SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
May 22, 2018 (May 21, 2018)
Date of Report (Date of earliest event reported)
RED LION HOTELS CORPORATION
(Exact Name of Registrant as Specified in Charter)
Washington | 001-13957 | 91-1032187 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission file number) |
(I.R.S. Employer Identification No.) |
1550 Market St. #350
Denver, CO 80202
(Address of Principal Executive Offices, Zip Code)
(509) 459-6100
(Registrants Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b)(d) On May 21, 2018, Bernie Moyle, Chief Operating Officer and Roger Bloss, Executive Vice President, President of Global Development, announced that they would be resigning from their officer positions with Red Lion Hotels Corporation (the Company), effective May 31, 2018.
In connection with their resignation, Mr. Bloss and Mr. Moyle each entered into an Independent Contractor Agreement (ICA) with the Company under which each will provide consulting services to the Company through December 31, 2020 for a consulting fee of $10,000 per month. In addition, each are eligible under their ICA to receive a mutually agreed upon referral fee for any new hotel franchisee referred to the Company that enters into a franchise agreement for a Red Lion brand. The Company may terminate the ICA at any time, but if an ICA is terminated without Cause (as defined therein) the Company remains obligated to pay the monthly consulting fees through the end of the term.
The Company also entered into a letter agreement (the Letter Agreement) and a First Amendment (the First Amendment) to the Asset Purchase Agreement dated as of September 13, 2016, by and among Red Lion Hotels Franchising, Inc., Red Lion Hotels Canada Franchising, Inc., Thirty-Eight Street, Inc. (TESI), Vantage Hospitality Group, Inc. and certain other Sellers listed on the signature pages thereto (including Moyle and Bloss) (the Purchase Agreement). The First Amendment provides for an amendment to the non-competition and non-solicitation restrictive covenant under the Purchase Agreement. Under the First Amendment, the sellers agreed that the non-compete and non-solicit provisions under the Purchase Agreement would extend until December 31, 2020, and the restrictions would prohibit the sellers from, directly or indirectly, acting as or on behalf of a franchisor or brand owner of hotels or pursuing any franchise or brand membership opportunities in the United States, Canada, India, South Korea and Mexico. Under the Letter Agreement, the Company agreed that the second year earn-out payment payable under the Purchase Agreement would be paid in the full amount of $3,000,000 and 276,000 shares of Company common stock (the Second Year Additional Consideration). The Company will (1) pay the Second Year Additional Consideration consisting of cash in accordance with the percentage indicated next to each Sellers name on Exhibit B attached to the Purchase Agreement and (2) issue the Additional Consideration consisting of shares to TESI, in each case on or before October 5, 2018. The Company understands that Mr. Bloss and Mr. Moyle each own 50% of the outstanding shares of TESI. Notwithstanding the foregoing, if the Company terminates either of Mr. Bloss or Mr. Moyle for Cause (as defined in their respective ICA) prior to October 5, 2018, then the Second Year Additional Consideration will be $2,250,000 in cash and 207,000 shares of common stock.
Copies of each ICA with Mr. Bloss and Mr. Moyle, the Letter Agreement and the First Amendment are filed as Exhibits to this Current Report on Form 8-K and are incorporated herein by reference. The foregoing description of the terms of the ICA, Letter Agreement and First Amendment are not complete and are qualified in their entirety by reference to such exhibit.
Item 8.01 Other Events
On May 22, 2018, the Company issued a press release announcing the resignation of Mr. Bloss and Mr. Moyle. A copy of that press release is furnished as Exhibit 99.1 to this report.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
Exhibit Title or Description |
|
10.1 | Independent Contractor Agreement with Roger Bloss dated May 21, 2018 | |
10.2 | Independent Contractor Agreement with Bernie Moyle dated May 21, 2018 | |
10.3 | Letter Agreement regarding Earn-Out dated May 21, 2018 | |
10.4 | First Amendment to Asset Purchase Agreement dated May 21, 2018 | |
99.1 | Press release dated May 22, 2018 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
RED LION HOTELS CORPORATION | ||||||
Date: May 22, 2018 | By: |
/s/ Douglas L. Ludwig |
||||
Douglas L. Ludwig |
||||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
Exhibit 10.1
EXECUTION VERSION
INDEPENDENT CONTRACTOR AGREEMENT
This INDEPENDENT CONTRACTOR AGREEMENT (this Agreement) is made as of May 21, 2018 between Red Lion Hotels Corporation, a Washington corporation (hereinafter called the Company), and Roger Bloss, an individual (hereinafter called Contractor).
The parties hereto wish to enter into this Agreement to set forth the basis on which Contractor will perform consulting services for the Company and with respect to certain other matters in connection with such engagement, all as set forth more fully in this Agreement.
