Common use of Covenant and Obligation Not to Compete Clause in Contracts

Covenant and Obligation Not to Compete. As part of the inducement to WWC to enter into this Agreement, and in separate consideration for the Purchase Price paid or to be paid for the Purchased Assets, Seller and Xxx Xxxx and Xxxxxx Xxx Xxxxxxxxx, as officers and principal shareholders of Seller ("Principals"), hereby agree as follows: 7.1 Seller and Principals shall not compete with WWC by engaging in any line of business that involves the manufacture, sale, distribution or marketing of spread-spectrum radios or related technology or of any product that is also manufactured, sold, distributed or marketed by WWC, nor shall Seller and Principals provide services, whether as of officers, directors, employees or consultants, paid or unpaid, for or with any company or enterprise which competes with WWC in the manufacture, sale, distribution or marketing products. 7.2 This obligation not to compete shall have effect in all geographical regions, states, countries and territories throughout the world from or into which WWC manufactures, sells, distributes or markets its products, and remain, in effect for a period of five (5) years from the Closing Date. 7.3 The parties agree that damages resulting from any violation of this covenant not to compete are difficult to quantify and are thus subject to agreement of liquidated damages. Thus, in case of a violation of the above obligation not to compete, any one of Seller or Principals as shall be in violation hereof shall pay to WWC liquidated damages of $10,000.00. Should such person, despite receipt of a further written warning letter from WWC, continue such violation, said person shall pay an additional $95,000 per month during each month that such violation continues. These rights and obligations are not exclusive and shall not preempt any additional claims or rights available to WWC, including rights to pursue additional damages and to seer; court orders requiring discontinuance of the prohibited conduct, all of which rights are expressly reserved.

Covenant and Obligation Not to Compete. As part of the inducement to WWC to enter into this Agreement, and in separate consideration for the Purchase Price paid or to be paid for the Purchased Assets, Seller and Xxx Xxxx Bob Hall and Xxxxxx Xxx XxxxxxxxxGerald Van Mondfrans, as officers and principal shareholders xx xxxicers xxx xxxxxxxxx xxxxxholders of Seller ("Principals"), hereby agree as follows: 7.1 Seller and Principals shall not compete with WWC by engaging in any line of business that involves the manufacture, sale, distribution or marketing of spread-spectrum radios or related technology or of any product that is also manufactured, sold, distributed or marketed by WWC, nor shall Seller and Principals provide services, whether as of officers, directors, employees or consultants, paid or unpaid, for or with any company or enterprise which competes with WWC in the manufacture, sale, distribution or marketing products. 7.2 This obligation not to compete shall have effect in all geographical regions, states, countries and territories throughout the world from or into which WWC manufactures, sells, distributes or markets its products, and remain, in effect for a period of five (5) years from the Closing Date. 7.3 The parties agree that damages resulting from any violation of this covenant not to compete are difficult to quantify and are thus subject to agreement of liquidated damages. Thus, in case of a violation of the above obligation not to compete, any one of Seller or Principals as shall be in violation hereof shall pay to WWC liquidated damages of $10,000.00. Should such person, despite receipt of a further written warning letter from WWC, continue such violation, said person shall pay an additional $95,000 per month during each month that such violation continues. These rights and obligations are not exclusive and shall not preempt any additional claims or rights available to WWC, including rights to pursue additional damages and to seer; court orders requiring discontinuance of the prohibited conduct, all of which rights are expressly reserved.

Covenant and Obligation Not to Compete. As part of the inducement to WWC to enter into this Agreement, and in separate consideration for the Purchase Price paid or to be paid for the Purchased Assets, Seller and Xxx Xxxx and Xxxxxx Xxx Xxxxxxxxx, as officers and principal shareholders of Seller ("Principals"), hereby agree as follows: 7.1 Seller and Principals shall not compete with WWC by engaging in any line of business that involves the manufacture, sale, distribution or marketing of spread-spectrum radios or related technology or of any product that is also manufactured, sold, distributed or marketed by WWC, nor shall Seller and Principals provide services, whether as of officers, directors, employees or consultants, paid or unpaid, for or with any company or enterprise which competes with WWC in the manufacture, sale, distribution or marketing products. 7.2 This obligation not to compete shall have effect in all geographical regions, states, countries and territories throughout the world from or into which WWC manufactures, sells, distributes or markets its products, and remain, in effect for a period of five (5) years from the Closing Date. 7.3 The parties agree that damages resulting from any violation of this covenant not to compete are difficult to quantify and are thus subject to agreement of liquidated damages. Thus, in case of a violation of the above obligation not to compete, any one of Seller or Principals as shall be in violation hereof shall pay to WWC liquidated damages of $10,000.00. Should such person, despite receipt of a further written warning letter from WWC, continue such violation, said person shall pay an additional $95,000 per month during each month that such violation continues. These rights and obligations are not exclusive and shall not preempt any additional claims or rights available to WWC, including rights to pursue additional damages and to seer; court orders requiring discontinuance discontiuance of the prohibited conduct, all of which rights are expressly reserved.