Common use of Competition Restriction Clause in Contracts

Competition Restriction. In the event the Executive is terminated for cause under Paragraph 7 or improperly terminates his own employment hereunder, then during the period beginning on the date of termination of the Executive's employment and continuing for two (2) years after such date, the Executive shall not, without the prior approval of the Arrow Board, certified to him by the Secretary or Acting Secretary of Arrow, become an officer, employee, agent, partner or director of any other business in substantial competition with the Bank, Arrow, or any other company or bank affiliated with Arrow, including any branch or office of any of the foregoing. Such restriction shall apply to any such other business doing business in any county in the State of New York in which Arrow, the Bank or any such other affiliated company or bank is then conducting any material business or into which, to the knowledge of the Executive at the time of such termination, any such entity has immediate plans to expand its activities in material respects. The provisions of this Paragraph 8 shall not apply in the event that the Executive becomes a Retired Early Employee under Paragraph 6 or the Executive's employment terminates in accordance with the first sentence of Paragraph 2. It is the intention of the parties to restrict the activities of the Executive under this Paragraph 9 only to the extent necessary for the protection of the legitimate business interests of Arrow, and the parties specifically covenant and agree that should any of the clauses or provisions of the competition restriction set forth herein, under any set of circumstances, be held by a court of competent jurisdiction to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, then and in that event, the court so holding may reduce the business or territory to which such restriction pertains and/or the period of time during which it operates, or effect any other change to the extent necessary to render such restriction enforceable by said court.