Common use of Confidential Information, Non-Solicitation and Non-Competition Clause in Contracts

Confidential Information, Non-Solicitation and Non-Competition. (a) During the Term of Employment and for a period of one year following the date Executive ceases to be employed by the Company (the “Non-Compete Period”) for any reason, including, but not limited to, termination with or without Cause or Resignation for Good Reason, with the exception of a termination of employment after a Change of Control (as defined above in Section 5(c)(ii)) in the event a successor to the Company and Executive have not reached a mutually acceptable employment agreement prior to termination, Executive shall not, directly or indirectly, engage in, work for, consult or provide advice or assistance to any Named Competitor (as defined below) within the United States and its territories and protectorates. “Named Competitor” shall mean any company that derives more than 50% of its annual revenues from the provision of high mix electronic manufacturing services to original equipment manufacturers in the semiconductor capital equipment, aerospace and defense electronics, computer peripherals, medical equipment, industrial controls, telecommunications equipment and/or electronic instrumentation industries. Executive further agrees that during the Non-Compete Period he will not assist or encourage any other person in carrying out any activity that would be prohibited by the provisions of this Section 6 if such activity were carried out by Executive and, in particular, Executive agrees that he will not induce any employee of the Company to carry out any such activity; provided, however, that the “beneficial ownership” by Executive, either individually or as a member of a “group,” as such terms are used in Rule 13d of the General Rules and Regulations under the Exchange Act, of not more than five percent (5%) of the voting stock of any publicly held corporation shall not be a violation of this Agreement.

Appears in 2 contracts

Samples: Employment Agreement (Suntron Corp), Employment Agreement (Suntron Corp)

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Confidential Information, Non-Solicitation and Non-Competition. (a) During the Term of Employment and for a period of one year eighteen months following the date Executive ceases to be employed by the Company for any reason (the “Non-"Non- Compete Period”) for any reason, including, but not limited to, termination with or without Cause or Resignation for Good Reason, with the exception of a termination of employment after a Change of Control (as defined above in Section 5(c)(ii")) in the event a successor to the Company and Executive have not reached a mutually acceptable employment agreement prior to termination, Executive shall not, directly or indirectly, engage in, work for, consult or provide advice or assistance to any Named Competitor (as defined below) within the United States and its territories and protectorates. "Named Competitor" shall mean any company that derives more than 50% of its annual revenues from the provision of high mix electronic manufacturing services to original equipment manufacturers in the semiconductor capital equipment, aerospace and defense electronics, computer peripherals, medical equipment, industrial controls, telecommunications equipment and/or and electronic instrumentation industries. Executive further agrees that during the Non-Compete Period he will not assist give material assistance or encourage encouragement to any other person in carrying out any activity that would be prohibited by the provisions of this Section 6 if such activity were carried out by Executive Executive, or give any assistance or encouragement to any other person in carrying out any such activity for the purpose of competing against the Company, and, in particular, Executive agrees that he will not induce any employee of the Company to carry out any such activity; provided, however, that the "beneficial ownership" by Executive, either individually or as a member of a "group," as such terms are used in Rule 13d of the General Rules and Regulations under the Exchange Act, of not more than five percent (5%) of the voting stock of any publicly held corporation shall not be a violation of this Agreement. Notwithstanding the foregoing, this Section 6(a) shall not apply if Executive is terminated by the Company prior to January 17, 2001, for any reason other than for Cause.

Appears in 2 contracts

Samples: Employment Agreement (Suntek Corp), Employment Agreement (Eftc Corp/)

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