In consideration of the facts, mutual promises and covenants contained herein, and intending to be legally bound, the Company and Contractor agree as follows:
1. | The term of Contractors engagement shall commence on June 1, 2018 and shall continue in effect until December 31, 2020 (the Term). |
2. | During the Term, Contractor shall provide the services described in Exhibit A (the Services), which is hereby incorporated by reference. |
3. | It is understood and agreed that all services which Contractor performs for the Company shall be as an independent contractor and not as an employee. Nothing herein shall be deemed to create an employer-employee relationship between the Company and Contractor. |
4. | In consideration of the Services and the other covenants and agreements of the Contractor set forth herein, Contractor will receive the consulting fees based on the payment schedule set forth on Exhibit A . Notwithstanding anything to the contrary set forth herein, the compensation provided for in this Section 4 shall constitute full payment for the Services. |
5. |
By Contractors engagement and/or affiliation with the Company, Contractor will continue to acquire sensitive and valuable information about the Company and, inter alia , the franchisees, prospective franchisees, financial data, price and business negotiations, human resources and compensation structures and strategies, developing products and services, and business techniques of the Company and Company Affiliates (as defined below) (Confidential Information). Contractor further acknowledges and agrees that by engaging Contractor, the Company will allow Contractor to perform services for firms, corporations and other associations and business enterprises which Contractor may solicit as franchisees of the Company or Company Affiliates, and in so doing, Contractor will utilize the Companys, and Company Affiliates, ideas, techniques, expertise and other Confidential Information in establishing a rapport with such franchisees. To protect the Confidential Information, the Companys and Company Affiliates valuable franchisee and employee relationships, as well as the goodwill acquired pursuant to that certain Asset Purchase Agreement dated September 13, 2016 among Red Lion Hotels Franchising, Inc., Red Lion Hotels |
Canada Franchising, Inc., Thirty-Eight Street, Inc., Vantage Hospitality Group, Inc. and certain other Sellers listed on the signature pages thereto (as amended, the Purchase Agreement), Contractor hereby agrees to comply with all of the restrictive covenants set forth in Section 6.7 of the Purchase Agreement, each of which is incorporated herein by reference as if fully set forth herein (the Restrictive Covenants). Contractor agrees that the applicable period of each such restrictive covenant shall be tolled during any period of time in which Contractor is determined by a court of competent jurisdiction or an arbitrator to be in breach or violation of the terms thereof, in order that the Company and/or any Company Affiliate shall have all of the agreed-upon temporal protection thereunder. The provisions of this Section 5 shall survive any termination or expiration of this Agreement. |
6. | During the Term and for a period of two (2) years following the termination or expiration of this Agreement, Contractor agrees not to criticize, denigrate or disparage the Company or any of its past and present parents, subsidiaries, divisions, related or affiliated entities, and all officers, directors, agents, insurers, attorneys, employees, or trustees of any or all of the aforesaid entities (the Company Affiliates) nor the Companys business. |
7. | During the Term and for a period of two (2) years following the termination or expiration of this Agreement, no executive vice president or higher or member of the boards of directors of the Company shall be authorized or permitted to publicly disparage or defame or publish any negative statements (or encourage other employees to do so) regarding Contractor. |
8. | Notwithstanding anything to the contrary set forth herein, nothing in Section 6 or Section 7 shall prevent (i) any person or entity from providing truthful testimony or statements in any legal proceeding or taking any action as may otherwise be required by law, (ii) the Company or any Company Affiliate from reviewing and/or commenting internally or to Contractor regarding Contractors performance of Contractors duties under this Agreement, (iii) any person or entity from asserting claims against the other in connection with any litigation or arbitration by or between or among them or (iv) Contractor from reporting conduct to, providing truthful information to or participating in any investigation or proceeding conducted by any federal or state governmental agency or self-regulatory organization. |
9. |
The Company may terminate Contractors engagement for Cause at any time during the Term. For purposes of this Agreement, Cause means (a) Contractor is charged with, is convicted of, or pleads guilty or nolo contendere to, a crime involving moral turpitude or any felony; (b) Contractor engages in conduct that constitutes gross neglect or gross misconduct in carrying out the Services; (c) Contractor breaches any material provision(s) of this Agreement or fails to perform any material duty or duties under this Agreement; (d) Contractor engages in conduct that constitutes theft, fraud, embezzlement or dishonesty with respect to the Company; or (e) Contractor engages in any conduct which reasonably could be expected to be materially detrimental or injurious to the business or reputation |
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of the Company or any of its affiliates. Subject to the applicable cure periods referenced in the immediately following sentence, the Company may terminate immediately Contractors engagement for Cause by written notice to Contractor in accordance with Section 30 of this Agreement (the Final Cause Notice). Notwithstanding the foregoing, before Contractor is terminated for Cause under subsection (c) (other than with respect to a breach of the Restrictive Covenants for which there shall be no cure), the Company will notify Contractor in writing of the Cause determination in a Notice of Proposed Termination explaining in reasonable detail the breach, failure or conduct constituting Cause and if such breach, failure or conduct is capable of being cured, the Company will give Contractor 30 days (the Cure Period) to remedy such breach, failure or conduct; provided, however, that if Contractor receives two such Notices of Proposed Termination for Cause within any given 24-month period during the Term, there shall be no Cure Period with respect to such second Cause event in that same 24-month period. If Contractor fails to remedy the breach, failure or conduct constituting Cause by the expiration of the Cure Period, then the Company may terminate Contractors engagement immediately for Cause by providing a Final Cause Notice to Contractor in accordance with Section 30 of this Agreement. |
10. | The Company may, at any time during the Term, in its sole discretion, by written notice to the Contractor (the Service Cessation Notice), elect to have the Contractor cease providing the Services to the Company; provided, however, that the Company shall continue to pay the fees set forth on Exhibit A through the remainder of the Term (subject to any subsequent termination for Cause pursuant to Section 9 above). Upon receipt of any Service Cessation Notice, the Contractor shall immediately cease providing the Services and shall no longer hold himself out as working with or for, or representing, the Company in any way. |
11. | Contractor shall not be eligible for any Company-paid benefits, including, but not limited to, medical, disability or other insurance, retirement benefits, vacation, holiday or sick pay, or any other compensation or consideration commonly known as fringe benefits. |
12. | Contractor shall be responsible for all expenses incurred in connection with services rendered under this Agreement and shall not be reimbursed by the Company for any expenses incurred, except for reasonable and documented travel expenses in accordance with Company reimbursement policies for travel approved in advance by the Company. |
13. | Contractors place of work shall be Contractors own office, not the Companys workplace. |
14. | The Company will not establish hours or days of work for Contractor. |
15. | Contractor has no authority to bind, obligate or contract on behalf of the Company, except as authorized to do so in writing by the Companys Chief Executive Officer. |
