Common use of Prior Activities Clause in Contracts

Prior Activities. The parties agree that in the event that Hospital either acquires or is acquired by another corporation, person, or other entity (whether by merger, sale of assets, change of membership interest, sale of stock, or otherwise) that has been engaged in any of the activities otherwise prohibited by Section 3(a) for a period of at least one hundred eighty (180) days prior to the date such acquisition is consummated (the "Prior Activities"), provided that the Prior Activities are not all or a substantial portion of the business activities of such corporation, person or other entity, then Section 3(a) shall not apply to such Prior Activities in the Restricted Area during the Restricted Period, so long as the surviving corporation, person, or other entity to such acquisition does not materially expand the scope of such Prior Activities during the Restricted Period.