owned, managed or operated by any such entity in which Samples |
has also prior to such date commenced involvement of a type that would |
otherwise be restricted by clause (B), then this clause (iii) shall |
not require Samples to cease such involvement; or |
(iv) enter into any contract or make any |
commitment to take any action that is restricted by clauses (i), (ii) |
or (iii) above. |
(d) As used in the foregoing provisions, (i) the term |
"Upscale Hotel" shall mean any hotel or other lodging facility that is a full |
service hotel or facility of a type that is treated or classified as an |
"upscale hotel" or as part of the "upscale segment" of the lodging industry by |
Smith Travel Research or, if such a classification is not available from Smith |
Travel Research, by a similar reputable hotel industry service; (ii) the term |
"Extended Stay Hotel" shall mean any hotel or other lodging facility that |
derives the majority of its business from guests who stay three consecutive |
nights or longer or that is of a type that is treated or classified as an |
"extended stay hotel" or as part of the "extended stay segment" of the lodging |
industry by Smith Travel Research or, if such a classification is not available |
from Smith Travel Research, by a similar reputable hotel industry service and |
(iii) "Permitted Hotels" shall mean, collectively, (A) the hotel in Wichita, |
Kansas operated as of the date hereof as the Wichita Airport Hilton and (B) the |
hotel in Peoria, Illinois operated as of the date hereof as the Pere Marquette, |
(C) any upscale all-suites hotel located or to be located adjacent to the |
Sprint campus in Overland Park, Kansas, (D) the Holiday Inn in Topeka, Kansas, |
so long as managed under a management contract by |
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<PAGE> 4 |
Samples or any entity controlled by Samples; (E) if so provided by Section 2(e) |
below, any three (3) other hotels that, at the time that Samples owns, leases, |
operates, franchises, licenses, manages, invests in or gives advice in respect |
of such hotels, have been open and in operation for at least one (1) years, |
provided that this clause (E) and the similar provision of the Non-Competition |
and Non-Disclosure Agreement of David H. Aull of even date herewith shall |
collectively not authorize more than a total of three hotels; (F) the Broadway |
Plaza Suites in Kansas City, Missouri and (G) any Extended Stay Hotel at a |
specified site if (x) Samples has offered in writing to Acquiror or its |
designee to develop for Acquiror or such designee an Extended Stay Hotel at |
such site as a Homegate brand (or other extended stay brand maintained by |
Acquiror, Target Company or their respective affiliates) Extended Stay Hotel in |
accordance with the procedure set forth below and (y) Acquiror or its designee |
has either advised Samples that it does not wish to have an Extended Stay Hotel |
developed at such site as a Homegate (or other extended stay brand maintained |
by Acquiror, Target Company or their respective affiliates) or failed to |
respond within the time period set forth below. |
In the case of clause (G) |
above, Samples' offer shall include a reasonably detailed proposal for the |
development of the site as an Extended Stay Hotel. |
Acquiror or its designee |
shall be given at least thirty (30) days to evaluate such offer and respond to |
Samples. |
If Acquiror or its designee fails to respond within such thirty (30) |
day period or advises Samples that it does not wish to have an Extended Stay |
Hotel developed at such site as a Homegate (or other extended stay brand |
maintained by Acquiror, Target Company or their respective affiliates), Samples |
may develop an Extended Stay Hotel on such site with another party if |
construction of such Extended Stay Hotel is commenced within 180 days |