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16. | Contractor is neither required to submit regular reports to the Company nor to attend the Companys general employee meetings. However, Contractor may be required periodically to inform the Company of the status of Contractors work. |
17. | Contractor shall be solely responsible for any tax consequences applicable to Contractor by reason of this Agreement and the relationship established hereunder, and the Company shall not be responsible for the payment of any federal, state or local taxes or contributions imposed under any employment insurance, social security, income tax or other tax law or regulation with respect to Contractors performance of consulting services hereunder. Contractor acknowledges that Contractor will not be treated as an employee of the Company. The Company will issue to Contractor a 1099 Form as required by law. |
18. | Contractor acknowledges that Contractor is being retained for a defined period of time to perform specific Services and that there is no guarantee of continued compensation or work thereafter. The Company will not control the manner and method by which the Contractor renders services. In particular, and by way of example only, Contractor shall control the sequence in which various services are performed. |
19. | It is the duty of Contractor to obtain and continue to acquire on Contractors own all the skills, instruction and training needed to perform the expected services. The Company shall not provide to Contractor training or instruction of any type. |
20. | Other than as restricted by the Restrictive Covenants, Contractor shall be free to provide services to other organizations or companies during the Term or otherwise; provided, however, that if Contractor takes other work during the Term, such work cannot interfere with Contractors work for the Company. |
21. | Contractor shall not be eligible for workers compensation insurance from the Company and shall be solely responsible for any injuries or damages that Contractor may sustain in the course of performing work pursuant to this Agreement. |
22. | Contractor shall defend, indemnify and hold harmless the Company from any and all liability, damages, suits and losses, including attorneys fees, arising out of Contractors performance under this Agreement, including, but not limited to, any injuries or damages that Contractor may sustain in the course of performing work pursuant to this Agreement. Company shall defend, indemnify and hold harmless the Contractor from any and all liability, damages, suits and losses, including attorneys fees, arising out of Companys breach of this Agreement. |
23. | In the event of the death of Contractor during the Term, this Agreement shall terminate effective as of the date of Contractors death, and the Company shall not have any further obligation or liability under this Agreement, except that the Company shall pay to Contractor any consulting fees accrued and any reimbursable expenses incurred by Contractor prior to such date. |
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24. | As an inducement to the Company to enter into this Agreement, Contractor hereby represents and warrants to the Company that: (a) Contractor is not a party to or otherwise subject to any agreements or restrictions that would prohibit Contractor from entering into this Agreement and carrying out the transactions contemplated by this Agreement in accordance with the terms hereof; and (b) this Agreement and the transactions contemplated hereby will not infringe or conflict with, and are not inconsistent with, the rights of any other person or entity. |
25. | This Agreement, together with Section 6.7 of the Purchase Agreement, and the letter agreement dated of even date herewith among Contractor, Company and other parties to the Purchase Agreement constitutes the entire agreement between the parties, supersedes and is in lieu of any and all other consulting, employment and compensation arrangements or understandings, oral or written, between the parties, and may be modified only by a writing signed by both parties. |
26. | The provisions of this Agreement that by their terms are intended to endure beyond the term of this Agreement shall survive the termination of this Agreement. |
27. | If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified or restricted or as if such provision had not been originally incorporated herein, as the case may be. |
28. | This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Nevada. |
29. | Contractor hereby consents and agrees that the Company may assign this Agreement and any of the rights or obligations hereunder to any third party in connection with the sale, merger, consolidation, reorganization, liquidation or transfer, in whole or in part, of the Companys control and/or ownership of its assets or business. In such event, Contractor agrees to continue to be bound by the terms of this Agreement. This Agreement and the obligations created hereunder may not be assigned by Contractor. Any attempted assignment in violation of this Section 29 shall be null and void. |
30. |
Any notices required or permitted hereunder shall be given to Contractor at the address specified below or at such other address as Contractor shall specify in writing. Any notices to the Company shall be given to the Company at its business headquarters. Notice shall be deemed given upon personal delivery to the appropriate address or if sent by certified or registered mail three (3) days after the date of mailing or one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. Any party may from time to |
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time change such partys address for the purpose of notices to that party by a similar notice specifying a new address, but no such change shall be deemed to have been given until it is actually received by the party sought to be charged with its contents. |
31. | No claim or right arising out of a breach or default under this Agreement shall be discharged in whole or in part by a waiver of that claim or right unless the waiver is supported by consideration and is in writing and executed by the aggrieved party hereto or such partys duly authorized agent. A waiver by any party hereto of a breach or default by the other party hereto of any provision of this Agreement shall not be deemed a waiver of future compliance therewith, and such provisions shall remain in full force and effect. |
32. | This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile or other electronic copies, such as .pdf files delivered by electronic mail, of signatures shall constitute original signatures for all purposes of this Agreement and any enforcement hereof. |
[Signature page follows.]
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IN WITNESS HEREOF , the parties have executed this Agreement on the day and year first above written, intending to be legally bound.
RED LION HOTELS CORPORATION | ||||||
|
By: |
|
||||
Name of Contractor: Roger Bloss | Name: | |||||
Title: | ||||||
Social Security Number : | ||||||
|
Address :
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EXHIBIT A
SERVICES; FEE SCHEDULE
Services:
| As requested by the Company, consult with the Company with regard to continuing brand development and operations and transition efforts with respect to Contractors retirement as an employee of the Company. |
| Attend and participate in the annual brand conference. |
| Act as liaison with hotel owners with whom the Contractor has a relationship, at the Companys request. |
| Provide such other strategic advice, input or feedback that the Company reasonably requests. |
Fee Schedule :
$10,000 per month during the Term.
In addition, Contractor shall each be eligible for a mutually agreed referral fee for any new hotel franchisee referred to the Company that enters into a franchise agreement for a Red Lion brand. Such referral fee shall be determined by the parties in good faith on a case-by-case basis.
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Exhibit 10.2
EXECUTION VERSION
INDEPENDENT CONTRACTOR AGREEMENT
This INDEPENDENT CONTRACTOR AGREEMENT (this Agreement) is made as of May 21, 2018 between Red Lion Hotels Corporation, a Washington corporation (hereinafter called the Company), and Bernard T. Moyle, an individual (hereinafter called Contractor).
The parties hereto wish to enter into this Agreement to set forth the basis on which Contractor will perform consulting services for the Company and with respect to certain other matters in connection with such engagement, all as set forth more fully in this Agreement.
In consideration of the facts, mutual promises and covenants contained herein, and intending to be legally bound, the Company and Contractor agree as follows:
1. | The term of Contractors engagement shall commence on June 1, 2018 and shall continue in effect until December 31, 2020 (the Term). |
2. | During the Term, Contractor shall provide the services described in Exhibit A (the Services), which is hereby incorporated by reference. |
3. | It is understood and agreed that all services which Contractor performs for the Company shall be as an independent contractor and not as an employee. Nothing herein shall be deemed to create an employer-employee relationship between the Company and Contractor. |
4. | In consideration of the Services and the other covenants and agreements of the Contractor set forth herein, Contractor will receive the consulting fees based on the payment schedule set forth on Exhibit A . Notwithstanding anything to the contrary set forth herein, the compensation provided for in this Section 4 shall constitute full payment for the Services. |
5. |
By Contractors engagement and/or affiliation with the Company, Contractor will continue to acquire sensitive and valuable information about the Company and, inter alia , the franchisees, prospective franchisees, financial data, price and business negotiations, human resources and compensation structures and strategies, developing products and services, and business techniques of the Company and Company Affiliates (as defined below) (Confidential Information). Contractor further acknowledges and agrees that by engaging Contractor, the Company will allow Contractor to perform services for firms, corporations and other associations and business enterprises which Contractor may solicit as franchisees of the Company or Company Affiliates, and in so doing, Contractor will utilize the Companys, and Company Affiliates, ideas, techniques, expertise and other Confidential Information in establishing a rapport with such franchisees. To protect the Confidential Information, the Companys and Company Affiliates valuable franchisee and employee relationships, as well as the goodwill acquired pursuant to that certain Asset Purchase Agreement dated September 13, 2016 among Red Lion Hotels Franchising, Inc., Red Lion Hotels |
Canada Franchising, Inc., Thirty-Eight Street, Inc., Vantage Hospitality Group, Inc. and certain other Sellers listed on the signature pages thereto (as amended, the Purchase Agreement), Contractor hereby agrees to comply with all of the restrictive covenants set forth in Section 6.7 of the Purchase Agreement, each of which is incorporated herein by reference as if fully set forth herein (the Restrictive Covenants). Contractor agrees that the applicable period of each such restrictive covenant shall be tolled during any period of time in which Contractor is determined by a court of competent jurisdiction or an arbitrator to be in breach or violation of the terms thereof, in order that the Company and/or any Company Affiliate shall have all of the agreed-upon temporal protection thereunder. The provisions of this Section 5 shall survive any termination or expiration of this Agreement. |
6. | During the Term and for a period of two (2) years following the termination or expiration of this Agreement, Contractor agrees not to criticize, denigrate or disparage the Company or any of its past and present parents, subsidiaries, divisions, related or affiliated entities, and all officers, directors, agents, insurers, attorneys, employees, or trustees of any or all of the aforesaid entities (the Company Affiliates) nor the Companys business. |
7. | During the Term and for a period of two (2) years following the termination or expiration of this Agreement, no executive vice president or higher or member of the boards of directors of the Company shall be authorized or permitted to publicly disparage or defame or publish any negative statements (or encourage other employees to do so) regarding Contractor. |
8. | Notwithstanding anything to the contrary set forth herein, nothing in Section 6 or Section 7 shall prevent (i) any person or entity from providing truthful testimony or statements in any legal proceeding or taking any action as may otherwise be required by law, (ii) the Company or any Company Affiliate from reviewing and/or commenting internally or to Contractor regarding Contractors performance of Contractors duties under this Agreement, (iii) any person or entity from asserting claims against the other in connection with any litigation or arbitration by or between or among them or (iv) Contractor from reporting conduct to, providing truthful information to or participating in any investigation or proceeding conducted by any federal or state governmental agency or self-regulatory organization. |
9. |
The Company may terminate Contractors engagement for Cause at any time during the Term. For purposes of this Agreement, Cause means (a) Contractor is charged with, is convicted of, or pleads guilty or nolo contendere to, a crime involving moral turpitude or any felony; (b) Contractor engages in conduct that constitutes gross neglect or gross misconduct in carrying out the Services; (c) Contractor breaches any material provision(s) of this Agreement or fails to perform any material duty or duties under this Agreement; (d) Contractor engages in conduct that constitutes theft, fraud, embezzlement or dishonesty with respect to the Company; or (e) Contractor engages in any conduct which reasonably could be expected to be materially detrimental or injurious to the business or reputation |
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of the Company or any of its affiliates. Subject to the applicable cure periods referenced in the immediately following sentence, the Company may terminate immediately Contractors engagement for Cause by written notice to Contractor in accordance with Section 30 of this Agreement (the Final Cause Notice). Notwithstanding the foregoing, before Contractor is terminated for Cause under subsection (c) (other than with respect to a breach of the Restrictive Covenants for which there shall be no cure), the Company will notify Contractor in writing of the Cause determination in a Notice of Proposed Termination explaining in reasonable detail the breach, failure or conduct constituting Cause and if such breach, failure or conduct is capable of being cured, the Company will give Contractor 30 days (the Cure Period) to remedy such breach, failure or conduct; provided, however, that if Contractor receives two such Notices of Proposed Termination for Cause within any given 24-month period during the Term, there shall be no Cure Period with respect to such second Cause event in that same 24-month period. If Contractor fails to remedy the breach, failure or conduct constituting Cause by the expiration of the Cure Period, then the Company may terminate Contractors engagement immediately for Cause by providing a Final Cause Notice to Contractor in accordance with Section 30 of this Agreement. |
10. | The Company may, at any time during the Term, in its sole discretion, by written notice to the Contractor (the Service Cessation Notice), elect to have the Contractor cease providing the Services to the Company; provided, however, that the Company shall continue to pay the fees set forth on Exhibit A through the remainder of the Term (subject to any subsequent termination for Cause pursuant to Section 9 above). Upon receipt of any Service Cessation Notice, the Contractor shall immediately cease providing the Services and shall no longer hold himself out as working with or for, or representing, the Company in any way. |
11. | Contractor shall not be eligible for any Company-paid benefits, including, but not limited to, medical, disability or other insurance, retirement benefits, vacation, holiday or sick pay, or any other compensation or consideration commonly known as fringe benefits. |
12. | Contractor shall be responsible for all expenses incurred in connection with services rendered under this Agreement and shall not be reimbursed by the Company for any expenses incurred, except for reasonable and documented travel expenses in accordance with Company reimbursement policies for travel approved in advance by the Company. |
13. | Contractors place of work shall be Contractors own office, not the Companys workplace. |
14. | The Company will not establish hours or days of work for Contractor. |
15. | Contractor has no authority to bind, obligate or contract on behalf of the Company, except as authorized to do so in writing by the Companys Chief Executive Officer. |
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16. | Contractor is neither required to submit regular reports to the Company nor to attend the Companys general employee meetings. However, Contractor may be required periodically to inform the Company of the status of Contractors work. |
17. | Contractor shall be solely responsible for any tax consequences applicable to Contractor by reason of this Agreement and the relationship established hereunder, and the Company shall not be responsible for the payment of any federal, state or local taxes or contributions imposed under any employment insurance, social security, income tax or other tax law or regulation with respect to Contractors performance of consulting services hereunder. Contractor acknowledges that Contractor will not be treated as an employee of the Company. The Company will issue to Contractor a 1099 Form as required by law. |
18. | Contractor acknowledges that Contractor is being retained for a defined period of time to perform specific Services and that there is no guarantee of continued compensation or work thereafter. The Company will not control the manner and method by which the Contractor renders services. In particular, and by way of example only, Contractor shall control the sequence in which various services are performed. |
19. | It is the duty of Contractor to obtain and continue to acquire on Contractors own all the skills, instruction and training needed to perform the expected services. The Company shall not provide to Contractor training or instruction of any type. |
20. | Other than as restricted by the Restrictive Covenants, Contractor shall be free to provide services to other organizations or companies during the Term or otherwise; provided, however, that if Contractor takes other work during the Term, such work cannot interfere with Contractors work for the Company. |
21. | Contractor shall not be eligible for workers compensation insurance from the Company and shall be solely responsible for any injuries or damages that Contractor may sustain in the course of performing work pursuant to this Agreement. |
22. | Contractor shall defend, indemnify and hold harmless the Company from any and all liability, damages, suits and losses, including attorneys fees, arising out of Contractors performance under this Agreement, including, but not limited to, any injuries or damages that Contractor may sustain in the course of performing work pursuant to this Agreement. Company shall defend, indemnify and hold harmless the Contractor from any and all liability, damages, suits and losses, including attorneys fees, arising out of Companys breach of this Agreement. |
23. | In the event of the death of Contractor during the Term, this Agreement shall terminate effective as of the date of Contractors death, and the Company shall not have any further obligation or liability under this Agreement, except that the Company shall pay to Contractor any consulting fees accrued and any reimbursable expenses incurred by Contractor prior to such date. |
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24. | As an inducement to the Company to enter into this Agreement, Contractor hereby represents and warrants to the Company that: (a) Contractor is not a party to or otherwise subject to any agreements or restrictions that would prohibit Contractor from entering into this Agreement and carrying out the transactions contemplated by this Agreement in accordance with the terms hereof; and (b) this Agreement and the transactions contemplated hereby will not infringe or conflict with, and are not inconsistent with, the rights of any other person or entity. |
25. | This Agreement, together with Section 6.7 of the Purchase Agreement, and the letter agreement dated of even date herewith among Contractor, Company and other parties to the Purchase Agreement constitutes the entire agreement between the parties, supersedes and is in lieu of any and all other consulting, employment and compensation arrangements or understandings, oral or written, between the parties, and may be modified only by a writing signed by both parties. |
26. | The provisions of this Agreement that by their terms are intended to endure beyond the term of this Agreement shall survive the termination of this Agreement. |
27. | If any provision of this Agreement shall be invalid or unenforceable, in whole or in part, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified or restricted or as if such provision had not been originally incorporated herein, as the case may be. |
28. | This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Florida. |
29. | Contractor hereby consents and agrees that the Company may assign this Agreement and any of the rights or obligations hereunder to any third party in connection with the sale, merger, consolidation, reorganization, liquidation or transfer, in whole or in part, of the Companys control and/or ownership of its assets or business. In such event, Contractor agrees to continue to be bound by the terms of this Agreement. This Agreement and the obligations created hereunder may not be assigned by Contractor. Any attempted assignment in violation of this Section 29 shall be null and void. |
30. |
Any notices required or permitted hereunder shall be given to Contractor at the address specified below or at such other address as Contractor shall specify in writing. Any notices to the Company shall be given to the Company at its business headquarters. Notice shall be deemed given upon personal delivery to the appropriate address or if sent by certified or registered mail three (3) days after the date of mailing or one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. Any party may from time to |
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time change such partys address for the purpose of notices to that party by a similar notice specifying a new address, but no such change shall be deemed to have been given until it is actually received by the party sought to be charged with its contents. |
31. | No claim or right arising out of a breach or default under this Agreement shall be discharged in whole or in part by a waiver of that claim or right unless the waiver is supported by consideration and is in writing and executed by the aggrieved party hereto or such partys duly authorized agent. A waiver by any party hereto of a breach or default by the other party hereto of any provision of this Agreement shall not be deemed a waiver of future compliance therewith, and such provisions shall remain in full force and effect. |
32. | This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile or other electronic copies, such as .pdf files delivered by electronic mail, of signatures shall constitute original signatures for all purposes of this Agreement and any enforcement hereof. |
[Signature page follows.]
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IN WITNESS HEREOF , the parties have executed this Agreement on the day and year first above written, intending to be legally bound.
RED LION HOTELS CORPORATION | ||||||
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By: |
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Name of Contractor: Bernard T. Moyle | Name: | |||||
Title: | ||||||
Social Security Number: | ||||||
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Address: |
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EXHIBIT A
SERVICES; FEE SCHEDULE
Services:
| As requested by the Company, consult with the Company with regard to continuing brand development and operations and transition efforts with respect to Contractors retirement as an employee of the Company. |
| Attend and participate in the annual brand conference. |
| Act as liaison with hotel owners with whom the Contractor has a relationship, at the Companys request. |
| Provide such other strategic advice, input or feedback that the Company reasonably requests. |
Fee Schedule :
$10,000 per month during the Term.
In addition, Contractor shall each be eligible for a mutually agreed referral fee for any new hotel franchisee referred to the Company that enters into a franchise agreement for a Red Lion brand. Such referral fee shall be determined by the parties in good faith on a case-by-case basis.
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Exhibit 10.3
EXECUTION VERSION
RED LION HOTELS CORPORATION
May 21, 2018
VIA EMAIL
Roger Bloss
Executive Vice President and
President of Global Development
Roger.Bloss@rlhco.com
Bernie Moyle
Executive Vice President and
Chief Operating Officer
Bernie.Moyle@rlhco.com
Re: | Second Year Earn-Out, Resignations and Consulting Arrangements |
Dear Roger and Bernie:
Reference is hereby made to the following documents:
A. that certain Asset Purchase Agreement (the Purchase Agreement), dated as of September 13, 2016, by and among Red Lion Hotels Franchising, Inc. (RL Franchising), Red Lion Hotels Canada Franchising, Inc. (RL Canada and, together with RL Franchising, Buyer), Thirty-Eight Street, Inc. (TESI), Vantage Hospitality Group, Inc. (Vantage) and certain other Sellers listed on the signature pages thereto (together with TESI and Vantage, the Sellers), pursuant to which, among other things, the Sellers sold to Buyer, and Buyer purchased from Sellers, certain assets used in connection with the Business;
B. those certain Employment Agreements, dated October 1, 2016, by and between Red Lion Hotels Corporation (RLH) and each of Roger Bloss (Bloss) and Bernie Moyle (Moyle) (such agreements, collectively, the Employment Agreements); and
C. that certain letter, dated April 27, 2018, from Gregory T. Mount, on behalf of RLH, to Bloss and Moyle, regarding a non-binding proposal with respect to the matters addressed in this letter agreement (the Proposal).
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Purchase Agreement.
In consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, intending to be legally bound, the parties hereto agree as follows:
1. Second Year Earn-Out . Notwithstanding the Second Anniversary Earn-Out Calculation or any other provision to the contrary in the Purchase Agreement, the Additional Consideration to be paid/issued with respect to the Second Year Earn-Out shall be the full amount of $3,000,000 and 276,000 Shares (subject to adjustment pursuant to Section 2.8(n) of the Purchase Agreement) (collectively, the Second Year Additional Consideration). Buyer shall (1) pay the Second Year Additional Consideration in accordance with the percentage indicated next to each Sellers name on Exhibit B attached to the Purchase Agreement and (2) issue the Additional Consideration consisting of Shares to TESI, in each case on or before October 5, 2018 (the Second Year Earn-Out Payment Date). Notwithstanding anything to the contrary herein, in the event that RLH terminates either of Bloss or Moyle for Cause (as defined in their respective Independent Contractor Agreement) prior to the Second Year Earn-Out Payment Date, the Second Year Earn-Out shall be $2,250,000 and 207,000 Shares.
2. Resignation . On the date hereof, each of Bloss and Moyle shall sign and deliver to RLH a letter of voluntary resignation, substantially in the form attached hereto as Exhibit A .
3. Consulting Agreements . On the date hereof, each of Bloss and Moyle shall sign and deliver to RLH, and RLH shall sign and deliver to each of Bloss and Moyle, an Independent Contractor Agreement, substantially in the form agreed upon by RLH, Bloss and Moyle.
4. Release by Moyle and Bloss . Each of Moyle and Bloss (collectively, the Releasors) hereby release and forever discharge, to the maximum extent permitted by law, RLH and each of the other Releasees as defined below, from any and all claims, causes of action, complaints, lawsuits, demands or liabilities of any kind, known or unknown by the Releasors, those that the Releasors may have already asserted or raised as well as those that the Releasors have never asserted or raised (collectively Claims) as described below which the Releasors, their heirs, agents, administrators or executors have or may have against RLH or any of the other Releasees arising out of or relating to any conduct, matter, event or omission existing or occurring before you sign this letter agreement, and any monetary or other personal relief for such Claims, including, but not limited to the following: (i) any Claims having anything to do with the Releasors employment (including the cessation of the Releasors employment and termination of their Employment Agreements) with RLH and/or any of its subsidiary, related and/or affiliated companies; (ii) any Claims for severance, benefits, bonuses, incentive compensation, equity awards and interests, commissions and/or other compensation of any kind, including, but not limited to, under the Employment Agreements; (iii) any Claims for reimbursement of expenses of any kind; (iv) any Claims for attorneys fees or costs; (v) any Claims under the Employee Retirement Income Security Act (ERISA); (vi) any Claims of discrimination and/or harassment based on age, sex, pregnancy, race, religion, color, creed, disability, handicap, failure to accommodate, citizenship, marital status, national origin, ancestry, sexual orientation, gender identity, genetic information or any other factor protected by federal, state or local law as enacted or amended (such as Title VII of the Civil Rights Act of 1964, Section 1981 of the Civil Rights Act of 1866, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Americans with Disabilities Act, the Equal Pay Act,
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the Genetic Information Non-Discrimination Act, the Florida Civil Rights Act, Florida Equal Pay Law, Nevada Fair Employment Practices Act, and the Nevada Equal Pay Act) and any Claims for retaliation under any of the foregoing laws; (vii) any Claims under the Family and Medical Leave Act; (viii) any whistleblower or retaliation Claims; (ix) any Claims under such Releasors Employment Agreement; and/or (x) any other statutory, regulatory, common law or other Claims of any kind, including, but not limited to, Claims for breach of contract, libel, slander, fraud, wrongful discharge, promissory estoppel, equitable estoppel, violation of public policy, invasion of privacy, misrepresentation, emotional distress or pain and suffering. The term Releasees means RLH and its direct or indirect subsidiaries, related and/ or affiliated companies, and each of their respective past and present employees, officers, directors, attorneys, owners, shareholders, members, managers, partners, insurers, benefit plan fiduciaries and agents, and all of their respective successors and assigns.
5. Release by RLH . RLH hereby freely, knowingly and irrevocably releases and discharges Moyle and Bloss, and their heirs, executors, administrators, legal representatives and assigns, from any and all claims, causes of action, complaints, lawsuits or liabilities of any kind (collectively, Causes of Action) based on whatever legal theory, arising from or relating to, directly or indirectly, Moyles and/or Blosss employment and/or contractor relationship with RLH, except for Causes of Action relating to breach of fiduciary duties, fraud, embezzlement, theft or other criminal misconduct during Moyles and/or Blosss employment or contractor relationship with RLH. RLH is not aware at this time of any basis to assert any breach of fiduciary duty, fraud, embezzlement, theft or other criminal misconduct claim against Moyle or Bloss.
6. Non-Released Claims . The release in Paragraphs 4 and 5 above do not apply to:
(a) With respect to Moyle and Bloss: (i) Claims for salary earned, and reasonable work-related expenses incurred and submitted for reimbursement in accordance with RLHs reimbursement policy, prior to the termination of the Employment Agreements; (ii) any Claims as an equityholder of RLH;
(b) With respect to Moyle, Bloss and RLH: (i) any Claims to require RLH or Causes of Action to require Moyle or Bloss, and/or their respective affiliates, to honor commitments in the Purchase Agreement, the Independent Contractor Agreements or this letter agreement; (ii) any Claims or Causes of Action to interpret or to determine the scope, meaning, enforceability or effect of this letter agreement; (iii) any Claims or Causes of Action that arise after the Releasors or RLH have signed this letter agreement; and (iv) any other Claims (including applicable employment claims) and Causes of Action that cannot be waived under applicable law by a private agreement.
7. Cooperation . Each party hereto shall cooperate with the other parties hereto in messaging the retirement of Bloss and Moyle from RLH, including, with respect to Bloss and Moyle, providing reasonably requested quotes for press releases and participating in live or recorded interviews reasonably requested by RLH using talking points approved by RLH and, with respect to RLH, providing draft press releases relating to such retirement to Bloss and Moyle for review and reasonable input. Nothing herein is intended to restrict RLH from making any disclosures that it deems necessary in its sole discretion to comply with applicable securities laws.
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8. Entire Agreement; Amendment . This letter agreement, together with the Independent Contractor Agreements, constitutes the entire agreement and understanding of the parties with respect to the matters contained herein, and supersedes all prior agreements, understandings and representations, written or oral, to the extent that they relate in any way to the subject matter of this letter agreement, including, but not limited to, the Proposal. Any amendment or supplement to this letter agreement shall be made only with the consent of all parties hereto. Any such amendment or supplement shall be made in writing and signed by all of the parties hereto.
9. Further Assurances . The parties hereto shall execute and deliver all such further documents and instruments and take all such further action as may be necessary, or as any such party may reasonably request, in order to consummate the transactions contemplated hereby.
10. Counterparts; Electronic Delivery . This letter agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of such shall together constitute one and the same instrument. Facsimile or other electronic copies (such as .pdf files delivered by electronic mail) of signatures shall constitute original signatures for all purposes of this letter agreement and any enforcement hereof.
11. Governing Law . This letter agreement and the terms hereof shall be governed and construed in accordance with the laws of the State of Delaware, without regard to any applicable principles of conflicts of law or choice of law that would cause the substantive laws of any other jurisdiction to apply.
SIGNATURE PAGES FOLLOW
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If the foregoing accurately and completely represents our understanding, please sign and return a copy of this letter agreement whereupon it shall become a binding agreement among us.
Sincerely, | ||
RED LION HOTELS CORPORATION | ||
By: |
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Name: | ||
Title: | ||
RED LION HOTELS FRANCHISING, INC. | ||
By: |
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Name: | ||
Title: | ||
RED LION HOTELS CANADA | ||
FRANCHISING, INC. | ||
By: |
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Name: | ||
Title: |
Signature Page to Letter Agreement
The above terms are accepted and approved as of May 21, 2018:
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Roger J. Bloss |
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Bernard T. Moyle |
ACKNOWLEDGED AND AGREED AS TO
PARAGRAPH 1:
THIRTY-EIGHT STREET, INC. | ||
By: |
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Name: | ||
Title: | ||
Date: | ||
VHGI, INC. (f/k/a Vantage Hospitality Group, Inc.) |
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By: |
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Name: | ||
Title: | ||
Date: |
Signature Page to Letter Agreement
EXHIBIT A
RESIGNATION
I hereby (1) resign from all of my officer and other similar roles with Red Lion Hotels Corporation, a Washington corporation (RLH) and (2) acknowledge, and agree to, the termination of my Employment Agreement, dated October 1, 2016, with RLH, in each case effective as of 5:00 p.m. PDT on May 31, 2018. I acknowledge that I am resigning from the foregoing positions voluntarily, and not as a result of any disagreement with RLH or its affiliates, management or board of directors.
Date: May , 2018
Print Name: |
A-1
Exhibit 10.4
EXECUTION VERSION
FIRST AMENDMENT TO
ASSET PURCHASE AGREEMENT
This FIRST AMENDMENT TO ASSET PURCHASE AGREEMENT (this Amendment ) is entered into as of May 21, 2018 by and among Red Lion Hotels Franchising, Inc., a Washington corporation ( RL Franchising ), Red Lion Hotels Canada Franchising, Inc., a Washington corporation ( RL Canada and, together with RL Franchising, the Buyer ), Thirty-Eight Street, Inc., a Florida corporation (TESI), VHGI, Inc. (f/k/a Vantage Hospitality Group, Inc., a Florida corporation ( Vantage ), Vantage Franchising, Inc., a Florida corporation ( VFI ), Vantage Franchising (Canada) Inc., a British Columbia, Canada corporation ( VFCI ), Vantage Hospitality (Canada) Inc., a British Columbia, Canada corporation ( VHCI ), LHINDI, Inc.), a Florida corporation ( LHINDI ), Van Asia (Korea) Ltd., a Hong Kong corporation ( VAKL ), and Van Asia, Ltd., a Hong Kong corporation ( VAL and, together with TESI, Vantage, VFI, VFCI, VHCI, LHINDI and VAKL, the Sellers ).
BACKGROUND
WHEREAS, the Buyer and the Sellers entered into that certain Asset Purchase Agreement, dated as of September 13, 2016 (the Purchase Agreement ), pursuant to which, among other things, the Sellers sold to the Buyer, and the Buyer purchased from the Sellers, the Purchased Assets;
WHEREAS, Roger J. Bloss ( Bloss ) and Bernard T. Moyle ( Moyle ) acknowledged and agreed to the Purchase Agreement for the purposes of Section 6.7 and 6.19 thereof;
WHEREAS, Section 6.7 of the Purchase Agreement imposes restrictive covenants relating to non-competition and non-solicitation (the Restrictive Covenants ) on the Sellers, Bloss and Moyle;
WHEREAS, the parties hereto desire to amend the Restrictive Covenants as they apply to Bloss and Moyle; and
WHEREAS, Section 10.9 of the Purchase Agreement provides that the Purchase Agreement can be amended by an agreement in writing signed by each party thereto.
NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby consent and agree as follows:
1. Defined Terms . Capitalized terms used but not otherwise defined herein have the meanings given to such terms in the Purchase Agreement.
2. Purchase Agreement Amendment .
(a) Article I of the Purchase Agreement is hereby amended as follows:
(i) to add the following defined term:
Restricted Period shall mean, with respect to the Sellers, Bloss and Moyle, a period commencing on the Closing Date and expiring on December 31, 2020.
(ii) to amend and restate the following defined term:
Restricted Business shall mean (1) acting as or on behalf of a franchisor or brand owner of hotels in the Territory or (2) pursuing any franchise or brand membership opportunities in the Territory.
(b) Section 6.7(a) of the Purchase Agreement is hereby amended and restated in its entirety to read as follows:
(a) During the Restricted Period, neither any Seller nor Moyle or Bloss (each, a Restricted Party and, collectively, the Restricted Parties ) shall directly or indirectly, (i) engage in or assist others in engaging in the Restricted Business in the Territory; (ii) have an interest in any Person that engages directly or indirectly in the Restricted Business in the Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or consultant; or (iii) cause, induce or solicit any material actual or prospective franchise, supplier or licensor of the Business (including any existing or former franchise of any Seller and any Person that becomes a franchise of the Business after the Closing), or any other Person who has a material business relationship with the Business, to terminate or adversely modify any such actual or prospective relationship. Notwithstanding the foregoing, (i) the Sellers or Moyle or Bloss may own, directly or indirectly, solely as an investment, securities of any Person if such Seller, directly or indirectly, owns five percent (5%) or less of any class of securities of such Person and (ii) as set forth on Schedule 6.7(a) . The parties hereto acknowledge that TESI, Cal-Vegas, Ltd. and their respective Affiliated entities have and will continue to develop, own and/or manage hotel properties and provide services typical of such businesses; provided, however, that such entities shall not engage in the Restricted Business during the Restricted Period. During the Restricted Period, each Restricted Party will promptly notify Buyer in the event that it pursues (which for this purpose will not include merely assessing) any hotel acquisition, development, management or operating opportunities in the Territory.
3. Effect of Amendment; Miscellaneous . Except as specifically modified hereby, all of the terms and provisions of the Purchase Agreement shall remain in full force and effect, without modification or limitation. This Amendment shall be governed by all of the provisions of the Purchase Agreement, unless the context otherwise requires, including, without limitation, all provisions concerning construction, interpretation, enforcement and governing law. For purposes of the Purchase Agreement the term Agreement shall be deemed to mean the Purchase Agreement, as amended by this Amendment.
4. Counterparts; Electronic Delivery . This Amendment may be executed in one or more counterparts, each of which shall be an original, and all of which together shall constitute one agreement between the parties. Delivery of an executed counterpart of this Amendment by facsimile or electronic mail in portable document format (.pdf) shall have the same effect as delivery of an executed original of this Amendment.
SIGNATURE PAGES FOLLOW
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IN WITNESS WHEREOF, each of the parties hereto have executed this Amendment as of the date first written above.
RED LION HOTELS FRANCHISING, INC. | ||
By: |
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Name: Thomas L. McKeirnan | ||
Title: Executive Vice President, General Counsel | ||
RED LION HOTELS CANADA FRANCHISING, INC. | ||
By: |
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Name: Thomas L. McKeirnan Title: Executive Vice President, General Counsel |
S IGNATURE P AGE TO F IRST A MENDMENT TO A SSET P URCHASE A GREEMENT
THIRTY-EIGHT STREET, INC. | ||
By: |
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Name: Roger J. Bloss Title: President and CEO |
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VJGI, INC. (f/k/a Vantage Hospitality Group, Inc.) |
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By: |
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Name: Roger J. Bloss Title: President and CEO |
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VANTAGE FRANCHISING, INC. | ||
By: |
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Name: Roger J. Bloss Title: President |
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VANTAGE FRANCHISING (CANADA) INC. | ||
By: |
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Name: Roger J. Bloss Title: President and CEO |
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VANTAGE HOSPITALITY (CANADA) INC. | ||
By: |
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Name: Roger J. Bloss Title: President and CEO |
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LHINDI, INC. | ||
By: |
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Name: Roger J. Bloss Title: President |
S IGNATURE P AGE TO F IRST A MENDMENT TO A SSET P URCHASE A GREEMENT
VAN ASIA (KOREA) LTD. | ||
By: |
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Name: Roger J. Bloss Title: President |
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VAN ASIA, LTD. | ||
By: |
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Name: Roger J. Bloss Title: President |
S IGNATURE P AGE TO F IRST A MENDMENT TO A SSET P URCHASE A GREEMENT
Acknowledged and agreed:
BLOSS: |
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Roger J. Bloss |
MOYLE: |
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Bernard T. Moyle |
S IGNATURE P AGE TO F IRST A MENDMENT TO A SSET P URCHASE A GREEMENT
Exhibit 99.1
RLH CORPORATION ANNOUNCES LONG TERM CONSULTING
AGREEMENT WITH KEY EXECUTIVES
Bloss and Moyle to continue service to Company through 2020
DENVER (May 22, 2018) RLH Corporation (NYSE:RLH) today announced it has entered into consulting agreements with key executives Roger Bloss, President of Global Development, and Bernard (Bernie) Moyle, Chief Operating Officer, which will continue through 2020. Bloss and Moyle have agreed to end their employment with the Company effective May 31, 2018, and start their consulting work on June 1, 2018.
Roger and Bernie built a distinctive and highly successful platform of brands, including the expansive Americas Best Value Inn, said RLH Corporation President and Chief Executive Officer Greg Mount. Since we acquired those brands from Vantage in October 2016, Roger and Bernie have worked relentlessly as part of our team to successfully integrate those brands and their more than 1,000 hotels into the RLH Corporation network. Due in large part to their efforts, RLH Corporation brands are poised for continued aggressive growth in the coming years. We are looking forward to our continued relationship with Roger and Bernie and their continued support of the company.
In recognition of this successful brand integration, RLH Corporation has also agreed to guarantee an earn-out payment in October 2018 in the amount of $3,000,000 and 276,000 shares of RLH Corporation stock as described in the agreements documenting the 2016 acquisition.
Bernie and I, along with the help of many key players, have reached the culmination of an acquisition that secures the long-term success of the Americas Best Value Inn brands we worked so hard to grow, said Roger Bloss. It is gratifying that the many hotel owners with whom we have developed relationships over the years are now in the hands of a franchisor that is a leader in the critical current technology necessary for successful brand growth. We are also excited that our next generation of leaders are thriving with new opportunities for development at RLH Corporation. We feel thoroughly validated in our decision to join the company, and we are happy to agree to step out of executive roles now to make room for further forward momentum while at the same time continuing our relationship as consultants. We look forward to working with RLH Corporation as we refocus much of our effort on the pursuit of management, development and ownership of hotel properties, which we expect to include opportunities to brand hotels with RLHC.
I am very thankful for the hard work Bernie and Roger have put in over the last two years, added Mount. I know they will continue to influence the company through their consulting roles, while having the freedom to grow their personal businesses. We look forward to the opportunity to recognize them with our franchisees at the RLH Corporation Conference Global Brand Showcase & Expo in Las Vegas, December 10-12.
To learn more about franchising with RLH Corporation, visit franchise.rlhco.com . We dont wait for the future. We create it.
About RLH Corporation
Red Lion Hotels Corporation is an innovative hotel company doing business as RLH Corporation and focuses on the franchising, management and ownership of upscale, midscale and economy hotels. The company focuses on maximizing return on invested capital for hotel owners across North America through relevant brands, industry-leading technology and forward-thinking services. For more information, please visit the companys website at www.rlhco.com .
Social Media:
www.Facebook.com/myhellorewards
www.Twitter.com/myhellorewards
www.Instagram.com/myhellorewards
www.Linkedin.com/company/rlhco
Investor Relations Contact:
Amy Koch
O: 509-777-6417
C: 917-579-5012
investorrelations@rlhco.com
Media Contact:
Dan Schacter
Director, Social Engagement and Public Relations
509-777-6222
dan.schacter@rlhco.com